2005 California Business and Professions Code Sections 19800-19807 Article 1. General Provisions

19800.  This chapter shall be known, and may be cited, as the
"Gambling Control Act."
19801.  The Legislature hereby finds and declares all of the
following:
   (a) The longstanding public policy of this state disfavors the
business of gambling.  State law prohibits commercially operated
lotteries, banked or percentage games, and gambling machines, and
strictly regulates parimutuel wagering on horse racing.  To the
extent that state law categorically prohibits certain forms of
gambling and prohibits gambling devices, nothing herein shall be
construed, in any manner, to reflect a legislative intent to relax
those prohibitions.
   (b) Gambling can become addictive and is not an activity to be
promoted or legitimized as entertainment for children and families.
   (c) (1) Unregulated gambling enterprises are inimical to the
public health, safety, welfare, and good order.  Accordingly, no
person in this state has a right to operate a gambling enterprise
except as may be expressly permitted by the laws of this state and by
the ordinances of local governmental bodies.
   (2) The State of California has permitted the operation of
gambling establishments for more than one hundred years.  Gambling
establishments were first regulated by the State of California
pursuant to legislation which was enacted in 1984.  Gambling
establishments currently employ more than twenty thousand people in
the State of California, and contribute more than one hundred million
dollars in taxes and fees to California's government.  Gambling
establishments are lawful enterprises in the State of California, and
are entitled to full protection of the laws of this state.  The
industry is currently in significant decline, with more than half the
gambling establishments in this state closing within the past four
years.
   (d) It is the policy of this state that gambling activities that
are not expressly prohibited or regulated by state law may be
prohibited or regulated by local government.  Moreover, it is the
policy of this state that no new gambling establishment may be opened
in a city, county, or city and county in which a gambling
establishment was not operating on and before January 1, 1984, except
upon the affirmative vote of the electors of that city, county, or
city and county.
   (e) It is not the purpose of this chapter to expand opportunities
for gambling, or to create any right to operate a gambling enterprise
in this state or to have a financial interest in any gambling
enterprise.  Rather, it is the purpose of this chapter to regulate
businesses that offer otherwise lawful forms of gambling games.
   (f) Public trust that permissible gambling will not endanger
public health, safety, or welfare requires that comprehensive
measures be enacted to ensure that gambling is free from criminal and
corruptive elements, that it is conducted honestly and
competitively, and that it is conducted in suitable locations.
   (g) Public trust and confidence can only be maintained by strict
and comprehensive regulation of all persons, locations, practices,
associations, and activities related to the operation of lawful
gambling establishments and the manufacture  and distribution of
permissible gambling equipment.
   (h) All gambling operations, all persons having a significant
involvement in gambling operations, all establishments where gambling
is conducted, and all manufacturers, sellers, and distributors of
gambling equipment must be licensed and regulated to protect the
public health, safety, and general welfare of the residents of this
state as an exercise of the police powers of the state.
   (i) To ensure that gambling is conducted honestly, competitively,
and free of criminal and corruptive elements, all licensed gambling
establishments in this state must remain open to the general public
and the access of the general public to licensed gambling activities
must not be restricted in any manner, except as provided by the
Legislature.  However, subject to state and federal prohibitions
against discrimination, nothing herein shall be construed to preclude
exclusion of unsuitable persons from licensed gambling
establishments in the exercise of reasonable business judgment.
   (j) In order to effectuate state policy as declared herein, it is
necessary that gambling establishments, activities, and equipment be
licensed, that persons participating in those activities be licensed
or registered, that certain transactions, events, and processes
involving gambling establishments and owners of gambling
establishments be subject to prior approval or permission, that
unsuitable persons not be permitted to associate with gambling
activities or gambling establishments, and that gambling activities
take place only in suitable locations.  Any license or permit issued,
or other approval granted pursuant to this chapter, is declared to
be a revocable privilege, and no holder acquires any vested right
therein or thereunder.
   (k) The location of lawful gambling premises, the hours of
operation of those premises, the number of tables permitted in those
premises, and wagering limits in permissible games conducted in those
premises are proper subjects for regulation by local governmental
bodies.  However, consideration of those same subjects by a state
regulatory agency, as specified in this chapter, is warranted when
local governmental regulation respecting those subjects is inadequate
or the regulation fails to safeguard the legitimate interests of
residents in other governmental jurisdictions.
   (l) The exclusion or ejection of certain persons from gambling
establishments is necessary to effectuate the policies of this
chapter and to maintain effectively the strict regulation of licensed
gambling.
   (m) Records and reports of cash and credit transactions involving
gambling establishments may have a high degree of usefulness in
criminal and regulatory investigations and, therefore, licensed
gambling operators may be required to keep records and make reports
concerning significant cash and credit transactions.
19802.  The Legislature further finds and declares as follows:
   Appropriate regulation of banking and percentage games or of
gambling devices consistent with public safety and welfare would
require, at a minimum, all of the following safeguards:
   (a) The creation of an adequately funded gambling control
commission with comprehensive powers to establish minimum standards
and technical specifications for gambling equipment and devices.
