California Gambling Laws And Regulations

CaliforniaGambling Laws and Regulations2012 EditionIncluding relevant sections of the Business and Professions Code, Government Code,Penal Code, California Code of Regulations and Tribal Gaming RegulationsThe statutes and regulations included in this publication are currentas of January 1, 2012

PREFACEThe California Gambling Control Commission is pleased to provide the 2012edition of California Gambling Laws and Regulations. This book is intended to bea resource for government officials, members of the regulated industry, andmembers of the public to easily find the statutes and regulations governinggambling in California.The information presented in this publication is current, according to our besteffort, as of January 1, 2012. For the most up‐to‐date statutes in effect, seewww.leginfo.ca.gov. Any regulations that went into effect after January 1, 2012,can be found at ccr.oal.ca.gov. Commission regulations can also be found atwww.cgcc.ca.gov, and Bureau of Gambling Control regulations can be found atag.ca.gov/gambling.CONTACT INFORMATIONCalifornia Gambling Control Commission2399 Gateway Oaks Drive, Suite 220Sacramento, CA 95833PHONE: (916) 263‐0700FAX: (916) 263‐0499WEBSITE: www.cgcc.ca.govFor additional copies of this publication, or to send suggestions or correctionsregarding the contents, please call or send an email tolawsandregs@cgcc.ca.gov.The California Gambling Control Commission wishes to once again acknowledge andthank Commission staff Shannon George for her time and efforts in compiling thisinformation into one resource publication.

CONTENTSTABLE OF CONTENTS . iSTATUTES . 1REGULATIONS. 147INDEX . 423

Table of Contents iTABLE OF CONTENTSSTATUTESTHE GAMBLING CONTROL ACTBUSINESS AND PROFESSIONS CODE, DIVISION 8, CHAPTER 4ARTICLE 1. GENERAL PROVISIONS. HORT TITLE . 1LEGISLATIVE FINDINGS AND DECLARATIONS . 1FURTHER LEGISLATIVE FINDINGS AND DECLARATIONS . 3LEGISLATIVE INTENT; CITY AND COUNTY AUTHORITY; RESPONSIBILITY OF LOCAL LAWENFORCEMENT AGENCIES . 4ACTION FOR DECLARATORY OR INJUNCTIVE RELIEF OR RELIEF BY EXTRAORDINARY WRIT . 4DEFINITIONS . 5LOTTERIES AND GAMING; UNLAWFUL CONDUCT; CONSTRUCTION OF CHAPTER . 9VENUE . 9ARTICLE 2. ADMINISTRATION . 919810.19811.19812.19813.19814.EXERCISE OF AUTHORITY BY ATTORNEY GENERAL OR DESIGNEE . 9CALIFORNIA GAMBLING CONTROL COMMISSION; MEMBERS; POWERS; JURISDICTION . 9COMMISSION MEMBERS; ELIGIBILITY; QUALIFICATIONS . 9COMMISSION MEMBERS; APPOINTMENT; TERMS; VACANCIES; REMOVAL . 10COMMISSION MEMBERS; OATH OF OFFICE; PECUNIARY INTEREST IN OR DOING BUSINESS WITHLICENSEE . 1019815. MEMBERS OF COMMISSION; SALARY . 1119816. EXECUTIVE DIRECTOR AND DEPUTY EXECUTIVE DIRECTOR; ELIGIBILITY; SALARY; DUTIES; STAFF . 1119817. GAMING POLICY ADVISORY COMMITTEE; MEMBERS; MEETINGS; RECOMMENDATIONS . 1119818. COMMISSION INVESTIGATION; TAX ON REVENUE; REGULATION OF ADVERTISING; REPORT . 1219819. COMMISSION OFFICE; RECORD OF VOTES; MEETINGS; DISCLOSURE OF DOCUMENTS . 1219820. ATTORNEYS; APPOINTMENT; REPRESENTATION BY ATTORNEY GENERAL. 1219821. COMMISSION; MEETINGS; RECORD OR PROCEEDINGS; FILES AND RECORDS; DISCLOSURE OFINFORMATION . 1319822. STATE OR LOCAL GOVERNMENTAL AGENCY; FILES, RECORDS, AND REPORTS; AVAILABILITY TODEPARTMENT; INSPECTION BY COMMISSION . 1319823. COMMISSION; RESPONSIBILITIES; LICENSES, APPROVALS, AND PERMITS; UNQUALIFIED ORDISQUALIFIED PERSONS . 1419824. COMMISSION; POWERS . 1419824.5. OATHS . 1519825. ADMINISTRATIVE ADJUDICATION . 1519826. DEPARTMENT RESPONSIBILITIES . 1519827. DEPARTMENT; POWERS; INVESTIGATIONS . 1619828. APPLICANT, LICENSEE, OR REGISTRANT COMMUNICATION OR DOCUMENT; PRIVILEGE; RELEASEOR DISCLOSURE . 1819829. DISTRICT ATTORNEYS AND STATE AND LOCAL LAW ENFORCEMENT AGENCIES; REPORT TODEPARTMENT . 1919830. GAMBLING CONTROL FUND; INVESTIGATIVE ACCOUNT . 19

