[LSNN] Is gambling unlawful in the city of Los Santos?

[Pixie]

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Is gambling unlawful in the city of Los Santos?

Discrepancies between state law and city code might put local business owners in an awkward position with state and federal government.

 

By SAM BROUWER

 

UPDATE, 12 APRIL, 7:20 PM — This story cites an outdated iteration of the General Actions for Monetary and Intrastate Necessity of Gambling (GAMING) Act as its premise for potentially illicit gambling activities. An amendment to the GAMING Act was proposed by Senator Frank Ernst on February 13th, 2021, and passed 5-0 on February 15th, 2021.  One of the changes proposed by and approved in the bill delegated authority to the Lieutenant Governor of San Andreas to establish a statewide gaming commission, which would then assume responsibility for in-state gambling licensure. As of the publication of this article, the most immediately accessible iteration of the GAMING Act does not include this amendment; the amendment is, instead, accessible in the state senate's archives. The article's broader points about the inaccessibility of city officials and the state's 0% tax rate on gambling winnings remain relevant.

 

November 6th, 2019: The 71st General Assembly of the State of San Andreas passes the General Actions for Monetary and Intrastate Necessity of Gambling (GAMING) Act. It's a mouthful of half-meaningless words twisted to fit into a vaguely clever acronym, but its intent is clear: to define municipal gambling in the state of San Andreas and lay the foundations necessary to sensibly regulate the wagering of money on games of chance in exchange for material goods.

 

Most state legislatures have passed bills like San Andreas' GAMING Act, regularly updated to account for the proliferation of new tech, the popularization of games from abroad, and online gambling. Our dear neighbor, Nevada—famous, of course, for international gambling hub Las Vegas and a horrifying clown-filled motel in Tonopah—legalized in-state casinos in 1931, making it the first U.S. territory to allow regulated gambling.

 

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No, really, the Tonopah Clown Motel exists! And there's a MINER'S GRAVEYARD just behind it, which primarily houses the victims of the mysterious Tonopah plague. And the hotel's owners insist it's haunted! What's your deal, Nevada?

 

The GAMING Act is clear and concise in a way that legislation rarely is, and I appreciate that!

 

But... what happens when there are major discrepancies between state law and municipal code?

 

According to the General Actions for Monetary and Intrastate Necessity of Gambling Act, Section 302, subsection a and part i,

 

 

In layman's terms: Any city in San Andreas that intends to allow gambling in businesses within city limits must establish a gaming commission that processes and distributes permits and licenses for gambling—which the GAMING Act defines as bingo, roulette, lottery, slot machines, horse racing, greyhound racing, jai alai, dice or gambling games, whether in person or online.

 

That makes sense, doesn't it? The state legislature doesn't have the insight into every locality in its jurisdiction necessary to establish a singular, ubiquitous gaming commission that works equitably for every city in San Andreas. Municipalities whose citizens fall into higher-than-average tax brackets might want to tax gambling earnings at higher rates. Other municipalities may want to disallow licensure for certain types of gambling at their own discretion. Instead of a "one size fits all" approach, the state has opted to grant municipalities the right to permit or prohibit gambling on a case-by-case basis—provided that they follow one very simple rule: Establish a gaming commission, use it to issue gambling licenses.

 

There's just one problem: As far as I can tell... the city of Los Santos doesn't have a gaming commission—and it isn't issuing gambling licenses.

 

The singular reference to any such licensure I can find is the preamble for Section 301 of the Los Santos city business code:

 

 

So... what does that mean, exactly?

 

The state says it's the city's responsibility. The city says it's not their responsibility. Whose responsibility is it, then? A cursory internet search turns up at least four casinos and countless sportsbooks and private lotteries in the city of Los Santos—but who issued a license to facilitate gambling to these businesses? Couldn't be the state. Couldn't be the city. But make no mistake, if they don't have the proper permits, their gambling operations are unlawful, according to Section 402, subsection b of the GAMING Act:

 

 

I'd love to reach out to these businesses for comment, but none of them have publicly available phone numbers or listed representatives for media inquiries. Comes off a little shady, doesn't it?

 

And I'd really love to provide you with a quote from a city official that clarifies this whole mess! I spent the last week trying to track down Sofia Moreno, who I was led to believe is the current Director of Finance for the city of Los Santos... but when I did get in touch with Sofia, she refused to provide an interview—and for good reason: she's not the city's Director of Finance anymore.

 

I don't know when or why Sofia was fired, promoted or issued her resignation, because the city has never issued an announcement about it. She helpfully pointed me at a "Commissioner Calvani"... whose name appears nowhere on the City Access Network, and whom I was unable to get in touch with prior to publication.

 

So I can't talk to the people running potentially illicit gambling operations in the city, and I can't get in touch with city officials to figure out what's going on. Is gambling unlawful in the city of Los Santos? I don't know—but the facts as I've presented them suggest so. And that's just the tip of the iceberg!

 

Did you know that neither the city of Los Santos nor the state of San Andreas tax gambling earnings? This is, for the record, just about unheard of. Most places that you can legally gamble in the United States are kicking back a part of your winnings to the city and state you're gambling in. These taxes could go to municipal and state infrastructure, public education, social welfare programs—any good service that's funded by your taxes. Are they not, in essence, being robbed of that funding? What about your local VA? Your kids' school district? Don't they deserve that money? Instead, somebody can come from outside the city, win ten grand on red, and go home without contributing a single cent to our local economy.

 

And what about federal gambling taxes? That's right, folks: When you win big, your earnings are taxed by the fed. Earnings over a certain dollar value, or a certain multiplicative value of your placed wager, are—in most cities—withheld by the business you're gambling at for the purpose of federal taxes. Are casinos in Los Santos covering your butt? Probably not. So if you've won a significant amount of money or a high value, non-cash prize from gambling in the city and failed to declare your winnings on a Form W2-G—you're guilty of tax fraud! Oops!

 

These are serious problems with serious implications, and I can't even get the city to talk to me about them. Multiple businesses and citizens in Los Santos may be guilty of defrauding the United States government without even realizing it. They may be complicit in or responsible for the violation of state law. Without the city's input, it's impossible to say definitively—but if I were you, dear reader? I'd avoid placing any wagers till the city gets their act together.

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Edited April 12, 2021 by Manic Pixie
Issuing a correction.

[Pixie]

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[Eriks]

Username: PoliticsWatcher12

Comment: It's the state's responsibility. The article cites an old law predating GAMING Act amendments: 

 

[Pádraig]

L&A.