Chapter 5.16 — CARD CLUBS

Sections:

5.16.010 Definitions

5.16.020 Licenses - Required

5.16.030 Licenses - Applications

5.16.040 Reserved

5.16.050 License Fees and Deposits

5.16.060 Approval of Pointholder Fee

5.16.070 Gross Revenue License Fees

5.16.080 Investigations and Reports

5.16.090 City Council Consideration of Application

5.16.100 Denial of Application

5.16.110 Location of Card Club

5.16.120 Expiration of Licenses; Renewal

5.16.130 Reserved

5.16.140 Transfer and Assignment of Licenses

5.16.150 Suspension and Revocation of Licenses, Fines

5.16.160 Rules and Regulations

5.16.170 Seat Rental and Other Playing Fees

5.16.180 Application for Employment Identification Card

5.16.190 Pointholders - Applications for Sale or Transfer of Points

5.16.200 Pointholders - Updating of Investigations - Divestments

5.16.210 Unlawful Act

5.16.220 Exclusion of Persons from Card Clubs

5.16.230 Administration of Chapter by City Manager

5.16.240 Violations

For the purpose of this Chapter, the words and phrases set forth in this Section shall have the following meanings ascribed to them unless the context clearly requires to the contrary:

A. “Applicant” means any person who has filed an application seeking to be approved by the City as having an ownership interest in a licensed Card Club or a person seeking approval of Pointholder status. [Ord, No. 249, § 010, adopted 9/22/92.]

B. “Card Club” (also referred to as a “Gaming Club”) means a business or enterprise licensed under the provisions of this Chapter for the Playing of Games or Card Games, as defined in Subsections L. and T. of this Section, and shall include any Licensee’s business activities incidental thereto that are conducted on the premises, such as, but not limited to, food, beverage, retail sales or valet services. “Card Club” shall exclude business activities operated by unaffiliated third-party entities. [Ord. No. 249, § 010, adopted 9/22/92; amended by Ord. No. 301, § A, adopted 9/26/95; amended by Ord. No. 646, § 2, adopted 12/13/23.]

C. “Card Room” means and includes that area or areas within the Card Club in which Card Games are conducted. Any license issued hereunder shall designate such Card Room areas. [Ord. No. 249, § 010, adopted 9/22/92.]

D. “Commence” means and includes commence, begin, initiate, start, open and establish. [Ord. No. 249, § 010, adopted 9/22/92.]

E. “Conduct” means and includes conduct, transact, maintain, prosecute, practice, manage, operate and carry on. [Ord. No. 249, § 010, adopted 9/22/92.]

F. “Conviction” or “Convicted” means a plea of guilty, a final verdict of guilty, or a conviction following a plea of nolo contendere. [Ord. No. 249, § 010, adopted 9/22/92.]

G. “Employee” means every person who is an agent of a Card Club Licensee or who acts under the direction of an owner or other employee of a Card Club Licensee or of a business conducted on the premises of a Card Club. [Ord. No. 249, § 010, adopted 9/22/92.]

H. “Filing and Processing Fees” means the imposition, by the provisions of this Chapter, or a subsequent City Council resolution or ordinance, of fees or deposits to be used for the purpose of reimbursing the City for its costs of administering the provisions of this Chapter. [Ord. No. 249, § 010, adopted 9/22/92.]

I. "Funded Player" shall mean any proposition player who plays controlled Games at a licensed Card Club with financing provided by a Funding Source. [Ord. No. 646, § 2, adopted 12/13/23.]

J. "Funding Source" shall mean the person(s) who provide(s) the financing, including, but not limited to, loans, credit, currency,

negotiable instrument, chips or any other representation or thing of value to a Funded Player for use in the playing of a controlled Game at a Card Club. [Ord. No. 646, § 2, adopted 12/13/23.]

K. "Funding Source Key Management" shall mean every person with the actual or ostensible authority to manage, supervise, instruct, direct or control the Funding Source in the provision of financing, including, but not limited to, loans, credit, currency, negotiable instruments, chips or any other representation or thing of value to a Funded Player for use in the playing of a controlled Game at a Card Club. [Ord. No. 646, § 2, adopted 12/13/23.]

L. “Games” means any Game permitted to be played at a Card Club pursuant to the California Penal Code or other provisions of State law, as they now exist or as they are amended, or this Chapter. [Amended by Ord. No. 301, § B, adopted 9/26/95; amended by Ord. No. 646, § 2, adopted 12/13/23.]

M. “Gross Revenue of the Card Game Business” means and includes seat rental fees and any and all other table revenues directly derived from Card Games conducted on or within the Card Room, less any direct promotional expenses, and shall not include fees charged to players that are returned to the players as tournament or jackpot bonuses. As used herein, "Direct Promotions Expenses" include, but are not limited to, gambling chips provided by casinos to customers that have no cash value and cannot be redeemed for cash at any time, and player points that are used to incentivize customers to increase gaming play. “Gross Revenue of the Card Game Business” does not include revenue derived from the sale of food, beverages, sundries or from any other non-gaming activities. [Ord. No. 249, § 010, adopted 9/22/92; amended by Ord. No. 646, § 2, adopted 12/13/23.]

N. "Key Management Employee" shall mean every person with the actual or ostensible authority (1) to direct gaming operations; or (2) to direct supervisory and general employees of a Card Club engaged in its gaming operations; and (3) to direct the counting of, or accounting for, revenue generated by the club. The term "Key Management Employee" includes, without limitation, those persons who fill such positions as shall be designated by the City Manager as key employees. [Ord. No. 646, § 2, adopted 12/13/23.]