   (b) The creation of an adequately funded law enforcement
capability within state government to inspect, test, and evaluate
gambling equipment and devices and modifications thereto.
   (c) An appropriation by the Legislature to sufficiently fund a
full-time commission and law enforcement capability with
responsibilities commensurate with the expanded scope of gambling.
   (d) The enactment of necessary regulations setting forth standards
and procedures for the licensing of persons connected with the
manufacture, sale, and distribution of equipment and devices in this
state.
   (e) The enactment of standards related to the trustworthiness and
fairness of equipment and devices, upon the commission's
recommendation to the Legislature.
   (f) The enactment of statutory provisions governing the
importation, transportation, sale, and disposal of equipment and
devices, upon the commission's recommendation to the Legislature.
   (g) The enactment of statutes providing for appropriate inspection
and testing of equipment and devices, upon the commission's
recommendation to the Legislature.
19803.  (a) It is the intent of the Legislature, in enacting this
chapter, to provide uniform, minimum standards of regulation of
permissible gambling activities and the operation of lawful gambling
establishments.
   (b) Nothing in this chapter shall be construed to preclude any
city, county, or city and county from prohibiting any gambling
activity, from imposing more stringent local controls or conditions
upon gambling than are imposed by this chapter or by the commission,
from inspecting gambling premises to enforce applicable state and
local laws, or from imposing any local tax or license fee, if the
prohibition, control, condition, inspection, tax, or fee is not
inconsistent with this chapter.  Nothing in this chapter shall be
construed to affect the responsibility of local law enforcement
agencies to enforce the laws of this state, including this chapter.
19804.  (a) In any action for declaratory or injunctive relief, or
for relief by way of any extraordinary writ, other than an action
initiated pursuant to Section 19932, wherein the construction,
application, or enforcement of this chapter, or any regulation
adopted pursuant thereto, or any order of the division or the
commission issued pursuant thereto, is called into question, a court
shall not grant any preliminary or permanent injunction, or any
peremptory writ of mandate, certiorari, or prohibition, in connection
therewith, except as follows:
   (1) Upon proof by clear and convincing evidence that the division
or the commission is abusing or threatens to abuse its discretion.
   (2) Upon proof by clear and convincing evidence that the division
or the commission is exceeding or threatens to exceed its
jurisdiction.
   (b) No temporary injunction or other provisional order shall issue
to restrain, stay, or otherwise interfere with any action by the
division or the commission, except upon a finding by the court, based
on clear and convincing evidence, that the public interest will not
be prejudiced thereby, and no order may be effective for more than 15
calendar days.
   (c) This section does not relieve a petitioner's obligation to
exhaust administrative remedies.
   (d) In an action for relief of any nature wherein the
construction, application, or enforcement of this chapter, or any
regulation adopted pursuant thereto, or any order of the division or
commission issued pursuant thereto, is called into question, the
party filing the pleading shall furnish a copy thereof to the
division and to the commission.  The copy shall be furnished by the
party filing the pleading within 10 business days after filing.
19805.  As used in this chapter, the following definitions shall
apply:
   (a) "Affiliate" means a person who, directly or indirectly through
one or more intermediaries, controls, is controlled by, or is under
common control with, a specified person.
   (b) "Applicant" means any person who has applied for, or is about
to apply for, a state gambling license, a key employee license, a
registration, a finding of suitability, a work permit, a manufacturer'
s or distributor's license, or an approval of any act or transaction
for which the approval or authorization of the commission or division
is required or permitted under this chapter.
   (c) "Banking game" or "banked game" does not include a controlled
game if the published rules of the game feature a player-dealer
position and provide that this position must be continuously and
systematically rotated amongst each of the participants during the
play of the game, ensure that the player-dealer is able to win or
lose only a fixed and limited wager during the play of the game, and
preclude the house, another entity, a player, or an observer from
maintaining or operating as a bank during the course of the game.
For purposes of this section it is not the intent of the Legislature
to mandate acceptance of the deal by every player if the division
finds that the rules of the game render the maintenance of or
operation of a bank impossible by other means.  The house shall not
occupy the player-dealer position.
   (d) "Commission" means the California Gambling Control Commission.
   (e) "Controlled gambling" means to deal, operate, carry on,
conduct, maintain, or expose for play any controlled game.
   (f) "Controlled game" means any controlled game, as defined by
subdivision (e) of Section 337j of the Penal Code.
   (g) "Director," when used in connection with a corporation, means
any director of a corporation or any person performing similar
functions with respect to any organization.  In any other case,
"director" means the Director of the Division of Gambling Control.
   (h) "Division" means the Division of Gambling Control in the
Department of Justice.
   (i) "Finding of suitability" means a finding that a person meets
the qualification criteria described in subdivisions (a) and (b) of
Section 19857, and that the person would not be disqualified from
holding a state gambling license on any of the grounds specified in
Section 19859.
   (j) "Game" and "gambling game" means any controlled game.
   (k) "Gambling" means to deal, operate, carry on, conduct,
maintain, or expose for play any controlled game.
