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<br />participation in, or for the privilege of participating in social games." EC 93.876. A social game <br />is a game between players in a private home, or if authorized by a city or county, between <br />players in a private business, private club or place of public accommodation where no house <br />player, house bank or house odds exist and there is no house incomefrom the operation of the <br />social game. ORS 167.117(21) (emphasis added). If the house collects income from the <br />operation of a social game, the game is no longer a social game - it becomes unlawful gambling. <br />The City of Eugene cannot authorize what state law prohibits. The house or social game <br />organizer may not charge players for the privilege of playing in a social game, therefore the <br />house or social game organizer may not collect a fee of 10% of a tournament buy-in and the <br />house must return the entire aggregate buy-in amount to players pursuant to terms agreed upon <br />before the tournament begins. No changes are being made to the rule as a result of these <br />comments. <br /> <br />Comments Reeardine House or Permanent Dealers. Several respondents approved of the use <br />of house or permanent dealers. Comments indicated that the use of permanent dealers decreased <br />players' concerns about cheating and provided for a more relaxed and friendly atmosphere in <br />social gaming facilities. <br /> <br />Findines. I agree that a skilled permanent dealer can enhance the social gaming experience. <br />However, under state law a dealer cannot play in a social game. State statutes provide that a <br />social game is a game "between players." ORS 167.117(21). A dealer is not a player. <br />Therefore, if a dealer plays a hand or places bets, the game is no longer between players and no <br />longer a social game - instead it has become illegal gambling. Ifhowever, a dealer merely <br />facilitates a social game by passing out playing cards to the players and neither plays a hand nor <br />places bets, the game is still "between players" (only players are actually playing in game) and is <br />therefore a social game and not illegal gambling. In light of the comments I received indicating <br />that the presence of permanent dealers decreases players' concerns about cheating and provides <br />for a more relaxed and friendly atmosphere in social gaming facilities, I have added a provision <br />to this administrative rule allowing for permanent dealers. <br /> <br />Comments Reeardine Distance to Other Gamine Facilities/Social Gamine Forced Into <br />Homes. Several respondents expressed the concern that if existing local gaming facilities close <br />after the passage of this administrative rule, respondents would be forced to drive long distances <br />to casinos, or that social games would take place in homes and thus be more difficult for the City <br />to regulate. <br /> <br />Findines. Under Oregon state law, gambling is illegal unless otherwise authorized by state <br />statute. ORS 167.117 through 167.167. State law has created a few exceptions to the general <br />prohibition on gambling, one of which is the exception for social games. ORS 167.117(7)(c); <br />167.117(21). Social gaming is legal only ifit takes place in a private home or is specifically <br />authorized by a city or county; and then only under conditions specified in state law. I interpret <br />the state statutes that authorize social gaming to carve a limited exception from the general <br />prohibition on gambling for informal, low stakes games - not to allow businesses to profit from <br />gaming. As to the concern expressed about driving to casinos, certainly local facilities are more <br />convenient, but as these comments illustrate, persons wishing to participate in gaming have <br />several choices of locations in which to pursue those activities. Tribal casinos are not subject to <br /> <br />Administrative Order - Page 2 of 10 <br />