Charitable groups, gaming venues clash on bell jar bill

Charitable groups and gaming venues are at odds over modernizing electronic bell jar vending machines to help nonprofit organizations. 

A bell jar game is a legal form of charitable gaming where participants pay a set amount for a chance to win a prize. Lawmakers passed a bill earlier this year to allow nonprofits like veterans’ groups and Elks Lodges to use electronic bell jars to increase their fundraising revenue.

“We used to be over 100,000 in membership here in the state of New York, now we’re down somewhere near 40,000,” James MacArthur, state commander of the Department of New York Veterans of Foreign Wars, told Spectrum News 1.

As membership of charitable organizations declines, lawmakers want to give them a fundraising boost. The bill cleared the Legislature nearly unanimously. 

“It’ll allow us to better serve our communities,” MacArthur said. “We recognize and support our police officers, firemen, EMTs. We have Teacher of the Year. We support our scouts. We have Scout of the Year programs. We also support our veterans — we have veterans out there who are in need. So we have many programs for our communities that we live in.”

MacArthur said he visited VFWs in Ohio that use the updated machines, and it increased their income by $150,000 a year.

Former Gov. Andrew Cuomo vetoed a version of the legislation in 2018 after concerns were raised about whether the use of these machines by nonprofits would violate the state’s existing gaming compact with the Seneca Nation of Indians.

The Senecas are again pushing Hochul to veto the bill — arguing the electronic machines are too close to slot machines, and would violate their existing gaming compact that guarantees gaming exclusivity in certain areas. 

The state Gaming Association also backs a veto.

“Problem gaming is an issue, particularly with younger people,” said Michael Kane, the New York Gaming Association’s president and executive director. “But there’s no methodology or requirement to monitor the underage play.”

Kane criticized the proposal because it doesn’t limit machine usage to members of an organization, or a member to monitor its usage.

“I’m just not sure this is the appropriate time for this type of expansion of gaming in New York,” Kane said. “…There are a number of different potential negatives here in reading the bill.” 

Owners of racing and gaming venues also argue the electronic machines will cut into state revenue as officials face a $4.2 billion budget deficit.

Senate sponsor Joe Addabbo said bell jar machines don’t generate significant revenue for the state, and the change could generate up to $500 million for charitable groups each year.

“This is basically a machine — an electronic machine that spits out a ticket,” said Addabbo, who chairs the Senate Racing, Gaming & Wagering Committee. “That’s all it is.”

The bill limits one machine for smaller organizations and up to four for larger groups. Addabbo added it’s up to the state Gaming Commission to authorize or reject groups’ requests. 

The Seneca Nation and New York state continue to feud over a new long-term gaming compact agreement, and are months into negotiations. The existing compact, which originally expired at the end of 2023, was extended in the meantime.

Addabbo argues that Hochul signing the bill will not violate the compact while leaders hash out a new agreement, but it’s likely to complicate negotiations.

The Senecas maintain if the existing contract is still in place until there’s a new agreement, the state still must abide by the terms of the existing deal.

Seneca Nation President J.C. Seneca could not be reached for comment Friday. 

Gov. Kathy Hochul has until the end of the month to sign or veto the measure, but it’s unclear where she stands. Advocates on all sides of the issue say they have not heard from the governor’s office about proposed amendments to the bill, or her intention.

“We’re hopeful that she can because it does mean a lot to some of the charitable organizations throughout our state,” Addabbo said. “And that’s the bottom line: to help these mostly veterans groups.”

Last year, the state had 683 licensed bell jar locations that collect over $35.5 million per year, according to the Gaming Association.