11.12 — GAMING CLUBS

• (a) Except as otherwise provided by Section 11.12.230 herein, it shall be unlawful for any person (i) to play or bet at, (ii) to deal, carry on or conduct, whether as owner or employee, (iii) or to knowingly permit in any house, room or place owned by him or under his charge, any game played, conducted, dealt or carried on with cards, dice or other device, for money, checks, chips, credit, merchandise or other representations of value. This ordinance shall not apply to any game or mechanical device defined in Part 1, Title 9, Chapter 10 of the California Penal Code (Section 330, et seq.)

• (b) Except as otherwise provided by Section 11.12.230 herein, it shall be unlawful for any person, for himself or herself, or for any other person, corporation, or other business entity to engage in or carry on, or to maintain or conduct, or cause to be engaged in, carried on, maintained or conducted, or share in the profits of, any gaming club in the city of Palm Springs without first having secured a license from the city to do so and without compliance with all of the provisions of this chapter and state law pertaining to gaming clubs. No gaming operations shall be conducted in any location within the city unless so authorized under the provisions of this chapter.

• (c) Games described below, when conducted in a licensed gaming club, are allowed. (Measure L § 7, 1995)

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

"Casino gaming" is defined as banking or percentage table games, and mechanical or electronic games of chance and of mixed chance and skill.

"City" means the city of Palm Springs.

"Gaming club" means a business establishment licensed under the provisions of this chapter for the playing of those games authorized under this chapter, and shall include any business activities accessory thereto that are conducted on the premises, including, but not limited to, food, beverage and valet services.

"Gaming club employee" means any natural person employed in the operation of a gaming club authorized under this chapter, including, without limitation, dealers, floormen, security employees, count room personnel, cage personnel, collection personnel, surveillance personnel, data processing personnel, appropriate maintenance personnel, or any other natural person whose employment duties relate to gaming.

"Game" means any game as described in Section 11.12.030.

"Gaming" means the act of conducting or participating in games at a gaming club.

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City of Palm Springs, CA § 11.12.020

PALM SPRINGS CODE

§ 11.12.040

"Gross receipts" means and includes the total amount of revenue received by a licensee directly derived from gaming conducted by the licensee, including, but not limited to, seat or space rentals charged and received by a licensee for the privilege of allowing a patron to participate in a game; provided, however, gross receipts shall not include fees charged to players when returned to players as tournament prizes or jackpots. No deduction from gross receipts shall be allowed for any purpose, including, but not limited to, any charge, cost or expenses incurred by the licensee in the conduct of a gaming club; provided, however, if casino gaming is allowed in California by any statutory or case law, then for that purpose a deduction from gross receipts shall be allowed for all payments made to patrons for their winning a wager.

"License" means a license issued by the city council pursuant to this chapter permitting the operation of a gaming club.

"Licensee" means the holder of a license.

"Table" means a table at which a game is played, having space for a dealer and players.

"The Gaming Registration Act" refers to California Business and Professions Code Section 19800, et seq., which Act regulates gaming clubs in the state of California.

"Tribe" means the Agua Caliente Band of Cahuilla Indians. (Measure L § 7, 1995)

All legal gambling and games allowed under California law, as such laws may be amended from time to time, are permitted to be played in gaming clubs located in and licensed by the city, including but not limited to draw poker, lowball poker, panguingue (pan), seven-card stud, pai gow poker, and super pan 9.

(Measure L § 7, 1995)

Gaming clubs may only be established if they qualify under subsection (1), below, and if they meet the conditions of subsections (2), (3), (4), (5) and (6), below:

• (1) A gaming club may be developed if located in an area with a gaming overlay zoning designation as established pursuant to the zoning ordinance and general plan amendments established by this chapter.

• (2) The gaming club must be at least twenty thousand square feet in area, not including any related hotel or other facilities except eating or other accessory uses directly serving the gaming club.

• (3) The operator of the gaming club must have a valid gaming license as provided in Section 11.12.090.

