S 6351: Relates to authorizing and regulating the use of electronic bell jar vending machines; requires responsible placement and operation of electronic bell jar vending machines; allows for geographic considerations for such machine placement.

  
  STATE OF NEW YORK ________________________________________________________________________ 6351 2025-2026 Regular Sessions  IN SENATE March 11, 2025 ___________ Introduced by Sen. ADDABBO -- read twice and ordered printed, and when printed to be committed to the Committee on Racing, Gaming and Wager- ing AN ACT to amend the general municipal law, in relation to electronic bell jar games The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Legislative intent. 1. The legislature hereby finds that: 2 (a) bell jar games are a popular and profitable fundraising mechanism 3 for bona fide not-for-profit organizations across the state, generating 4 millions of dollars in net revenues for charitable purposes every year; 5 (b) authorized organizations that offer bell jars and other games of 6 chance must meet strict standards established by the New York state 7 general municipal law and the New York state gaming commission, includ- 8 ing receiving a license to conduct charitable gaming activities; and 9 (c) while other types of gaming in New York state have continued to 10 expand, modernize and improve, the operation of charitable gaming activ- 11 ities has largely remained the same over the last several decades. 12 2. For the aforementioned reasons, the legislature hereby declares 13 that authorized organizations licensed by the New York state gaming 14 commission to conduct charitable gaming would greatly benefit from the 15 ability to operate electronic bell jar vending machines, which display 16 and dispense pre-printed bell jar tickets that have predetermined 17 winners and predetermined values for prizes, in order to help sustain 18 and increase charitable gaming profits across the state and attract 19 more members to join such organizations. 20 § 2. Subdivision 3-a of section 186 of the general municipal law, as 21 amended by chapter 531 of the laws of 2011, is amended to read as 22 follows: 23 3-a. "Bell jars" shall mean and include those games in which a partic- 24 ipant shall draw a card from a jar, vending machine, including an elec- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD10856-01-5 
 S. 6351 2 1 tronic bell jar vending machine, or other suitable device or container 2 which contains numbers, colors or symbols that are covered and which, 3 when uncovered, may reveal that a prize shall be awarded on the basis of 4 a designated winning number, color or symbol or combination of numbers, 5 colors or symbols. Bell jars shall also include seal cards, coin boards, 6 event games, and merchandise boards. An "electronic bell jar vending 7 machine" shall use electronic features to display and dispense pre- 8 printed bell jar tickets, including audio and video features to display 9 information about a ticket being dispensed, provided that such features 10 do not affect the outcome of the game. 11 § 3. Subdivision 9 of section 188-a of the general municipal law, as 12 added by chapter 960 of the laws of 1976, is amended to read as follows: 13 9. (a) The [board] gaming commission shall have the power to approve 14 and establish a standard set of games of chance equipment and shall by 15 its rules and regulations prescribe the manner in which such equipment 16 is to be reproduced and distributed to licensed authorized organiza- 17 tions. The sale or distribution to a licensed authorized organization of 18 any equipment other than that contained in the standard set of games of 19 chance equipment shall constitute a violation of this section. 20 (b) After the effective date of this paragraph, no electronic bell jar 21 vending machine shall be sold, leased, distributed, installed, or oper- 22 ated by any manufacturer, distributor, or charitable organization until 23 such machine has been approved by the gaming commission. No electronic 24 bell jar vending machine shall be approved by the gaming commission 25 unless the operation of the game demonstrates that there is a finite 26 probability basis of having a predetermined quantity of chances among 27 which there is a predetermined quantity of winners that pay a fixed and 28 predetermined value of prizes, regardless of the symbols that are used 29 or how those symbols are displayed on pre-printed bell jar tickets. 30 § 4. Subdivision 3 of section 189 of the general municipal law, as 31 amended by chapter 337 of the laws of 1998, is amended to read as 32 follows: 33 3. No authorized organization licensed under the provisions of this 34 article shall purchase, lease, or receive any supplies or equipment 35 specifically designed or adapted for use in the conduct of games of 36 chance from other than a supplier licensed by the [board] gaming commis- 37 sion or from another authorized organization. Lease terms and conditions 38 shall be subject to rules and regulations promulgated by the [board] 39 gaming commission. The provisions of this article shall not be 40 construed to authorize or permit an authorized organization to engage in 41 the business of leasing games of chance, supplies, or equipment. 