RWB-19-07-00005-P Treasure Chest Raffle and Search for the Queen of Hearts

5/9/07 N.Y. St. Reg. RWB-19-07-00005-P

NEW YORK STATE REGISTER

VOLUME XXIX, ISSUE 19

May 09, 2007

RULE MAKING ACTIVITIES

RACING AND WAGERING BOARD

PROPOSED RULE MAKING

NO HEARING(S) SCHEDULED

 

I.D No. RWB-19-07-00005-P

Treasure Chest Raffle and Search for the Queen of Hearts

PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:

Proposed action:

Addition of sections 5620.23 and 5620.24 to Title 9 NYCRR.

Statutory authority:

General Municipal Law, art. 9-a, sections 186(c) and 188-a

Subject:

Two new games of chance known as the Treasure Chest Raffle and Search for the Queen of Hearts.

Purpose:

To authorize two new games of chance: Treasure Chest Raffle and Search for the Queen of Hearts.

Text of proposed rule:

New section 5620.24 of 9E NYCRR is added to read:

5620.24 Treasure Chest Raffle

a) Equipment. Two different-colored series of two-part, sequentially numbered raffle tickets; two raffle ticket drums or receptacles; a game board; a chest; a lock to secure the chest; and a number of keys predetermined by the licensee and listed in its house rules and on its raffle license application (if applicable). Only two of the keys shall be capable of opening the lock. One of those keys must be marked by the locksmith as a master key, and secured at all times by a member-in-charge; the other key, and all of the remaining (losing) keys, shall be unmarked and maintained in accordance with this section. The game board shall have a number of nails protruding from the board at an angle that permits the keys to be hung on one nail at a time. The number of nails shall be equal to the total number of keys in play at the start of the Treasure Chest Raffle.

b) The Play

1) The licensee shall sell one series of two-part, sequentially numbered raffle tickets designated as Prize Winning Tickets, depositing one part of each ticket sold into the Prize Winning Raffle Ticket Drum or Receptacle and presenting the other part of that ticket to the purchaser to retain as a receipt for verification purposes.

2) The member-in-charge shall remove the licensee's designated percentage of the sales of raffle tickets sold during that occasion as raffle profit, and shall secure those funds for deposit into the special games of chance raffle checking account, if applicable, or other bank account.

3) The member-in-charge shall remove ten percent of the remaining funds, and shall divide that amount into five equal parts that shall be designated as the primary prize pool.

4) The member-in-charge shall insert the remaining prize money (the secondary prize) into the treasure chest and lock it.

5) After a single key is hung on each of the nails, one-half of a different colored series of two-part, serial-numbered tickets designated as Key Tickets shall be affixed to each of the nails, and the other halves of the those tickets shall be deposited into a raffle ticket receptacle designated the Key Ticket Receptacle.

6) All Prize Winning Ticket stubs shall be randomly commingled and thoroughly intermixed in the Prize Winning Ticket Raffle Ticket Drum or Receptacle; five tickets shall be drawn by a licensed member-in-charge from that drum or receptacle; and the five players holding the corresponding ticket stubs shall each be awarded one-fifth of the primary prize pool.

7) The member-in-charge shall draw a Key Ticket from the Key Ticket Receptacle for each of those five players, and each of the keys hanging on the game board under the raffle ticket stubs corresponding with each of the player's stubs is presented to the five winning players. Each player shall attempt to open the lock on the treasure chest using his or her key.

8) If none of the keys opens the lock, the raffle is closed for that occasion; the five Key Tickets are destroyed; and the member in charge removes the keys that did not open the locks from play.

9) At the conclusion of that occasion, the member-in-charge shall remove the cash from the treasure chest using a master key; the losing keys shall be locked in the treasure chest; the Key Ticket receptacle, the Key Tickets therein, and the game board with its remaining keys and Key Tickets shall be securely stored by the member-in-charge; and the remaining cash prize shall be deposited into the games of chance (raffle) checking account (if applicable), where it will remain until that amount is added to the treasure chest immediately prior to the start of the next occasion the Treasure Chest Raffle will be conducted.

10) During the next occasion, 60% of the proceeds from the sale of tickets for that occasion shall be added to the dollar amount reserved from the previous occasion, and the procedures outlined above shall be repeated for a new raffle.

11) The procedures described above shall he repeated during each subsequent occasion until the lock is opened and the winner is awarded the secondary prize.

12) If the secondary prize has not been awarded during an occasion on or about 170 days after the start of ticket sales for a Treasure Chest Raffle, an announcement shall be made during that occasion that the remaining tickets will be drawn during the next bingo occasion until a winner of the secondary prize is awarded.

13) After the secondary prize is awarded, all of the Key Tickets on the game board and in the Key Ticket Receptacle shall be discarded; and all of the keys secured by the member-in-charge.

