Marketplace

Issue: 1974 June 30

MARKETPLACE
NEWSLETTER
PAGE 3, JUNE 30, 1974
HAS KELL,
8
LATT &
COUNSELORS
KOPPELMAN
AT LAW
BEN.JAMIN H . HASKELL
THE:OOORE BLATT
SUIT£ 1502
RONALD S . KOPPELMAN
188 MONTAGUE STREET
1USOCIATI COUNal&.
TERRY LICHTASH
LOUIS GOLOST£1N
April 29th, 1974
BROOKLYN, N Y. 11201
( 212 ) 237 - 11500
Mr. Bill Gerah
Marketplace
185 North Yabash Ave
Chicago, Ill. 60601
Dear Bill:
A recent decision of our Nev York Appellate DiTision may be of interest
to you. The facts are as follows:
The Department of Consumer Affairs of the City of Nev York approved four
Flipper Type Games for operation in locations having liquor licensee. In reliance
on the approval, a number of gamea vere installed, and operated.
Shortly thereafter, at the request of the Police Department, the Consumer
Affairs vithdrev their approval and attempted to cancel the licenses •

This resulted in litigation and, on April 17th, 1974, the Appellate Divi-
sion in Manhattan rendered a decision vhich, in my opinion, is of great importance
to the entire industry. The Court vent beyond the question as to whether or not the
Consumer Affairs Department had the right to rescind its approval, but ruled that
"a pin ball game is not a gambling device but an amusement device". A copy of the
decision is enclosed.
This decision is of great significance in this State because the govern-
ing authorities of the various conmunities have from time to time enacted ordinances
or issued rulings forbidding the operation of pin ball games. This decision specif-
ically declares all auch rulings and enactments unconstitutional.
As far aa the City of Nev York is concerned, this industry vill, of course,
still abide by the rules and regulations of the Consumer Affairs Department which
requires submission of all nev games for inspection and approval by that department,
and also existing rules and regulations as to the type of places where games can be
operated.

The importance of thia decision lies in the fact that a higher Court has
definitely ruled that ~ local ordinance or regulation vhich declares a pin ball
game to be a gambling device, ia unconstitutional.
It should also be noted that this ruling does not apply to games that
give prizes or free gamea.
Sincerely,
TB/nc
MARKETPLACE
....
NEWSLETTER
NEW YORK LAW JOUR-
NAL
APRIL 17, 1974
PAGE 4
Text of Opinion
IN THE MATTER OF THE PETI-
TION OF ALBERT SIMON,
INC., and SEABOARD NEW
YORK CORP., petltloners·appel-
lanlll, v. BESS MEYERSON,
AS COMMISSIONER OF THE
DEPARTMENT
OF
CON-
SUMER AFFAIRS OF THE
CITY OF NEW YORK. respond-
ent-respondent.
Decided April 16, 1074.
Before Nu11e:::, J.P.; Ku/'fcrm1111,
Murpf1y, Steuer and Tilzer, JJ
Appel\! from a judgment of the
Supreme Court (Spiegel, J . 1, en-
tered In Ne\ ":ork County on Jan.
17, 1974, dismissing the pellllon.

