1Providing for local option small games of chance; and making a
2related repeal.

3TABLE OF CONTENTS

4Chapter 1. Preliminary Provisions

5Section 101. Short title.

6Section 102. Legislative intent.

7Section 103. Definitions.

8Section 104. Determination of winner.

9Section 105. Amount of chance.

10Section 106. Construction.

11Chapter 2. Eligible Organizations

12Section 201. Games of chance permitted.

13Section 202. Licensing of eligible organizations to conduct
14games of chance.

15Section 203. Eligible organization reporting.

16Section 204. Social card games.

17Section 205. Card game tournaments.

1Chapter 3. Club Licensees

2Section 301. Games of chance permitted.

3Section 302. Licensing of clubs to conduct games of chance.

4Section 303. Club licensee reporting.

5Section 304. Distribution of proceeds.

6Section 305. (Reserved).

7Section 306. Records.

8Section 307. Raffle tickets.

9Section 308. Weekly drawings.

10Section 309. Advertising.

11Chapter 4. Distributor and Manufacturer Licenses

12Section 401. Prohibition.

13Section 402. Distributor licenses.

14Section 403. Registration of manufacturers.

15Chapter 5. Major League Sports Drawing

16Section 501. Licensing of affiliated nonprofit organization to
17conduct a major league sports drawing.

18Section 502. Conduct of professional sports drawing.

19Section 503. Advertising.

20Chapter 6. Regulations of Department

21Section 601. Regulations.

22Chapter 7. Enforcement

23Section 701. Revocation of licenses.

24Section 702. Enforcement.

25Section 703. Civil and administrative penalties.

26Section 704. Criminal penalties.

27Section 705. Prohibition from participation.

28Chapter 8. Local Option

29Section 801. Election to be held.

30Chapter 51. Miscellaneous Provisions

1Section 5101. Repeal.

2Section 5102. Effective date.

3The General Assembly of the Commonwealth of Pennsylvania
4hereby enacts as follows:

5CHAPTER 1

6PRELIMINARY PROVISIONS

7Section 101. Short title.

8This act shall be known and may be cited as the Local Option
9Small Games of Chance Act.

10Section 102. Legislative intent.

11The General Assembly finds and declares that:

12(1) The playing of games of chance for the purpose of
13raising funds by certain nonprofit associations for the
14promotion of charitable or civic purposes is in the public
15interest. In some cases, the proceeds from games of chance
16may be utilized to support certain operating expenses of
17certain organizations.

18(2) It is the policy of the General Assembly that all
19phases of licensing, operation and regulation of games of
20chance be strictly controlled and that all laws and
21regulations with respect to games of chance, as well as all
22gambling laws, should be strictly construed and rigidly
23enforced.

24(3) The possibility of association between commercial
25gambling and organized crime is recognized, and the General
26Assembly wishes to discourage commercialization of games of
27chance, prevent participation by organized crime and prevent
28the diversion of funds from the purposes authorized under
29this act.

30Section 103. Definitions.

1The following words and phrases when used in this act shall
2have the meanings given to them in this section unless the
3context clearly indicates otherwise:

4"50/50 drawing." A game in which:

5(1) A participant buys a ticket for a chance to win a
6prize where the winner is determined by a random drawing of
7corresponding tickets sold for that drawing.

8(2) The prize paid to the winner is comprised of one-
9half of the money collected from tickets from the drawing and
10the remaining money retained by the eligible organization for
11distribution in accordance with this act.

12"Affiliated nonprofit organization." An organization which
13meets all of the following:

14(1) Is established by or affiliated with a major league
15sports team or its affiliate for the purpose of raising funds
16for charity.

17(2) Is qualified for an exemption under section 501(c)
18(3) of the Internal Revenue Code of 1986 (Public Law 99-514,
1926 U.S.C. § 101(c)(3)).

20"Bona fide member." An individual who holds a membership in
21the eligible organization as defined by that organization's
22constitution, charter, articles of incorporation or bylaws.

23"Charitable organization." A not-for-profit group or body of
24people which is created and exists for the purpose of:

25(1) performing a human service;

26(2) promoting the good and welfare of persons who are
27aged, poor, infirm or distressed;

28(3) combating juvenile delinquency; or

29(4) advancing the spiritual, mental, social and physical
30improvement of young men and women.

