ORD 751

Summary:    An ordinance amending Title 3, Chapter 5 of the Ely City Code requiring gaming license applicants who intend to operate between 16 and 40 slot machines to have a restaurant and bar or at least 30 hotel rooms, and applicants who intend to operate more than 40 slot machines must have at least 30 hotel rooms; defining restaurant and bar; and requiring such related information on a city gaming application.

Title:

Proposed ordinance amending Title 3, Chapter 5, Section 13 of the Ely City Code to require gaming license applicants who intend to operate 16 to 40 slot machines to have a restaurant and bar or at least 30 hotel rooms; applicants who intend to operate more than 40 slot machines must have at least 30 hotel rooms; and providing other matters relating thereto.

Whereas,    NRS 268.001 establishes the City’s authority to regulate matters of local concern;

Whereas,    NRS 266.105 empowers the Ely City Council to pass ordinances necessary for the municipal government and the management of the affairs of the City, for the execution of all powers vested in the City, and for making effective the provisions of Chapter 266 of the Nevada Revised Statutes;

Whereas,    NRS 266.355 grants the City the authority to regulate all business, trades and professions;

Whereas,   NRS 463.190 is a specific grant of authority for the City to establish the requirements for obtaining a city gaming license;

Whereas,   it is an appropriate exercise of the licensing power to require non-restricted gaming establishments to also operate restaurant, bars, and hotel rooms (see e.g., per NRS 463.1605 and NRS 463.01865); and

Therefore,    pursuant to the above and in the best interest of the citizens of Ely, the City Council of the City of Ely, State of Nevada, does hereby amend, adopt and otherwise ordain the following to Title 3, Chapter 5, Section 13 of the Ely City Code:

TITLE 3
BUSINESS AND LICENSE REGULATIONS

CHAPTER 5
GAMBLING

3-5-2: DEFINITIONS:

For the purpose of this chapter, the following words and phrases have the meanings ascribed to them by this section:

APPLICANT: Any natural person, firm, association of persons, corporation, partnership, limited partnership or limited liability company requesting licensing under the provisions of this chapter.

APPLICATION: A request for issuance of a city gaming license.

BAR: A "bar" is a physical structure with a flat horizontal counter, which fully encompasses the main work area of the bartender(s) or attendant(s), including the point of sale system or cash register, on one side of which alcoholic liquors are kept, maintained, and prepared and where seats are placed for at least twenty (20) patrons to sit on the side opposite from where the alcoholic liquor is kept, and where the sale and service of alcoholic beverages are by the drink across such structure for consumption on the premises.

BOARD: The City of Ely Gaming Licensing Board.

CLERK OF THE BOARD: The City Clerk or City Administrator.

EMERGENCY: A sudden or unexpected or unforeseen health or safety hazard calling for immediate action or remedy to safeguard the public health, safety, morals or welfare of the inhabitants of the City.

GAME OR GAMBLING GAME: Any game played with cards, dice, equipment or any mechanical, electromechanical or electronic device or machine for money, property, checks, credit or any representative of value, including, without limiting the generality of the foregoing, faro, monte, roulette, keno, bingo, fan-tan, twenty-one, blackjack, seven-and-a-half, big injun, klondike, craps, poker, chuck-a-luck, Chinese chuck-a-luck (dai shu), wheel of fortune, chemin de fer, baccarat, pai gow, beat the banker, panguingui, slot machine, any banking or percentage game or any other game or device approved by the Nevada Gaming Commission, but does not include games played with cards in private homes or residences in which no person makes money for operating the game, except as a player, or games operated by charitable or educational organization which are approved by the Nevada Gaming Control Board pursuant to the provision of Nevada Revised Statutes 463.409.

GAMING DEVICE: Any equipment or mechanical, electromechanical or electronic contrivance, component or machine used remotely or directly in connection with gaming or any game which affects the result of a wager by determining win or loss.

GAMING ESTABLISHMENT: Any premises wherein or whereon any gaming is done.

GAMING LICENSE: Any license issued by the State, the County or the City which authorizes the person named therein to engage in gaming or pari-mutuel wagering.

GAMING OR GAMBLING: To deal, operate, carry on, conduct, maintain or expose for play any "game" as defined herein.

LICENSEE: Any person to whom a valid gaming license has been issued by the State of Nevada, the County or the City.

NONRESTRICTED GAMING LICENSE: A gaming license for, or an operation consisting of, sixteen (16) or more slot machines or any number of slot machines together with any other game, gaming device, race book or sports pool.

QUARTER: A period of three (3) consecutive months commencing on January 1, April 1, July 1 or October 1 in any year.

REGULATION: A rule, standard, directive or statement of general applicability which effectuates law or policy, or describes the procedure or requirements for practicing before the Ely City Liquor/Licensing Board.

RESTAURANT: "Restaurant" means a space in a suitable building kept, used, maintained, advertised and held out to be a public place where hot, full-sized, complete meals are prepared and cooked on the premises, ordered from and served by waiters or waitresses to tables or booths providing a seating capacity for at least forty (40) persons in a room separate from the kitchen and open to the public at least eight (8) hours each day and at least six (6) day each week. All meals shall be selected and ordered by the customer from tables or booths and from a prepared menu at a stipulated price. The restaurant must allow admittance of minors and the dining room shall be divided and separated from the gambling, bar and/or lounge area by a full structural barrier from floor to ceiling sufficient to exclude noise and smoke from the dining area and minors from the gambling, bar, and/or lounge area. The stools at the bar, or seats in a lounge or outside dining area, are not included as restaurant seating.

