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A07553 Summary:

SPONSORRosenthal D
Add §132, ABC L
Provides for skill based amusement games to be licensed and regulated by the state liquor authority; imposes a tax on the revenue earned from such games.
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A07553 Text:

                STATE OF NEW YORK
                               2021-2022 Regular Sessions
                   IN ASSEMBLY
                                      May 13, 2021
        Introduced  by  M.  of  A. D. ROSENTHAL -- read once and referred to the
          Committee on Economic Development
        AN ACT to amend the alcoholic beverage control law, in relation to skill
          based amusement games
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  The alcoholic beverage control law is amended by adding a
     2  new section 132 to read as follows:
     3    § 132. Skill based amusement games. 1. As used in this section, "skill
     4  based amusement game" means a game played in exchange for  consideration
     5  of  cash,  credit  or  other thing of value on a fixed, commercial elec-
     6  trical gaming device consisting of one or more player stations in  which
     7  the  strategy  and skill of the player, rather than any inherent element
     8  of chance, is the primary factor in determining  the  outcome,  and  for
     9  which  the  player  may be awarded a prize or other thing of value for a
    10  successful outcome, and meets the following criteria:
    11    (a) "Skill" means the human attributes of a player such as  knowledge,
    12  dexterity, visual cognition, logic, memory, reaction, strength, agility,
    13  athleticism, hand-to-eye coordination, numerical and/or lexical ability,
    14  or any other ability or expertise relevant to game play.
    15    (b)  A  single  play  on a skill based amusement game shall begin with
    16  consideration and a player action and end when no further  progress  can
    17  be made without additional consideration.
    18    (c)  The  ability  of  any  player to succeed at the game shall not be
    19  impacted by the number or ratio of prior wins to prior losses of players
    20  playing the game, including through the use of a compensating algorithm.
    21    (d) Neither the occurrence of a chance event that cannot be altered by
    22  a player's action nor the output of  a  random  number  generator  shall
    23  determine the outcome of a game.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 7553                             2
     1    (e)  A skill based amusement game shall have no automatic winners, and
     2  no prize shall be awarded without application of the player's skill  and
     3  strategy.
     4    (f)  Increased  game  prizes shall require a higher level of skill and
     5  strategy from the player.
     6    (g) A skill based amusement game shall  require  that  skill  be  used
     7  during the main play of the game and not only at the end of a game.
     8    (h)  The player shall have available a means to win more than the cost
     9  to play on every game played.
    10    (i) The skill required to succeed shall not be  so  difficult  that  a
    11  normal, average person cannot achieve success.
    12    (j)  The player shall have access to information that identifies every
    13  possible award type and such information  shall  be  accessible  at  all
    14  times, except during a game in progress.
    15    (k)  A skill based amusement game on an electrical gaming device shall
    16  not be a facsimile of a casino table game,  card  game,  bingo  game  or
    17  spinning reel game.
    18    (l)  A  user of a skill based amusement game shall be at least twenty-
    19  one years of age.
    20    2. The authority shall license manufacturers, operators and  locations
    21  of skill based amusement games pursuant to rules and regulations promul-
    22  gated  by  the  authority. Fees for such licenses shall be five thousand
    23  dollars for a manufacturer, five hundred dollars for  an  operator,  and
    24  one  hundred  dollars  for a location. Locations shall only be licensees
    25  for sale of alcohol at retail issued pursuant to the provisions of  this
    26  chapter, excluding racetracks and casinos.
    27    3.  Each  manufacturer  shall  provide access to a data collection and
    28  management system to the authority which shall collect  and  report  the
    29  following  information  from  each device: (a) cash in, (b) payouts, (c)
    30  points played, (d) points won, (e) gross terminal income, (f) net termi-
    31  nal revenue, (g) the number of plays of the game, (h) the  amounts  paid
    32  to  play the game, and (i) any other information required by regulations
    33  of the authority.
    34    4. There is hereby imposed a tax of ten percent of gross device reven-
    35  ue. "Gross device revenue" means the total of cash or  cash  equivalents
    36  received by a skill based amusement game terminal device minus the total
    37  of  cash  or cash equivalents paid out to players as a result of playing
    38  such skill based amusement game. Such tax shall be calculated  and  paid
    39  to  the  authority  by each manufacturer on a monthly basis based on the
    40  gross device revenue earned during  the  prior  month.  Taxes  collected
    41  pursuant  to  the  provisions  of this section shall be deposited in the
    42  state general fund.
    43    § 2. This act shall take effect on the ninetieth day  after  it  shall
    44  have  become  a  law.    Effective  immediately, the addition, amendment
    45  and/or repeal of any rule or regulation necessary for the implementation
    46  of this act on  its  effective  date  are  authorized  to  be  made  and
    47  completed on or before such effective date.
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