1"Civic and service association." Any of the following:

2(1) A Statewide or branch, lodge or chapter of a
3nonprofit national or State organization which is authorized
4by its written constitution, charter, articles of
5incorporation or bylaws to engage in a civic or service
6purpose within this Commonwealth and which has existed in
7this Commonwealth for one year.

8(2) A local nonprofit organization similar to an
9organization under paragraph (1) which is not affiliated with
10a national or State organization and which is recognized by a
11resolution adopted by the governing body of the municipality
12in which the organization conducts its principal activities.

13(3) A Statewide or local bona fide sportsmen's and
14wildlife association, federation or club, volunteer fire
15company, volunteer rescue squad and volunteer ambulance
16association and senior citizens organization. In the case of 
17a bona fide senior citizens organization, the licensing 
18authority may accept alternative documentation for proof of 
19purpose if there are no bylaws or articles of incorporation 
20in existence.

21(4) A nonprofit organization which is established to
22promote and encourage participation and support for
23extracurricular activities within the established primary and
24secondary public, private and parochial school systems. The
25organization must be recognized by a resolution adopted by
26the appropriate governing body. In the case of an 
27organization associated with the public school system, the 
28governing body shall be the school board of the school 
29district. In the case of a private or parochial school 
30organization, the governing body shall be the board of
 

1trustees or the Archdiocese.

2"Club." An eligible organization that:

3(1) is licensed to sell liquor under section 404 of the
4act of April 12, 1951 (P.L.90, No.21), known as the Liquor
5Code; and

6(2) qualifies as an exempt organization under section
7501(c) or 527 of the Internal Revenue Code of 1986 (Public
8Law 99-514, 26 U.S.C. § 501(c) or 527).

9"Club licensee." A club that holds a license to conduct
10small games of chance.

11"Coin auction." A game in which a participant buys a
12numbered paddle for a chance to bid on a donated prize with the
13winner determined by a random drawing of corresponding numbers.

14"Daily drawing." As follows:

15(1) The term shall include:

16(i) A game of chance in which a bona fide member
17selects or is assigned a number for a chance at a prize
18with the winner determined by random drawing to take
19place on the licensed eligible organization's licensed
20premises during the same operating day.

21(ii) Games of chance commonly known as "member sign-
22in lotteries" and "half-and-half lotteries."

23(2) Nothing in this definition shall restrict an
24eligible organization from conducting more than one drawing
25per day.

26"Department." The Department of Revenue of the Commonwealth.

27"Dispensing machine." A device designed exclusively for the
28dispensing of the games of chance authorized under this act,
29including ticket jars, fish bowls and stamp machines.

30"Eligible organization." Any of the following:

1(1) Any of the following which have been in existence
2and fulfilling its purpose for one year prior to the date of
3application for a license:

4(i) a charitable, religious, fraternal or veterans'
5organization; or

6(ii) a civic and service association.

7(2) An affiliated nonprofit organization licensed under
8section 202.

9"Fraternal organization." A nonprofit organization within
10this Commonwealth which meets all of the following:

11(1) Is created and carried on for the mutual benefit of
12its members, has a limited membership and a representative
13form of government and is a branch, lodge or chapter of a
14national or State organization.

15(2) Has been in existence in this Commonwealth and
16fulfilling it purpose for one year prior to the date of
17application for a license.

18"Games of chance." As follows:

19(1) A punchboard, daily drawing, weekly drawing, 50/50
20drawing, selective raffle, poker run, coin auction, race
21night game, vertical wheel game, raffle and pull-tab:

22(i) which, except for a vertical wheel game, is not
23played by or with the assistance of a mechanical or
24electrical device or media other than a dispensing
25machine or passive selection device; and

26(ii) in which a particular chance taken by a person
27in the game is not contingent upon any other occurrence
28or the winning of another contest, but is determined
29solely at the discretion of the purchaser.

30(2) This definition shall not be construed to authorize

1any other form of gambling currently prohibited under any
2provision of 18 Pa.C.S. (relating to crimes and offenses) or
3authorized under 4 Pa.C.S. (relating to amusements).

4"Home game." A game of a major league sports team or its
5affiliate, including a league-sponsored game, exhibition,
6regular season game, All-Star game, play-off game and
7championship game, held at the home facility of the major league
8sports team or its affiliate.