O. “License” means License issued pursuant to this Chapter allowing the operation of a Card Club. [Ord. No. 249, § 010, adopted 9/22/92.]

P. “Licensee” means the holder of a License. [Ord. No. 249, § 010, adopted 9/22/92.]

Q. “License Fees” means business License taxes levied upon each Licensee pursuant to this Chapter. [Ord. No. 249, § 010, adopted 9/22/92.]

R. “Owner” means every person, firm, association, partnership, corporation, or other entity having any interest, legal or equitable, in any Card Club or Card Club License. [Ord. No. 249, § 010, adopted.]

S. “Person” means and includes a natural person or any other legal entity. [Ord. No. 249, § 010, adopted 9/22/92.]

T. “Playing Cards” or “Card Games” means the Playing of a Game or Card Game permitted to be played at a Card Club pursuant to the California Penal Code or other provisions of State law, as they now exist or as they are amended, or this Chapter. [Amended by Ord. No. 301, § C, adopted 9/26/95; amended by Ord. No. 646, § 2, adopted 12/13/23.]

1. “Playing Cards” or “Card Games” also means the playing of any additional kind of Game or gaming device or machine at a Card Club, whether or not such Game or gaming device or machine involves the use of cards which are not prohibited and made unlawful by the California Penal Code or other provisions of State law, as they now exist or as they are amended, or this Chapter. [Amended by Ord. No. 301, § D, adopted 9/26/95; amended by Ord. No. 646, § 2, adopted 12/13/23.]

U. “Pointholder” means any person having any interest whatsoever, or at all, in the ownership of a Card Club, whether legal, equitable, or of whatsoever kind or character, including, but not limited to, trust beneficiaries, or stockholders of a corporation to whom a License is issued. [Ord. No. 249, § 010, adopted 9/22/92.]

V. “Purpose to Commence” or “Purport to Conduct” means and includes any showing, representation, indication or action which:

1. By means of sign, advertisement or advertising matter, whether in, upon or about any premises or otherwise; or

2. By the appearance or arrangement of any premises; or

3. By acts or statements of any person, or by the agents, servants, or employees of any person, indicates, suggests, holds out or

represents that any person is, would be, or appears to be conducting or in a position to conduct any business referred to in this Chapter within the City.

[Ord. No. 249, § 010, adopted 9/22/92; Ord. No. 462, Section 3, 5/9/07.]

A. It shall be unlawful for any person to commence or conduct, or purport to commence or conduct, within the City, any business, activity, enterprise, undertaking, or place, where tables or other items or units of furniture are used directly or indirectly for Playing Cards or Card Games for which a fee, commission, or compensation is directly or indirectly charged, accepted, or received from players who participate in any such Playing of Games, unless such person shall first obtained a License to do so under and in compliance with the provisions of this Chapter. [Ord. No. 249, § 020, adopted 9/22/92.]

B. No application form for a License for a Card Club shall be received, filed or processed by the City Manager when the total number of current and valid license for Card Clubs in the City equals the total permitted.

[Ord. No. 249, § 020, adopted 9/22/92; Ord. No. 462, Section 3, 5/9/07; amended by Ord. No. 646, § 2, adopted 12/13/23.]

It is the declared policy of the City Council that Pointholders, Key Management Employees, Funded Players, Funded Sources and Funded Sources Key Management apply for and be issued licenses by the City after a personal background investigation is completed, and that such persons be supervised so as to better protect the public health, safety, morals, good order and public welfare. Except as

provided hereinbelow with respect to a Card Club License, no Applicant, person or Licensee shall acquire a vested right in any License issued, registration issued, finding of suitability, or approval granted by the City Council at any stage in the proceedings. [Ord. No. 646, § 2, adopted 12/13/23.]

Any person desiring or proposing to commence or conduct any business, activity, enterprise, undertaking, or place named, designated, specified or referred to in this Chapter for the Playing of Cards or Card Games shall file with the City Manager a written application for a License to do so as required by the provisions of this Chapter. Concurrently with the filing of the application, each person identified therein shall be fingerprinted by the City Manager or his/her designee, and no application shall be deemed filed until the fingerprinting is completed. Each such application shall contain and clearly and truthfully, under oath or affirmation, set forth and show, in addition to such other information as the City Manager shall require, the following information:

A. The date of the application; [Ord. No. 249, § 030, adopted 9/22/92.]

B. The true name of the Applicant, and any other names by which the Applicant is or has been known; [Ord. No. 249, § 030, adopted 9/22/92.]

C. The status of the Applicant as being an individual, firm, association, partnership, joint venture or corporation; [Ord. No. 249, § 030, adopted 9/22/92.]

D. If the Applicant is an individual, the residence and business address of such Applicant; [Ord. No. 249, § 030, adopted 9/22/92.]

E. If the Applicant is other than a individual, the true name, residence and business address of each Pointholder, partner, principal, joint venturer, shareholder, director, or officer of the Applicant; and any other names by which said Pointholders, partners, principals, joint venturers, shareholders, directors, or officers have been or are known; [Ord. No. 249, § 030, adopted 9/22/92.]

F. A full and complete financial statement of the Applicant, whether it is an individual, corporation, partnership, or other entity, and a full and complete financial statement of each Pointholder, partner and officer of the Applicant; provided, the financial statements required by this Subsection shall be deemed confidential in character and shall not be open to public inspection, but shall be available to those city officials having jurisdiction over the provisions of this Chapter, and to the Bureau of Gambling Control and the California Gambling Control Commission; [Ord. No. 249, § 030, adopted 9/22/92; amended by Ord. No. 646, § 2, adopted 12/13/23.]

