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H.B. 40 Enrolled





Chief Sponsor: Don L. Ipson

Senate Sponsor: Stephen H. Urquhart

             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Criminal Code regarding gambling.
             10      Highlighted Provisions:
             11          This bill:
             12          .    amends the definition of certain promotional activities that are exempted from
             13      "fringe gambling."
             14      Money Appropriated in this Bill:
             15          None
             16      Other Special Clauses:
             17          None
             18      Utah Code Sections Affected:
             19      AMENDS:
             20          76-10-1101, as last amended by Laws of Utah 2009, Chapter 382
             22      Be it enacted by the Legislature of the state of Utah:
             23          Section 1. Section 76-10-1101 is amended to read:
             24           76-10-1101. Definitions.
             25          As used in this part:
             26          (1) (a) "Fringe gambling" means any gambling, lottery, or video gaming device which
             27      is:
             28          (i) given, conducted, or offered for use or sale by a business in exchange for anything
             29      of value; or

             30          (ii) given away incident to the purchase of other goods or services.
             31          [(b) "Fringe gambling" does not include a gambling, lottery, video gaming device, or
             32      other promotional activity which is clearly occasional and ancillary to the primary activity of
             33      the business.]
             34          (b) "Fringe gambling" does not mean a promotional activity that is clearly ancillary to
             35      the primary activity of a business.
             36          (c) Determination of whether a promotional activity is clearly ancillary under
             37      Subsection (1)(b) is by consideration of the totality of the circumstances, which may include
             38      one or more of these factors:
             39          (i) the manner in which the business is marketed, advertised, or promoted;
             40          (ii) whether and the degree to which the business provides instructions regarding the
             41      use or operation of the promotional activity, as compared to the use or operation of the goods
             42      or services sold by the business;
             43          (iii) the availability and terms of any free play option to engage in the promotional
             44      activity;
             45          (iv) whether any contest, sweepstakes, or other promotional entries provided to
             46      customers who purchase goods or services from the business provide any advantage in winning
             47      a prize over any advantage provided to participants in the promotional activity who do not
             48      purchase goods or services from the business;
             49          (v) whether the goods or services promoted for purchase by the business are on terms
             50      that are commercially reasonable; and
             51          (vi) whether any prize won by participation in the promotion may be parlayed into one
             52      or more additional opportunities to win an additional prize.
             53          (2) (a) "Gambling" means risking anything of value for a return or risking anything of
             54      value upon the outcome of a contest, game, gaming scheme, or gaming device when the return
             55      or outcome:
             56          (i) is based upon an element of chance; and
             57          (ii) is in accord with an agreement or understanding that someone will receive

             58      something of value in the event of a certain outcome.
             59          (b) "Gambling" includes a lottery and fringe gambling.
             60          (c) "Gambling" does not include:
             61          (i) a lawful business transaction; or
             62          (ii) playing an amusement device that confers only an immediate and unrecorded right
             63      of replay not exchangeable for value.
             64          (3) "Gambling bet" means money, checks, credit, or any other representation of value.
             65          (4) "Gambling device or record" means anything specifically designed for use in
             66      gambling or used primarily for gambling.
             67          (5) "Gambling proceeds" means anything of value used in gambling.
             68          (6) "Lottery" means any scheme for the disposal or distribution of property by chance
             69      among persons who have paid or promised to pay any valuable consideration for the chance of
             70      obtaining property, or portion of it, or for any share or any interest in property, upon any
             71      agreement, understanding, or expectation that it is to be distributed or disposed of by lot or
             72      chance, whether called a lottery, raffle, or gift enterprise, or by whatever name it is known.
             73          (7) "Video gaming device" means any device that possesses all of the following
             74      characteristics:
             75          (a) a video display and computer mechanism for playing a game;
             76          (b) the length of play of any single game is not substantially affected by the skill,
             77      knowledge, or dexterity of the player;
             78          (c) a meter, tracking, or recording mechanism that records or tracks any money, tokens,
             79      games, or credits accumulated or remaining;
             80          (d) a play option that permits a player to spend or risk varying amounts of money,
             81      tokens, or credits during a single game, in which the spending or risking of a greater amount of
             82      money, tokens, or credits:
             83          (i) does not significantly extend the length of play time of any single game; and
             84          (ii) provides for a chance of greater return of credits, games, or money; and
             85          (e) an operating mechanism that requires inserting money, tokens, or other valuable

             86      consideration in order to function.

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