(A) Social games permitted.
(1) Social games, other than a lottery between players in a private business, private club or in a place of public accommodation where no house player, house bank or house odds exist and there is no house take (meaning no house income from the operation of the social game), and other than a lottery, a game not requiring an application for a license from the state, other than a lottery, between players in a place of public accommodation where no house player, bank, or house odds exist and there is no house income, excluding money earned by a 501(c)(3) nonprofit charitable organization with not more than $2,000 income per event or $5,000 income per year are taken in by the organization.
(2) The applicant must provide proof of tax exempt status with the application, unless the applicant is a public school or a government agency. Acceptable forms of proof include:
(a) A determination letter from the IRS stating that the organization is tax exempt;
(b) A copy of the IRS group exemption letter if the applicant is claiming to be tax exempt under a group exemption; or
(c) A signed opinion letter from an attorney or certified public accountant that states the organization is tax exempt and cites the relevant IRS code section which supports the opinion of the organization’s tax exempt status.
(3) The following will not be accepted as proof of tax exempt status:
(a) IRS form showing tax ID number; or
(b) Any articles of incorporation or organization that solely lists the organization as a nonprofit entity. If the organization believes that the income could be more than $2,000 per event or bring in more than $5,000 within a single tax year, no permit will be issued, and the applicant must show proof of a license from the State of Oregon.
(B) Definitions. Unless the context requires otherwise, all terms set forth in this section shall have the same meaning as set forth in O.R.S. 167.117.
(C) License required for social games. Any person(s), business, private club, nonprofit organization or place of public accommodation desiring to permit patrons or invitees to engage in any social game within the city shall acquire and maintain a valid license from the city. Licenses shall be granted only upon application to the city and upon approval by the City Manager.
(D) Application for license and investigation. The following requirements shall govern the application for and administration of a license under this section.
(1) Application requirements. Before a license for social gaming may be granted by the city, an applicant must submit an application for a license to the City Manager with the following information and allow an investigation to be made thereon at the City Managers discretion. A completed application form must include the true names, dates of birth, and addresses of the business owner(s). The application shall also include the names, dates of birth and addresses of all tournament sponsors if different from owner(s) of the business. The applicant must provide proof of tax exempt status with the application, unless the applicant is a public school or a government agency.
(2) Application renewal. The grantee of a social gaming license must notify the City Manager within 10 days of any change of ownership in the business and request a renewal of its license. At the time of such request, the applicant shall submit the information required by division (D)(1) of this section.
(3) License fee. The City Council shall establish by resolution and from time to time may amend an application and annual renewal fee for each business or other entity or organization licensed under this section.
(4) Standards for issuance of license. The City Manager shall either approve the application and grant the license applied for, or deny the application and refuse to grant the license. The license shall not be granted, or it shall be temporarily revoked or suspended, if the applicant has:
(a) Supplied any false or misleading information in the application or omitted any requested information from the application;
(b) Pleaded no contest to or been convicted of any felony within the last 10 years;
(c) Had a license in his or her name which was revoked or suspended 3 times by the Oregon Liquor Control Commission, any of which was in the last 5 years;
(d) Been convicted and is currently on parole for any crime involving or related to gambling;
(e) Had 2 or more convictions within 5 years for gambling-related activities; or
(f) Violated any provision of this section.
(5) License not transferable. No license shall be assigned or transferred, and any attempt to do so will void the license.
(6) Responsibilities of licensee. It shall be the responsibility of the licensee to ensure that:
(a) No form of unlawful gambling occurs upon the licensed premises.
(b) Social games are conducted consistently with the provisions of state law, City ordinances and this section.
(c) There shall be no house player, house bank or house odds, and there shall be no house income from the operation of the social game.
(d) All social games shall be open to public inspection during all hours of operation.
(e) There are no off-premises signs advertising gambling, card playing, or social games.
(f) The playing of all social games shall be so arranged as to provide equal access and visibility to any interested party.
(g) Persons under 18 years of age are not permitted in the room or enclosure where the social game takes place.
(h) No person under the age of 21 years shall be permitted to participate in a social game.
(I) No charge, other than an entry fee, shall be collected from a player for the privilege of participating in a game.
(j) The room or enclosure where the social games take place is open to free and immediate access by law enforcement officers. Doors leading into the room or enclosure shall remain unlocked during all hours of operation.
(k) No social game shall be conducted between the hours of 2:00 a.m. and 10:00 a.m.
(7) Tournament format required. All social games shall utilize a tournament format, which includes:
(a) A set entry fee;
(b) Players in card games shall receive in-game currency represented by chips (poker type) which shall be non-redeemable;
(c) Contestants shall compete for awards corresponding to a participant’s relative standing at the conclusion of the tournament; and
(d) All entry fees not designated as a charitable donation and monies taken in for the tournament shall be paid to the participants at the conclusion of the tournament. Entry fees shall not include amounts designated at time of event registration to be a charitable donation and thus not part of prize money.
(8) Terms of license. All licenses issued hereunder shall be for a period of 1 year and may be renewed on the first business day of January of each year. Licenses are nontransferable and must be reapplied for at least 30 days prior to the renewal date each year accompanied by the appropriate fee. All persons securing a license after the first business day of January each year shall be required to pay the total annual fee. All renewals shall be approved by the City Manager.
(9) Revocation of license. A license is subject to revocation at any time for violation of this section or any of the provisions of state law related to gambling. If at any time facts arise or become known to the City Manager that are sufficient to show violation of this section or state law, the City Manager shall notify the licensee in writing that the license is to be revoked and that all social gaming activities must cease within 48 hours. The violations need not lead to a conviction, but must establish a reasonable doubt about the licensee’s ability to perform the licensed activity without danger to property or public health or safety. The notice of revocation shall state the reason for the revocation, set a period of no less than 30 days before social gaming activities can recommence and inform the licensee of the procedures for filing an appeal.
(10) Suspension of license. Upon determining that a licensed activity presents an immediate danger to person or property, the City Manager may suspend the license for the activity. The suspension shall take effect immediately upon notice being received by the licensee, or being delivered to the licensee’s business address as stated on the licensee’s application for the license that is being suspended. The notice shall be mailed to the licensee and state the reason for the suspension and inform the licensee of the procedures for filing an appeal. The City Manager may continue the suspension for as long as the reason for the suspension exists or until a decision by the City Council on an appeal regarding the suspension concludes the matter.
(Ord. 2016-09-01, passed 10-11-2016)