G. The type and nature of the Card Games proposed to be played, and a statement by the Applicant that said Games are not prohibited or made unlawful by the Penal Code or other provisions of State law, as they now exist or as they are amended in the future, or this Chapter; [Amended by Ord. No. 301, § E, adopted 9/26/95; amended by Ord. No. 646, § 2, adopted 12/13/23.]

H. The number of tables or other units to be placed, employed or used; [Ord. No. 249, § 030, adopted 9/22/92.]

I. A description of any other business conducted or proposed to be conducted at the same location; [Ord. No. 249, § 030, adopted 9/22/92.]

J. A statement that the Applicant understands that the application shall be considered by the City Council only after a full investigation and report have been made by the City Manager; [Ord. No. 249, § 030, adopted 9/22/92.]

K. A statement that the Applicant understands and agrees that any business or activity conducted or operated under any License issued under such application shall be operated in full conformity with all the laws of the state and the laws and regulations of the City applicable thereto, and that any violation of any such laws or regulations in such place of business, or in connection therewith, shall render any License therefor subject to disciplinary action, including, but not limited to, fines, suspension or revocation; [Ord. No. 249, § 030, adopted 9/22/92; amended by Ord. No. 646, § 2, adopted 12/13/23.]

L. A statement that Applicant, and each Pointholder thereof, has applied for, or obtained a Gambling Establishment and Owner License from the California Gambling Control Commission, with proof thereof; [Ord. No. 249, § 030, adopted 9/22/92; amended by Ord. No. 646, § 2, adopted 12/13/23.]

M. A statement that the Applicant has read the provisions of this Chapter, and particularly the provisions of this Section, and understands the same. [Ord. No. 249, § 030, adopted 9/22/92.]

No application for a License shall be accepted or processed unless accompanied by a filing and processing fee of ten thousand dollars ($10,000.00), which shall not be refundable to Applicant. In the event Applicant successfully obtains a License in accordance with the terms and provisions of this Chapter, Applicant may apply and receive credit for said ten thousand dollars ($10,000.00) of said filing and processing fee toward the payment of the gross revenue license fees payable pursuant to the provisions of Section 5.16.070, less administrative costs, environmental costs and all other like costs expended by the City in conjunction with the processing and investigation of the application.

[Ord. No. 249, § 050, adopted 9/22/92; Ord. No. 462, Section 3, 5/9/07; amended by Ord. No. 646, § 2, adopted 12/13/23.]

No application for approval of Pointholder status shall be accepted or processed unless accompanied by a filing and processing fee of three thousand dollars ($3,000.00) for each Pointholder making application for approval. No part of said three thousand dollars ($3,000.00) shall be refundable to Applicant.

[Ord. No. 249, § 060, adopted 9/22/92; Ord. No. 462, Section 3, 5/9/07.]

The Applicant shall pay the following fees to the City.

A. A quarterly license fee of five thousand dollars ($5,000.00), plus four hundred dollars ($400.00) for each gaming table in excess of fourteen (14), said license fee to be paid in advance for each calendar quarter no later than the fifteenth (15th) day of the first month of that quarter. [Ord. No. 646, § 2, adopted 12/13/23.]

B. In addition to the fees in Subsection (A) of this Section, a minimum quarterly permit fee of six thousand dollars ($6,000.00), said fee to be paid by the fifteenth (15th) day of the month following the end of the calendar quarter. The quarterly permit fee will be one percent (1%) of gross revenue, not to exceed the amount listed on the quarterly permit fee schedule. [Ord. No. 646, § 2, adopted 12/13/23.]

C. Permit Fee Schedule per Quarter, effective December 1, 2022.

Quarterly Gross Revenue Permit Fee

$2,000,000 - $3,000,000 $6,000 + 3.0% of excess over $2,000,000 $3,000,000 - $4,000,000 $36,000 + 3.5% of excess over $3,000,000 $4,000,000 - $5,000,000 $71,000 + 4.0% of excess over $4,000,000 $5,000,000 and over $111,000 + 5.0% of excess over $5,000,000

[Ord. No. 646, § 2, adopted 12/13/23.]

D. Statement of Revenue. Each Licensee shall file with the City before the fifteenth (15th) day of each calendar quarter, a statement under oath, showing the true and correct amount of gross revenue derived from the Card Game business licensed by the Licensees issued to or held by such Licensee for the preceding calendar quarter. Such statement shall be accompanied by the payment of the correct amount of Permit Fee due and owing in accordance with the provisions of Subsections B. and C. of this Section, and such sums correctly reflecting the quarterly fees payable for the preceding quarter shall be accepted by the City, subject, however, to the right of the City to audit the matters referred to in the statement, to determine the correctness of the figures as set forth in such statement, and the amount payable to City pursuant to the provisions of Subsections B. and C. of this Section.

In addition to the foregoing, a certification shall be attached to the statement, or included therein, which certification or declaration

shall be substantially in the following form:

"I hereby declare under penalty of perjury that the foregoing is true and correct."

Licensee, Managing Partner or Owner (strike out the title which is not applicable)

[Ord. No. 347, § C, adopted 4/14/98; amended by Ord. No. 646, § 2, adopted 12/13/23.]

