§ 1340. Alcoholic beverages. 1. Notwithstanding any law to the
contrary, the authority to grant any license or permit for, or to permit
or prohibit the presence of, alcoholic beverages in, on, or about any
premises licensed by the commission as part of a gaming facility, or in,
on, or about any Indian gaming facility, shall exclusively be vested in
the commission. As used in this section, the term "Indian gaming
facility" shall mean a premises duly authorized by a tribal gaming
authority to conduct class II gaming, class III gaming, or both, as such
terms are defined in 25 USC 2703, pursuant to the Indian Gaming
Regulatory Act of 1988, which includes a gaming area or areas, and any
other non-gaming structure related to the gaming area as an amenity,
including but not limited to hotels, restaurants, golf courses, golf
clubhouses and other amenities, where such premises is licensed and
regulated by an Indian tribe that has elected commission oversight
pursuant to subdivision one-a of this section. This section shall not be
construed to apply to any provision of New York law other than this
section, to any Indian gaming facility that would not otherwise apply to
the Indian gaming facility absent this section, or to apply to this
section to any premises licensed and regulated by an Indian tribe that
has not elected to be treated as an Indian gaming facility for purposes
of this section pursuant to subdivision one-a of this section.

1-a. An Indian tribe may elect for the state to treat all premises
authorized by such tribe's tribal gaming authority to conduct class II
gaming, class III gaming, or both, as an Indian gaming facility for the
purposes of licensure and regulation under this section, by notifying
the commission and the state liquor authority, in writing, within sixty
days of the effective date of this subdivision, that it elects
commission oversight pursuant to the provisions of this section. Upon
receipt of notice by the commission that a tribe has made such an
election under this subdivision, any premises authorized by such tribe's
tribal gaming authority to conduct class II gaming, class III gaming, or
both, shall be considered an Indian gaming facility, as defined in
subdivision one of this section, for purposes of this section, and the
commission shall assume jurisdiction over all alcoholic beverage
licenses and permits previously issued with respect to any Indian gaming
facility licensed and regulated by that tribe pursuant to subdivision
eleven of this section. As a condition of electing commission oversight
pursuant to this section, an Indian gaming facility shall expressly
commit in writing to follow the requirements imposed under this section,
to adhere to the regulations promulgated by the commission pursuant to
this section, and to submit to the commission's enforcement of this
section and regulations promulgated thereunder including by waiving
tribal sovereign immunity for the sole and limited purpose of such
enforcement of this section. An Indian gaming facility that does not
elect commission oversight in accordance with the requirements of this
section shall remain subject to any other applicable state law governing
the licensure and regulation of alcoholic beverages in, on, or about the
Indian gaming facility.

2. Unless otherwise stated, and except where inconsistent with the
purpose or intent of this article or the common understanding of usage
thereof, definitions contained in the alcoholic beverage control law
shall apply to this section. Any definition contained therein shall
apply to the same word in any form.

3. Notwithstanding any provision of the alcoholic beverage control law
to the contrary, the commission shall have the functions, powers and
duties of the state liquor authority but only with respect to the
issuance, renewal, transfer, suspension and revocation of licenses and
permits for the sale of alcoholic beverages at retail for on-premise
consumption by any holder of a gaming facility license issued by the
commission, or for on-premises consumption at any Indian gaming
facility, including, without limitation, the power to fine or penalize a
casino or Indian gaming facility alcoholic beverage licensee or
permittee; to enforce all statutes, laws, rulings, or regulations
relating to such license or permit; and to collect license and permit
fees and establish application standards therefor.

4. Except as otherwise provided in this section, the provisions of the
alcoholic beverage control law and the rules, regulations, bulletins,
orders, and advisories promulgated by the state liquor authority shall
apply to any gaming facility or Indian gaming facility holding a license
or permit to sell alcoholic beverages under this section.

5. Notwithstanding any provision to the contrary, the commission may
promulgate any regulations and special rulings and findings as may be
necessary for the proper enforcement, regulation, and control of
alcoholic beverages in gaming facilities and Indian gaming facilities
when the commission finds that the uniqueness of gaming facility and
Indian gaming facility operations and the public interest require that
such regulations, rulings, and findings are appropriate.

6. Notwithstanding any provision of law to the contrary, any
manufacturer or wholesaler licensed under the alcoholic beverage control
law may, as authorized under the alcoholic beverage control law, sell
alcoholic beverages to a gaming facility or Indian gaming facility
holding a retail license or permit to sell alcoholic beverages for
consumption on the premises issued under this section, and any gaming
facility or Indian gaming facility holding a retail license or permit to
sell alcoholic beverages for consumption on the premises issued under
this section may, as authorized under the alcoholic beverage control
law, purchase alcoholic beverages from a manufacturer or wholesaler
licensed under the alcoholic beverage control law.

