Oregon
- Definition of Gambling
- Gambling means that:
A person stakes or risks something of value (consideration)
upon the outcome of a contest of chance or a future contingent event
not under the control or influence of the person (chance) upon
agreement or understanding that the person or someone else will receive
something of value in the event of a certain outcome (prize).
Or. Rev. Stat. 167.117(7).
- Gambling under Or. Rev. Stat. 167.117(7) does not include:
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Bona fide business transactions
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Chucky Cheese Games
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Social Games
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Specific Charity Gambling.
- Contest of Chance
“[A]ny contest, game, gaming scheme or gaming device
in which the outcome depends in a material degree upon an element
of chance, notwithstanding that skill of the contestants may also be
a factor therein.” Or. Rev. Stat. §167.116(6) (emphasis added).
This definition seems to imply the State of Oregon applies either the
any chance test or material element test.
- Organ likely implements the material element test
Although not well discussed in case law, it appears that
this definition of gambling relies on the material element test. In
Ah Poo v. Stevenson, 83 Or. 340, 346-47 (1917) the court stated
that “[a] ‘gambling implement’ and a ‘gambling
device’ are synonymous terms. A ‘gambling device’
is defined as: An ‘invention often used to determine the question
as to who wins and who loses, that risk their money on a contest of
chance of any kind; anything which is used as a means of playing for
money or other thing of value, so that the result depends more largely
on chance than skill; a gaming device.” (emphasis added).
Therefore, it is not just any chance that makes a game “gambling”
but rather when chance is a material element of the game.
- Definition of Bookmaking
-
A Bookmaker is “a person who unlawfully accepts a bet from a
member of the public upon the outcome of a future contingent event and
who charges or accepts a percentage, fee or vigorish on the wager.”
Or. Rev. Stat. § 167.117(2).
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Bookmaking is the act of “promoting gambling by unlawfully accepting
bets from members of the public as a business, rather than in a casual
or personal fashion, upon the outcomes of future contingent events.”
Or. Rev. Stat. § 167.117(3).
- Specific gaming device definitions
- A gambling device is considered a public nuisance and can be seized
by police. OR. REV. STAT. § 167.162. What makes a device a gambling
device is the way that it is used. State v. Wright, 21 Or. App. 659, 665-66
(1975).
- Gambling Devices
- Gambling device is defined under Or. Rev. Stat. 167.117(8) as the
following:
- “Any device, machine, paraphernalia or equipment that
is used or usable in the playing . . . of unlawful gambling.”
- “Lottery tickets, policy slips and other items used in
playing lottery and policy schemes are not gambling devices. .
. .”
- Also, “amusement devices other than gray machines, that
do not return . . . anything but free games or plays, shall not
be considered to be gambling devices.”
- Gray machines is defined under Or. Rev. Stat. 167.117(9)(a-b) as:
- “[A]ny electrical or electromechanical device, whether
or not it is in working order or some act of manipulation, repair,
adjustment or modification is required to render it operational,
that is capable of awarding credit, or plays a casino game, bingo,
or keno.
- Just because a machine can also sell or deliver something on
a basis other than chance does not make it any less of a gray
machine.
- A gray machine does not include the following under Or. Rev. Stat.
167.117(9)(c):
- Personal computers or home entertainment devices that are not
used for a fee or to facilitate gambling
- A device operated under the authority of the Oregon State Lottery
Commission
- Slot machines
- Any device used to operate bingo in compliance with Or. Rev.
Stat. §167.118.
-
Match Five is a gray machine. Or. Op. Atty Gen. OP-6480, April
28, 1993, 1993 WL 355837.
