Rule No. 1. No licensee shall use, operate or permit the use or operation of more tables or units than those for which such licensee holds then current and valid licenses to operate or use in the City.

Rule No. 2.

Rule No. 3. Each licensee shall make available to any patron or potential patron of the gaming club written players’ house rules in booklet form that have been filed with and approved by the City Manager.

Rule No. 4. No licensee shall operate or use any table or unit or manage, conduct or carry on any business or activity licensed by this chapter after the time that such license issued by the City has been or is expired, suspended or revoked pursuant to this chapter.

Rule No. 5. Each and all of the games conducted or operated in the City pursuant to the provisions of this chapter shall be conducted and operated in full conformity with, and subject to, all the provisions of the applicable laws.

Rule No. 6. No person under the age of 21 years shall be permitted by the licensee or by the licensee’s agents and employees in a gaming area, room, or casino at any time. This prohibition extends to employees and other personnel servicing the casino or gaming area. The licensee shall post “Persons Under 21 Prohibited in Casino” signs at all entrances to the gaming establishment. Lettering on signs shall not be smaller than 30 point. All persons under 21 years of age entering the prohibited area by intent or otherwise shall be immediately escorted from the prohibited area by the licensee’s security representatives. Any person under 21 years of age caught violating this prohibition on more than 1 occasion shall be immediately escorted by the licensee’s security personnel from the prohibited area and detained for a reasonable period of time, not to exceed half an hour, until City police representatives arrive. Police representatives shall have the discretion of escorting the violator from the premises, citing the violator, and, in the case of minors (persons under 18 years of age), advising the minor’s parents or guardians of the minor’s activities.

Rule No. 7. The playing of all games provided for in this chapter shall be confined to the areas designated as the “game room(s)” and no playing of any game provided for or permitted by this chapter shall be permitted at any other location on such premises.

Rule No. 8. No licensee, operator, agent, and/or employee of any duly licensed gaming club shall assign, arrange for, or in any other manner sublet the conducting of games, directly or indirectly, with or without consideration, to any person not having a valid license to conduct such game. Nor shall any person conduct games as provided pursuant to the provisions of this chapter in a duly licensed gaming club not having a valid unrevoked license to conduct such game or games.

Rule No. 9. A gaming club shall be open for inspection during all hours to the City Manager, or his/her duly authorized representative, without a search warrant.

Rule No. 10. Gaming tournaments shall be prohibited unless the licensee files with the City Manager, at least 5 days prior to the commencement of the tournament, a full set of rules, regulations, terms and conditions to be used in regulating or otherwise governing the operation and activities of any such tournament, including minimum and maximum bets for such tournament play, and identifying the time and place of such tournament.

Rule No. 11. If a licensee employs convenience dealers for the convenience of the players so that no player deals, while so dealing the convenience dealer:

Rule No. 12. The only games permitted to be played in a licensed gaming club shall be those games that are legal in the State of California.

Rule No. 13. The playing of all games provided for in this chapter shall be conducted in an area open to the public at all times and the games shall be played at tables in full view, and no doors, screens or other obstructions shall be installed or maintained so as to conceal the players at any table.

Rule No. 14. The City Manager shall receive a copy of the seat rental rates charged by the licensee, and shall be apprised at least 10 days in advance of any proposed changes.

Rule No. 15. The licensee:

Rule No. 16. The giving of credit or lending of anything of value to a patron and the cashing of checks of patrons shall be permitted only if the licensee’s written check cashing and credit policies are submitted and approved by the City Manager. No credit will be extended to City employees or officers.

Rule No. 17. Licensees holding valuables for safekeeping may do so only under the following conditions:

Rule No. 18. Pointholders, managers and employees may play in games.

Any person wishing to obtain an employment identification card shall file an application with the Chief Law Enforcement Officer of the City. The application shall be complete in all respects and shall include photographing and fingerprinting. A processing fee in an amount set by resolution of the City Council shall be paid to the City for such fingerprinting, issuance of the identification card and for a background investigation to be conducted by the Chief Law Enforcement Officer of the City. The fee shall not exceed the City’s reasonable cost of performing such processing.

Each application shall contain, in addition to such other information as the Chief Law Enforcement Officer of the City shall require, the following current information:

Unless specifically excepted by the Chief Law Enforcement Officer of the City in writing, each employee, at all times while acting within the scope of their employment in the gaming room area, other than an employee participating in a game in accordance with subsection R of Section 17.152.020, shall wear in a prominently visible place upon their person the identification card issued by the City.