9"Law enforcement official." A municipal police officer, a
10member of the Pennsylvania State Police, the sheriff of a county
11or a deputy sheriff.

12"License." A license to conduct games of chance.

13"Licensed distributor." A distributor of games of chance
14licensed under Chapter 4.

15"Licensing authority." The county treasurer or in a home
16rule county or city of the first class, if there is no elected
17treasurer, the designee of the governing authority.

18"Major league sports team." A professional team that is a
19member of Major League Baseball, the National Football League,
20the National Hockey League, the National Basketball Association
21or Major League Soccer.

22"Municipality." A city, borough, incorporated town or
23township or a home rule municipality formerly classified as a
24city, borough, incorporated town or township.

25"Nonbanking card game." A card game where players play
26against one another rather than against the house. Nonbanking
27card games may include any of the following:

28(1) Poker games.

29(2) Hearts.

30(3) Rummy.

1(4) Pinochle.

2(5) Bid Whist.

3"Nonbanking card game tournament" or "tournament." A series
4of card games held by a licensed eligible organization during a
5consecutive period of time of not more than 24 hours and not
6held as part of any other games of chance.

7"Passive selection device." A device which meets all of the
8following:

9(1) Is used to hold or denote the universe of possible
10winning numbers or entrants in a daily drawing or raffle.

11(2) Does not have the capability of being utilized to
12conduct or aid in the conducting of unauthorized or illegal
13forms of gambling.

14"Poker run." A game in which all of the following occur:

15(1) A participant meets at a designated location to
16receive instructions for the event.

17(2) Each participant receives a detailed explanation of
18the game destinations and a score card which will be
19completed as the participant progresses to each destination.

20(3) At each designated stop on the run route, the
21participant draws or is dealt a card at random. The card
22which is drawn or dealt is recorded on the participant's
23score card.

24(4) A winner is determined as the participant which
25makes the highest poker hand at the end of the event.

26"Prize." Cash or merchandise awarded for games of chance.

27"Proceeds." The difference between:

28(1) the actual gross revenue collected by a licensed
29eligible organization from a game of chance; and

30(2) the actual amount of prizes paid by a licensed

1eligible organization from a game of chance, plus the cost to
2purchase games of chance.

3"Professional sports drawing." A 50/50 drawing conducted by
4an affiliated nonprofit organization at a home game of a major
5league sports team or its affiliate, in which 50% of the money
6collected from ticket sales from the drawing is offered as the
7prize and the remaining 50% is retained by the affiliated
8nonprofit organization sponsoring the drawing for distribution
9to charitable organizations.

10"Public interest purpose." As follows:

11(1) One or more of the following:

12(i) Providing benevolent, religious, educational,
13philanthropic, humane, scientific, patriotic, social
14welfare, social advocacy, public health, public safety,
15emergency response, environmental, historic preservation,
16conservation, athletic, sportsman's safety and education
17or civic services or benefits.

18(ii) Initiating, performing or fostering worthy
19public works or enabling or furthering the erection or
20maintenance of public structures.

21(iii) Lessening the burdens borne by government or
22voluntarily supporting, augmenting or supplementing
23services which government would normally render to the
24people.

25(iv) Improving, expanding, maintaining or repairing
26real property owned or leased by an eligible organization
27and relating operational expenses used for purposes
28specified under subparagraphs (i), (ii) and (iii).

29(2) The term does not include the erection or
30acquisition of real property, unless the property will be

1used for one or more of the purposes specified under this
2definition.

3"Pull-tab." A single folded or banded ticket or a strip
4ticket or card with a face covered to conceal one or more
5numbers or symbols, where one or more of each set of tickets or
6cards has been designated in advance as a winner.

7"Punchboard." A board, placard or other device marked off in
8a grid or columns, in which each section contains a hidden
9number, or other symbol, which determines the winning chances.

10"Pyramid" or "build-up." Any of the following:

11(1) A card game in which a prize must be returned in
12order to play another game or to be eligible for another
13bigger prize.

14(2) A game in which the prize must be forfeited if a
15later game is lost.

16"Race night game." A game in which a participant places a
17wager on a prerecorded horse race.