ii Table of ContentsARTICLE 3. REGULATIONS . 1919840. ADOPTION; CONSIDERATION OF CARDROOM SIZE . 1919841. CONTENT REQUIREMENTS . 1919842. PLAY OF GAME OR MANNER OF PLAY; PROHIBITIONS; CONSTRUCTION; EMERGENCYREGULATIONS PROHIBITED. 2219843. PLACEMENT OF WAGER ON CONTROLLED GAME BY PERSON AT TABLE . 2219844. EXCLUSION OR EJECTION OF INDIVIDUALS FROM GAMING ESTABLISHMENTS . 2319845. REMOVAL OF PERSONS FROM LICENSED PREMISES; REASONS . 2419846. CIVIL LIABILITY . 24ARTICLE 4. LICENSING . 2419850. STATE GAMBLING LICENSE, KEY EMPLOYEE LICENSE, OR WORK PERMIT; REQUIREMENTS;VIOLATION. 2419850.5. REMOTE CALLER BINGO; CARD‐MINDING DEVICES; APPLICABILITY OF LAW . 2519850.6. REMOTE CALLER BINGO; CARD‐MINDING DEVICES; COMMISSION REGULATIONS; EMERGENCYREGULATIONS . 2519851. OWNER OF GAMBLING ENTERPRISE; STATE GAMBLING LICENSE; EXPIRATION . 2619852. OWNER NOT NATURAL PERSON; ELIGIBILITY FOR STATE GAMBLING LICENSE; INDIVIDUALLICENSES . 2619852.2. LIMITED PARTNERSHIP WITH INTEREST IN RACETRACK CARD CLUB . 2719853. REGISTRATION, FINDING OF SUITABILITY, OR GAMBLING LICENSE; REQUIREMENT OF CERTAINPERSONS OR CORPORATIONS. 2819854. KEY EMPLOYEE LICENSE; QUALIFICATIONS . 2919855. LICENSE REQUIRED PRIOR TO ACTIVITY; PERIOD TO FILE APPLICATION . 2919856. LICENSE ISSUANCE; BURDEN OF PROVING QUALIFICATIONS; CONSIDERATIONS . 2919857. LICENSE ISSUANCE; APPLICANT QUALIFICATIONS . 3019858. LICENSE TO OWN GAMBLING ESTABLISHMENT; FINANCIAL INTEREST IN PROHIBITED FORMS OFGAMBLING . 3019858.5. LICENSE TO OWN GAMBLING ESTABLISHMENT; LIMITED FINANCIAL INTEREST IN ANOTHERGAMBLING BUSINESS . 3019859. LICENSE DENIAL; APPLICANT DISQUALIFICATION . 3119860. LICENSE DENIAL; ESTABLISHMENT IN LOCATION WITHOUT REQUIRED ORDINANCE . 3119861. DENIAL OF LICENSE; ESTABLISHMENT NOT OPEN TO PUBLIC . 3219862. LICENSE DENIAL; CONSIDERATION BY COMMISSION; ADDITIONAL GROUNDS . 3319863. PUBLICLY TRADED OR QUALIFIED RACING ASSOCIATION; GAMING ESTABLISHMENT . 3319864. STATE LICENSE APPLICATION; FORMS; CONTENT . 3319865. SUPPLEMENTAL FORMS; CONTENT . 3419866. INFORMATION DISCLOSURE BY APPLICANT . 3419867. DEPOSIT; COSTS AND CHARGES OF INVESTIGATION; REFUND; ACCOUNTING . 3419868. INVESTIGATION; COMMENCEMENT; CONCLUSION; DENIAL WITHOUT PREJUDICE . 3519869. REQUEST FOR WITHDRAWAL OF APPLICATION; DENIAL; GRANT WITH PREJUDICE; FEE REFUND . 3619870. COMMISSION AUTHORITY TO DENY OR GRANT LICENSE; RESTRICTIONS; STATEMENT OFREASONS; PETITION. 3619871. COMMISSION MEETING; CONDUCT. 3719872. EX PARTE COMMUNICATIONS . 3819873. LICENSE ASSIGNMENT OR TRANSFER . 3919874. LICENSE ISSUE AND DELIVERY; TERMS AND CONDITIONS . 39