E. Audit of Records. The books, records and accounts of any Card Club may be audited by the City. Such an audit shall be performed by a qualified accountant selected by the City Manager and approved by the City Council. Any information obtained pursuant to the provisions of this Section or any statement filed by the Licensees shall be deemed confidential and shall not be subject to public inspection except as required by law or in connection with the enforcement of the provisions of this Chapter, but shall be available to persons charged by law with the administration of the provisions of this Chapter or pursuant to the order of any court of competent jurisdiction. [Amended by Ord. No. 347, § D, adopted 4/14/98.]

F. Refusal to Display Records. Any failure or refusal of any such Licensee to make and file any statement as required within the time required, or to pay any sums due by way of License Fees when the same are due and payable in accordance with the provisions of this Chapter, or to permit inspection of such books, records and accounts of such Licensee as are authorized by this Chapter, shall be full and sufficient grounds for suspension and revocation of the License of any such Licensee.

[Amended by Ord. No. 347, § E, adopted 4/14/98; Ord. No. 462, Section 3, 5/9/07.]

A. Investigations Required. Whenever an application has been filed with the City Manager for a License pursuant to the provisions of this Chapter, the City Manager shall make an investigation, which may include, but is not limited to, the following:

1. A full and complete investigation of the Applicant (including Pointholders, partners and officers, if any);

2. A full and complete investigation as to the type of tables or units to be used at, or in connection with, the proposed business, and

the rules for and type of Games proposed to be played, which investigation shall also include the proposed locations of the tables or other units in, within, or about the proposed place of business; and

3. A determination that the Applicant, and each Pointholder thereof, has obtained, prior to City Council action on the application, a

valid license from the California Gambling Control Commission.

B. Reports Required. The City Manager shall make such investigation within thirty (30) days from the date of submission of a completed application, and shall report to the City Council with reference thereto at the end of said thirty (30) day period. The City Manager shall make investigations as to all matters within his/her jurisdiction concerning the public health, welfare and safety as may be concerned with such application.

[Ord. No. 249, § 080, adopted 9/22/92; Ord. No. 462, Section 3, 5/9/07; amended by Ord. No. 646, § 2, adopted 12/13/23.]

A. Consideration and Decision by City Council. Upon presentation and recommendation by the City Manager, the City Council shall consider the License application. The City Council may, in its discretion, decide to grant or deny the License. The decision of the City Council shall be final.

B. License Conditions. Any such License granted by the City Council shall be deemed issued subject to all the terms, conditions, and provisions of this Chapter, as well as all applicable laws of the City, State and Federal governments; the City Council may impose additional conditions as may be reasonably necessary to ensure compliance with this Chapter. In the event the City issues a conditional License, the conditional License shall be deemed effective upon the satisfaction of all conditions of approval.

[Ord. No. 249, § 090, adopted 9/22/92; Ord. No. 462, Section 3, 5/9/07; amended by Ord. No. 646, § 2, adopted 12/13/23.]

The City Council may deny issuance of any License under the provisions of this Chapter in any of the following cases:

A. If the proposed business or activity to be operated is or will be in violation of any Federal, State or City law or regulation; or

B. If the Games for which a License is applied are unlawful; or

C. If the Applicant, and each Pointholder thereof, has not first applied for an obtained a valid license from the California Gambling Control Commission; or

D. If any Applicant has made any false statement in the application or as to any other information presented as part of the application process; or

E. If any Applicant does not have the financial capability or business organization to operate a Card Club in a manner which would adequately protect the patrons of the Card Club and the citizens of the community,

[Ord. No. 249, § 100, adopted 9/22/92; Ord. No. 462, Section 3, 5/9/07; amended by Ord. No. 646, § 2, adopted 12/13/23.]

A Card Club shall be located in a district designated for Card-Room use in accordance with the Adelanto Zoning Code.

[Amended by Ord. No. 349, § 3, adopted 6/9/98; Ord. No. 462, Section 3, 5/9/07; amended by Ord. No. 646, § 2, adopted 12/13/23.]

A. Expiration. Licenses may be granted for a maximum duration of ten (10) years.

B. Renewal. Prior to expiration, Licensees may apply for renewal of Licenses. Renewalapplications shall be processed in the same manner as a new application for a Card Club License.

C. All licenses issued by the City shall expire by operation of law if the Licensee fails to commence operations upon the later of: (1) twelve (12) months from the date of the issuance of the License; or (2) the date of the adoption of this section. Upon a showing of Licensee’s good faith efforts to commence operations, the City Manager may extend the time for a Licensee to commence operations.

[Ord. No. 249, § 120, adopted 9/22/92; Ord. No. 462, Section 3, 5/9/07; amended by Ord. No. 646, § 2, adopted 12/13/23.]

Any transfer or assignment of any License shall be considered for all purposes in the same manner as a new application for a Card Club License in the City, and all the provisions of this Chapter applicable to new and original applications shall apply.

[Ord. No. 249, § 140, adopted 9/22/92; Ord. No. 462, Section 3, 5/9/07; amended by Ord. No. 646, § 2, adopted 12/13/23.]

A. General. All Licenses issued pursuant to the provisions of this Chapter shall be subject to suspension or revocation in the time and manner set forth in this Section.

B. Grounds. Any License issued pursuant to the provisions of this Chapter shall be suspended or revoked if it is found that in the time and manner hereinafter described:

1. The California Gambling Control Commission has suspended or revoked a Licensee's License; or

2. A Licensee has violated, or permitted, allowed or caused the violation of any provision of this Chapter, any regulation issued

pursuant to this Chapter, or any state law or regulation relating to the operation of a Card Club; or

3. A Licensee has failed to pay, when due and payable, any of the License Fees or other fees provided for in this Title; or

4. A Licensee has permitted, allowed or caused any violation of any condition of approval imposed upon the issuance of such

License; or

5. A Licensee has made any fraudulent statement as to a material fact on an application form, or as to any other information

presented as part of the application process.