18"Raffle." As follows:

19(1) The term shall include any of the following:

20(i) A game of chance, including a lottery, in which
21a participant buys a ticket for a chance at a prize with
22the winner determined by a random drawing of
23corresponding ticket stubs to take place at a location
24and date printed upon each ticket.

25(ii) A reverse raffle.

26(2) The term shall not include a daily drawing.

27"Religious organization." A not-for-profit group or body of
28people which is created and which exists for the predominant
29purpose of regularly holding or conducting religious activities
30or religious education, without pecuniary benefit to an officer,

1member or shareholder except as reasonable compensation for
2actual services rendered to the organization.

3"Selective raffle." A game in which all of the following
4occur:

5(1) The participant buys a ticket or tickets for a
6chance to win a donated prize.

7(2) The participant places the ticket in a designated
8location for the prize which the participant would like to
9win.

10(3) The winner for each prize is determined by a random
11drawing of tickets with a corresponding number for the prize.

12"Social card game" or "card game." A nonbanking card game
13that is played by members at the licensed premises of an
14eligible organization.

15"Vertical wheel game." A game in which a participant places
16a coin or token on a color, number or word or purchases a ticket
17containing a color, number or word and watches a spinning
18vertical wheel until the pointer of the wheel rests on a section
19of the wheel designating a winner.

20"Veterans organization." Any of the following which have
21been in existence in this Commonwealth and fulfilling the
22purpose of the organization for one year prior to the date of
23application for a license:

24(1) Any of the following within this Commonwealth whose
25membership consists of individuals who were members of the
26armed services or armed forces of the United States:

27(i) A congressionally chartered organization within
28this Commonwealth.

29(ii) Any branch or lodge or chapter of a nonprofit
30national or State organization within this Commonwealth.

1(2) A home association.

2"Weekly drawing." A game of chance in which a bona fide
3member selects or receives a number for a chance at a prize with
4the winner determined by a random drawing to take place on the
5licensed eligible organization's licensed premises at the end of
6a seven-day period.

7Section 104. Determination of winner.

8(a) Passive selection device or reference.--A daily drawing 
9winner and weekly drawing winner may be determined with the aid 
10of a passive selection device or reference to a drawing 
11conducted by the department under the act of August 26, 1971 
12(P.L.351, No.91), known as the State Lottery Law.

13(b) Reference.--A raffle winner may be determined by
14reference to a drawing conducted by the department under the
15State Lottery Law.

16Section 105. Amount of chance.

17(a) Daily drawing.--A daily drawing chance may not be sold
18for an amount in excess of $1, and no more than one chance per
19individual may be sold per drawing.

20(b) Weekly drawing.--A weekly drawing chance may not be sold 
21for an amount in excess of $1.

22Section 106. Construction.

23Nothing in this act shall be construed to authorize devices
24commonly known as "slot machines" or "video poker."

25CHAPTER 2

26ELIGIBLE ORGANIZATIONS

27Section 201. Games of chance permitted.

28(a) Purpose.--Every eligible organization to which a license
29has been issued under this chapter may conduct games of chance
30for raising funds for public interest purposes for the purchase

1of games of chance, for the payment of the license fee or for
2the payment of the fee for background checks. An eligible
3organization may use the proceeds received from games of chance
4conducted by the eligible organization to fulfill the public
5interest purpose of the eligible organization. An eligible
6organization may not use proceeds for the payment of any fine
7levied against the eligible organization.

8(b) Games permitted.--Every eligible organization to which a
9license has been issued under this chapter may conduct games of
10chance.

11(c) Relationship to table games.--A vertical wheel game
12shall not be considered a "table game" as defined in 4 Pa.C.S. §
131103 (relating to definitions). The designation of a vertical
14wheel game under this act shall not preclude the authorization
15of a vertical wheel game as a table game under 4 Pa.C.S. Pt. II
16(relating to gaming).

17Section 202. Licensing of eligible organizations to conduct
18games of chance.

19(a) License required.--No eligible organization shall
20conduct or operate a game of chance unless the eligible
21organization has obtained and maintains a valid license or
22limited occasion license issued pursuant to this section. An
23auxiliary group of a licensed eligible organization shall be
24eligible to conduct games of chance using the license issued to
25the eligible organization provided that the auxiliary group is
26listed on the application and license of the eligible
27organization. An auxiliary group is not eligible to obtain a
28license or a limited occasion license. No additional licensing
29fee shall be charged to an eligible organization for listing an
30auxiliary group of the organization. An auxiliary group shall

1not include branches, lodges or chapters of a Statewide
2organization.

