§ 120.08  LEASE.
   Lawful gambling at “on-sale” liquor or club license establishments shall be conducted in compliance with the following regulations.
   (A)   “On-sale” establishments shall be limited to one licensed gambling organization at any one time in the licensed premises and any rooms adjoining the premises under the same management. No lease shall be made with one organization while another lease is in effect for the same “on-sale” establishment.
   (B)   Every agreement between a non-profit organization and an “on-sale” premises for gambling shall be in the form of a written lease. The written lease shall be the complete agreement between the parties, and there shall be no unwritten terms or conditions. The lease specifically provides that the lessee shall operate only after issuance of a premises permit and shall be subject to the terms of this chapter.
   (C)   A lease agreement between a non-profit organization and an “on-sale” establishment shall not provide for rental payments based on a percentage of receipts or profits from lawful gambling. The maximum rental fee shall be $1,000 per month.
   (D)   Except for mechanical dispensing devices, all gambling shall be conducted from a booth, or other area properly segregated from the rest of the licensed premises; except that, raffle tickets, paddlewheel tickets and tipboards that offer only merchandise prizes may be sold within the permitted premises. The physical layout of this area set aside for gambling shall be subject to the approval of the Fire Chief.
   (E)   The gambling booth shall be constructed and maintained by the organization licensed to conduct gambling, and shall be under the exclusive control of that organization. The organization licensed to conduct gambling shall prominently display its name at its gambling booth and shall indicate that all profits from gambling are for the benefit of the organization.
   (F)   Except as stated in division (H) below, the organization licensed to conduct gambling shall have exclusive control over all gambling devices, gambling money and gambling records.
   (G)   At a site where the leased premises consists of an area on or behind a bar at which alcoholic beverages are sold and employees of the lessor are employed by the organization as pull-tab sellers at the site, pull-tabs and tipboard tickets may be sold and redeemed by those employees at any place on or behind the bar, but the tipboards and receptacles for pull-tabs and cash drawers for lawful gambling receipts must be maintained only within the leased premises. Employees of a lessor may not participate in lawful gambling on the licensed premises.
   (H)   Neither the owner of the “on-sale” establishment, nor their employees, shall have access to the interior of mechanical dispensing devices. They are only permitted to redeem winning tickets and record such winners as required by law and rule.
   (I)   Payments for redemption of winning pull tab tickets dispensed by mechanical dispensing devices shall be made from funds provided by the “on-sale” establishment, the “on-sale” establishment shall be reimbursed by the lawful gambling organization for winning tickets redeemed by the “on-sale” establishment, reimbursements shall be made as provided in the lease agreement.
   (J)   No gambling funds shall be commingled with funds of the “on-sale” establishment.
   (K)   No food, drink or entertainment discounts or other promotions shall be offered in conjunction with the sale of gambling devices or chances.
   (L)   The “on-sale” establishment shall allow the organization to conduct gambling at any time during its lawful business hours, and shall prohibit gambling at any time other than its lawful business hours.
   (M)   The “on-sale” licensee shall make no agreements with any gambling equipment distributor or manufacturer requiring the use of his or her gambling equipment or any other equipment or vending machines in the establishment. The “on-sale” licensee shall not receive from any gambling equipment distributor or manufacturer any money, gift or other thing of value.
   (N)   Divisions (D), (E), (F), (G), (H), and (I) above shall not apply when the licensed gambling organization is also the holder of the “on-sale” license for the establishment where the gambling is conducted.
   (O)   No employee or agent of the licensed organization or any employee or agent of the “on-sale” establishment shall engage in lawful gambling at the establishment where they are employed.
(1992 Code, § 499:40)  (Ord. 1216, passed 11-16-1999; Ord. 1235, passed 6-20-2000; Ord. 1594, passed 8-20-2019)Penalty, see § 120.99