Chapter 5.10 — CARDROOMS

A.

On October 11, 1997, Senate Bill 8 (SB8) (Lockyer) was chaptered as Chapter 867, Statutes 1997 by the California State Legislature. SB 8 repealed the Gaming Registration Act and enacted the Gambling Control Act. The Gambling Control Act, hereafter "the Act," establishes within the Office of the California Attorney General a Division of Gambling Control which will be responsible for licensing controlled gambling throughout the state. Any new cardroom within the city will be subject to a vote of approval by the electorate before commencing business. A cardroom is a gambling establishment under the Act. The state will deny a gambling license to any gambling establishment that is within the incorporated limits of a city which does not have an ordinance in place governing specific aspects of the business. The purpose of this chapter is to comply with the requirements of Business and Professions Code Section 19851 as included in the Act. Business and Professions Code Section 19851 requires that the city's ordinance govern the following matters:

The hours of operation of gambling establishments;

Patron security and safety in and around the gambling establishments;

The location of gambling establishments;

Wagering limits in gambling establishments; and

The number of gambling tables in each gambling establishment and in the jurisdiction.

B.

It is not the intention of this chapter to permit the playing of any game prohibited by the laws of State of California, including, but not limited to, those games enumerated in Section 330 of the Penal Code of the state.

C.

There is presently one cardroom in operation within the city, the Towers Casino and Cardroom.

(Ord. 559 § 1 (part), 1998; Ord. 605 § 1, 2002; Ord. No. 713B N.S., § 1, 4-13-2010)

For the purposes of this chapter:

"Cardroom" means any space, room or enclosure, furnished or equipped with a table used or intended to be used as a card table for the playing of cards and similar games and the use of which is available to the

public, or any portion of the public.

"Gambling" means to deal, operate, carry on, conduct, maintain or expose for play any controlled game as defined in subdivision (e) of Section 337j of the California Penal Code.

(Ord. 559 § 1 (part), 1998)

It is unlawful for any person, for himself or for any other person, to engage in or carry on, or to maintain, or to conduct, or cause to be engaged in, carried on, maintained or conducted, any cardroom in the city without first having secured a license from the State of California Attorney General, Division of Gambling Control to do so. Any cardroom or any card table which is located within a portion of any premises which sells or dispenses alcoholic beverages on the premises shall do so pursuant to all federal, state and local laws pertaining to such.

(Ord. 559 § 1 (part), 1998)

A.

At no time shall there be more than eight card tables licensed to conduct such business by the city. Tables used during tournaments or free special events shall count toward this maximum table limit. Chairs shall be provided for all card players. No more than twelve players shall be permitted to play at any time at any one table. Authorized games shall not utilize dominoes, tiles, dice, spinning wheels, electronic player-controlled machines or any other device other than the standard decks of playing cards traditionally used for playing such games, poker chips, and the optional dealer shoes, except, to the extent such equipment is allowed by applicable state law and/or state regulations, such equipment shall also be allowed in the city. However, any proposed electronic player-controlled device or machine shall be allowed only upon obtaining prior approval of a use permit pursuant to Chapter 17.72 of Title 17 of the Grass Valley Municipal Code.

B.

The number of card tables permitted in the Towers Casino and Cardroom, doing business at 115 Bank Street, is eight. The location of the Towers Casino and Cardroom establishment shall not change without the approval of the State Gaming Board and the city council.

(Ord. 559 § 1 (part), 1998; Ord. 605 § 2, 2002; Ord. No. 713B N.S., § 2, 4-13-2010)

A.

Notwithstanding the limitations on the number of card tables set forth in Section 5.10.040 of this chapter, a permitted cardroom may hold noticed and/or advertised card tournaments utilizing more than the maximum number of tables so stated in such section provided that the permittee first apply for and obtain a special tournament permit from the chief of police. An application for such a permit must be submitted to the chief of police accompanied by the fee in an amount as may be established by the city council from time to time

by resolution and completed by the applicant at least five days prior to the date of the tournament. The application shall contain the following information:

Date, time and duration of tournament;

Number of card tables;

Copies of any advertising or notices posted by the applicant promoting the tournament; and

Statement of additional security, if any, to be provided during the tournament.