3(b) Issuance and fees.--Within 30 days of receiving an
4application from an organization, the licensing authority shall
5grant a license to an eligible organization meeting the
6requirements for licensure contained in this chapter. The
7license shall allow the eligible organization to conduct and
8operate games of chance at the locations within the county or in
9a manner as stated on the application as limited by subsection
10(b.1). The license fee to be charged to each eligible
11organization shall be $100, except for limited occasion licenses
12which shall be $25. Licenses shall be renewable annually upon
13the anniversary of the date of issue. The license fee shall be
14used by the licensing authority to administer this act.

15(b.1) Location of games of chance.--

16(1) Except as otherwise provided in this section, a
17licensed eligible organization, except a limited occasion
18licensee, may conduct small games of chance at a licensed
19premises. The licensed premises shall be indicated on the
20eligible organization's license application.

21(2) A location or premises which is the normal business
22or operating site of the eligible organization and the
23location or premises owned or leased by that eligible
24organization to conduct its normal business shall be the
25eligible organization's licensed premises. If that location
26consists of more than one building, the eligible organization
27shall identify the building that will be designated as the
28licensed premises.

29(2.1) An eligible organization must notify the district
30attorney to conduct games of chance in a different location

1from the location of the licensed premise that is listed on
2the eligible organization's application and license. The
3notification must include the address of the new location and
4the dates and times the games of chance will be conducted at
5the new location.

6(3) If an eligible organization does not own or lease a
7specific location to conduct its normal business, the
8eligible organization may use the premise of another eligible
9organization or club licensee to conduct games of chance or
10may make arrangements that are consistent with this act to
11establish a licensed premises, including leasing a premise
12under a written agreement for a rental. The rental may not be
13determined by either the amount of receipts realized from the
14conduct of games of chance or the number of people attending.
15An eligible organization may lease a facility for a banquet
16in connection with the serving of a meal based on a per-head
17charge. Prior to the use of the premises of another eligible
18organization or club licensee to conduct games of chance, an
19eligible organization must notify the district attorney
20regarding the use of the premise of another eligible
21organization or club licensee, including the address of the
22premise and the dates and times the games of chance will be
23operated.

24(3.1) (Reserved).

25(3.2) Notwithstanding paragraphs (1), (2) and (3), the
26following eligible organizations established to raise funds
27shall not be required to conduct a 50/50 drawing or a raffle
28at a licensed premises or to own, lease or establish a
29licensed premises:

30(i) A nonprofit sports team.

1(ii) A primary or secondary school-sponsored club,
2sports team or organization.

3(4) An eligible organization which has obtained a
4limited occasion license under subsection (b.3) may use
5another eligible organization's or club licensee's licensed
6premises to conduct its games of chance. When a licensed
7eligible organization or club licensee is permitting a
8limited occasion licensee to use its licensed premises for
9purposes of games of chance, the licensed eligible
10organization or club licensee shall cease the operation of
11its own games of chance during the period that the limited
12occasion licensee is conducting its games on the premises.

13(b.2) Off-premises games of chance.--Notwithstanding any
14other provisions of this section, the following shall apply:

15(1) A licensed eligible organization may conduct games
16of chance at a location off its premises when the games of
17chance are part of an annual carnival, fair, picnic or
18banquet held or participated in by that licensed eligible
19organization on a historical basis. The licensed eligible
20organization must notify, in writing, the district attorney
21and licensing authority of the location, date and times of
22the event where it will be conducting games of chance.

23(2) Raffle and 50/50 drawing tickets may be sold off the
24licensed premises in a municipality which has adopted the
25provisions of this act by an affirmative vote in a municipal
26referendum.

27(b.3) Limited occasion licenses.--Eligible organizations may
28apply for a limited occasion license to conduct games of chance.
29A limited occasion license entitles an eligible organization to
30conduct no more than three games of chance and not more than two

1raffles during a licensed year. Holders of a limited occasion
2license may not apply or be granted any other license under this
3act. No holder of a regular license under this act shall apply
4for or be granted a limited occasion license.