• (4) The operator of the gaming club and owner of the property must have a valid conditional use permit for the use.

• (5) The licensee shall comply with Section 19805 of the California Business and Professions Code.

• (6) No gaming club shall operate under any name which includes the term "card" or "cards."

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City of Palm Springs, CA

PEACE, MORALS AND SAFETY

§ 11.12.040

§ 11.12.070

(Measure L § 7, 1995)

• (a) No gaming club shall have less than thirty nor more than two hundred tables approved or in regular operation.

• (b) There shall be no more than five hundred tables in the city.

• (c) Tables that operate irregularly shall not be counted for the purposes of the limitations imposed by this section. "Irregular operation of tables" means the limited operation of tables for temporary tournaments and other special events, as may be permitted by this chapter and state law.

(Measure L § 7, 1995)

Gaming clubs may operate up to twenty-four hours per day. If the proposed gaming club site is located adjacent to residential-zoned property, such hours may be restricted by the city council as a condition of license or conditional use permit approval with respect to those gaming clubs authorized pursuant to Section 11.12.040.

(Measure L § 7, 1995)

Subject to the provisions of this chapter, any person who qualifies under Section 11.12.040, including a proposed transferee of an existing license, desiring to conduct a gaming club shall file with the city manager a written application therefor. Each such application shall contain the following:

• (1) The date of the application;

• (2) The legal name of the applicant and any other name by which the applicant is or was known;

• (3) The status of the applicant, i.e., an individual, corporation, partnership or joint venture;

• (4) Any person who shares in the profits of the gaming club, directly or indirectly, including a lessor if percentage rents are involved, shall be included in the application;

• (5) The name, residence, the business address and personal histories of each of the shareholders, officers, directors, partners, principals or joint venturers of such applicant;

• (6) The proposed site for the gaming club;

• (7) The type and nature of the games proposed to be played;

• (8) The number of tables to be placed in the gaming club;

• (9) The hours of operation;

• (10) A description of any accessory uses, including but not limited to food, beverage and valet services, proposed to be conducted at the site;

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City of Palm Springs, CA § 11.12.070

PALM SPRINGS CODE

§ 11.12.080

• (11) A site plan depicting the building or buildings proposed for such usage;

(12) An acknowledgement by the applicant that:

• (A) At all times during which the license is in existence, all buildings and structures located or to be located on the site shall conform to all applicable laws related to the occupancies proposed,

• (B) The applicant understands that the application will be considered by the city council only after a full investigation and report have been made,

• (C) The applicant understands and agrees that any authorized accessory use conducted at the site by a licensee shall be operated in full conformity with all applicable laws and that any violation of any applicable laws shall be grounds for revocation of the license,

• (D) The applicant is aware that all information submitted as a part of the application, or otherwise required hereunder to monitor operations of the gaming club, is public information and may be disclosed by the city,

• (E) The applicant has read, understands and will abide by, as conditions of issuance upon a license, all of the provisions of this chapter;

• (13) A full and complete audited financial statement relating to the applicant. Notwithstanding subsection (12)(d) above, the financial statement shall be confidential and only released to city employees who have a need to know;

• (14) A detailed plan regarding proposed security measures to protect the safety of gaming club patrons and community residents;

• (15) Any other information reasonably required by the city manager;

• (16) Payment of a deposit of twenty-five thousand dollars, to defray the cost of processing the application, including the costs of conducting required investigations. Any unused portion of the deposit shall be refunded to the applicant;

• (17) A copy of the registration form filed by the applicant with the Attorney General pursuant to Section 19805 of the Gaming Registration Act.

• (Measure L § 7, 1995)

• (a) Investigations Required.