- Slot machine
A slot machine is a “gambling device that as a result of the
insertion of a coin or other object operates, either completely automatically,
or with the aid of some physical act by the player, in such a manner
that, depending upon elements of chance, it may eject something of
value or otherwise entitle the player to something of value. A device
so constructed or readily adaptable or convertible to such use is
no less a slot machine because it is not in working order or because
some mechanical act of manipulation or repair is required to accomplish
its adaptation, conversion or workability. Nor is it any less a slot
machine because apart from its use or adaptability as such it may
also sell or deliver something of value on the basis other than chance.”
Or. Rev. Stat. § 167.117(20)(a).
- A slot machine under Or. Rev. Stat. § 167.117(20)(b) does not
include “any device authorized by the Oregon State Lottery Commission
for:
- Display and demonstrate purposes only at trade shows; or
- Training and testing purposes by the Department of State Police.”
- An electronic amusement device includes a device that dispensed cash
when free games were won on the machine. State v. Wright, 21 Or. App.
695, 661-62 (1975).
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Pinball machines that give a prize contingent on the size hole that
the ball goes into are considered slot machines. State v. Coats, 158
Or. 122 (1938).
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Machines that give the player a “free play” are not gambling
devices. State v. Langan, 293 Or. 654, 656 (1982); McKee v. Foster,
219 Or. 322, 337 (1959).
- Bucket Shop Laws
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A bucket shop “means any building, or any room, apartment, booth,
office or store therein, or any other place where any contract prohibited
by Or. Rev. Stat. §§ 59.710 to 59.830 is made or offered to
be made more than once and in the course of continuing or repeated transactions.”
Or. Rev. Stat. § 59.710.
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“No person shall as owner, keeper, proprietor or person in charge
of, or as officer, director, stockholder, agent, servant, correspondent
or representative of any person, keep, conduct or operate any bucket
shop, or knowingly permit or induce any person, whether acting in the
person's own right or as officer, agent, servant, correspondent or representative
of another, to make, offer to make therein, or assist in making or in
offering to make therein, any of the contract specified in Or. Rev.
Stat. § 59.730, more than once and in the course of continuing
or repeated transactions.” Or. Rev. Stat. § 59.740.
- Prohibition of Games of Skill
- Poker
“Poker, when played for money, is a gambling game
. . . .” 37 Or. Op. Atty Gen. 321. at 1. See also section
on Gambling Devices. What matters is the way that the device
is used. If cards are used in conjunction with money bet on an uncertain
outcome, it is gambling. If no money is involved, it is social gambling.
- Card Games
“Card games . . . when played for money are the same
as gambling devices.” 25 Or. Op. Atty Gen. 281 at 4.
- Games using dice
“’Casino game’ means any of the traditional
gambling-based games commonly known as dice, faro, monte, roulette,
fan-tan, twenty-one, blackjack, Texas hold-'em, seven-and-a-half, big
injun, klondike, craps, poker, chuck-a-luck, Chinese chuck-a-luck (dai
shu), wheel of fortune, chemin de fer, baccarat, pai gow, beat the banker,
panquinqui, red dog, acey-deucey, or any other gambling-based game similar
in form or content.” Or. Rev. Stat. § 167.147.
- Billiards, Bowling, Darts
These are regulated by the Oregon Liquor Control Commission.
25 Or. Op. Atty Gen. 281 at 1.
- Express Exemptions
- Social Gaming
-
Social Game means “[a] game, other than a lottery, between
players in a private home where no house player, house bank
or house odds exist and there is no house income from the operation
of the social game; and [i]f authorized pursuant to Or. Rev. Stat.
§167.121, a game, other than a lottery, between players in
a private business, private club or place of public accommodation
where no house player, house bank or house odds exist and there is
no house income from the operation of the social game. Or. Rev. Stat.
§ 167.117(21). (emphasis added).
-
Tips given to the dealers in a poker game constitute house income.
State v. Hansen, 108 Or. App. 609, 612 (1991).
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Or. Rev. Stat. 167.117(7) specifically exempts social gaming from
the definition of gambling.