42 Furthermore, no organization shall purchase bell jar tickets[,] or deals 43 of bell jar tickets, or purchase or lease any electronic bell jar vend- 44 ing machine, from any other person or organization other than those 45 specifically authorized under sections one hundred ninety-five-n and one 46 hundred ninety-five-o of this article. 47 § 5. Subparagraph 2 of paragraph (a) of subdivision 6 of section 189 48 of the general municipal law, as amended by section 11 of part MM of 49 chapter 59 of the laws of 2017, is amended to read as follows: 50 (2) six thousand five hundred dollars during the successive operations 51 of any bell jar, coin board or merchandise board. 52 § 6. Subdivision 10 of section 189 of the general municipal law, as 53 amended by chapter 574 of the laws of 1978, is amended to read as 54 follows: 55 10. No person except a bona fide member of the licensed authorized 56 organization [shall participate in the management of such games; no 
 S. 6351 3 1 person except a bona fide member of the licensed authorized organiza- 2 tion], its auxiliary or affiliated organization, shall participate in 3 the operation of such game, as set forth in section one hundred ninety- 4 five-c of this article. 5 § 7. Section 195-c of the general municipal law, as amended by chapter 6 252 of the laws of 1998, is amended to read as follows: 7 § 195-c. [1.] Persons operating games; equipment; expenses; compen- 8 sation. 1. No person shall [operate] manage any game of chance under 9 any license issued under this article except a bona fide member of the 10 authorized organization to which the license is issued, or a bona fide 11 member of an organization or association which is an auxiliary to the 12 licensee or a bona fide member of an organization or association of 13 which such licensee is an auxiliary or a bona fide member of an organ- 14 ization or association which is affiliated with the licensee by being, 15 with it, auxiliary to another organization or association. Nothing here- 16 in shall be construed to limit the number of games of chance licensees 17 for whom such persons may operate games of chance nor to prevent non- 18 members from assisting the licensee in any activity other than managing 19 [or operating] games. No game of chance shall be conducted with any 20 equipment except such as shall be owned or leased by the authorized 21 organization so licensed or used without payment of any compensation 22 therefor by the licensee. However, in no event shall bell jar tickets be 23 transferred from one authorized organization to another, with or without 24 payment of any compensation thereof. The head or heads of the authorized 25 organization shall upon request certify, under oath, that the persons 26 [operating] managing any game of chance are bona fide members of such 27 authorized organization, auxiliary or affiliated organization. Upon 28 request by an officer or the department any such person involved in such 29 games of chance shall certify that [he or she] such person has no crimi- 30 nal record. No items of expense shall be incurred or paid in connection 31 with the conducting of any game of chance pursuant to any license issued 32 under this article except those that are reasonable and are necessarily 33 expended for games of chance supplies and equipment, prizes, security 34 personnel, stated rental if any, bookkeeping or accounting services 35 according to a schedule of compensation prescribed by the board, janito- 36 rial services and utility supplies if any, and license fees, and the 37 cost of [bus] transportation, if authorized by such clerk or department. 38 No commission, salary, compensation, reward or recompense shall be paid 39 or given to any person for the sale or assisting with the sale of raffle 40 tickets. 41 2. For the purpose of the sale of tickets for the game of raffle, the 42 term "operate" shall not include the sale of such tickets by persons of 43 lineal or collateral consanguinity to members of an authorized organiza- 44 tion licensed to conduct a raffle. 45 3. Each electronic bell jar vending machine that has been approved by 46 the gaming commission pursuant to paragraph (b) of subdivision nine of 47 section one hundred eighty-eight-a of this article shall have the abili- 48 ty to: 49 (a) read a barcode or similar form of encryption or marking on the 50 pre-printed bell jar ticket; 51 (b) reveal results and other game information through audio and video 52 displays; 53 (c) verify if a bell jar ticket is redeemable for a prize; 54 (d) electronically aggregate winning prizes for continued play; 55 (e) produce a voucher for prize redemption; and 