Whenever an application for a license, or for the transfer of a license, has been filed with the city manager, and accepted as complete, the city manager shall immediately refer such application to the chief of police and other appropriate city officials, or city-employed consultants, who shall cause an investigation to be conducted covering the following:

• (1) An investigation of the site where the proposed gaming club will be conducted;

• (2) An investigation of the applicant, including the proposed officers, directory, partners, principals; and

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City of Palm Springs, CA

PEACE, MORALS AND SAFETY

§ 11.12.080

§ 11.12.090

• (3) An investigation as to the type of gaming to be conducted to insure compliance with state law.

• (b) Reports Required.

The chief of police shall conduct the required investigations and shall file written reports with the city council within sixty days.

(c) Updated Investigations.

The chief of police shall have the right to require any applicant, licensee or employee holding a work permit to supply additional or updated information to that previously required of such person for use in any investigation being conducted by the chief. Additionally, each such person shall cooperate in any such investigation undertaken by the chief, or any other law enforcement official, and shall allow any and all relevant books, records, and accounts to be inspected and copied by the city. (Measure L § 7, 1995)

• (a) Decision of the City Council.

The city council, subject to the provisions of this chapter, shall by resolution approve, conditionally approve or deny an application for the issuance, amendment of the conditions on issuance of a license, or transfer of a license. Such action shall take place after noticed public hearing, which notice shall be given as stated below. In all cases, the burden of proof is on the applicant to demonstrate entitlement to the issuance, amendment, or transfer of a license, except that where the city denies a license, the burden of proof by a preponderance of the evidence shall be on the city to establish the standards set forth in Section 11.12.100.

• (b) Notice of Public Hearing.

Notice of a public hearing to consider a gaming club application or amendment of an existing license shall contain the time and place of the hearing and the location of the proposed gaming club, and shall, at least ten days prior to the hearing, be posted on the official City Hall bulletin board, published in a newspaper of general circulation, and mailed to owners of record of property located within a radius of five hundred feet of the exterior boundaries of the subject property.

(c) Conditions.

Any license which is ordered issued, amended or transferred by the city council shall be deemed issued or transferred subject to compliance with all applicable laws. The city council may impose specific additional conditions of approval upon the issuance, amendment or transfer of a license which in the exercise of its discretion it deems reasonably necessary to ensure compliance with applicable laws and public health, safety and welfare.

• (d) Decision of the City Council Final.

Subject to the provisions of Section 11.12.110, the decision of the city council pertaining to the issuance or refusal to issue a license, or to permit or deny the amendment or transfer of an existing license, shall be final and conclusive.

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City of Palm Springs, CA

PALM SPRINGS CODE

§ 11.12.090

§ 11.12.120

(Measure L § 7, 1995)

The city council, after hearing, shall deny an application for a license, or amendment or transfer of a license, if any of the following facts are found to exist:

• (1) If the proposed gaming club or any accessory use is or will be operated in violation of any applicable state law;

• (2) If any applicant, including a corporate officer, director, shareholder, partner, joint venturer, or principal has been convicted of any crime involving moral turpitude, including, but not limited to, the crimes of book-making, loan sharking, illegal gambling, fraud, larceny, or any other felony involving bookmaking;

• (3) If any applicant has made any false statement on the application or as to any other information presented as part of the application process;

• (4) If the applicant does not have the financial capability to operate a high quality gaming club;

• (5) If the applicant does not have the business experience necessary to operate a high quality gaming club;

• (6) If the gaming club site, and all buildings or structures located or to be located thereon, do not meet the requirements of applicable laws relating to such usage;

• (7) If the proposed security and safety measures are inadequate to ensure excellent protection for patrons and the community;

• (8) If the proposed gaming club site does not meet the locational or other conditions of Section 11.12.040;

• (9) If the gaming club on the proposed site will be detrimental to the public health, safety or general welfare;

• (10) If any person of the class of persons referred to in Section 11.12.070(5) is under twenty-one years of age.