C. Fines. In the event of a violation described in Subsection B.2., 3., 4. or 5. of this Section, a fine, not to exceed five hundred dollars ($500.00) for each violation, may be imposed on the Licensee in lieu of suspension or revocation.

D. Action of City Manager. Whenever the City Manager has information that a violation, constituting a ground for suspension, revocation or fine has occurred, he/she shall forthwith investigate the same. If he/she determines that such a violation has occurred, he/she shall forthwith set the matter for consideration by the City Council at its next most convenient meeting. The City Manager shall

give notice to the Licensee of the time and the place of the hearing before the City Council, not less than five (5) days in advance of the date set for such hearing.

E. Hearing. At the time set for such hearing, the City Council shall hear the evidence presented by the City Manager, or his/her designee, purporting to show that grounds exist for suspension, revocation or a fine; thereafter, the City Council shall permit the Licensee, and any other interested person, to present such evidence as may be relevant to dispute the existence of such facts. The City Council may continue the hearing from time to time. If it is satisfied that probable cause for revocation exists, and that continued operation of the Card Club jeopardizes, or threatens to jeopardize, the public welfare, the City Council may suspend the License pending the conclusion of the hearing.

F. Decision of City Council. If based upon the evidence presented, the City Council finds that facts are presented which constitute grounds for suspension or revocation, it shall suspend or revoke the License or, in lieu of revocation or suspension, in the event of a violation described in Subsection B.2., 3., 4. or 5. of this Section, shall impose a fine, not to exceed ten thousand dollars ($10,000.00). If it finds that such facts are not present, the City Council shall dismiss the proceedings. The decision of the City Council shall be final and conclusive.

[Ord. No. 249, § 150, adopted 9/22/92; Ord. No. 462, Section 3, 5/9/07; amended by Ord. No. 646, § 2, adopted 12/13/23.]

The following rules and regulations are established and promulgated by the City Council with reference to Card Clubs, Card Rooms and Card Games for which Licenses are issued under the provisions of this Chapter. Licensees holding or obtaining Licenses under the provisions of this Chapter, shall, in writing, agree to be bound by and observe each and all of the provisions of this Chapter relating to such Licenses.

2024 S-45 5-56

City of Adelanto Municipal Code Title 5 - Business Licenses and Regulations

RULE NO. 1: No Licensee shall use, operate or permit the use or operation of more tables or units than allowed pursuant to its License.

RULE NO. 2:

A. No Licensee shall permit any person to play in any Game licensed by the provisions of this Chapter at any time while such person appears to be, or, in the opinion of the Licensee or its duly authorized agents or employees, is under the influence of intoxicating liquor or drugs, and no person who is under, or who appears to be under, the influence of intoxicating liquor or drugs shall play in any such Game.

B. No Licensee shall permit any person to enter the premises while such person appears to be, or, in the opinion of the Licensee, or its duly authorized agents or employees, is under the influence of intoxicating liquor or drugs.

RULE NO. 3: Each Licensee shall make available to any patron or potential patron of the Card Club, written players’ house rule, in printed form, that have been filed with and approved by the City Manager. Except in a duly authorized tournament, no Licensee shall permit any person playing in any of the Games licensed by this Chapter to make any individual bet or wager in excess of the maximum bets set forth for the particular Game as specified in the players’ house rules.

RULE NO. 4: No Licensee shall operate or use any table or unit or manage, conduct or carry on any business or activity licensed by this Chapter after the time that such license issued by the City has been or is expired, suspended or revoked pursuant to this Chapter.

RULE NO. 5: Each and all of the Games conducted or operated in the Card Club pursuant to the provisions of this Chapter shall be conducted and operated in full conformity with, and subject to, all the provisions of all applicable laws in existence in this State.

RULE NO. 6: No Licensee shall permit or allow any person under the age of twenty-one (21) years to play in any Game licensed hereunder, or for any non-employee under the age of twenty-one (21) years to be present at any time in any area of the Card Club in which Card Games are being played.

[Ord. No. 249, § 160, adopted 9/22/92.]

RULE NO. 7: The only Games permitted to be played in a licensed club shall be the Card Games as defined in Section 5.16.010 (Subsections L. and T.). [Ord. No. 249, Section 160, amended by Ord. No. 301, § F, adopted 9/26/95; amended by Ord. No. 646, § 2, adopted 12/13/23.]

RULE NO. 8: The playing of all Games provided for in this Chapter shall be confined to all areas designated as “Card Rooms” which shall be located on the first or ground floor of a licensed Card Club, and no playing of any Game provided for or permitted by this Chapter shall be permitted at any other location of such premises. [Ord. No. 249, § 160, adopted 9/22/92.]

RULE NO. 9: A Card Club shall be open for inspection during all hours to the City Manager, or his/her duly authorized representative, without a search warrant. The Card Club may be open twenty-four (24) hours a day and seven (7) days a week. [Ord. No. 249, § 160, amended by Ord. No. 349, § 1, adopted 6/9/98; amended by Ord. No. 646, § 2, adopted 12/13/23.]