7. It shall be unlawful for any person, including any gaming facility
or Indian gaming facility licensee, or any of their lessees, agents or
employees, to expose for sale, solicit or promote the sale of, possess
with intent to sell, sell, give, dispense, or otherwise transfer or
dispose of alcoholic beverages in, on, or about any portion of the
premises of a gaming facility or Indian gaming facility, unless said
person possesses a license or permit issued under this section.

8. It shall be unlawful for any person holding a license or permit to
sell alcoholic beverages under this section to expose, possess, sell,
give, dispense, transfer, or otherwise dispose of alcoholic beverages,
other than within the terms and conditions of such license or permit,
the provisions of the alcoholic beverage control law, the rules and
regulations promulgated by the state liquor authority, and, when
applicable, the regulations promulgated pursuant to this article.
Notwithstanding any other provision of law to the contrary the holder of
a license or permit issued under this section may be authorized to
provide complimentary alcoholic beverages under regulations issued by
the commission.

9. In issuing a casino or Indian gaming facility alcoholic beverage
license or permit, the commission shall describe the scope of the
particular license or permit, and the restrictions and limitations
thereon as it deems necessary and reasonable. The commission may, in a
single casino or Indian gaming facility alcoholic beverage license,
permit the holder of such a license or permit to perform any or all of
the following activities, subject to applicable laws, rules and
regulations:

(a) To sell any alcoholic beverage by the glass or other open
receptacle including, but not limited to, an original container, for
on-premise consumption within a facility; provided, however, that no
alcoholic beverage shall be sold or given for consumption; delivered or
otherwise brought to a patron; or consumed at a gaming table unless so
requested by the patron.

(b) To sell any alcoholic beverage by the glass or other open
receptacle for on-premise consumption within a gaming facility or Indian
gaming facility.

(c) To sell any alcoholic beverage by the glass or other open
receptacle or in original containers from a room service location within
an enclosed room not in a gaming facility or Indian gaming facility;
provided, however, that any sale of alcoholic beverages is delivered
only to a guest room or to any other room in the gaming facility or
Indian gaming facility authorized by the commission.

(d) To possess or to store alcoholic beverages in original containers
intended but not actually exposed for sale at a fixed location on a
gaming facility or Indian gaming facility premises, not in a gaming
facility or Indian gaming facility; and to transfer or deliver such
alcoholic beverages only to a location approved pursuant to this
section; provided, however, that no access to or from a storage location
shall be permitted except during the normal course of business by
employees or agents of the licensee, or by licensed employees or agents
of wholesalers or distributors licensed pursuant to the alcoholic
beverage control law and any applicable rules and regulations; and
provided further, however, that no provision of this section shall be
construed to prohibit a casino or Indian gaming facility alcoholic
beverage licensee from obtaining an off-site storage license from the
state liquor authority.

10. The commission may revoke, suspend, refuse to renew or refuse to
transfer any casino or Indian gaming facility alcoholic beverage license
or permit, and may fine or penalize the holder of any alcoholic beverage
license or permit issued under this section for violations of any
provision of the alcoholic beverage control law, the rules and
regulations promulgated by the state liquor authority, and the
regulations promulgated by the commission.

11. Jurisdiction over all alcoholic beverage licenses and permits
previously issued with respect to the gaming facility or Indian gaming
facility is hereby vested in the commission, which in its discretion
shall by regulation, rule, or policy promptly provide for the conversion
thereof into a casino or Indian gaming facility alcoholic beverage
license or permit as provided in this section. This section shall not be
construed to affect the validity of any existing licenses and permits
previously issued to an Indian gaming facility by the state liquor
authority, or the continuation of any administrative actions or
proceedings commenced by the state liquor authority prior to the
effective date of the chapter of the laws of 2019 that amended this
section. Any such license or permit previously issued to an Indian
gaming facility by the state liquor authority shall remain valid until
the date that such license or permit is duly converted pursuant to this
subdivision into a license or permit issued by the commission, and the
commission shall assume exclusive jurisdiction over any such previously
issued license or permit, and over any such previously commenced
administrative actions or proceedings.

12. (a) Prior to issuing any license under this section, the
commission, or its designee, shall consult with the state liquor
authority, or its designee, to confirm that such application and such
gaming facility or Indian gaming facility conforms with all applicable
provisions of the alcoholic beverage control law, and all applicable
rules, regulations, bulletins, orders and advisories promulgated by the
state liquor authority;

(b) Prior to commencing enforcement actions against any gaming
facility or Indian gaming facility licensed under this section, the
commission, or its designee, shall consult with the state liquor
authority, or its designee, with respect to the application of the
applicable provisions of the alcoholic beverage control law, and all
applicable rules, regulations, bulletins, orders and advisories
promulgated by the state liquor authority on the alleged conduct of such
licensee; and

(c) The commission, or its designee, shall consult with the state
liquor authority, or its designee, on a regular basis, but no less than
once every three months, regarding any pending applications and
enforcement matters.