- Charity Gaming
-
Or. Rev. Stat. 167.117(7) says that the following games are lawful
if conducted by a charitable, fraternal, or religious organization:
- Bingo,
- Lotto,
- Raffle,
- Monte Carlo events operated in compliance with Or. Rev. Stat.
§ 167.118.
-
The rules for conducting charity gaming are outlined in Or. Rev.
Stat. § 167.118. Some important points include:
- In the ordinary course the prize awarded in any one game cannot
exceed $2,500.
- Bingo licensees can conduct 2 games per year that have prizes
of $10,000.
- Various qualifying organizations can “link” together
to put on a charity game without a limit on the prize awarded.
- The handle of a game cannot exceed $250,000 and the organization’s
profit from the game cannot equal or exceed 5% of the handle.
- Chucky Cheese Exemptions
Or. Rev. Stat. 167.117(7) says that it is lawful to engage in a contest
of chance where:
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The contest is played for something other than money
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A contestant cannot purchase more than $100 worth of tokens for use
in the contest within a 24-hour period
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The tokens can only be exchanged for property other than money
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The tokens are either exchangeable for (1) a beverage or merchandise
to be consumed on the premises, or (2) they are redeemable 50 miles
outside of the premises.
-
Unless the game is conducted by a charitable, fraternal, or religious
organization, no one who conducts the contest can profit in any way.
- Commercial Gaming
There is no mention of commercial gaming in Oregon statutes,
case law, or attorney general’s opinions.
- Lottery
-
Bingo or lotto “means a game, played with cards bearing lines
of numbers, in which a player covers or uncovers a number selected
from a container, and which is won by a player who is present during
the game and who first covers or uncovers the selected numbers in
a designated combination, sequence or pattern.” Or. Rev. Stat.
§167.117(1).
- Lottery or policy under Or. Rev. Stat. § 167.117(2) “means
an unlawful gambling scheme in which:
- The players pay or agree to pay something of value for chances,
represented and differentiated by numbers or combinations of numbers
or by some other medium, one or more of which chances are to be
designated the winning ones,
- The winning chances are to be determined by a drawing or by some
other method, and
- The holders of the winning chances are to receive something of
value.
- Animal Racing
- Licensing:
- A person cannot hold a race unless they have a license issued by
the Oregon Racing Commission. Or. Rev. Stat. § 462.020.
- According to Or. Rev. Stat. § 462.040(1) the Oregon Racing
Commission only issues two kinds of licenses:
- Class A licenses for horseracing
- Class B licenses for greyhound racing.
- The Oregon Racing Commission cannot issue a license for greyhound
racing at the Oregon State Fair. Or. Rev. Stat. § 462.040(3).
- The general fee for a race meet licensee is $25. For other fees
see Or. Rev. Stat. §§ 462.057, 462.062, 462.067, 462.070.
- To be able to conduct off-race course mutual wagering, a race meet
licensee must make written application to the Commission. Or. Rev.
Stat. § 462.710
- There cannot be more than 350 days of racing a year and each licensee
must hold at least 720 live races a year. Or. Rev. Stat. § 462.125.
- The mutual method is the only authorized method for these races.
Or. Rev. Stat. § 462.140.
- Age restrictions
- Under Or. Rev. Stat. § 462.190 “[n]o person under 18 years
of age shall enter upon a race course at any time where races are being
conducted in which wagering is permitted, except:
- When accompanied by a person 18 years of age or older who is the
person’s parent, guardian or spouse; or
- When persons 14 years of age or older are in the performance of
a duty incident to employment.
- Notwithstanding subsection (1) of this section, no person under 12
years of age shall after 6 p.m. enter upon a race course where races
are being conducted in which wagering is permitted, except this section
shall not apply to any annual state or county fair or fair-type exposition
on the same premises where a race meet is being conducted by the same
licensee. Id.
- No person under 18 years of age shall, except when in the performance
of a duty incident to employment, loiter in the wagering area of a race
course. The Oregon Racing Commission shall designate and require the
marking of the wagering area at each race course. Id.