5(b.4) Gambling facility prohibited.--It shall be unlawful
6for a person, corporation, association, partnership or other
7business entity to offer for rent or offer for use a building or
8facility to be used exclusively for the conduct of games of
9chance. It shall also be unlawful for any eligible organization
10to lease under any terms a building or facility which is used
11exclusively for the conduct of games of chance.

12(c) Display.--Licenses issued pursuant to this section shall
13be publicly displayed at the site where games of chance are
14conducted.

15(d) Operation.--Each licensed eligible organization shall be
16prohibited from the following:

17(1) Permitting any person under 18 years of age to
18operate or play games of chance.

19(2) Permitting any person who has been convicted of a
20felony in a Federal or State court within the past five years
21or has been convicted in a Federal or State court within the
22past ten years of a violation of the act of July 10, 1981
23(P.L.214, No.67), known as the Bingo Law, or of this act to
24manage, set up, supervise or participate in the operation of
25games of chance.

26(3) Conducting games of chance by anyone other than the
27managers, officers, directors, bar personnel and bona fide
28members of the eligible organization.

29(4) Conducting games of chance on any premises other
30than on the licensed premises or as otherwise provided by

1this chapter.

2(5) Leasing the licensed premises under either an oral
3or a written agreement for a rental which is determined by
4either the amount of receipts realized from the playing of
5games of chance or the number of people attending, except
6that an eligible organization may lease a facility for a
7banquet where a per-head charge is applied in connection with
8the serving of a meal. An eligible organization shall not
9lease the premises from any person who has been convicted of
10a violation of this act or the Bingo Law within the past ten
11years.

12(6) Purchasing games of chance, other than raffles,
13vertical wheel games, selective raffles, coin auctions, poker
14runs, 50/50 drawings, daily drawings and weekly drawings,
15from any person other than a registered manufacturer or
16licensed distributor approved by the department.

17(e) Application for license.--Each eligible organization
18shall apply to the licensing authority for a license on a form
19to be prescribed by the Secretary of Revenue. The form shall
20contain an affidavit to be affirmed by the executive officer or
21secretary of the eligible organization stating that:

22(1) No person under 18 years of age will be permitted by
23the eligible organization to operate or play games of chance.

24(2) The facility in which the games of chance are to be
25played has adequate means of ingress and egress and adequate
26sanitary facilities available in the area.

27(3) The eligible organization is not leasing the
28premises from the owner of the premises under an oral
29agreement, nor is it leasing the premises from the owner of
30the premises under a written agreement at a rental which is

1determined by the amount of receipts realized from the
2playing of games of chance or by the number of people
3attending, except that an eligible organization may lease a
4facility for a banquet where a per-head charge is applied in
5connection with the serving of a meal.

6(e.1) Proceedings.--Proceedings before the licensing
7authority are subject to 2 Pa.C.S. Chs. 5 Subch. B (relating to
8practice and procedure of local agencies) and 7 Subch. B
9(relating to judicial review of local agency action).

10(f) List of licensees.--The licensing authority, on a
11semiannual basis, shall send a copy of all licensees to the
12department.

13(g) List of municipalities.--The licensing authority shall
14include with any license or renewal license issued to an
15eligible organization an up-to-date listing of those
16municipalities within the licensing county which have approved
17the referendum question on small games of chance.

18(h) Background checks.--Each application for a license
19submitted by an eligible organization which has proceeds in
20excess of $5,000 in a year shall include the results of a
21criminal history record information check obtained from the
22Pennsylvania State Police, as defined in 18 Pa.C.S. § 9102
23(relating to definitions) and permitted by 18 Pa.C.S. § 9121(b)
24(relating to general regulations), for the executive officer and
25treasurer of the eligible organization making the application
26for a license or any other person required by the department.

27Section 203. Eligible organization reporting.

28(a) Recordkeeping requirements.--This section shall not be
29construed to authorize the department to promulgate regulations
30providing for recordkeeping requirements for licensed eligible

1organizations which require unreasonable or unnecessary
2information or a repetitious listing of information. The
3department shall strive to keep the recordkeeping requirements
4from being an undue hardship or burden on licensed eligible
5organizations. For individual prizes of $600 or more, records
6shall include the name and address of the winner. An eligible
7organization shall not obtain or retain receipts of prizes that
8are donated. An eligible organization shall provide each winner
9with a receipt of the value of the prize won of $600 or more,
10unless the prize is cash. Except as provided under section
11701(b), the department may not require the retention of records
12for a period in excess of two years.

