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HomeMy WebLinkAbout10703ORDINANCE NO. 10703 AN ORDINANCE CREATING ARTICLE IX OF CHAPTER 1 OF TITLE XI WITHIN THE PUEBLO MUNICIPAL CODE, ADDING SECTIONS 11-1-901 THROUGH 11-1-904 THERETO, ENACTING PROVISIONS AND PROHIBITIONS WITH RESPECT TO CERTAIN GAMING AND GAMBLING DEVICES, AND PROVIDING PENALTIES FOR THE VIOLATION THEREOF and authority vested under Colorado law; and WHEREAS, the use of simulated gambling devices is prohibited by state law; and WHEREAS, the State of Colorado has declared through the Legislature that there is a close relationship between professional gambling and other crime; and WHEREAS, City finds it is in the best to restrain all persons from seeking profit from gambling activities; to safeguard the public against the evils induced by common gamblers and common gambling houses; and at the same time to preserve the freedom of the press and to avoid restricting participation by individuals in sport and social pastimes which are not for profit, do not affect the public, and do not breach the peace; and WHEREAS, the absence of regulation and ongoing governmental oversight presents a danger to consumers within the City, putting at risk the financial resources of vulnerable persons and customers who have no avenue of appeal when there are questionable practices by the operators of these sites; and WHEREAS, the Pueblo Police Department has investigated and determined that simulated gambling devices are being used within the City and associated with other crimes; NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. Article IX of Chapter 1 of Title XI of the Pueblo Municipal Code is hereby created and enacted to read as follows: ARTICLE IX Gambling Devices SECTION 2. Section 11-1-901 of the Pueblo Municipal Code is hereby enacted to read as follows: Sec. 11-1-901. Definitions. As used in this Code, unless the context otherwise requires: (a) Electronic gaming machine means an electrically or electronically operated machine or device that is used by a sweepstakes entrant and that displays the results of a game entry or game outcome to a participant on a screen or other mechanism at a business location, including a private club, that is owned, leased, or otherwise possessed, in whole or in part, by a person conducting the sweepstakes or by that under this code if any part, program, game or the like qualify. The term includes a machine or device that: (1) Uses a simulated game terminal as a representation of the prizes associated with the results of the sweepstakes entries; (2) Uses software that simulates a game that influences or determines the winning or value of the prize, or appears to influence or determine the winning or value of the prize; (3) Selects prizes from a predetermined, finite pool of entries; (4) Uses a mechanism that reveals the content of a predetermined sweepstakes entry; (5) Predetermines the prize results and stores those results for delivery when the sweepstakes entry is revealed; (6) Uses software to create a game result; (7) Requires a deposit of any currency or token or the use of any credit card, debit card, prepaid card, or other method of payment to activate the machine or device; (8) Requires direct payment into the machine or device or remote activation of the machine or device upon payment to the person offering the sweepstakes game; (9) Requires the purchase of a related product at additional cost in order to participate in the sweepstakes game or makes a related product available for no cost but under restrictive conditions; (10) Reveals a sweepstakes prize incrementally even though the progress of the images on the screen does not influence whether a prize is awarded, or the value of any prize awarded; or (11) Determines and associates the prize with an entry or entries at the time the sweepstakes is entered. (b) Enter or entry means the act or process by which a person becomes eligible to receive a prize offered in a sweepstakes. (c) Entrant means a person who is or seeks to become eligible to receive a prize offered in a sweepstakes (as defined by this Code). (d) Gain means the direct realization of winnings. (e) Gambling, whether used alone or as part of the phrase simulated gambling or simulated gambling device, means risking any money, credit, deposit, or other thing of value for gain contingent in whole or in part upon lot, chance, the operation of a gambling device, or the happening or outcome of an event, including a sporting event, over which the person taking a risk has no control, but does not include: (1) Bona fide contests of skill, speed, strength, or endurance in which awards are made only to entrants or the owners of entries, in the case of electronic gaming this Subsection 1 of Section e does not apply; (2) Bona fide business transactions which are valid under the law of contracts; (3) Other