H.B. 40 Enrolled

1

GAMBLING AMENDMENTS
2 2012 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Don L. Ipson
5 Senate Sponsor: Stephen H. Urquhart
6
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
21
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.