N.Y.
General Municipal Law Section 195-C
Persons operating games
- equipment
- expenses
- compensation
1.
No person shall operate any game of chance under any license issued under this article except a bona fide member of the authorized organization to which the license is issued, or a bona fide member of an organization or association which is an auxiliary to the licensee or a bona fide member of an organization or association of which such licensee is an auxiliary or a bona fide member of an organization or association which is affiliated with the licensee by being, with it, auxiliary to another organization or association. Nothing herein shall be construed to limit the number of games of chance licensees for whom such persons may operate games of chance nor to prevent non-members from assisting the licensee in any activity other than managing or operating games. No game of chance shall be conducted with any equipment except such as shall be owned or leased by the authorized organization so licensed or used without payment of any compensation therefor by the licensee. However, in no event shall bell jar tickets be transferred from one authorized organization to another, with or without payment of any compensation thereof. The head or heads of the authorized organization shall upon request certify, under oath, that the persons operating any game of chance are bona fide members of such authorized organization, auxiliary or affiliated organization. Upon request by an officer or the department any such person involved in such games of chance shall certify that they have no criminal record. No items of expense shall be incurred or paid in connection with the conducting of any game of chance pursuant to any license issued under this article except those that are reasonable and are necessarily expended for games of chance supplies and equipment, prizes, security personnel, stated rental if any, bookkeeping or accounting services according to a schedule of compensation prescribed by the commission, janitorial services and utility supplies if any, and license fees, and the cost of bus transportation, if authorized by such clerk or department. No commission, salary, compensation, reward or recompense shall be paid or given to any person for the sale or assisting with the sale of raffle tickets.2.
For the purpose of the sale of tickets for the game of raffle, the term “operate” shall not include the sale of such tickets by persons of lineal or collateral consanguinity to members of an authorized organization licensed to conduct a raffle.3.
Each electronic bell jar vending machine that has been approved by the commission pursuant to paragraph (b) of subdivision nine of § 188-A (Powers and duties of the board)section one hundred eighty-eight-a of this article shall do the following:(a)
read a barcode or similar form of encryption or marking on the pre-printed bell jar ticket;(b)
reveal results;(c)
verify if a bell jar ticket is redeemable for a prize;(d)
electronically aggregate winning prizes for continued play;(e)
produce a voucher for prize redemption or proof of purchase;(f)
track the sales of tickets and any other information as required by the commission and report such sales and other information to the commission;(g)
prohibit spinning reels or other representations or audiovisual features that mimic a video lottery terminal or slot machine;(h)
prohibit any electronic user interface that mimics a video slot machine;(i)
prohibit free plays, bonus games, multipliers, jackpots; provided, however, that for purposes of this paragraph, the prohibition on “jackpots” shall not include prizes that may be won on the bell jar ticket itself, subject to limitations set forth in regulations promulgated by the commission, discounts, promotions, special offers, or similar incentives to initiate or prolong player engagement;(j)
prohibit any feature that simulates skill or allows player input to influence the outcome of a predetermined result;(k)
prohibit the display of near-miss outcomes that may mislead a player into believing a win was narrowly missed; and(l)
limit the speed of play to prevent rapid successive wagering as required by regulations promulgated by the commission.4.
The following information shall be displayed by each electronic bell jar vending machine:(a)
the total number of tickets in each deal;(b)
the price of each ticket;(c)
the number and amount of prizes in each deal;(d)
the number of winners per ticket and its respective winning numbers or symbols;(e)
the name of the game;(f)
the name or logo of the manufacturer of the tickets and the electronic bell jar vending machine;(g)
the compulsive gambling hotline telephone number for the state of New York; and(h)
notification that only individuals eighteen years of age or older may use an electronic bell jar vending machine.5.
If a voucher is produced by an electronic bell jar vending machine for prize redemption, the following information shall appear on such voucher:(a)
the aggregate prize amount payable to the player;(b)
the device number or other identification method for the vending machine that produced such voucher;(c)
the date and time that such voucher was printed;(d)
the sequential number or other identification method of such voucher;(e)
an identification number, barcode or similar form of encryption that may be used to validate the prize amount payable to the player; and(f)
the period of time during which unused tickets or prize amounts must be claimed.6.