13(b) Reporting requirements.--Each eligible organization
14which has proceeds in excess of $5,000 in a 12-month period
15commencing upon the anniversary of the date the license was
16issued must submit a report. The form for the report shall be
17available in hard copy and electronically from the department's
18Internet website. The report may be submitted by mail to the
19department or through the department's Internet website. The
20report shall include the following:

21(1) Prizes awarded as required under section 335 of the
22act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform
23Code of 1971.

24(2) Amounts expended for public interest purposes.

25Section 204. Social card games.

26(a) Authorization.--Notwithstanding 18 Pa.C.S. (relating to
27crimes and offenses), this act or other law or regulation,
28social card games may be played at the licensed premises of an
29eligible organization in accordance with the requirements of
30this chapter.

1(b) Requirements.--The following shall apply:

2(1) A card game must be played by and between members of
3the eligible organization.

4(2) The eligible organization or another person may not
5have an interest in the outcome of a card game.

6(3) A nonbanking card game must be played with members
7playing against each other.

8(4) Wagering shall be at the discretion of each player.

9(5) The maximum prize or payout for a card game shall be
10limited to $100.

11(6) The eligible organization may not charge a fee for
12play.

13(7) Not more than ten members may play at a table in a
14card game.

15(8) A card game shall be played in a room set aside for
16that activity at the licensed premises of the eligible
17organization.

18(9) Not more than five gaming tables may be made
19available for the play of card games by the eligible
20organization.

21(10) An eligible organization or a person may not
22collect, obtain or charge a percentage of or collect or
23obtain a portion of a wager or winnings of a player in a card
24game, except that a player may collect his winnings.

25(11) An eligible organization or a person may not
26collect, obtain money from or charge or impose a fee upon a
27person that enables the person to play or results in or from
28the person playing a card game. This paragraph shall not
29preclude the collection of a membership fee by the eligible
30organization that is unrelated to participation in the play

1of a card game authorized under this chapter.

2(12) An eligible organization that allows the use of its
3premises for the play of card games by its members in
4accordance with this chapter shall submit a schedule of the
5proposed dates of the card games or a card game tournament to
6the licensing authority.

7(c) Posting.--An eligible organization that permits the play
8of card games at its licensed premises shall prominently post
9the following in close proximity to card game tables in the room
10designated to play card games:

11(1) The wagering limits for each type of card game.

12(2) The rules of play.

13(3) Information on where a person can obtain help for
14problem gambling, including the telephone number for the
15Pennsylvania Compulsive Gambling Hotline.

16(d) Prohibitions.--

17(1) It shall be unlawful for an eligible organization
18to:

19(i) Obtain or collect money or anything of value
20from the conduct of card games at its licensed premises.

21(ii) Knowingly permit a card game to be played in
22violation of this chapter.

23(iii) Fail to comply with the posting requirement in
24accordance with subsection (c).

25(iv) Engage in an act, practice or course of conduct
26that would constitute fraud or deceit upon a player in a
27card game.

28(v) Allow a person under 21 years of age to play a
29card game at its licensed premises.

30(vi) Knowingly allow a person to employ or attempt

1to employ a device, scheme or artifice to cheat or
2defraud a player in a card game.

3(2) A licensed organization that violates subparagraph
4(i) shall be subject to the penalties imposed under section
5702(d).

6Section 205. Card game tournaments.

7(a) Authorization.--Notwithstanding another law or
8regulation, an eligible organization may conduct nonbanking card
9game tournaments. A card game tournament conducted by an
10eligible organization shall comply with all of the following:

11(1) Nonbanking card games must be played in a card game
12tournament.

13(2) A card game shall be conducted in a fair and honest
14manner and may not be operated on a build-up or pyramid
15basis.

16(3) Each player in a tournament shall be given the same
17chance of winning the tournament. Second-chance entries or
18multiple entries shall be prohibited.

19(4) An eligible organization shall conduct each
20tournament and may not contract with or permit another person
21to conduct the tournament or a card game during the
22tournament.

23(5) An eligible organization must receive or have a
24fixed or contingent right to receive profit, remuneration or
25compensation from or related to a card game in a card game
26tournament, except for an amount that a person may win as a
27player on the same basis as the other players.