RULE NO. 10: A Card Club may be licensed to operate not more than thirty-one (31) tables. [Amended by Ord. No. 646, § 2, adopted 12/13/23]

RULE NO. 11: A Card Club must be located in a commercial or mixed use zone. [Amended by Ord. No. 646, § 2, adopted 12/13/23]

RULE NO. 12: If a Licensee employs dealers for the convenience of the players so that no player deals, while so dealing, the dealer shall:

A. Other than dealing the cards and making collections as set forth in this Section, not participate in anyway in the Game, not bet, and not take any percentage of the winnings;

B. Collect the established seat rental fee or other playing fee provided for in Section 5.16.170 and segregate and secure said amounts for collection purposes; and

C. Comply with regulations promulgated by the City Manager concerning identification standards.

RULE NO. 13: The giving of credit or lending of anything of value to a patron and the cashing of checks of patrons shall be permitted only if the Licensee's written check-cashing and credit policies are submitted to and approved by the City Manager. No credit of any kind shall be extended to city employees or officers.

RULE NO. 14: Licensees holding valuables for safekeeping may do so only under the following conditions:

A. Only cash may be held; no other valuables, including coins or paper money worth more than face value, may be held.

B. No person may deposit money for safekeeping without the written approval of a managing employee of the Licensee. Money may be deposited or withdrawn only by the person named on the account. Accurate records of all deposits and withdrawals shall be kept for a period of not less than two (2) years. No person shall hold more than one (1) such account at any one (1) Card Club.

C. The actual deposits held and the records of all transactions shall be available for inspection by the City Manager upon demand.

[Ord. No. 249, § 160, adopted 9/22/92.]

RULE NO. 15: The Licensee shall provide reasonable security in order to safeguard the property and well-being of those who patronize the Card Club as well as all employees. The Licensee shall prepare a security plan and submit it to the City Manager for approval by the City Manager and Chief of Police. [Added by Ord. No. 349, § 2, adopted 6/9/98.]

RULE NO. 16: There shall be no wagering limits at any Card Club in Adelanto. The wagering limit may be determined exclusively by the Card Club.

[Added by Ord. No. 349, § 5, adopted 6/9/98; Ord. No. 462, Section 3, 5/9/07.]

The Licensee shall determine, set and post, within the Card Club in a public place, seat rental and other playing fees charged to persons playing in Games authorized by this Chapter.

[Ord. No. 249, § 170, adopted 9/22/92; Ord. No. 462, Section 3, 5/9/07; amended by Ord. No. 646, § 2, adopted 12/13/23.]

A. It is unlawful for any licensed Card Club in the City to employ any person who does not have a valid, unsuspended and unrevoked employment identification card, bearing the employee’s photograph.

B. Any person wishing to obtain an employment identification card shall file an application with the City Manager. The application shall be complete in all respects and shall include photographing and fingerprinting. A processing fee, in an amount set by the City Council, shall be paid to the city for such fingerprinting and photographing, issuance of the identification card, and for a background investigation to be conducted by the City Manager or his/her designee.

C. Each application for an employment identification card by any person wishing to obtain employment in the Card Club shall contain, in addition to such other information as the City Manager shall require, the following current information under penalty of perjury:

1. The true name and any other name by which the proposed employee has been known and all residence addresses during the

past five (5) years;

2. Current occupation or employment;

3. Employment during the past five (5) years;

4. Physical characteristics, including, age, date of birth, height, weight, and color of hair and eyes;

5. Driver’s license and Social Security numbers;

6. A history of all arrests and convictions for any felony or misdemeanor offense, other than traffic violations, and of violations of

any municipal codes or ordinances within the past ten (10) years; and

7. A current full face photo.

D. The City Manager shall process the application and may approve, conditionally approve, or deny such application. The City Manager may deny an application for an identification card in the following cases:

1. If the Applicant has been convicted of any crime punishable as a felony;

2. If the Applicant has been convicted of an offense involving dishonesty;

3. If the Applicant has engaged in bookmaking, loan sharking, or other illegal gambling activities or has been convicted of an

offense involving such activities;

4. If the Applicant is not a person of good character, integrity and honesty;

5. If the Applicant has made any false statement in the application or as to any other information presented as part of the

application process; or

6. If the approval of the Applicant would be inimical to the interests of legitimate gaming.

If an application is denied, the Licensee may appeal such denial on behalf of the Applicant by written notice to the City Manager,

who shall cause a hearing to be held within thirty (30) days after such notice. The City Manager, or his/her designee, may approve, conditionally approve, or deny such appeal. The hearing officer’s decision shall be final and conclusive. The cost of such hearing shall be borne by the Licensee.

E. An employment identification card may be suspended or revoked under the following circumstances:

1. The commission of any act which would have been grounds for the denial of an identification card pursuant to Subsection D. of this Section; or

   2. The violation of any condition imposed in issuing such identification card. The identification card may be immediately suspended by the City Manager if the offense is such to cause an immediate threat to the public welfare. Such immediate suspension shall remain in effect for seven (7) days or until a final decision is rendered by a hearing officer appointed by the City Manager, whichever occurs first.

   The hearing officer may suspend or revoke an identification card after a hearing following five (5) days notice to the employee. The employee shall be permitted to submit any relevant evidence to the hearing officer. The decision of the hearing officer shall be final, and all costs shall be borne by the employee.

F. Unless specifically exempted by the City Manager in writing, each employee, at all times while acting within the scope of his/her employment on the Card Club premises, shall wear in a prominently visible place upon his/her person said identification card.

G. The information received by the City pursuant to the provisions of this Section shall be treated as confidential and shall be accessible only to those City officials having jurisdiction over the provisions of this Chapter, and to management personnel of the Licensee.