- No licensee conducting a race meet shall sell a mutual wagering ticket
or receipt to a person under 18 years of age or to a person who is visibly
intoxicated. Id.
- No person shall purchase a mutual wagering ticket or receipt for
or on behalf of a person under 18 years of age.” Id.
- Specific Internet Prohibition
-
Internet gambling is unlawful when any credit, electronic funds transfer,
check, draft, or the proceeds of any financial transaction takes place.
Or. Rev. Stat. § 167.109.
-
“‘Internet’ means an interactive computer service
or system or an information service, system or access software provider
that provides or enables computer access by multiple users to a computer
server and includes, but is not limited to, an information service,
system or access software provider that provides access to a network
system commonly known as the Internet, or any comparable system or service
and also includes, but is not limited to a World Wide Web page, newsgroup,
message board, mailing list or chat area on any interactive computer
service or system or other online service.” Or. Rev. Stat. §167.117(11).
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Any financial institution that plays a role in this transaction can
collect on any debt resulting there from and is not deemed to be liable
for engaging in illegal activity. Or. Rev. Stat. § 167.112.
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Internet gambling does not apply to an activity licensed by the Oregon
racing commission. Or. Rev. Stat. § 167.114.
- Statute of Anne / Recovery of Debts
- Causes of Action
Or. Rev. Stat. § 30.740 states that “All persons
losing money or anything of value at or on any unlawful game described
in Or. Rev. Stat. §§ 167.117, 167.122, and 167.127 shall have
a cause of action to recover from the dealer winning the same, or proprietor
for whose benefit such game was played or dealt, or such money or thing
of value won, twice the amount of the money or double the value of the
thing so lost.
- Double recovery
A cause of action lies for double recovery of debt where
something of value is received so that one can engage in illegal gambling.
Lairmore v. Drake, 185 Or. 239, 248 (1949).
- Statue of limitations
The statute of limitations for a claim for gambling losses
is three years from the date of the loss. Riddle v. Eugene Lodge No.
357 of Benev. and Protective Order of Elks of U.S., 95 Or.App. 206,
212 (1989).
- Lawful Commercial Casino Gaming
Oregon’s Constitution prohibits casino gaming. Or. Const.
art. XV, § 4(12).
- Gaming Crimes and Penalties
- Internet Gambling is a class C felony. Or. Rev. Stat. § 167.109.
- Gambling in the Second Degree constitutes the following under OR. REV.
STAT. § 167.122:
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Placing a bet with a bookmaker
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Participating or engaging in unlawful gambling as a player.
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Unlawful gambling in the second degree is a class A misdemeanor.
- Unlawful gambling in the first degree
Unlawful gambling in the first degree constitutes knowingly
profiting or promoting the gambling. It is a Class C felony. OR. REV.
STAT. § 167.122.
- A person who has control over the premises where gambling is taking
place is guilty of promoting gambling. State v. Hiller, 22 Or. App.
57 (1975).
- Possession of gambling records in the second degree
- Possession of gambling records in the second degree is a Class A misdemeanor.
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A person commits this crime when he or she knowingly possesses any
writing, paper, instrument or article:
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Of a kind commonly used in the operation or promotion of bookmaking
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Or of a kind commonly used in the operation, promotion, or playing
of a number’s scheme enterprise. See State v. Yancey,
32 Or. App. 477 (1978). OR. REV. STAT. § 167.132.
- Possession of Gambling records in the first degree
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Possession of gambling records in the first degreeis a Class C felony.
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A person commits this crime under Or. Rev. Stat. § 167.137 if
he or she has knowledge of the contents of the records and possesses
any writing, paper, instrument or article
- Commonly used in the operation or promotion of a bookmaking scheme
or enterprise, and constituting, reflecting or representing more
than 5 bets totaling more than $500.