acts or transactions now or hereafter expressly authorized by law; (4) Any game, wager, or transaction that is incidental to a bona fide social relationship, is participated in by natural persons only, and in which no person is participating, directly or indirectly in professional gambling; (5) Any use of or transition involving a crane game, as defined in section 44- 39-109(9) of the Colorado Revised Statutes, as revised; (6) Sports Betting conducted in accordance with 44-30-1501 et. seq. of the Colorado Revised Statutes and applicable rules of the limited gaming control commission. (f) Prize means a gift, award, gratuity, good, service, credit, or anything else of value, including a thing of value for a gain, as defined in this section, that may be transferred to an entrant, whether or not possession of the prize is actually transferred or placed on an account or other record as evidence of the intent to transfer the prize. Prize does not include: (1) Free or additional play; (2) Any intangible or virtual award that cannot be converted into money, goods, or services; or (3) A paper or electronic coupon, whether issued to a player as a single ticket or token or as multiple tickets or tokens, that is won in return for a single play of a device; has a value that does not exceed the equivalent of twenty-five dollars; cannot be exchanged or returned for money, monetary credits, or any financial consideration; and cannot be used to acquire or exchanged for any product that is, contains, or can be used as a constituent part of or accessory for: 1. Alcohol beverages; 2. Tobacco, tobacco products, marijuana, or smoking; or 3. Firearms or ammunition. (g) Gambling Premises means any building, room enclosure, vehicle, vessel, or other place, whether open or enclosed, used or intended to be used for professional gambling. In the application of this definition, any place where a gambling device is found is presumed to be intended to be used for professional gambling. (h) Gambling Proceeds means all money or other things of value at stake or displayed in on in connection with professional gambling. (i) Professional Gambling means: (1) Aiding or inducing another to engage in gambling, with the intent to derive a profit therefrom; or (2) Participating in gambling and having, other than by virtue of skill or luck, a lesser chance of losing or a greater chance of winning than one or more of the other participants. (j) Profit means any other realized or unrealized benefit, direct or indirect, including without limitation benefits from proprietorship, management, or unequal advantage in a series of transactions. (k) Simulated gambling device means a mechanically or electronically operated machine, network, system, program, or device that is used by an entrant and that displays simulated gambling displays on a screen or other mechanism at a business location, including a private club, that is owned, leased, or otherwise possessed, in affiliates, subsidiaries, agents, or contractors; except that the term does not include bona fide amusement devices, as authorized in Pueblo Municipal Code 9-6-1 et. seq., that pay nothing of value, cannot be adjusted to pay anything of value, and are not used for gambling. Simulated gambling device includes: (1) A video poker game or any other kind of video card game; (2) A video bingo game; (3) A video craps game; (4) A video keno game; (5) A video lotto game; (6) A video roulette game; (7) A pot-of-gold; (8) An eight-liner; (9) A video game based on or involving the random or chance matching of different pictures, words, numbers, or symbols; (10) An electronic gaming machine, including a personal computer of any size or configuration that performs any of the functions of an electronic gaming machine; (11) A slot machine, where results are determined by reason of the skill of the player or the application of the element of chance, or both, as provided by Section 9 (4)(c) of Article XVIII of the Colorado constitution; and (12) A device that functions as, or simulates the play of, a slot machine, where results are determined by reason of the skill of the player or the application of the element of chance, or both, as provided by Section 9 (4)(c) of Article XVIII of the Colorado constitution. (13) Simulated gambling device does not include any pari-mutuel totalisator equipment that is used for pari-mutuel wagering on live or simulcast racing events and that has been approved by the State of Colorado director of the division of racing events for entities authorized and licensed under Article 32 of Title 44 of the Colorado Revised Statutes. (j) Slot Machine means any mechanical, electric, video, electronic, or other device, contrivance, or machine which, after insertion of a coin, token, or similar object, or upon payment of any required consideration whatsoever by a player, is available