B.

Card tournaments shall be limited in any calendar year at each permitted cardroom based upon the following: For each cardroom authorized by this chapter the number of card tables allowed annually for tournaments shall be proportionate to the number of card tables authorized in the establishment on a daily basis; additional tables are permitted by law so long as the increase does not exceed twenty-five percent per year the authorized number.

Example: an establishment with two tables is authorized to have 365 days × 2 tables = 730 table days each year. Twenty-five percent of 730 table days = 182.5 table days.

Such an establishment could have any number of tournaments in any calendar year provided that the number of additional tables for the permitted tournaments in any calendar year does not exceed one hundred eighty-two tables. In this regard, in the example given, one tournament could be held in such an establishment each month for one day using an additional fifteen tables.

(Ord. 559 § 1 (part), 1998)

All cardrooms may operate seven days a week, twenty-four hours each day. Should the chief of police determine that the hours of operation pose a threat to public safety, the chief of police shall provide written notice to the applicant that the hours of operations may be adjusted if the public safety issue is not immediately corrected. Should the chief of police recommend adjusting the hours of operation permanently, the matter shall be deferred to the city council for a final determination.

(Ord. 559 § 1 (part), 1998; Ord. No. 713B N.S., § 3, 4-13-2010)

A.

The licensee shall be responsible for maintaining security on both the premises of the cardroom and the parking lot used by the cardroom and the parking lot used by the cardroom for its patrons and employees. The licensee shall maintain and implement a plan for security and safety of patrons and employees of the licensee in and around the gaming establishment. The plan shall set forth provisions necessary to ensure the safety and security of patrons and employees, including measures taken or instituted on the cardroom site to avoid follow-home robbers. Failure to submit or maintain an approved security plan shall be grounds for the denial or revocation of a cardroom license.

B.

The contents of a security plan shall also provide a complete description and layout of all security measures, both physical and operational, for the handling of money, including, but not limited to, provisions, if applicable, for the following:

Purchase of chips and protection against counterfeit chips;

Check-cashing or ATM card-cashing procedure;

Procedures for bringing money to or removing money from the premises; and/or

Procedures for determining and depositing daily gross receipts.

All information provided regarding security measures, internal controls, or provisions relating to the handling of cash, chips and cards shall be deemed confidential and shall not be available for public inspection unless required by law.

C.

If, at any time, the chief of police determines that security measures beyond those contained in an approved security plan are necessary to protect the health and safety of the public, the chief of police is authorized to require such additional security measures as are deemed necessary. Such additional security measures may include, but shall not be limited to, placement of or an increase in uniformed security personnel on both the premises and the parking lot used by the cardroom for its patrons and employees, and the installation of security cameras. Such determinations by the chief of police shall be based on the:

Propensity for peace disturbances or criminal activity in the geographic area in which the cardroom is located;

Criminal activity or peace disturbances on cardroom premises or the parking lot used by the cardroom for its patrons and employees;

Particular time of day; and/or

Any other factors which affect the health and safety of the public and cardroom patrons.

The chief of police shall notify the licensee in writing of the necessary security plat changes and shall provide the licensee with a reasonable period of time to implement the changes. Upon receiving the written notice of security plan changes, the licensee shall conform to those requirements within the time provided and shall maintain those requirements in full force and effect until such time as the chief of police deems they are no longer necessary.

D.

The licensee shall not knowingly permit the consumption of alcoholic beverages outside of the premises or in the parking lot which the cardroom uses for its patrons.

E.

The licensee shall not knowingly permit any obviously intoxicated person to participate in any card game.

F.

The licensee shall not knowingly permit any illegal activity to occur on the premises or in the parking lot used by the cardroom for its patrons or employees. Illegal activity includes, but is not limited to, narcotics violations, bookmaking, illegal gambling, loan sharking, receiving stolen property, or prostitution.