- Or commonly used in the operation, promotion or playing of a lottery
or numbers scheme or enterprise, and constituting, reflecting or
representing more than 500 plays or chances therein.
- Defense to possession of gambling records
-
“In any prosecution under Or. Rev. Stat. § 167.132 or
167.137 it is a defense if the writing, paper, instrument or article
possessed by the defendant is neither used nor intended to be used
in the operation or promotion of a bookmaking scheme or enterprise,
or in the operation, promotion or playing of a lottery or numbers
scheme or enterprise.” Or. Rev. Stat. § 167.142.
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A person commits this crime under Or. Rev. Stat. § 167.142 if
he or she has knowledge of the character of the device, the person
manufactures, sells, transports, places or possesses, or conducts
or negotiates a transaction affecting or designed to affect ownership,
custody or use of:
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A slot machine
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Any other gambling device, believing that the device is to be
used in promoting unlawful gambling activity
- Defense to the possession of a gambling device
It is a defense to the possession of a gambling device under Or. Rev.
Stat. § 167.147 if the device or machine was manufactured:
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Prior to 1900 and is not operated for purposes of unlawful gambling,
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More than 25 years before the date of the charge was brought and is
located in a private residence, and is not operated for the purposes
of unlawful gambling and has the manufacturers name and the date of
manufacture or serial number permanently affixed.
- Possession of a gray machine
-
If a person manufactures, sells, leases, transports, places, possesses,
services, negotiates or conducts a transaction for ownership, custody
or use of a gray machine from 12/1/91 on, he or she is guilty of a
class C felony.
-
If this section is violated the machine can be seized and destroyed.
-
“It is a defense to a charge of possession of a gray machine
if the machine that caused the charge to be brought was manufactured
prior to 1958 and was not operated for purposes of unlawful gambling.”
Or. Rev. Stat. §167.164.
- Also, because these machines have been declared a public nuisance,
seizure of them by the government does not constitute a taking. Thomas
v. State, Dept. of State Police 138 Or. App. 209, 211 (1995).
- Cheating
-
Cheating is a class C felony. Or. Rev. Stat. §167.167.
- Under Or. Rev. Stat. §167.167 a person cheats if they are “participating
or attempting to participate in a legal or illegal gambling activity”
and they do one of the following:
- employ or attempt to employ “any device, scheme or artifice
to defraud any other participant or any operator,”
- engage “in any act, practice or course of operation that operates
or would operate as a fraud or deceit upon any other participant or
any operator,”
- engage “in any act, practice or course of operation with the
intent of cheating any other participant or operator to gain an advantage
in the game over the other participant or the operator, or”
- Cause, aid, abet or conspire “with another person to cause any
other person to violate” this statute.
- Animal Racing
-
Violations of the racing statutes are subject to a fine of $500 per
offense and licenses may be suspended for a period of one year. Or.
Rev. Stat. § 462.405.
-
“Except as hereinafter provided in this section, violations
of any provision of this chapter is a misdemeanor.” Or. Rev.
Stat. § 462.990
-
“Any person violating the provisions of Or. Rev. Stat. §§
462.420, 462.430, 462.450, 462.460, 462.470 or 462.415 (2) shall,
upon conviction, be guilty of a felony and punished by imprisonment
in the custody of the Department of Corrections for not more than
two years or by a fine of not more than $5,000, or by both.”
Id.
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Any person who conspires or attempts to commit or commits any act
of touting as defined in Or. Rev. Stat. § 462.510 shall, upon
conviction, be fined not more than $500 or be imprisoned for not more
than six months, or both.” Id.
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Any person violating the provisions of Or. Rev. Stat. § 462.140
(1) shall be punished upon conviction by imprisonment in the county
jail for not more than one year or by imprisonment in the custody
of the Department of Corrections for not more than five years or by
a fine of not more than $5,000, or both such fine and imprisonment.”
Id..
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