to be played or operated, and that, whether by reason of the skill of the player or application of the element of chance, or both may deliver or entitle the player operating the machine to receive cash premiums, merchandise, tokens, or redeemable game credits, or any other thing of value other than unredeemable free games, whether the payoff is made automatically from the machines or in any other manner. Slot machine does not include: (1) A vintage slot machine model that was introduced on the market before 1984, does not contain component parts manufactured in 1984 or thereafter, and is not used for gambling purposes or in connection with limited gaming; or (2) Crane games. (j) Sweepstakes means any game, advertising scheme or plan, or other promotion that, with or without payment of any consideration, allows a person to enter to win or become eligible to receive a prize. (k) Vintage Slot Machine means any model slot machine that was introduced on the market prior to January 1, 1984. SECTION 3. Section 11-2-902 of the Pueblo Municipal Code is hereby enacted to read as follows: Sec. 11-1-902. Gaming Prohibition penalties - exemptions. (a) Gambling prohibited. It shall be unlawful for any person to engage in gambling, or professional gambling as defined by this Code. Gambling is a Class 2 municipal offense. (b) Possession of a gambling device. It shall be unlawful for any person to own, manufacture, sell, transport, possess or engage in any transaction designed to affect the ownership, custody, or use of a gambling device, knowing that it is to be used in professional gambling. Possession of a gambling device is a Class 1 municipal offense. (c) Gambling premises. It shall be unlawful for any person, as owner, lessee, agent, employee, operator or occupant, knowingly to maintain or aid or permit the maintaining of a gambling premises. Violation of this subsection is a Class 1 municipal offense. SECTION 4. Section 11-2-903 of the Pueblo Municipal Code is hereby enacted to read as follows: Sec. 11-1-903. Electronic Gaming Prohibition penalties - exemptions. (a) A person commits unlawful offering of a simulated gambling device if the person offers, facilitates, contracts for, or otherwise makes available to or for members of the public or members of an organization or club any simulated gambling device where: (1) The person receives, directly or indirectly, a payment or transfer of admission to premises on which the simulated gambling device is located, or the purchase of any product or service associated with access to or use of the simulated gambling device, regardless of whether consideration in connection with such use, admission, or purchase is monetary or nonmonetary and regardless of whether it is paid or transferred before the simulated gambling device is used by an entrant; and (2) As a consequence of, in connection with, or after the play of the simulated gambling device, an award of a prize is expressly or implicitly made to a person using the device. (b) Unlawful offering of a simulated gambling device is a Class 1 municipal offense. (c) Without regard to any penalty imposed under subsections (2) and (3) of this section, the City Attorney may apply to a court of competent jurisdiction for appropriate additional relief, including: (1) Injunctive relief to restrain and enjoin violations of this article; (2) Such other and further relief as is available at law or in equity. (d) The remedies set forth in this article shall not be exclusive, shall be cumulative, and shall be in addition to any other relief or penalty imposed upon the person in violation. City may further abate, seize or declare a nuisance the devices, or proceeds, or both. City may suspend or revoke any business license issued to those businesses associated with a gaming premises whether they own the devices or not including, but not limited to business, liquor, marijuana, and tobacco licenses. (e) Conducting or assisting in the conduct of gaming wagering activities and live or simulcast racing and pari-mutuel wagering activities otherwise authorized by Colorado law is not a violation of this section. (f) Nothing in this section: (1) Prohibits, limits, or otherwise affects any purchase, sale, exchange, or other transaction related to stocks, bonds, futures, options, commodities, or other similar instruments or transactions occurring on a stock or commodities exchange, brokerage house, or similar entity; or (2) Limits or alters the application of the requirements for sweepstakes, contests, and similar activities that are otherwise established under the laws of this state. (g) The provision of internet or other online access, transmission, routing, storage, or other communication-related services or website design, development, storage, maintenance, billing, advertising, hypertext linking, transaction processing, or other site- related