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7 LONG TITLE
8 General Description:
9 This bill modifies provisions relating to gambling.
10 Highlighted Provisions:
11 This bill:
12 ▸ defines the term "fringe gaming device";
13 ▸ modifies the offense of gambling to include the use of a fringe gaming device; and
14 ▸ makes technical changes.
15 Money Appropriated in this Bill:
16 None
17 Other Special Clauses:
18 None
19 Utah Code Sections Affected:
20 AMENDS:
21 76-10-1101, as last amended by Laws of Utah 2012, Chapters 27 and 157
22 76-10-1102, as last amended by Laws of Utah 2012, Chapter 157
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24 Be it enacted by the Legislature of the state of Utah:
25 Section 1. Section 76-10-1101 is amended to read:
26 76-10-1101. Definitions.
27 As used in this part:
28 (1) (a) "Fringe gambling" means any gambling, lottery, or video gaming device which
29 is:
30 (i) given, conducted, or offered for use or sale by a business in exchange for anything
31 of value; or
32 (ii) given away incident to the purchase of other goods or services.
33 (b) "Fringe gambling" does not [
34 ancillary to the primary activity of a business.
35 (c) Determination of whether a promotional activity is clearly ancillary under
36 Subsection (1)(b) is by consideration of the totality of the circumstances, which may include
37 one or more of these factors:
38 (i) the manner in which the business is marketed, advertised, or promoted;
39 (ii) whether and the degree to which the business provides instructions regarding the
40 use or operation of the promotional activity, as compared to the use or operation of the goods
41 or services sold by the business;
42 (iii) the availability and terms of any free play option to engage in the promotional
43 activity;
44 (iv) whether any contest, sweepstakes, or other promotional entries provided to
45 customers who purchase goods or services from the business provide any advantage in winning
46 a prize over any advantage provided to participants in the promotional activity who do not
47 purchase goods or services from the business;
48 (v) whether the goods or services promoted for purchase by the business are on terms
49 that are commercially reasonable; and
50 (vi) whether any prize won by participation in the promotion may be parlayed into one
51 or more additional opportunities to win an additional prize.
52 (2) "Fringe gaming device" means a device that provides the user:
53 (a) a card, credit, or product in exchange for anything of value; and
54 (b) along with the card, credit, or product, the opportunity to participate in a contest,
55 game, gaming scheme, or sweepstakes with a potential monetary return or outcome based on an
56 element of chance.
57 [
58 anything of value upon the outcome of a contest, game, gaming scheme, or gaming device
59 when the return or outcome:
60 (i) is based upon an element of chance; and
61 (ii) is in accord with an agreement or understanding that someone will receive
62 something of value in the event of a certain outcome.
63 (b) "Gambling" includes a lottery and fringe gambling.
64 (c) "Gambling" does not include:
65 (i) a lawful business transaction; or
66 (ii) playing an amusement device that confers only an immediate and unrecorded right
67 of replay not exchangeable for value.
68 [
69 value.
70 [
71 gambling or used primarily for gambling.
72 [
73 [
74 of:
75 (a) the Internet; or
76 (b) any mobile electronic device that allows access to data and information.
77 [
78 chance among persons who have paid or promised to pay any valuable consideration for the
79 chance of obtaining property, or portion of it, or for any share or any interest in property, upon
80 any agreement, understanding, or expectation that it is to be distributed or disposed of by lot or
81 chance, whether called a lottery, raffle, or gift enterprise, or by whatever name it is known.
82 [
83 characteristics:
84 (a) a video display and computer mechanism for playing a game;
85 (b) the length of play of any single game is not substantially affected by the skill,
86 knowledge, or dexterity of the player;
87 (c) a meter, tracking, or recording mechanism that records or tracks any money, tokens,
88 games, or credits accumulated or remaining;
89 (d) a play option that permits a player to spend or risk varying amounts of money,
90 tokens, or credits during a single game, in which the spending or risking of a greater amount of
91 money, tokens, or credits:
92 (i) does not significantly extend the length of play time of any single game; and
93 (ii) provides for a chance of greater return of credits, games, or money; and
94 (e) an operating mechanism that requires inserting money, tokens, or other valuable
95 consideration in order to function.
96 Section 2. Section 76-10-1102 is amended to read:
97 76-10-1102. Gambling.
98 (1) A person is guilty of gambling if the person:
99 (a) participates in gambling, including any Internet or online gambling;
100 (b) knowingly permits any gambling to be played, conducted, or dealt upon or in any
101 real or personal property owned, rented, or under the control of the actor, whether in whole or
102 in part; [
103 (c) knowingly allows the use of any video gaming device or fringe gaming device that
104 is:
105 (i) in any business establishment or public place; and
106 (ii) accessible for use by any person within the establishment or public place[
107 (d) knowingly uses a fringe gaming device with intent to participate in gambling.
108 (2) Gambling is a class B misdemeanor, except that any person who is convicted two
109 or more times under this section is guilty of a class A misdemeanor.
110 (3) (a) A person is guilty of a class A misdemeanor who intentionally provides or
111 offers to provide any form of Internet or online gambling to any person in this state.
112 (b) Subsection (3)(a) does not apply to an Internet service provider or hosting company
113 as defined in Section 76-10-1230, a provider of public telecommunications services as defined
114 in Section 54-8b-2, or an Internet advertising service by reason of the fact that the Internet
115 service provider, hosting company, Internet advertising service, or provider of public
116 telecommunications services:
117 (i) transmits, routes, or provides connections for material without selecting the
118 material; or
119 (ii) stores or delivers the material at the direction of a user.
120 (4) If any federal law is enacted that authorizes Internet gambling in the states and that
121 federal law provides that individual states may opt out of Internet gambling, this state shall opt
122 out of Internet gambling in the manner provided by federal law and within the time frame
123 provided by that law.
124 (5) Whether or not any federal law is enacted that authorizes Internet gambling in the
125 states, this section acts as this state's prohibition of any gambling, including Internet gambling,
126 in this state.
Legislative Review Note
Office of Legislative Research and General Counsel