The licensee shall notify the City upon termination of any employee.

The information received by the City pursuant to the provisions of this section shall be treated as confidential and shall be accessible only to those City officials having jurisdiction over the provisions of this chapter, and to management personnel of the licensee.

Generally. It is unlawful for any licensee or any person having any interest whatsoever or at all in the ownership of a gaming club, whether legal or equitable, as trustor or trustee, or of whatsoever kind or character, to sell or transfer such points and/or interest without the consent and permission of the City Council first had and obtained.

Required Information. Any person desiring to sell, transfer, assign, or otherwise hypothecate any point or interest in a gaming club duly licensed pursuant to the provisions of this chapter shall file with the City Manager a written application for permission to transfer such interest, as is hereinafter described. Each such application shall contain and clearly and truthfully set forth, under oath and/or affirmation, and show, in addition to such other information as the City Manager and/or the City Council may require, the following information:

Investigation Required. Whenever an application pursuant to the provisions of this section has been filed with the City for a sale or transfer pursuant to the provisions of this section, the City Manager shall promptly and diligently make an investigation and shall report to the City Council with reference thereto within 60 days from the filing of the application, as follows:

License Fees. Each such sale or transfer application shall be accompanied by a processing fee in the amount of $250 per person named in the application as a proposed purchaser or transferee, or pointholder, partner or officer thereof, to cover the cost of the investigation. The fee set forth in this subsection shall be the property of and be retained by the City, whether the application for sale or transfer is granted or denied.

Granting or Denial of Application.

All pointholders holding points in any legal gaming club, as well as the partners or officers of such legal gaming clubs, whether or not they hold any points in such clubs, shall have their background investigations updated annually and regularly thereafter pursuant to a schedule established by the City Manager. Such updating shall consist of a check by teletype to criminal investigation and identification in Sacramento, California, and the filing by each licensee, pointholder, and partner or officer thereof, of updated financial statements. A fee in the amount of $10 for each pointholder so investigated shall be paid to the City by the respective legal gaming clubs or licensees on a semiannual basis to cover the costs of such investigations.

Any person having any interest whatsoever or at all in the ownership of a legal gaming club, whether legal or equitable, or a trustor or trustee, or of whatever kind or character, who has not previously submitted to the procedure required under Section 17.152.040(B) through (E), shall file, as a prerequisite to the continued holding of an ownership interest, the application to be investigated, pay the fee, and be reviewed by the City Manager and City Council as provided in that section for persons applying for new ownership interest. If the City Council denies any application, within 120 days after the receipt of a notice of such denial, such person shall divest himself or herself of such ownership interest.

Unlawful Locations. It is unlawful for any person to play, or permit the playing, of any game regulated or referred to by the provisions of this chapter at any place within the City, except a place operated under a permit and licensed under licenses held or issued pursuant to the provisions of this chapter.

Unlawful Games. It is unlawful for any person to play in, or permit the playing of, any game at any place licensed pursuant to this chapter which game is not permitted by the provisions of this chapter, or any game played in violation of this chapter.

Unlawful Attractions. A licensee shall have the right to advertise in the newspaper, over the radio and television, and in any other legal way the licensee sees fit. No licensee shall engage in false or misleading advertising in connection with gambling.

Operation of Game Rooms. It is unlawful for any operator of a game room permitted under this chapter or for any owner, principal employee or agent of a game room permitted under this chapter:

Cheating. It is unlawful for any person to attempt to gain any unfair advantage for any player in a licensed legal gaming club through a fraudulent technique or mechanical or electrical device. Prohibited cheating techniques include, but are not limited to, the following examples:

A licensee may exclude or eject from the premises any person who has been engaged in or been convicted of bookmaking, loansharking, the sale of controlled substances, illegal gambling activities, cheating, prostitution or whose presence in or about such legal gaming club would be inimical to the interests of legitimate gaming. No person shall be excluded or ejected on the grounds of race, color, creed or gender.

Any person excluded or ejected by a licensee may appeal to the City Manager as to whether the conditions for exclusion or election set forth in subsection A of this section are applicable. The City Manager shall appoint a Hearing Officer who shall conduct a hearing at which time both the person excluded and the licensee may present evidence. The decision of the Hearing Officer shall be final. The licensee and appellant shall reimburse the City for the cost of holding such hearing in amounts determined by the Hearing Officer.