services by a telephone company, internet service provider, software developer or licensor, or other party providing similar services to customers in the normal course of its business does not violate this section even if those customers use the services to conduct a prohibited game, contest, lottery, or other activity in violation of this article; except that this subsection (8) does not exempt from criminal prosecution or civil liability a software developer, licensor, or other party whose primary purpose in providing such service is to support the offering of simulated gambling devices. SECTION 5. Section 11-2-904 of the Pueblo Municipal Code is hereby enacted to read as follows: Sec. 11-1-904. Seizure of gambling devices, proceeds. (a) All gambling devices, instruments and things used for the purpose of gambling, as well as gambling proceeds, are hereby declared to be contraband and shall be subject to seizure by any peace officer and may be confiscated and destroyed by order of any judge of the Municipal Court. All gambling proceeds shall be forfeited to the City and transferred by court order to the general fund of the City. (b) If a gambling device is a vintage slot machine and is not operated for gambling purposes for profit or for business purposes, it shall not be confiscated or destroyed pursuant to Subsection 1 of this section. If a gambling device is confiscated and the owner shows the Municipal Court that such gambling device is a vintage slot machine and is not sued for gambling purposes, the Court shall order such vintage slot machine returned to the person from whom it was confiscated. SECTION 6. The officers and staff of the City are authorized to perform any and all acts consistent with this Ordinance and to implement the policies and procedures described therein. SECTION 7. This Ordinance shall become effective 30 days after final action by the Mayor and City Council. Action by City Council: Introduced and initial adoption of Ordinance by City Council on April 22, 2024. Final adoption of Ordinance by City Council on May 14, 2024. ____________________________ President of City Council Action by the Mayor: Approved on _______________. Disapproved on ______________ based on the following objections: ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ____________________________ Mayor Action by City Council After Disapproval by the Mayor: Council did not act to override the Mayor's veto. Ordinance re-adopted on a vote of ____________, on _____________ ____________________________ President of City Council ATTEST ________________________________ City Clerk City Clerk's Office Item # R6 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: May 13, 2024 TO: President Mark Aliff and Members of City Council CC: Mayor Heather Graham VIA: Marisa Stoller, City Clerk FROM: Chris Noeller, Chief of Police SUBJECT: AN ORDINANCE CREATING ARTICLE IX OF CHAPTER 1 OF TITLE XI WITHIN THE PUEBLO MUNICIPAL CODE, ADDING SECTIONS 11-1- 901 THROUGH 11-1-904 THERETO, ENACTING PROVISIONS AND PROHIBITIONS WITH RESPECT TO CERTAIN GAMING AND GAMBLING DEVICES, AND PROVIDING PENALTIES FOR THE VIOLATION THEREOF SUMMARY: Attached for consideration is a set of new Code provisions with respect to certain gaming and gambling devices. These provisions will allow for enforcement through the Municipal Court. PREVIOUS COUNCIL ACTION: Not applicable to this Ordinance. BACKGROUND: Limited gaming is authorized within the cities of Central, Black Hawk, and Cripple Creek under Article XVIII, Section 9 of the Colorado Constitution. In 2015, the Colorado Assembly determined there was a need for additional legislation with respect to simulated gambling devices, and subsequently passed HB15-1047. Despite state law prohibiting the offering of such simulated gambling devices, and through independent investigation, the Pueblo Police Department has determined such devices are in use within the City of Pueblo. This Ordinance seeks to give municipal enforcement authority to the Pueblo Police Department and jurisdiction to the Pueblo Municipal Court. FINANCIAL IMPLICATIONS: The financial implications are unknown at this time. Enforcement of these provisions may result in criminal prosecutions being instituted in Municipal Court which may increase costs to some degree. The provisions under consideration allow for the confiscation of the devices and gambling proceeds. Any gambling proceeds forfeited Additionally, it is anticipated that these ordinances will lead to a reduction in other crimes associated with such activities. BOARD/COMMISSION RECOMMENDATION: Not applicable to this Ordinance. STAKEHOLDER PROCESS: Not applicable to this Ordinance. ALTERNATIVES: Council can choose to reject the proposed provisions and violations thereof will not be enforceable in Municipal Court. RECOMMENDATION: Approval of the Ordinance. ATTACHMENTS: None