New section 5620.23 of 9E NYCRR is added to read as follows:

5620.23 Search For The Queen Of Hearts

a) Equipment. A series of two-part, sequentially numbered raffle tickets; two raffle ticket drums or receptacles; a standard deck of fifty-two playing cards plus two Jokers; and a game board onto which fifty-four playing cards can be placed facedown, side-by-side, and held securely by a locking, transparent cover.

b) The Play

1) The licensed authorized organization shall offer a series of two-part, sequentially numbered raffle tickets for sale at a price determined by the licensee. Each player shall write his or her name and telephone number on the licensee's part of the ticket, which shall be deposited into a raffle ticket drum or receptacle. The purchasing player shall retain the other part of the ticket as a receipt for verification purposes. All monies collected from the sale of Raffle Winners' Tickets shall be designated the Grand Prize Pool.

2) The deck of facedown playing cards shall be thoroughly shuffled by a licensed member in charge or assistant to the member in charge and, without revealing any of the faces, placed facedown, side-by-side, onto the game board. The transparent game board cover shall be closed and locked to secure the cards in place.

3) One raffle ticket shall be drawn each week from among all of the tickets sold for each drawing, except for the first week and the twenty-sixth week (if necessary), when three drawings shall be held.

4) The participant(s) holding the winning ticket stub(s) shall be declared the winner(s) of each drawing and shall be entitled to “Search For The Queen of Hearts.”

5) All remaining tickets in the raffle drum or receptacle shall be defaced and discarded.

6) The transparent, locking cover securing the cards shall be opened by a licensed member in charge or assistant to the member in charge at the time of each drawing.

7) Each winner shall select one of the facedown playing cards, which shall be turned face up by a licensed member in charge or assistant to the member in charge. If that playing card is the Queen of Hearts the holder of the winning raffle ticket selecting that card shall be awarded 60% of the Grand Prize Pool.

8) If the card selected is not the Queen of Hearts, that card shall be defaced by drawing a diagonal line across its face in ink; the card shall be returned to the game board face-up; the transparent, locking cover securing the cards shall be locked by a licensed member in charge or assistant to the member in charge; and that player shall be immediately awarded a cash prize valued according to the following schedule:

Card Drawn	Payout Odds
Any 2, 3, 4, or 5	At least 4 — 1
Any 6, 7, 8, or 9	At least 6 — 1
Any 10, Jack, or King	At least 8 — 1
Any Ace	At least 10 — 1
Any Joker	At least 15 — 1
Any Queen other than Hearts	At least 20 — 1

9) The weekly raffle drawings shall continue until a winner selects the Queen of Hearts.

10) When the Queen of Hearts is selected, the winning player shall be awarded the Grand Prize consisting of 60% of the Grand Prize Pool.

11) The licensee shall retain the remaining 40% of the Grand Prize Pool as raffle profit and shall secure those funds for deposit into the special games of chance or raffle checking account (if applicable), or other bank account.

Text of proposed rule and any required statements and analyses may be obtained from:

Gail Pronti, Secretary to the Board, Racing and Wagering Board, One Broadway Center, Suite 600, Schenectady, NY, 12305-2553, [phone], e-mail: [e-mail]

Data, views or arguments may be submitted to:

Same as above.

Public comment will be received until:

45 days after publication of this notice.

Regulatory Impact Statement

(a) Statutory authority. Sections 186(c) and 188-a of Article 9-a of the General Municipal Law. Section 186(c) states that “games of chance” shall mean and include specific games as may be authorized by the New York State Racing and Wagering Board. Through this rulemaking, the Board would authorize two new games of chance known as “treasure chest” and “queen of hearts” where prizes may be awarded on the basis of a designated winning number or number and symbol or symbol determined by chance. The selection of the two-part ticket in both games constitutes the awarding of a prize based upon a winning number or number, whereby the player's ticket number matches the ticket number that is drawn from among all of the entrants' tickets. The awarding of a prize in queen of hearts also involves the player randomly selecting a playing card that is mounted on a board and pre-designated as a winning symbol for which a prize is awarded. The awarding of a second prize in treasure chest is also based upon the player randomly selecting a key that represents a symbol that will open the treasure chest and for which a prize will be awarded if the pre-designated winning key is selected by the player and verified by opening the treasure chest.

Subdivision 1 of section 188-a of the General Municipal Law grants general rulemaking power to the Board to adopt, amend and repeal rules and regulations governing the issuance and amendment of licenses thereunder and the conduct of games of chance under such licenses, and that such games shall be fairly and properly conducted. This rulemaking is necessary to ensure that queen of hearts and treasure chest shall be fairly and properly conducted. This rulemaking establishes a standard set of rules for the house and player to ensure that the game is conducted fairly and uniformly throughout New York State.

(b) Legislative objectives: Pursuant to the objectives stated in Section 185 of the General Municipal Law, this rule is necessary to ensure that all phases of the supervision, licensing and regulation of games of chance and the conduct of games of chance, should be closely controlled and to foster and support worthy causes by ensuring a maximum availability of net proceeds from the conduct of games of chance.