 S. 6351 4 1 (f) track the sales of tickets and report such sales to the gaming 2 commission and/or provide the gaming commission with remote access to 3 such reports through a secure portal. 4 4. The following information shall be displayed by each electronic 5 bell jar vending machine: 6 (a) the total number of tickets in each deal, which may not exceed 7 seven thousand five hundred dollars; 8 (b) the price of each ticket; 9 (c) the number and amount of prizes in each deal of tickets; 10 (d) the number of winners per ticket and the respective winning 11 numbers or symbols; 12 (e) the name of the game; 13 (f) the name or logo of the manufacturer of the tickets; and 14 (g) the serial number for the deal of tickets, which such serial 15 number may not be regenerated. 16 5. When a voucher is produced by an electronic bell jar vending 17 machine for prize redemption, the following information shall appear on 18 the voucher: 19 (a) the aggregate prize amount payable to the player; 20 (b) the value of any unused tickets, if any; 21 (c) the device number or other identification method for the electron- 22 ic bell jar vending machine that produced the voucher; 23 (d) the date and time that the voucher was printed; 24 (e) the sequential number of the voucher; 25 (f) a barcode or similar form of secure encryption that may be used to 26 validate the prize amount payable to the player; and 27 (g) the period of time during which unused tickets or prize amounts 28 must be claimed. 29 6. Vouchers may be redeemed from a voucher redemption kiosk physically 30 separate from the electronic bell jar vending machine. When a voucher is 31 redeemed from a voucher redemption kiosk, the voucher information must 32 be processed correctly using secure communication protocols. 33 § 8. Subdivisions 1 and 4 of section 195-n of the general municipal 34 law, as amended by chapter 637 of the laws of 1999, are amended to read 35 as follows: 36 1. Distribution; manufacturers. For business conducted in this state, 37 manufacturers licensed by the [board] gaming commission to sell bell jar 38 tickets or sell or lease electronic bell jar vending machines shall sell 39 only such tickets and vending machines to distributors licensed by the 40 [board] gaming commission. Manufacturers of bell jar tickets, seal 41 cards, merchandise boards, and coin boards [may] shall submit [samples,] 42 artists' renderings, or color photocopies of proposed bell jar tickets, 43 seal cards, merchandise boards, coin boards, payout cards, and flares 44 for review and approval by the [board] gaming commission prior to the 45 sale of the game to any licensed distributor for resale in this state. 46 The gaming commission may require that the manufacturer submit the 47 information required by this section via electronic media or electronic 48 data transfer. Within thirty days of receipt of such sample or render- 49 ing, the [board] gaming commission shall approve or deny such bell jar 50 tickets. [Following approval of a rendering of a bell jar ticket, seal 51 card, merchandise board, or coin board by the board, the manufacturer 52 shall submit to the board a sample of the printed bell jar ticket, seal 53 card, merchandise board, coin board, payout card, and flare for such 54 game. Such sample shall be submitted prior to the sale of the game to 55 any licensed distributor for resale in this state.] For coin boards and 56 merchandise boards, nothing herein shall require the submittal of actual 
 S. 6351 5 1 coins or merchandise as part of the approval process. Any licensed 2 manufacturer who willfully violates the provisions of this section 3 shall: (a) upon such first offense, have their license suspended for a 4 period of thirty days; (b) upon such second offense, participate in a 5 hearing to be conducted by the [board] gaming commission, and surrender 6 their license for such period as recommended by the [board] gaming 7 commission; and (c) upon such third or subsequent offense, have their 8 license suspended for a period of one year and shall be guilty of a 9 class E felony. Any unlicensed manufacturer who violates the provisions 10 of this section shall be guilty of a class E felony. 11 4. Reports of sales. A manufacturer who sells bell jar tickets for 12 resale in this state shall file with the [board] gaming commission, on a 13 form prescribed by the board, a report of all bell jar tickets sold to 14 distributors in the state. The report shall be filed quarterly on or 15 before the twentieth day of the month succeeding the end of the quarter 16 in which the sale was made. The [board] gaming commission may require 17 that the report be submitted via magnetic media or electronic data 18 transfer. Such report shall also include the quantity and machine 19 numbers of any electronic bell jar vending machines sold or leased to a 20 distributor licensed by the gaming commission. 