(Measure L § 7, 1995)

Judicial review of any decision of the city council may be had pursuant to Section 1094.5 of the California Code of Civil Procedure only if the petition for writ of mandate pursuant to said section is filed within the time limit specified in Section 1094.6 of the California Code of Civil Procedure. Thereafter, all persons are barred from commencing or prosecuting any such action or proceeding or asserting any defense of invalidity or unreasonableness of such decision, proceeding, determinations or actions taken.

(Measure L § 7, 1995)

• (a) If the action of the city council on any such application is to direct the issuance of the license, or to approve the transfer of an existing license, the city manager shall in writing

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City of Palm Springs, CA

PEACE, MORALS AND SAFETY

§ 11.12.120

§ 11.12.160

issue or transfer the license and any other permits so authorized, in a form as approved by the city attorney, upon the payment of all fees, taxes, and deposits, require to be paid pursuant to this chapter.

• (b) After a license is issued or transferred, the licensee shall give written notice to the city manager, within ten days, of any changes in ownership, officers, directors, partners, shareholders, principals or joint venturers.

(Measure L § 7, 1995)

Licenses lawfully issued under the provisions of this chapter shall remain valid until surrendered or revoked pursuant to the provisions of this chapter. Provided, however, if a licensee has not commenced doing business operating a gaming club within three years from the date the license was issued it shall expire and be of no further force and effect without the necessity of the city taking any action to revoke it.

(Measure L § 7, 1995)

The city council may by ordinance or resolution prescribe such fees, charges, assessments or taxes, including but not limited to a gross receipts tax, on the establishment and operation of gaming clubs as the city council shall determine appropriate, except to the extent limited by the city Charter.

(Measure L § 7, 1995)

• (a) It is unlawful for any licensee, owner or employee to engage or persuade any person to participate in a game for the purpose of stimulating play where such person is to receive any reward, whether financial or otherwise, present or promised; or where such reward or revenue is to be diverted to the licensee or an employee except as allowed under subsection (b).

• (b) The licensee may utilize proposition players. A proposition player must wear a badge at all times identifying the player as an employee of the licensee. Other than compensation for the time spent in acting in such activities as an employee of the licensee, no gifts, rewards or any other thing of value shall be given to the proposition player by the licensee or any employee.

(Measure L § 7, 1995)

• (a) General.

All licenses and conditions of approval issued pursuant to the provisions of this chapter shall be subject to modification and/or revocation in the time and manner set forth in this section.

• (b) Procedure.

If the city manager determines that good cause exists for the revocation of a license

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City of Palm Springs, CA § 11.12.160

PALM SPRINGS CODE

§ 11.12.160

pursuant to the provisions of this chapter, the city manager, after conducting an investigation, shall issue an order of revocation. Such order shall state the reasons for its issuance and that the licensee has thirty days from receipt of the order to file an appeal with the city council. The order shall become final on the end of the thirtieth (30th) day following its issuance unless a written appeal is filed with the city clerk appealing said order. A final order shall be deemed an order revoking the license to which it relates. No appeal with reference to an order of revocation shall be accepted for filing or processed if it is not timely filed, or if the appealing party fails to pay to the city clerk the filing and processing fees, as set by city council resolution, prior to or contemporaneously with the timely filing of the appeal.

(c) Hearings.

Any appeal relating to an order of revocation shall be heard by the city council at a public hearing, notice of which shall be given in the same manner as stated in Section 11.12.090(b). At the time set for hearing, the city council shall hear the evidence presented by the city manager purporting to show that grounds exist for revocation. The city council shall permit the licensee, and any other interested person, to present such competent evidence as may be relevant to establish or dispute the existence of any contested fact. The burden of proof, by a preponderance of the evidence, shall be upon the city to show the existence of the facts required to justify the revocation.

• (d) Grounds for Revocation.