RESTRICTED GAMING LICENSE: A gaming license for, or an operation consisting of fifteen (15) or less slot machines and no other game, gaming device, race book or sports pool, as defined by Nevada Revised Statutes 463.0189. (Ord. 702, 4-13-2017)

3-5-12: LICENSE APPLICATION:

   A.   Every person, firm, association of persons or corporation desiring to engage in the offer or conduct of entertainment by gambling game or gaming in the City shall make an application to the City Clerk/City Administrator for a license in such form as prescribed by the board. A separate license must be obtained for each location at which a gaming establishment is operated.

   B.   The applicant must furnish a complete description of the premises in which the applicant desires to carry on or conduct the slot machine, device or game, together with the location of the building, its street number, if any, and any other information by which it may be definitely and readily located and recognized.

C. The applicant must state definitely the particular type of slot machine or the particular game or device and the number of games or devices which the applicant desires to carry on or conduct in the room and/or premises.

   D.   If the applicant intends to operate more than 16 slot machines, the applicant must provide the name and type of the restaurant and bar with their respective patron capacities, if applicable, and/or the name of the hotel/motel and the number of hotel/motel rooms, if applicable.

   E.   The application must be fully completed, and all required supplemental documents and information must be submitted with the application. No application shall be deemed to have been filed until such time as it is complete in all respects, and the board may reject for filing any application not completed on its face.

   F.   The applicant or, if the applicant is a nonnatural person, its authorized signatory, must sign and verify under penalty of perjury the application and any waivers or releases requested. (Ord. 702, 4-13-2017)

3-5-13: ACTION ON APPLICATION:

 F.   The board may refuse to grant a license to any applicant, even if the State of Nevada has issued a gaming license to the applicant:

      1.   Who, within the last ten (10) years, has been convicted of any felony, any crime of moral turpitude, or any crime of sexual assault or violence; or whoever has been convicted of any crime connected to gaming or gambling games;

      2.   Who is financially insolvent or who has undergone a prior bankruptcy proceeding filed by or against him, her or it that resulted in creditors receiving less than the total amount of money owed them;

      3.   Who has a history of financial instability;

      4.   Whose stated financial condition is inadequate or insufficient to offer or conduct entertainment by gambling game or gaming;

      5.   Who makes any untrue statement of a material fact in any application, notice, statement or report filed with the board in compliance with the provisions of this chapter, or willfully omits to state in any such application, notice, statement or report any material fact which is required to be stated therein, or omits to state a material fact necessary to make the facts stated in view of the circumstances under which they were stated, not misleading;

      6.   Who has any financial interest in, or connection with any business which is illegal where such business is located;

      7.   Whose license location under the provisions of this chapter would be contrary to the health, safety, morals or general welfare of the residents of the City;

      8.   Who is under twenty-one (21) years of age at the time of application;

      9.   Whose gaming license issued under this chapter, or in any other jurisdiction, was revoked for cause;

      10.   Who, at the time of application for renewal of any license issued under this chapter, would not be eligible for such license upon first application;

      11.   A corporation, unless it is incorporated in Nevada, or unless it is a foreign corporation which is qualified under Nevada law to transact business in the State; or

12. Who is found to be unsuitable for any other material reason, provided that reason is declared by the board on the record during the consideration of the application.

G. The board shall refuse to grant a license to any applicant, even if the State of Nevada has issued a gaming license to the applicant:

1. Who intends to operate sixteen (16) or more slot machines but not more than forty (40) slot machines, unless that establishment also offers the following services that are maintained and held out to the public:

a.   At least one (1) Bar and at least one (1) Restaurant as defined herein; or

b.   At least thirty (30) hotel or motel rooms available for sleeping accommodations.

2. Who intends to operate more than forty (40) slot machines or any number of slot machines together with any other game, gaming device, race book or sports pool at one gaming establishment, unless that establishment also offers the following services that are maintained and held out to the public:

a.   At least thirty (30) hotel or motel rooms available for sleeping accommodations.

I. Sections G(1)-(2) of this Chapter do not apply to any business or its successors and assigns holding a nonrestricted gaming license in the city if the nonrestricted gaming establishment existed and operated in the city before January 1, 2024, unless the nonrestricted gaming operation ceases at the establishment for a period exceeding two (2) years.

J. A block of hotel or motel rooms in an establishment can only support one (1) application for a gaming license. If the owner/operator of the hotel or motel is different from the applicant for the gaming license then the association must be formalized through a written agreement and provided with the license application. “Establishment” for the purposes of this subsection means one (1) or more businesses providing related services pursuant to a written agreement on the same or adjoining parcels of land.

K. Gaming license applicants shall not operate more than one gaming establishment in a single or contiguous location in order to bypass compliance with the provisions herein.

Severability. If any section, paragraph, clause or provision of this ordinance shall be held to be invalid, the invalidity of such section, paragraph, clause or provision shall not affect any of the remaining provisions of this ordinance.

Repeal of Conflicting Ordinances. All ordinances and parts of ordinances in conflict with this ordinance are hereby repealed.

Effective Date. This ordinance shall become effective on January 11, 2024.

Proposing Party. The foregoing ordinance was proposed by Councilman Trask at the regular meeting of the Ely City Council on June 22, 2023, read by title and summary and referred to the City Council of the City of Ely as a committee of the whole.

Notice. Notice of filing of such ordinance was duly given by publication as required by law. It was read in full at the regular meeting on December 14, 2023, and adopted by the following vote:

   VOTE:                AYES      ________3__________

                     NAYES   ________1___________

                     ABSENT   ________1___________

PASSED on the 14th day of December 2023.

APPROVED:                  ATTESTED TO BY:

__________________________________      ___________________________________

NATHAN ROBERTSON, MAYOR      JENNIFER LEE, CITY CLERK

Approved as to form:

__________________________________

M. Leo Cahoon, Ely City Attorney