The City, in adopting the provisions of this chapter and establishing the regulation of the businesses operated or to be operated by a licensee who permits the playing of legal games authorized by this chapter, declares that the playing of games not prohibited by statute is conducive to public morals when the same are played and conducted according to all the laws, rules, regulations, and provisions as set forth in this chapter, and that in any proceedings to annul a license issued pursuant to the provisions of this chapter, or to abate the business conducted hereunder, or to prosecute the licensee or his/her employees for any acts authorized thereby, it shall be presumed that such acts are not unlawful and that such business is not a public or private nuisance.

The City finds that the issuance of written checks by players to legal gaming clubs and the granting of credit to players by legal gaming clubs to facilitate the playing of legal games is not contrary to an express provision of law, not to the policy of express law, and is not otherwise contrary to good morals. It is the intent of the City Council that California Civil Code Section 1667 not apply, and that both players and legal gaming clubs be entitled to take their contractual disputes to court.

Preserving and keeping all documents identified in this chapter as confidential documents so that the contents thereof shall not become known except to persons required by law to effect the administration or enforcement of this chapter;

Promulgating and/or requiring prior approval of accounting procedures to be utilized by licensees to ensure accurate reporting of legal gaming club revenues; and

Delegating the duties and powers vested in the City Manager by this chapter to appropriate City employees or officers.

It is unlawful for any person to commence or conduct, or purport to commence or purport to conduct, within the City any business, activity, enterprise, undertaking or place, where tables or other items or units of furniture are used directly or indirectly for playing games with cards, dominoes or other implements and for the use of which a fee, commission, or compensation is directly or indirectly charged, accepted, or received from players or participants in any such playing of games until such person shall have first obtained a license to do so under and in compliance with the provisions of this chapter.

No application form for a license for the conduct of any game and/or business under this chapter shall be furnished by the City Manager as provided in Section 17.152.140 of this chapter, nor shall any application for any license be received and filed by the City Manager, nor shall the City Manager be required to process any such application, nor shall a public hearing on the same be conducted unless:

The date of the application;

The true name of the applicant, and any other names by which the applicant has been known;

The status of the applicant as being an individual, firm, association, partnership, joint venture, or corporation;

If the applicant is an individual, the residence and business address of such applicant;

If the applicant is other than an individual, the true name, residence and business address of each point-holder, partner and officer of the applicant; and any other names by which such pointholder, partner and officer of the applicant has been known;

A full and complete financial statement of the applicant, whether it is an individual, corporation, partnership, or other entity and a full and complete financial statement of each pointholder, partner and officer of the applicant; provided, the financial statements required by this chapter shall be deemed confidential in character and shall not be open to public inspection but shall be available to those City officials having jurisdiction over gaming clubs pursuant to the Gaming Registration Act of the State, and to any court of competent jurisdiction where any matter relating thereto may be actually pending;

The type of nature of the legal games proposed to be played;

The number of tables or other units to be placed, employed or used;

A copy of the proposed players’ house rules;

The proposed location of the business for which the license is sought, and evidence of ownership or control of such proposed location;

A description of the building proposed for such usage;

A statement that such building will conform to all the laws of the State and the City for occupancies of the nature proposed;

A statement that the applicant understands that the application shall be considered by the City Council only after a full investigation and report have been made by the City Manager;

A statement that the applicant understands and agrees that any business or activity conducted or operated under any license issued under such application shall be operated in full conformity with all the laws of the State and the laws and regulations of the City applicable thereto, and that any violation of any such laws or regulations in such place of business, or in connection therewith, shall render any license therefor subject to immediate suspension or revocation; and

A statement that the applicant has read the provisions of this chapter and particularly the provisions of this section and understands the same.

After issuance of the first license, the City may issue additional licenses within the City Council’s sole discretion.

A licensee may operate the game room 24 hours per day.

A licensee must provide or have provided to it and its patrons full restaurant service 24 hours per day or during the hours that the game room is operating.

Employees should be local residents whenever possible and if qualified. All employees of the gaming club shall be fingerprinted and licensed, subject to the conditions in Section 17.152.030 of this chapter, by the City.

A licensee shall not operate a gaming club that has less than 20 playing tables.