[Ord. No. 249, § 180, adopted 9/22/92; Ord. No. 462, Section 3, 5/9/07; amended by Ord. No. 646, § 2, adopted 12/13/23.]

A. It is unlawful for any Licensee or any person having any interest whatsoever or at all in the ownership of a Card Club, whether legal or equitable, or as trustor or trustee, or of whatsoever kind or character, to sell or transfer such points and/or interest without the

prior, written consent and permission of the City Council.

B. Sales and transfers cannot be approved any earlier than five (5) years from the date the License is issued.

C. Any person desiring to sell, transfer, assign, or otherwise hypothecate any point or interest in a Card Club duly licensed pursuant to the provisions of this Chapter shall file with the City Manager a written application for permission to transfer such interest, as is hereinafter described. Each such application shall contain and clearly and truthfully set forth, under oath and/or affirmation, and show, in addition to such other information as the City Manager and/or the City Council may require, the following information:

1. The date of the application;

2. The true name of the Applicant and proposed purchaser or transferee, and any other name by which the proposed purchaser or

transferee has been known;

3. The status of the proposed purchaser or transferee as being an individual, corporation, association, partnership, joint venture,

trustor or trustee;

4. The residence and business address for the last five (5) years of the proposed purchaser or transferee, if an individual;

5. If the transferee is other than an individual, the true name, residence and business address for the last five (5) years of each of

the proposed purchaser or transferee Pointholders, partners and officers;

6. A full and complete financial statement of the proposed purchaser or transferee, whether it is an individual, corporation,

partnership or other entity, and a full and complete financial statement of each proposed purchaser or transferee Pointholder, partner or officer; provided, the financial statements required by this Subsection shall be deemed confidential in character and shall not be open to public inspection, but shall be available to those city officials having jurisdiction over the provisions of this Chapter;

7. The name of the licensed Card Club for which a transfer of interest or point is sought;

8. The number of points and/or the nature of interest sought to be sold, transferred, assigned or otherwise hypothecated; and

9. A statement that the proposed purchaser has applied for or has been granted a license issued by the California Gambling

Control Commission.

10. A statement that the application will be considered by the City Council only after a full investigation and report has been made

by the City Manager and the report of investigation forwarded to the City Council.

D. Investigation Required. Whenever an application pursuant to the provisions of this Section has been filed with the City for a sale or transfer pursuant to the provisions of this Section, the City Manager shall promptly and diligently make an investigation and shall report to the City Council with reference thereto within thirty (30) days from the filing of the application, as follows:

1. A full and complete investigation of the proposed purchaser or transferee (including the proposed Pointholders, partners or

officers), including a determination that the proposed purchaser has applied for or obtained a valid Gambling Establishment and Owner license issued by the California Gambling Control Commission;

2. Concurrently with the filing of the application, each person named in the application as a proposed purchaser or transferee, or

Pointholder, partner or officer thereof, shall be fingerprinted by the City Manager or his/her designee. No application shall be deemed filed until the fingerprinting is completed.

E. License Fees. Each such sale or transfer application shall be accompanied by a processing fee in the amount as established by Section 5.16.060, to cover the cost of the investigation. The fee shall be the property of and be retained by the City, whether the application for sale or transfer is granted or denied.

F. Granting or Denial of Application.

1. Whenever an application for such a sale or transfer is presented to the City Council, the City Council shall consider such

application on the same basis as is applicable to a new License application.

2. The City Council shall not approve an application if the proposed purchaser has not first obtained a valid Gambling

Establishment and Owner license issued by the California Gambling Control Commission. Otherwise, the City Council may, in its sole discretion, either approve, conditionally approve, or deny the application, with or without specification of grounds. The decision of the City Council shall be final and conclusive.

3. The Applicant shall agree as part of this application that the sole and exclusive discretion as to the granting or denial of any such

application shall be vested in the City Council.

[Ord. No. 249, § 190, adopted 9/22/92; Ord. No. 462, Section 3, 5/9/07; amended by Ord. No. 646, § 2, adopted 12/13/23.]

A. All Owners and Pointholders in any Card Club shall have their background investigations updated every two (2) years. Such updating shall consist of a check by teletype to Criminal Investigation and Identification in Sacramento, California, and the filing by each Licensee, Owner or Pointholder, and partner or officer thereof, of updated financial statements.

B. Any person having any interest whatsoever or at all in the ownership of a Card Club, whether legal or equitable, or a trustor or trustee, or of whatsoever kind or character, who has not previously submitted to the procedure required under Section 5.16.190.C. through F., shall file, as a prerequisite to the continued holding of an ownership interest, the application to be investigated, shall pay the fee, and shall be reviewed by the City Manager and City Council as provided in that section for persons applying for new ownership interest. If the City Council denies any application, within one hundred twenty (120) days after the receipt of a notice of such denial, said person shall divest himself/herself of such ownership interest. The City Attorney may invoke appropriate civil remedies to enforce compliance.

C. 1. The approval of an Owner or Pointholder may be revoked by the City Council, after a hearing held not less than thirty (30)

days after notice has been given to the Pointholder, if the City Council finds that:

a. The Attorney General of the State has suspended or revoked the Owner’s or Pointholder s registration under the Gaming

Registration Act of the State, or after issuing a conditional registration, fails or refuses to issue, a valid registration; or

b. An Owner or Pointholder has violated, or permitted, allowed, or caused the violation of, any provision of this Chapter, any

regulation issued pursuant to this Chapter, any condition of approval imposed upon the issuance of the Card Club License, or any State law or regulation relating to the operation of a Card Club; or

c. An Owner or Pointholder has made any fraudulent statement as to a material fact on an application form or as to any other

information presented as part of the application process; or

d. An Owner or Pointholder is convicted of any crime involving illegal gambling or gaming activities or moral turpitude, or is

convicted of a crime punishable as a felony.