Table of Contents iii19875.19876.19877.19878.OWNER’S GAMBLING LICENSE; POSTING. 39LICENSE RENEWAL; APPLICATION; FEES; PENALTIES . 39FAILURE TO FILE RENEWAL APPLICATION; SURRENDER OF LICENSE . 40CONTRACT WITH OR EMPLOYMENT OF PERSON DENIED LICENSE OR WITH A SUSPENDED OR REVOKEDLICENSE OR AN APPLICATION WITHDRAWN WITH PREJUDICE . 4019879. LICENSE APPLICATION DENIAL; INTEREST IN BUSINESS ENTITY . 42ARTICLE 5. LICENSING OF CORPORATIONS . 4219880. ELIGIBILITY REQUIREMENTS . 4219881. ARTICLES OF INCORPORATION; PURPOSES TO INCLUDE CONDUCT OF CONTROLLED GAMBLING . 4419881.5. ARTICLES OF INCORPORATION; STATEMENTS OF LIMITED PARTNERSHIP; ENTITY FILINGS . 4419882. OWNER OF SECURITY; LICENSE DENIAL; SALE OF SECURITY; VIOLATION; STATEMENTON SECURITY . 4419883. INDIVIDUAL LICENSE; CORPORATE OWNER‐LICENSEE; REMOVAL OF CORPORATE OFFICER ORDIRECTOR . 45ARTICLE 6. LICENSING OF PARTNERSHIPS AND LIMITED LIABILITY COMPANIES . 4619890. ELIGIBILITY REQUIREMENTS; PARTNERSHIPS. 4619890.5. ELIGIBILITY REQUIREMENTS; LIMITED LIABILITY COMPANIES. 4719891. CERTIFICATE OF LIMITED PARTNERSHIP; PURPOSES TO INCLUDE CONDUCT OF GAMBLING . 4919892. APPROVAL OF SALE OR TRANSFER OF INTEREST; LICENSE DENIAL TO INTEREST OWNER . 4919893. INDIVIDUAL LICENSES; APPLICATION PERIOD . 50ARTICLE 7. RESTRICTIONS ON CERTAIN TRANSACTIONS. EMENT OF SECURITY INTERESTS; REGULATIONS; COMPLIANCE AND APPROVAL . 50AGREEMENTS WITH LICENSEE . 50CONTRACTS TO SELL OR LEASE PROPERTY OR INTEREST IN PROPERTY . 51CONTRACTS TO SELL OR LEASE PROPERTY; REQUIRED CONTRACT PROVISION . 51DISPOSITION OF OR OPTION TO PURCHASE SECURITY; VOID UNLESS APPROVED . 51EXTENSION OR REDEMPTION OF CREDIT. 51CONTRACT FOR SALE OF GAMBLING ENTERPRISE; GAMING CHIPS . 51ARTICLE 8. WORK PERMITS . 5219910.19911.19912.19913.19914.19915.LEGISLATIVE FINDINGS . 52ELIGIBILITY; AGE . 52WORK PERMIT APPLICATION; ISSUANCE OR DENIAL; PROCEDURES . 52ORDER OF SUMMARY SUSPENSION; CONTENT; HEARING . 53REVOCATION OF PERMIT; GROUNDS; HEARING . 54FEE . 55ARTICLE 9. CONDITIONS OF OPERATIONS . 5519920.19921.19922.19923.19924.PROTECTION OF PUBLIC HEALTH, SAFETY, AND GENERAL WELFARE; DISCIPLINARY ACTION . 55PERSONS UNDER 21; AREAS OF ACCESS . 55VIOLATION OF CHAPTER PROVISIONS OR REGULATIONS . 56VIOLATION OF LOCAL ORDINANCE . 56SECURITY CONTROLS; APPROVAL OF COMMISSION . 56ARTICLE 10. DISCIPLINARY ACTIONS . 5619930. INVESTIGATIONS; FINES OR PENALTIES; COST RECOVERY . 5619931. EMERGENCY ORDERS; GROUNDS; ACTION; PERIOD OF EFFECTIVENESS; ACCUSATION; HEARING. 5719932. JUDICIAL REVIEW; DENIAL OR ISSUANCE OF ALTERNATIVE WRIT . 58ARTICLE 11. PENALTIES . 59

