OLR Bill Analysis

HB 7501 (LCO 6000)

Emergency Certification

AN ACT REPEALING LAS VEGAS NIGHT GAMES.

SUMMARY:

This bill makes Las Vegas nights illegal by repealing the statutes that allow (1) charitable, civic, and other organizations to hold such events as fundraisers and (2) high school-sponsored Las Vegas nights. It repeals statutes governing these games including the permit application process with the Division of Special Revenue (DSR), conditions on operating the games, and reporting requirements. It also makes conforming changes.

The bill terminates all Las Vegas night permits or registrations on its effective date. It requires DSR to refund fees for any terminated permit or registration.

The bill changes the definition of gambling, which applies to the crime of illegal gambling, by (1) eliminating the exemption for Las Vegas night activities and (2) explicitly including casino gambling such as blackjack, poker, craps, roulette, or slot machines.

The bill eliminates a provision that allows a permittee conducting a bazaar to award cash prizes of up to $ 25 in a "money-wheel" game.

EFFECTIVE DATE: Upon passage

LAS VEGAS NIGHTS

The bill bans organizations from operating Las Vegas night games of chance as fund-raising events. Under current law, any charitable, civic, educational, fraternal, veterans' or religious organization; volunteer fire department; grange; or political party or town committee may promote and operate such games of chance after obtaining a permit. The sponsoring organization must (1) be actively functioning as a nonprofit organization in Connecticut for at least two years and (2) apply for a permit to the police chief or the first selectman (if the town has no police department) of the town where the event will be held.

The bill bans high school-sponsored Las Vegas nights. Under current law, high schools may sponsor Las Vegas nights in connection with proms or graduation activities for their seniors and juniors and guests at least age 16, under the following circumstances:

1. the games are operated in connection with the prom or graduation activities;

2. only two of these events are held each year for the same students;

3. parents, teachers, or administrators supervise the event and operate the games;

4. the event is not advertised or open to the public;

5. there is no charge beyond a nominal admission fee to pay for equipment or refreshments;

6. wagering anything of value is prohibited (although door prizes are allowed); and

7. no alcohol is served.

GAMBLING, GAMBLING PREMISES, AND GAMBLING DEVICES

The bill changes the definition of gambling by (1) eliminating the exemption for Las Vegas night activities and (2) explicitly including casino gambling such as blackjack, poker, craps, roulette, or slot machines. As under current law, the definition includes risking money, credit, deposit, or other things of value for gain contingent in whole or part on lot, chance, or operation of a gambling device. As under current law, it does not include legal contests of skill, speed, strength, or endurance in which awards are made only to entrants or owners of entries; legal business transactions valid under contract law; certain legally authorized games such as bingo, sealed tickets, bazaars, and raffles that qualifying organizations can conduct; lotteries or contests conducted by or under authority of a U. S. state or possession; and other acts or transactions expressly authorized by law. This definition applies to the crime of illegal gambling, a class B misdemeanor punishable by up to six months in prison, a fine of up to $ 1,000, or both.

The bill eliminates the exemption for Las Vegas nights for purposes of (1) the statute making gambling premises a nuisance subject to abatement and punishment as a class A misdemeanor (punishable by up to one year in prison, a fine of up to $ 2,000, or both) or class D felony (punishable by one to five years in prison, a fine of up to $ 5,000, or both) and (2) punishing knowingly owning, manufacturing, possessing, buying, selling, renting, leasing, storing, repairing, or transporting gambling devices or offering or soliciting an interest in them (punishable as a class A misdemeanor).

SEALED TICKET PERMITS AND BAZAARS

The bill repeals the DSR's authority to issue permits to sell sealed tickets to anyone with a Las Vegas night permit and removes Las Vegas nights from the list of events where sealed tickets can be sold. (Sealed tickets are cards with tabs that, when pulled, reveal images, symbols, or numbers that entitle the holder to a prize if they match a designated winning combination. ) The bill does not otherwise change the law regarding selling sealed tickets.

BACKGROUND

Permissible Las Vegas Night Games

The permissible games for purposes of the Las Vegas night statutes are blackjack, poker, dice, money-wheels, roulette, baccarat, chuck-a-luck, pan game, over and under, horse race game, acey-ducey, beat the dealer, bouncing ball, and other games DSR approves (Conn. Agency Regs. § 7-186k-15).

Federal Law and Court Case

In 1988, Congress passed the Indian Gaming Regulatory Act (25 USC § 2701 et seq. ). The act requires states to negotiate with Indian tribes to allow class III gaming (which includes casino-type gaming) on reservations if, among other conditions, the reservation is located in a state that "permits such gaming for any purpose by any person, organization, or entity..." In March 1989, the Mashantucket Pequot Tribe requested that the state negotiate with it to allow casino gambling on its reservation. In 1990, the Second Circuit Court of Appeals upheld a district court ruling and ordered the state to negotiate with the tribe concerning the conduct of casino-type games of chance on the reservation, while leaving to negotiations whether and the extent to which state regulations of the games would apply on the reservation (Mashantucket Pequot Tribe v. Connecticut, 913 F. 2d 1024 (2^nd Cir. 1990), 737 F. Supp. 169 (D. Conn. 1990)).