(a) For the purposes of this subdivision, the following terms shall have the following meanings:(i)
“Active local member” shall mean an individual who participates in the activities of an authorized organization and resides within the county where the authorized organization is located or an adjoining county, as defined by rules promulgated by the commission.(ii)
“Existing authorized organization” shall mean an authorized organization that was licensed to conduct games of chance prior to the effective date of this subdivision.(iii)
“New authorized organization” shall mean an authorized organization that is first licensed to conduct games of chance on or after the effective date of this subdivision.(iv)
“Gaming facility” shall mean any commercial casino, video lottery terminal facility, or tribal gaming facility operating pursuant to state or federal law. Locations of such facilities shall be those identified by the commission.(b)
The maximum number of electronic bell jar vending machines that an existing authorized organization may operate shall be determined based upon the number of its active local members, as follows:(i)
An existing authorized organization with fewer than fifty active local members may operate a maximum number of one electronic bell jar vending machine;(ii)
An existing authorized organization with fifty or more but fewer than one hundred active local members may operate a maximum of two electronic bell jar vending machines;(iii)
An existing authorized organization with one hundred or more active local members but fewer than two hundred active local members may operate a maximum of three electronic bell jar vending machines;(iv)
An existing authorized organization with two hundred or more but fewer than three hundred active local members may operate a maximum of four electronic bell jar vending machines; and(v)
An existing authorized organization with three hundred or more active local members may operate a maximum of five electronic bell jar vending machines.(c)
A new authorized organization may operate a maximum of one electronic bell jar vending machine.(d)
(i) For any authorized organization at a premises located within fifteen miles of any gaming facility, the maximum number of electronic bell jar vending machines that may be operated shall be one, notwithstanding the provisions of paragraph (b) of this subdivision; provided however, that this limitation shall not apply to gaming facilities located within cities with a population of one million or more as of the latest federal decennial census.(ii)
For any authorized organization at a premises located more than fifteen miles but not more than twenty-five miles from any gaming facility, the maximum number of electronic bell jar vending machines that may be operated shall be three, notwithstanding the provisions of paragraph (b) of this subdivision.(iii)
In cities with a population of one million or more as of the latest federal decennial census, the following geographic considerations shall apply, notwithstanding any other provision of this paragraph or paragraph (b) of this subdivision: For any authorized organization at a premises located within two thousand five hundred feet of any gaming facility, the maximum number of electronic bell jar vending machines that may be operated shall be one. The commission shall establish procedures for measuring such distance. For any authorized organization at a premises located more than two thousand five hundred feet but not more than one mile from any gaming facility, the maximum number of electronic bell jar vending machines that may be operated shall be one for new authorized organizations. For existing authorized organizations within this zone, the maximum number of electronic bell jar vending machines shall be two, provided that the commission, in authorizing such machines, considers local market conditions and the objectives of preventing market oversaturation. For any authorized organization at a premises located more than one mile from any gaming facility, the maximum number of electronic bell jar vending machines shall be determined in accordance with paragraphs (b) and (c) of this subdivision, provided that the commission shall retain the discretion to impose stricter limitations based on local density of authorized organizations operating such machines, potential impact on existing gaming facilities, and other local market conditions specific to such city, consistent with the objectives set forth in paragraph (e) of this subdivision. The commission shall, by rule or regulation, further define the methodology for assessing local density and market conditions within such cities and may establish specific zones or areas where the placement of electronic bell jar vending machines is further limited or requires enhanced review, to ensure the responsible integration of such charitable gaming opportunities.(iv)
The commission shall have the authority to establish, by rule or regulation, specific proximity zones around gaming facilities and to modify the limitations provided in subparagraphs (i), (ii), and(iii)
of this paragraph based upon local market conditions, potential impact on existing gaming facilities, and the need to prevent loss of employment at such facilities, provided that any such modification shall be consistent with the objective of supporting charitable fundraising while maintaining the existing gaming landscape and preventing market oversaturation; provided however, that any such modification shall constitute only a reduction of the thresholds established by this subdivision.(e)
(i) Notwithstanding any other provision of this subdivision, the commission shall have the discretion to determine the number of electronic bell jar vending machines that may be operated by any authorized organization, and the location of such machines; provided however, that such number of machines shall not exceed the limits established in this subdivision. Such discretion shall be exercised to ensure that the introduction and operation of electronic bell jar vending machines occurs exclusively to the fundraising capabilities of legitimate charitable organizations while maintaining the stability of existing regulated gaming sectors and revenue to the state, and avoiding any loss of employment at existing gaming facilities.(ii)
The commission may require periodic reporting or verification of active local membership to ensure ongoing compliance with eligibility requirements and may take enforcement action in cases of material misrepresentation or sustained noncompliance. The commission may also take into consideration reasonable and periodic fluctuations in membership to avoid requiring the removal or retirement of electronic bell jar vending machines due to temporary or minimal decreases in membership.(iii)
The commission shall deny, revoke, or limit the number of electronic bell jar vending machines an authorized organization may operate if it determines that such organization has been established, structured, or is being utilized, directly or indirectly, to obtain a greater number of machines than otherwise would be permitted. This includes, but is not limited to, the creation of subsidiary entities, shell organizations, or any other arrangement where the facts and circumstances indicate an intent to circumvent the limitations set forth in this subdivision. The commission is empowered to scrutinize the governance, operational control, and financial interdependence of organizations to make such determinations.(iv)
The co-siting or joint housing of multiple authorized organizations at a single premises or contiguous premises for the primary purpose of increasing the aggregate number of electronic bell jar vending machines at such location beyond what would otherwise be permitted for a single authorized organization operating at such premises is prohibited, unless explicitly authorized by the commission upon a finding that such arrangement is consistent with the public interest and the objectives of this article. The commission shall promulgate rules and regulations to effectuate this provision, considering factors such as shared operational control, membership overlap, and the primary purpose of the co-siting arrangement.7.
The commission shall promulgate such rules and regulations as may be necessary for the implementation of electronic bell jar vending machine gaming in accordance with the provisions of this section, including but not limited to the verification of active local membership numbers and assessment of proximity to gaming facilities.
Source:
Section 195-C — Persons operating games; equipment; expenses; compensation, https://www.nysenate.gov/legislation/laws/GMU/195-C (updated Dec. 26, 2025; accessed Jan. 24, 2026).