G.

The licensee shall permit the chief of police, health department, fire department or any other authorized public official to inspect the premises at any time during the hours of operation.

H.

During all hours of operation, all doors, except for emergency exits, to the establishment must be unlocked and accessible to the general public and open to police inspection.

I.

Each card table shall have assigned to it a person whose duty shall be to supervise the game and see that it is played strictly in accordance with the provisions of the Penal Code and other applicable laws of the state. This person may have more than one table under his or her supervision. This person may also act as the dealer.

J.

Cardrooms shall be located and so arranged that card tables and the players at the tables are plainly visible from the door opening of the cardroom when the door is opened. No wall, partition, screen or similar structure between the front door opening and any card table located in the cardroom shall be permitted if it interferes with such visibility.

K.

After the chief of police sends written notice of the conditions, as either a part of or to supplement the approved security plan, if the cardroom operator disagrees with the conditions, he/she shall file a request for hearing in front of the city administrator. At the hearing, it shall be the chief of police's burden to prove the grounds for the conditions exist. If a hearing is requested, such conditions shall not become final until the hearing has concluded. Written notice of the city administrator's decision shall be provided to the cardroom operator within ten days.

(Ord. 559 § 1 (part), 1998; Ord. No. 713B N.S. § 4, 4-13-2010)

Wagering at any card table in any game shall be limited to table stakes; no side-bets shall be permitted.

(Ord. 559 § 1 (part), 1998)

No licensee, employee or agent of the licensee or any other person in charge or control of any cardroom shall:

A.

Loan any money, check or anything of value to any person who is playing, or intends to play, any card game;

B.

Extend credit for gambling purposes except as provided under the provisions of the Division of Gambling Control Regulations, specifically Sections 1504.2 through 1504.4 and any subsequent amendments to same;

C.

Purchase or agree to purchase, any real or personal property from any person who is playing, or intends to play, any card game;

D.

Communicate in any way, whether verbally or nonverbally, to any other person, whether playing a card game or not, any information concerning the cards held, or the card game being played, by any person in the cardroom;

E.

Knowingly permit any person to enter or remain on the premises of the cardroom or to play any card game while such person is under the influence of any intoxicating beverage, narcotic or dangerous drug; and

F.

Charge any fee to cash a check of any person who is playing, or intends to play, any card game. In this regard no checks drawn against any federal, state or county fund, including, but not limited to, social security, unemployment insurance, disability payments or public assistance other than payroll checks or checks for the delivery of goods or services that are drawn against a federal, state or county fund shall be cashed on the premises of any card game.

(Ord. 559 § 1 (part), 1998)

The licensee shall establish a reasonable charge to customers and there shall not be permitted any percentage "rake-off" or "cut" of any pots or bets retained by the licensee, employee or agent of the licensee or any other person in charge or control of any cardroom.

(Ord. 559 § 1 (part), 1998)

There shall be posted in every cardroom in letters plainly visible from all parts thereof, signs stating that no game which is prohibited by state law shall be played in the cardroom. These signs shall also contain such other information as may be required by state law and this chapter as the chief of police may require, including the amount of the charge for participation.

(Ord. 559 § 1 (part), 1998)

It is unlawful to operate a cardroom in violation of any of the provisions of this chapter.

(Ord. 559 § 1 (part), 1998)

Any cardroom licensee conducting business within the incorporated limits of the city shall, in addition to the applicable business license fees for each cardroom establishment, pay the city fees as established by resolution of the city council, for each card table on such premises for the purpose of administering and enforcing the provisions of this chapter.

(Ord. 559 § 1 (part), 1998; Ord. No. 713B N.S., § 5, 4-13-2010)

A.

Any person who violates any provision of this chapter is guilty of a misdemeanor. Each and every violation shall constitute a separate offense.

B.

In addition to the criminal sanctions provided in this section, the operation of any cardroom in violation of the provisions of this chapter or other applicable laws and regulations shall be deemed a public nuisance.

(Ord. 559 § 1 (part), 1998)