A gaming club must be located in a freestanding building in which the area devoted to the game room is not less than 4,560 square feet; the gaming club may be located in a portion of the hotel described in subsection G of this section and may consist only of a game room.

It is the intention of the people of the City to award a license and such license to be utilized in the development of a hotel complex for the multiple benefit citizens of the City consistent with the City’s general plan as amended on August 2, 1988, and in effect at the end of that year and with its zoning ordinance as amended on September 15, 1987, and in effect at the end of that year regarding hotels and VS zones. Therefore, the people of the City intend to award a license and intend that such license be utilized in connection with and so as to promote, encourage and support tourist-related hotel development and activity utilizing natural hot mineral water. Thus, the license shall provide for the establishment of either in the same building or on property immediately adjacent to the gaming club, a hotel constructed subsequent to August 2, 1988, and located within the area designated as a VS Zone and within the Hotel Village area. The hotel shall have no less than 100 rooms and shall contain minimum banquet space of 4,000 square feet and shall be located on a minimum lot of 5 acres. An applicant may apply for a license upon commencement of construction of the hotel or any time thereafter. The license shall not be granted until the hotel is completed. In acting on an application, the City may grant a license to be made effective upon completion of the hotel and may specify a time period within which the license is to be effective, if at all. The holder of a license as defined in Section 17.152.010 of this chapter may operate the legal gaming club in the area defined in subsection F of this section by virtue of ownership, lease or exclusive license of the area. If the hotel required by this subsection is not owned by the licensee, then the owner of the hotel shall file with the application a statement under oath that its hotel may be used to qualify the license; once the license is granted, the hotel shall not qualify any additional licenses unless the original license is revoked or surrendered. Any hotel built prior to August 2, 1988, which otherwise complies with this chapter, may be used to qualify a license upon proof that it complies with current zoning and building and safety codes.

The gaming club licensed shall be in effect until such time that it is revoked, suspended or surrendered.

Not withstanding the provisions of subsection G of this section, the gaming club must be in operation within 3 years of issuance of the gaming license or such license is revoked.

The City shall cooperate and facilitate the development of the gaming club under the City’s normal procedures and shall not unreasonably deny approval or create any inordinate delays in the construction of any part of these facilities.

A onetime application fee of $250 per person identified in the application as a pointholder/owner shall be retained by the City for the cost of investigation.

Each applicant shall be properly licensed by the Gaming Registration Division of the California Attorney General’s Office.

Each licensee, licensed pursuant to the provisions of this chapter, shall pay to the City a monthly fee. The monthly fee shall be $4,000, or 10% of monthly gross revenue of the legal game business so licensed, whichever is greater. Licensees shall have no obligation to pay monthly fees under this section until September 1, 1993.

The revenues collected under this chapter shall be part of the general fund. The people encourage the City Council, to the extent permitted by law, to use and devote increases in the general fund for such purposes as paramedic services, child care centers, boys and girls clubs and senior citizens centers; however, the City Council may utilize revenues generated under this chapter for whatever lawful purposes it deems of greatest need. The provisions of this subsection are precatory only and impose no duty on the City Council to earmark revenues collected pursuant to this chapter or to devote revenues to the purposes set forth in this subsection.

Investigations Required. Whenever an application has been filed with the City Manager for a license pursuant to the provisions of this chapter, the City Manager shall make an investigation as follows:

Reports Required. The City Manager shall make such investigation with reasonable promptness and shall report to the City Council with reference thereto in due course, and shall make investigations with reasonable promptness as to all matters within his/her jurisdiction concerning the public health and safety as may be concerned with such application.

If the proposed business or activity to be operated is in violation of any State or City law or regulation;

If the game or games for which a license is applied for is/are unlawful; or

If the applicant, and each pointholder thereof, has not first obtained a valid registration from the California State Attorney General pursuant to the State’s Gaming Registration Act prior to the opening of the club.

General. All licenses issued pursuant to the provisions of this chapter may be revoked in the time and manner set forth in this section.

Grounds. Any license issued pursuant to the provisions of this chapter shall be suspended as hereinafter set forth:

Action of City Manager. Whenever the City Manager has information that a violation constituting a ground for suspension or revocation has occurred, he or she shall forthwith investigate the same. If the City Manager determines that such a violation has occurred, he or she shall forthwith set the matter for a hearing pursuant to applicable sections of Chapter 4.36 of the Desert Hot Springs Municipal Code, as may be amended.