21 § 9. Subdivisions 1, 3, 4 and 5 of section 195-o of the general munic- 22 ipal law, subdivision 1 as amended by chapter 637 of the laws of 1999, 23 subdivisions 3 and 4 as added by chapter 309 of the laws of 1996, and 24 subdivision 5 as amended by section 16 of part MM of chapter 59 of the 25 laws of 2017, are amended to read as follows: 26 1. Distribution; distributors. Any distributor licensed in accordance 27 with section one hundred eighty-nine-a of this article to distribute 28 bell jar tickets or electronic bell jar vending machines shall purchase 29 bell jar tickets and shall purchase or lease electronic bell jar vending 30 machines only from licensed manufacturers and may manufacture coin 31 boards and merchandise boards only as authorized in subdivision one-a of 32 this section. Licensed distributors of bell jar tickets and electronic 33 bell jar vending machines shall sell such tickets and sell or lease such 34 vending machines only to not-for-profit, charitable or religious organ- 35 izations registered by the [board] gaming commission. Any licensed 36 distributor who willfully violates the provisions of this section shall: 37 (a) upon such first offense, have their license suspended for a period 38 of thirty days; (b) upon such second offense, participate in a hearing 39 to be conducted by the [board] gaming commission, and surrender their 40 license for such period as recommended by the [board] gaming commission; 41 and (c) upon such third or subsequent offense, have their license 42 suspended for a period of one year and shall be guilty of a class E 43 felony. Any unlicensed distributor who violates this section shall be 44 guilty of a class E felony. 45 3. Sales records. A distributor shall maintain a record of all bell 46 jar tickets that it sells and all electronic bell jar vending machines 47 that it sells or leases. The record shall include, but need not be 48 limited to: 49 (a) the identity of the manufacturer from whom the distributor 50 purchased or leased the product; 51 (b) the serial number of the product; 52 (c) the name, address, and license or exempt permit number of the 53 organization or person to which the sale was made; 54 (d) the date of the sale; 55 (e) the name of the person who ordered the product; 56 (f) the name of the person who received the product; 
 S. 6351 6 1 (g) the type of product; 2 (h) [the serial number of the product; 3 (i)] the account number identifying the sale or for electronic bell 4 jar vending machines, the lease, from the manufacturer to distributor 5 and the account number identifying the sale from the distributor to the 6 licensed organization; and 7 [(j)] (i) the name, form number, or other identifying information for 8 each game. 9 4. Invoices. (a) A distributor shall supply with each sale of a bell 10 jar product an itemized invoice showing the distributor's name and 11 address, the purchaser's name, address, and license number, the date of 12 the sale, the account number identifying the sale from the manufacturer 13 to distributor and the account number identifying the sale from the 14 distributor to the licensed organization, and the description of the 15 deals, including the form number, the serial number and the ideal gross 16 from every deal of bell jar or similar game. 17 (b) Within five business days after the sale, lease, or distribution 18 of an electronic bell jar vending machine to an authorized organization, 19 the distributor shall provide a copy of an invoice to the gaming commis- 20 sion which shows: 21 (i) the name and address of the authorized organization; 22 (ii) the date of sale, lease or distribution; 23 (iii) the serial number of each electronic bell jar vending machine; 24 and 25 (iv) any additional information as the gaming commission may require. 26 5. Reports. A distributor shall report quarterly to the gaming commis- 27 sion, on a form prescribed by the gaming commission, its sales of each 28 type of bell jar deal or tickets and its sale or lease of each electron- 29 ic bell jar vending machine. This report shall be filed quarterly on or 30 before the twentieth day of the month succeeding the end of the quarter 31 in which the sale or lease was made. The gaming commission may require 32 that a distributor submit the quarterly report and invoices required by 33 this section via electronic media or electronic data transfer. 34 § 10. Section 195-q of the general municipal law is amended by adding 35 a new subdivision 3 to read as follows: 36 3. (a) An authorized organization may only operate electronic bell jar 37 vending machines on premises that it owns or leases. 38 (b) An authorized organization may operate no more than ten electronic 39 bell jar vending machines. In no situation may more than ten electronic 40 bell jar vending machines be operated at any leased premises, no matter 41 how many authorized organizations are co-lessees. 42 (c) No authorized organization may operate electronic bell jar vending 43 machines unless they are a games of chance licensee authorized to 44 conduct bell jar games. 45 (d) Each bell jar vending machine shall generate sales reports and 46 such other information that the gaming commission may direct by regu- 47 lation in order to determine that such machine is operating in accord- 48 ance with the provisions of this chapter. The gaming commission shall 49 have remote and secure access to the electronic bell jar vending 50 machines for the purpose of monitoring and auditing at no cost to the 51 state. 52 (e) Any unclaimed funds or tickets left in any electronic bell jar 53 vending machine shall be retained by the authorized organization and 54 reported as net proceeds. 55 § 11. This act shall take effect January 1, 2026.