iv Table of Contents19940.19941.19942.19943.LIST OF PERSONS TO BE EXCLUDED OR EJECTED FROM ESTABLISHMENT; VIOLATION ON ENTRY . 59PERSONS UNDER 21; VIOLATIONS; DEFENSE . 59LICENSE FEES; VIOLATION; GENERAL PENALTY . 60FAILURE TO COMPLY WITH REGULATIONS ADOPTED PURSUANT TO SECTION 19841(D);VIOLATIONS . 6019943.5. UNLAWFUL GAMES; DEFENSE AGAINST ACTIONS . 6119944. INTERFERENCE WITH PERFORMANCE OF DUTIES . 61ARTICLE 12. REVENUES . 6119950.19951.19952.19953.19954.19955.DISPOSITION OF FINES AND PENALTIES; DISPOSITION OF FEES AND REVENUES; EXPENDITURE . 61FEES 61SPECIAL LICENSE FEE; EXCESS TABLES FOR TOURNAMENTS AND SPECIAL EVENTS . 63LICENSE TAX; IMPOSITION BY CITY, COUNTY, OR CITY AND COUNTY . 63GAMBLING ADDICTION PROGRAM FUND . 64LATE PAYMENT OF FEES . 64ARTICLE 13. LOCAL GOVERNMENTS . 6419960. ISSUANCE OF GAMBLING LICENSE; CONDITIONS . 6419961. EXPANSION OF GAMBLING; ORDINANCE AMENDMENT; BALLOT MEASURE . 6519961.06. ADDITIONAL GAMBLING TABLES . 6619961.1. DEPARTMENT REVIEW OF ORDINANCE AMENDMENTS . 6719962. AUTHORIZATION AND EXPANSION OF LEGAL GAMBLING. 6719963. LIMITATIONS OF ISSUANCE OF GAMBLING LICENSE . 6719964. LOCAL LICENSE; OWNER LICENSEE QUALIFICATION; DUTY TO ISSUE . 6719965. AUTHORIZATION AND EXPANSION OF LEGAL GAMBLING; EXCEPTION; INCREASE IN NUMBER OFTABLES. 6819966. AUTHORIZATION OF LEGAL GAMBLING; ANNEXATION . 68ARTICLE 14. MISCELLANEOUS PROVISIONS . 6819970. SEVERABILITY OF INVALID PROVISION . 6819971. CONSTRUCTION OF ACT . 6819972. STATE GAMBLING LICENSE ISSUANCE; CONSTRUCTION FOR PURPOSES OF CIVIL CODE SECTION 348269ARTICLE 15. ADDITIONAL RESTRICTIONS RELATED TO FAIR ELECTIONS AND CORRUPTION OFREGULATORS . 6919980. LEGISLATIVE FINDINGS AND DECLARATIONS . 6919981. FORMER EMPLOYEE: REPRESENTATION BEFORE COMMISSION OR DEPARTMENT; CAMPAIGNCONTRIBUTIONS . 6919982. CAMPAIGN FINANCE DISCLOSURE OF CONTRIBUTION LIMITATIONS; LICENSEES AND APPLICANTS;VIOLATIONS . 7019983. SEVERABILITY OF INVALID PROVISION; CONFLICT OR INCONSISTENCY WITH POLITICAL REFORMACT OF 1974 . 71ARTICLE 16. ADDITIONAL CONTRACTS: PROPOSITION PLAYERS. 7119984. CONTRACTS FOR PROVIDING PROPOSITION PLAYER SERVICES . 71ARTICLE 17. NONPROFIT ORGANIZATION FUNDRAISERS . 7219985. LEGISLATIVE DECLARATIONS . 7219986. CRITERIA FOR NONPROFIT ORGANIZATION FUNDRAISERS . 7219987. REGISTRATION OF EQUIPMENT PROVIDERS . 75CALIFORNIA CONSTITUTION . 77