(c) Needs and benefits. This rule will benefit charitable organizations by authorizing two unique variations on the game of chance known as a raffle. Treasure Chest will create an added dimension to the traditional game of raffle, and is intended to make the game more interesting. Treasure Chest or its variations is a raffle that has been conducted in bingo halls in states like Virginia and in bingo halls operated by federally-recognized Indian nations in New York State. Treasure Chest has become popular and charitable organizations have asked that the Board authorize it as an approved game of chance. This rule is necessary to ensure that the Board's approved games of chance keep pace with popular games of chance, and establish rules and guidelines for the proper conduct of the game. This rule will also ensure that charitable organizations will be able to enjoy increased charitable proceeds derived from lawful games of chance.

Search for the Queen of Hearts will create a added dimension to the traditional game of raffle, and is intended to make the game more interesting. The Search for the Queen of Hearts is played in fraternal clubs in other states, namely the Benevolent and Protective Order of Elks in Massachusetts and Maryland. The drawing for the Queen of Hearts is usually featured between games on bingo nights. This rule is necessary to ensure that the Board's approved games of chance keep pace with popular games of chance, and establish rules and guidelines for the proper conduct of the game. This rule will also ensure that charitable organizations will be able to enjoy increased charitable proceeds derived from lawful games of chance.

(d) Costs.

(i) There are no costs imposed upon regulated persons for the implementation of, and continuing compliance with the rule. This rule merely states the rules for the proper conduct of Search for the Queen of Hearts and Treasure Chest raffle. This rule can be conducted using existing reporting and licensing rules.

(ii) There are no costs imposed upon the Racing and Wagering Board, the State of New York or local governments. This rules creates a variation of the game of chance known as raffle, which was approved as a game of chance by the Legislature in 1996. This game will be regulated in the same manner as any other authorized raffle game.

(iii) This information was derived through practical analyses by the staff of the New York Racing and Wagering Board based upon the nature of the game and current regulatory requirements.

(e) Paperwork. This rule will require licensed authorized organization to file a VS-1 and VS-2 with the local municipal licensing clerk if the Search for the Queen of Hearts of Treasure Chest raffle results in more than $5,000 in net proceeds for a single raffle or more than $20,000 over the course of a calendar years. Such licensed authorized organizations will also be required to submit a GC-1A From to register with the New York State Racing and Wagering Board. If the licensed authorized organization earns $30,000 or more in net proceeds, it must obtain a Games of Chance License and file a GC-7 with the local municipal clerk.

(f) Local government mandates. This rule will not impose any program, service, duty or responsibility upon any county, city, town, village, school district, fire district or other special district. Municipalities that have previously approved the conduct of raffles through local law or ordinance will be responsible for the supervision of the conduct of Treasure Chest in the same manner that they are responsible for the supervision of other raffles. This is not a mandate insofar as the municipality has agreed to license games of chance through local law or ordinance.

(g) Duplication. There is no duplication. The New York State Racing and Wagering Board is the only state agency responsible for the regulation of games of chance in New York State, and the games of chance rules that it adopts have the force and effect of law upon municipalities that have adopted local games of chance laws. There are no federal rules regarding the conduct of games of chance.

(h) Alternative approaches. This rule is a permissive rule intended to authorize the specific conduct of two unique games. No alternative approches were considered. The only other alternative was to do nothing, which was considered but it would have been detrimental to the various charities that have requested this rulemaking if these specific games were not authorized.

(i) Federal standards. The regulation of charitable games of chance in New York State is specifically reserved and granted to the New York State Racing and Wagering Board and the local governments that license such activities. There are no applicable federal standards.

(j) Compliance schedule. The Board intends to authorize this game as soon as it is published in the State Register under a Notice of Adoption.

Regulatory Flexibility Analysis, Rural Area Flexibility Analysis and Job Impact Statement

This proposal does not require a Regulatory Flexibility Statement, Rural Area Flexibility Statement or Job Impact Statement as authorizes a new type of game of chance known as a Search for the Queen of Hearts raffle, which are variations on the current raffle authorized under Section 5620.22 of 9 NYCRR. The Board intends to authorize Search for the Queen of Hearts and Treasure Chest raffle to offer new types of raffle games and maximize net proceeds for authorized organizations that conduct charitable gaming. These games can be conducted using the existing regulatory and reporting requirements. This proposed amendment does not impact upon a small business as defined by State Administrative Procedure Act section 102(8), nor does it affect employment. It will not impose an adverse economic impact on reporting, recordkeeping or other compliance requirements on small businesses in rural or urban areas nor on employment opportunities. Charitable gaming can only be conducted by not-for-profit organizations and volunteer members. The New York State Constitution and the New York State Games of Chance Law prohibits commercialized games of chance or paying persons for conducting games of chance.