,
Isadore B. Hurwitz and P C1tmpbcll Brown, uttomcy:s for
pctlt1oner.i-uppcllants.
Nina G. Cold.stein of coun: IL. Kl.'vln Sh!'rldun with h the bflef: Adrian P . Burke Cor-
poration Counsel J tor rci.pondent·
rl.'spondcnt.
statute violates the constitution.
The avowed object of the legisla-
tion Is to prevent the use ot
gambling devices while allowing
machine., providing amusement.
The statutory test as to what Is
a gambling device In a coin·
operated machine ts whether there
is any element of chance In the
playing of tho game. Initially, It
should be remembered that play on
these de\·lcc., Is not In tho nature
ot a conte:1t, where the player
competes against an opponent.
Where a mr.chlne Is so designed,
l\S where tho player receives a
reward contingent on hi:i making
a cc1·taln score, In the form of a
prize of l\ny descrlptlon.-even to
the extent ot getting permission
to play the game again without
pnying-thc game may well be de-
scribed as a contest between the
player and the machine owner:
and, It dependent on chance aa
opposed to skill, be deemed a
gambling device. Hore, concededly
no such clement Is present. Here
the player ls exactly In the same
position vis-a-vis the proprietor nr
the dc\1cc whether his score ls
good, bad or lndil'Cerent.
The statutory test distlnguishlng-
grtmbling Crom amusement. pro-
\"ided that test 1:1 not Illusory I os
It l:i difficult to conceive or any
dt•vlcr In which lh<' outcome would
n'lt be al'fectcd In i chance> hos no t·t>latlon to tho
object to be l\ltulned, namt>ly, tho
lr.tcr pl.1ycr can neltht'r ~aln nor lose
·'" a result of the ~ame. It would
thcrt'fore apJ><'ar that there Ill
lacking any "fair. ju!'t or 1·eason-
ab!e connection" between the
statutory test and the promotion
of the welfare and safety of
society-the nece:nt to
validate a n <-xercise of the police
power t Ptoptc v. <..:llli :;so. ·101. q11ol<'c.I with nµpt'Ovnl In
l't•uJ\I!' \'. 111111114, !l N. Y. :?cl 1. 3,
ct ""'I\. Att tht' "lt1l11lc lnd "tln.tblo t<'l.1tlum1hlp und .1ppllcl\•
lion to the c\•11 It Is dc::.l;:-ned to
a void. it l 1 Detiancc Jltllk Products Co. v.
Ou Mond. 300 N. Y. 537. 541 l.
The judgment entered Jan. 17,
1974. In New York County I Spiegel,
J.1 should be r :md the relief demanded tn lhe
petition i:"r"nlcd. without costs.
Scl tic 01c.IN on nolicl'
PAGE 4, JUNE 30, 1974
Stc.111.r, J.-Thc pctltlonel's nwn-
ufacturers of what ill'e called
"common show games." devices in
the nature or pinball machines,
submitted samples of !our such
machines to respondent Commis-
sioner of Consumer Affairs for ht'r
aprrovol. Approvnl wo11 accorded
to the m:ir.hin<':1. nrnn11rtict11ro W;•s
hr~1m. nncl mnchlnl'I• were Hold
11ncJ h1>1l11llNJ In vnrlollH r1cml:cr11
n hout I he t:lty l:i11m.-wh.1t O\'Cr a
yrar l11tN, rcsrond<-nt, upon a from a pollC<' C.'-J'l<'•t thut tht> ma-
chln<-:s wert' i:-..imbllng dt'vlces :ind
ht>nce prohibited tinder R<-ctlon
B32-40.0 of the Admlnlstrutlve
Code, withdrew the approval there-
tofore granted.
~.1ls proceedmg \inder Arllclt> 78
10'1< .vcd 1l Is baited on llt'Vct-al
j1'n1 nd~. We a,::..-cc with rc11pondrnt
1:1.. m;iny or lhcsl' n 1·t 11ntrnnhlc.
~ i
illy, thrtl' !'an b" no <'1 ,\II l·«111·11r rx•·<-pt Tl/ :,.r. J , whn
•·C , Ol l 1 • 1ut1111UQn /\ flllbllc oflkc1 1:1 ,..,,,., ""'· J. nl 8f'C'C.:Hll TNm.
n · T ir<-d lo 110 net 1f;me1man v.
<.;: • or Ntw Yen 1<, ~4 A . O 2d
oo." 90:Z I. Hardship rcsulllng from Thia is the copy of the decision to which attorney
thf correrllon does not change the
Theodore Blatt refers in his letter of the previous
nil IN Y City Employres' Rt'-
1 in !:;v,.trm ,. Bllol. :!li7 N. V.
page. A Tery important decision tor all of Nev York
!!1:1 20~ 1 :-;01 c.lo wr line.I thnt the
state operators and especially in Nev York City.
> Uowevcr, we do 11.nd lhat the

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