2. The City Council, in making its decision, shall consider any mitigating factor presented by the Owner or Pointholder. The decision

of the City Council shall be final.

3. The ownership interest shall be divested within one hundred twenty (120) days after the notice of revocation. The City Manager

may extend the time to divest the ownership interest upon a showing of good faith. The City Attorney may invoke appropriate civil remedies to enforce compliance.

4. No person required to divest an ownership interest in a Card Club following a revocation of approval shall transfer such

ownership interest to his/her spouse, child, sibling, or parent, or to his/her spouse's child, sibling or parent, without the approval of the City Council.

[Ord. No. 249, § 200, adopted 9/22/92; Ord. No. 462, Section 3, 5/9/07; amended by Ord. No. 646, § 2, adopted 12/13/23.]

A. Unlawful Locations. It is unlawful for any person to play, or permit the playing, of any Game regulated or referred to by the provisions of this Chapter at any place within the City, except upon a parcel of real property located entirely within the City limits that is designated for Card-Room use in accordance with the Adelanto Zoning Code, and operated under a permit and licensed under licenses held or issued pursuant to the provisions of this Chapter. [Ord. No. 249, § 210A, adopted 9/22/92; amended by Ord. No. 646, § 2, adopted 12/13/23.]

B. Unlawful Games. It is unlawful for any person to play in, or permit the playing of, any Game at any place licensed pursuant to this Chapter which Game is not permitted by the provisions of this Chapter as amended, or in any Game played in violation of this Chapter. [Ord. No. 249, § 210.B, adopted 9/22/92; amended by Ord. No. 301, § G, adopted 9/26/95.]

C. City Employees and Officers. It is unlawful to provide credit of any kind, or to provide gratuities, goods or services in, upon or about the Card Club to City employees or officers at reduced or no cost.

D. Operation of Card Clubs. It is unlawful for any operator of a Card Club permitted under this Chapter, or for any owner, principal, employee or agent of a Card Club permitted under this Chapter:

1. To knowingly permit any unlawful activity to take place upon the premises of the Card Club or to fail to take reasonable steps to

prevent such activities from taking place, including, but not limited to, illegal gambling activities and cheating. The Licensee shall have the power to formulate reasonable policies and procedures to control such activities, and these policies and procedures may be published in the players’ house rules.

2. To permit any employee on duty to play in any of the Games authorized by this Chapter other than pursuant to policies of the

Licensee that are disclosed in the players’ house rules.

E. Cheating. It is unlawful for any person to attempt to gain any unfair advantage for any player in a licensed Card Game through a fraudulent technique or mechanical or electrical device. Prohibited cheating techniques include, but are not limited to dealing, drawing, distributing or burning any playing cards other than the top card of a deck; prearranging or shuffling any playing cards in a manner other than in a random manner; altering in any way the shape, appearance, texture or number of cards to play; switching any card; or using any apparatus or method to gain information not available to other players.

[Ord. No. 249, § 210, adopted 9/22/92; Ord. No. 462, Section 3, 5/9/07; amended by Ord. No. 646, § 2, adopted 12/13/23.]

A Licensee may exclude or eject from the premises any person who has been engaged in or been convicted of bookmaking, loan sharking, the sale of controlled substances, illegal gambling activities, cheating, prostitution, or whose presence in or about such Card Club would be inimical to the interest of legitimate gaming. No person shall be excluded or ejected solely on the basis of a protected classification.

[Ord. No. 249, § 220, adopted 9/22/92; Ord. No. 462, Section 3, 5/9/07; amended by Ord. No. 646, § 2, adopted 12/13/23.]

The City Manager shall formulate in writing all necessary rules and regulations to implement and administer the provisions of this Chapter, and shall do all things necessary and proper to carry out the spirit and intent of this Chapter, including, but not limited to:

A. Preserving and keeping all documents identified in this Chapter as confidential documents so that the contents thereof shall not become known except to persons required by law to effect the administration or enforcement of this Chapter;

B. Promulgating and/or requiring prior approval of accounting procedures to be utilized by Licensees to ensure accurate reporting of Card Club revenues; and

C. Delegating the duties and powers vested in the City Manager by this Chapter to appropriate City employees or officers.

[Ord. No. 249, § 230, adopted 9/22/92; reiterated by Ord. No. 347, § 2, adopted 4/14/98; Ord. No. 462, Section 3, 5/9/07; amended by Ord. No. 646, § 2, adopted 12/13/23.]

It shall be unlawful for any person to violate any of the provisions of this Chapter. In the event of any violation, the City Manager shall promptly notify the Licensee in writing of all of the facts upon which the violation is based, detailing with specificity the nature and extent of the facts that relate to the alleged violation. As set forth in the notice, the Licensee shall have a reasonable time to cure the violation. Upon a showing of good cause, the City Manager may extend the time within which the violation shall be cured. All remedies and penalties prescribed by this Chapter, or that are available under any other provision of the Municipal Code and any other provision of law or equity, are cumulative.

[Ord. No. 249, § 240, adopted 9/22/92; reiterated by Ord. No. 347, § 2, adopted 4/14/98; Ord. No. 462, Section 3, 5/9/07; amended by Ord. No. 646, § 2, adopted 12/13/23.]