   (l) "Gambling enterprise employee" means any natural person
employed in the operation of a gambling enterprise, including,
without limitation, dealers,  floor personnel, security employees,
countroom personnel, cage personnel, collection personnel,
surveillance personnel, data-processing personnel, appropriate
maintenance personnel, waiters and waitresses, and secretaries, or
any other natural person whose employment duties require or authorize
access to restricted gambling establishment areas.
   (m) "Gambling establishment," "establishment," or "licensed
premises" except as otherwise defined in Section 19812, means one or
more rooms where any controlled gambling or activity directly related
thereto occurs.
   (n) "Gambling license" or "state gambling license" means any
license issued by the state that authorizes the person named therein
to conduct a gambling operation.
   (o) "Gambling operation" means exposing for play one or more
controlled games that are dealt, operated, carried on, conducted, or
maintained for commercial gain.
   (p) "Gross revenue" means the total of all compensation received
for conducting any controlled game, and includes interest received in
payment for credit extended by an owner licensee to a patron for
purposes of gambling, except as provided by regulation.
   (q) "House" means the gambling establishment, and any owner,
shareholder, partner, key employee, or landlord thereof.
   (r) "Independent agent," except as provided by regulation, means
any person who does either of the following:
   (1) Collects debt evidenced by a credit instrument.
   (2) Contracts with an owner licensee, or an affiliate thereof, to
provide services consisting of arranging transportation or lodging
for guests at a gambling establishment.
   (s) "Institutional investor" means any retirement fund
administered by a public agency for the exclusive benefit of federal,
state, or local public employees, any investment company registered
under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et
seq.), any collective investment trust organized by banks under Part
Nine of the Rules of the Comptroller of the Currency, any closed-end
investment trust, any chartered or licensed life insurance company or
property and casualty insurance company, any banking and other
chartered or licensed lending institution, any investment advisor
registered under the Investment Advisors Act of 1940 (15 U.S.C. Sec.
80b-1 et seq.) acting in that capacity, and other persons as the
commission may determine for reasons consistent with the policies of
this chapter.
   (t) "Key employee" means any natural person employed in the
operation of a gambling enterprise in a supervisory capacity or
empowered to make discretionary decisions that regulate gambling
operations, including, without limitation, pit bosses, shift bosses,
credit executives, cashier operations supervisors, gambling operation
managers and assistant managers, managers or supervisors of security
employees, or any other natural person designated as a key employee
by the division for reasons consistent with the policies of this
chapter.
   (u) "Key employee license" means a state license authorizing the
holder to be associated with a gambling enterprise as a key employee.
   (v) "Licensed gambling establishment" means the gambling premises
encompassed by a state gambling license.
   (w) "Limited partnership" means a partnership formed by two or
more persons having as members one or more general partners and one
or more limited partners.
   (x) "Limited partnership interest" means the right of a general or
limited partner to any of the following:
   (1) To receive from a limited partnership any of the following:
   (A) A share of the revenue.
   (B) Any other compensation by way of income.
   (C) A return of any or all of his or her contribution to capital
of the limited partnership.
   (2) To exercise any of the rights provided under state law.
   (y) "Owner licensee" means an owner of a gambling enterprise who
holds a state gambling license.
   (z) "Person," unless otherwise indicated, includes a natural
person, corporation, partnership, limited partnership, trust, joint
venture, association, or any other business organization.
   (aa) "Player" means a patron of a gambling establishment who
participates in a controlled game.
   (bb) "Player-dealer" and "controlled game featuring a
player-dealer position" refer to a position in a controlled game, as
defined by the approved rules for that game, in which seated player
participants are afforded the temporary opportunity to wager against
multiple players at the same table, provided that this position is
rotated amongst the other seated players in the game.
   (cc) "Publicly traded racing association" means a corporation
licensed to conduct horse racing and simulcast wagering pursuant to
Chapter 4 (commencing with Section 19400) whose stock is publicly
traded.
   (dd) "Qualified racing association" means a corporation licensed
to conduct horse racing and simulcast wagering pursuant to Chapter 4
(commencing with Section 19400) that is a wholly owned subsidiary of
a corporation whose stock is publicly traded.
   (ee) "Work permit" means any card, certificate, or permit issued
by the commission, or by a county, city, or city and county, whether
denominated as a work permit, registration card, or otherwise,
authorizing the holder to be employed as a gambling enterprise
employee or to serve as an independent agent.  A document issued by
any governmental authority for any employment other than gambling is
not a valid work permit for the purposes of this chapter.
19806.  Nothing in this chapter shall be construed in any way to
permit or authorize any conduct made unlawful by Chapter 9
(commencing with Section 319) of, or Chapter 10 (commencing with
Section 330) of, Title 9 of Part 1 of the Penal Code, or any local
ordinance.
19807.  Except as otherwise provided in this chapter, whenever the
division or commission is a defendant or respondent in any
proceeding, or when there is any legal challenge to regulations
issued by the commission or division, venue for the proceeding shall
be in the County of Sacramento, the City and County of San Francisco,
the County of Los Angeles, or the County of San Diego.