A license may be revoked if on appeal the city council finds:

• (1) That a licensee violated, or permitted, allowed, or caused the violation of, any provision of applicable law or any condition of approval imposed upon the issuance of the license; or

• (2) That a licensee has made any fraudulent statement as to a material fact on the licensee's application or as to any other information presented as part of the application process; or

• (3) That a licensee has committed any act which would have constituted grounds for the denial of an application for a license pursuant to the provisions of this chapter; or

• (4) That a licensee has failed to timely pay any applicable annual or gross receipts tax levied, or any filing and processing fee imposed pursuant to the provisions of this chapter;

• (5) That a licensee has failed to monitor or control its establishment or site, or persons either directly involved with or associated with the business, such that criminal activity is occurring in or around the site, and threatens the health, safety, or general welfare of the patrons, neighborhood, or community.

(e) Decision of City Council.

If, based upon the evidence presented, the city council finds that facts are present which constitute grounds for revocation, the city council may revoke the license. If the city council finds that such facts are not present, it shall dismiss the proceeding. In the alternative, if the council finds that certain facts exist which my constitute technical grounds for revocation, but are not so egregious as to justify revocation, the city council

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City of Palm Springs, CA

PEACE, MORALS AND SAFETY

§ 11.12.160

§ 11.12.180

may impose a fine not to exceed two thousand five hundred per incident or amend the conditions of license approval in any manner as to reasonably promote the public health, safety or general welfare and compliance with applicable law. (Measure L § 7, 1995)

• (a) No person shall be employed as a gaming club employee unless he or she is the holder of a work permit issued by the city. Applicable regulations for work permit application, issuance, denial and revocation and a reasonable fee to cover city expenses shall be adopted by resolution of the city council. All work permits issued by the city shall be subject to the objections of the State Division of Gambling Control pursuant to state law.

• (b) A person shall be disqualified from working as a gaming club employee for any of the following reasons:

  • (1) Conviction for any crime punishable as a felony, or a misdemeanor involving gambling, under the laws of California or of the United States;

  • (2) Conviction for any crime involving dishonesty or moral turpitude within the ten-year period immediately preceding the submission of the application, unless he or she has been granted relief pursuant to Penal Code Section 1203.4a or 1203.45;

  • (3) Association with criminal profiteering activity or organized crime, as defined by Penal Code Section 186.2;

  • (4) Contumacious defiance by the employee of any legislative investigatory body, or other official investigatory body of any state or of the United States, when that body is engaged in the investigation of crime relating to gambling; official corruption related to gambling activities; or criminal profiteering activity or organized crime, as defined by Section 186.2 of the Penal Code;

  • (5) The person is under twenty-one years of age.

• (c) Employment by a licensee of a disqualified person as a gambling club employee shall be grounds for license revocation if the licensee had knowledge of the basis for disqualification or failed to exercise reasonable care in ascertaining such disqualification.

• (d) It is unlawful for any licensee or employee thereof to engage in the lending of money, chips, tokens or anything of value, either real or promised, to any person for the purpose of allowing that person to eat, drink or participate in a game.

• (Measure L § 7, 1995)

Patron and community security and safety is of the utmost importance in the establishment and operation of gaming clubs. The following safety and security rules have the force of law, and any violation thereof shall be considered a ground for license revocation, as well as criminal penalties as provided for in this municipal code.

• (1) No person under the age of twenty-one years shall be permitted to enter a gaming club as a patron. Gaming club entrances shall be designed so as to easily facilitate the review of patrons' proof of age, and an employee shall be designated to perform this task during

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City of Palm Springs, CA § 11.12.180

PALM SPRINGS CODE

§ 11.12.190

business hours.

• (2) No person who is visibly intoxicated or under the influence of drugs shall be allowed to participate in any game.

• (3) All gaming clubs shall be open for inspection to the city manager, or his or her designee, at any time, without the necessity for a search warrant.

• (4) Rules of play for all games played in a gaming club shall first be filed with the city manager. No game shall be played until its rules are so filed and are conspicuously posted in the gaming club and made available to the patrons in written form.

• (5) Doors, screens, or other obstructions of any kind shall not be placed so as to conceal tables at which games are played, or so as to conceal the players in a game.

• (6) Gaming clubs shall employ licensed, bonded security guards in a number and manner so as to ensure excellent security and safety for patrons and the community at large.

• (7) Parking areas shall be well-lit and in such a configuration as to be easily viewed and patrolled by security personnel.

• (8) Any security system shall incorporate extensive use of video cameras, both inside and outside of the facility.

• (9) Security measures appropriate for any individual gaming club shall be incorporated as conditions of license approval. Notwithstanding said conditions, it shall be the responsibility of the gaming club to provide adequate security and the operation of the club shall not deplete law enforcement resources of the community.

• (10) If the city manager finds that safety and security measures at any gaming club are inadequate to properly protect the health and safety of patrons and the community, and if a licensee fails or refuses to comply with reasonable efforts by city personnel to improve such measures, the city manager shall issue an order of revocation pursuant to the provisions of this chapter.

• (11) It shall be unlawful for any person to attempt to gain any unfair advantage for any player in a game through a fraudulent technique or mechanical or electrical device. Prohibited cheating techniques include, but are not limited to, the following examples. It shall be unlawful for any person as a player or dealer to attempt to deal, draw, distribute or turn any playing cards other than the top card of a deck. It shall be unlawful for any person to attempt to prearrange or to shuffle any playing cards, other than in a random manner. It shall be unlawful for any person to attempt to alter in any way the shape, appearance, texture or number of cards in play, or to switch any card. It shall be unlawful for any person to attempt to use any apparatus to gain information not available to other players. The licensee shall have the power to formulate reasonable policies and procedures to control potential cheating. These policies and procedures shall be published in the players' house rules.

• (12) Licensees, managers and gaming club employees may play in their own club. However, they may not play in any game during their work shift at a time when they are subject to making management decisions which might affect the outcome of that game.

• (Measure L § 7, 1995)

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City of Palm Springs, CA

PEACE, MORALS AND SAFETY

§ 11.12.190

§ 11.12.230

The gaming club shall set the limits, if any, on the amount any player may wager in any game played in a gaming club. Any limits shall be prominently displayed. Table limits may be changed with a one-half hour notice to the patrons. (Measure L § 7, 1995)

No city council member, the city manager or the chief of police, or members of their immediate families, may, during his or her term of service with the city or within twelve months thereafter, acquire any ownership interest or employment in any gaming club facility, site or operation. (Measure L § 7, 1995)

The licensee may eject or exclude from any portion of the gaming club any individual who the licensee or its agents, employees or managers, has reason to believe has engaged in or been convicted of bookmaking, sale of controlled substances, illegal gambling activities, solicitation for prostitution, cheating, nonpayment of written gaming credit instruments, or who is drunk, disorderly or underage, or whose presence in or about gaming clubs would be inimical to the interests of legitimate gaming. No such ejection or exclusion shall be on the grounds of race, color, creed or sex.

(Measure L § 7, 1995)

Due to the uncertain and changing nature of gambling regulations within the state, including but not limited to developing statutory and case law and Indian gaming operations, there is a need for the city to possess the flexibility to quickly add to or amend provisions of this chapter to meet changing circumstances. Therefore, the provisions of this chapter may be amended or modified by ordinance adopted by a four-fifths majority of the entire membership of the city council without submitting said ordinance to a vote of the electorate, except for the provisions of Sections 1, 2, and any other provisions governing the location of where gaming clubs can be established, which may only be amended by an ordinance adopted by the electorate. The provisions of this section shall not prohibit the voters from enacting any amendment to this chapter.

(Measure L § 7, 1995)

This Ordinance does not apply to gaming operations conducted by or gaming facilities owned by the Agua Caliente Band of Cahuilla Indians when conducted or owned pursuant to the Indian Gaming Regulatory Act (25 U.S.C. 2701, et seq.). (Measure L § 7, 1995)

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City of Palm Springs, CA

PEACE, MORALS AND SAFETY

§ 11.13.010

§ 11.13.060