28(6) An eligible organization may not hold more than five
29card game tournaments annually.

30(7) An eligible organization may not hold a card game

1tournament within seven calendar days of another tournament
2conducted by the eligible organization.

3(8) An eligible organization may hold one card game
4tournament during a period of 24 consecutive hours, starting
5from the time the tournament begins.

6(9) At the conclusion of each tournament, the eligible
7organization conducting the tournament shall announce the
8name of the winning player and the amount of winnings.

9(10) An eligible organization shall limit the number of
10tables used in the tournament to not more than five with not
11more than ten players at each table.

12(11) A card game tournament must be held in a room at
13the licensed premises designated by the eligible organization
14for the conduct of card games.

15(12) A player in a tournament shall be limited to the
16members of the eligible organization.

17(13) A player must be 21 years of age or older.

18(14) A card game tournament may not provide a direct
19financial benefit to the eligible organization or another
20person, except for a winning player in the tournament.

21(15) The value of all prizes awarded for each
22tournament, except for a Texas Hold'em tournament, may not
23exceed $200.

24(16) For a tournament involving Texas Hold'em, all of
25the following shall apply:

26(i) The payment of an entry fee or other
27consideration for participating shall be prohibited.

28(ii) The value of all prizes awarded to an
29individual winner of a tournament or contest at a single
30table may not exceed $200 each day.

1(17) The eligible organization shall ensure that
2reasonable accommodations are made for players with
3disabilities.

4(b) Required postings.--Notwithstanding subsection (a), an
5eligible organization shall prominently post the tournament
6rules on a sign in the tournament playing room at least 24 hours
7before the tournament begins. The sign shall be at least 30
8inches by 30 inches and the rules shall be easily readable. The
9sign shall include all of the following:

10(1) In permanent letters three inches high, the words
11"Tournament Rules."

12(2) Card game or games to be played in the tournament
13and the rules of each card game.

14(3) The prize for each card game and tournament.

15(4) How winners will be determined.

16(5) Any other tournament rules.

17(c) Prizes.--Cash or merchandise prizes may be awarded for
18each card game tournament. All of the following shall apply:

19(1) The eligible organization shall distribute the
20prizes awarded on the day the prizes are won.

21(2) Donated or merchandise prizes may not be repurchased
22by the eligible organization.

23(3) No prize, except for a prize that can be won, may be
24displayed in the room where the tournament will be held.

25CHAPTER 3

26CLUB LICENSEES

27Section 301. Games of chance permitted.

28(a) Purpose.--Every club licensee to which a license has
29been issued under the provisions of this chapter may conduct
30games of chance for the purpose of raising funds for public

1interest purposes, for general operating expenses of the club,
2for the purchase of games of chance, for the payment of the
3license fee or for the payment of the fee for background checks.
4A club licensee shall not use proceeds for the payment of any
5fine levied against the club licensee.

6(b) Games permitted.--Every club licensee to which a license
7has been issued under the provisions of this chapter may conduct
8punchboards, pull-tabs, daily drawings, weekly drawings, 50/50
9drawings and raffles.

10Section 302. Licensing of clubs to conduct games of chance.

11(a) License required.--No club licensee shall conduct or
12operate any games of chance unless the club licensee has
13obtained and maintains a valid license or limited occasion
14license issued pursuant to this section. An auxiliary group of a
15club licensee shall be eligible to conduct games of chance using
16the license issued to the club licensee provided that the
17auxiliary group is listed on the application and license of the
18club licensee. An auxiliary group is not eligible to obtain a
19license or a limited occasion license. No additional licensing
20fee shall be charged to a club licensee for an auxiliary group
21of the organization. An auxiliary group shall not include
22branches, lodges or chapters of a Statewide organization.

23(b) Issuance of license.--Within 30 days of receiving an
24application from a club, the licensing authority shall grant a
25license to a club meeting the requirements for licensure
26contained in this chapter to conduct and operate games of chance
27at the locations in the county or in a manner as stated on the
28application as limited by subsection (b.1). Licenses shall be
29renewable annually upon the anniversary of the date issued.

30(b.1) License fee.--The licensing authority shall charge a

1fee which shall be used to administer this act. The application
2and license fee submitted to the licensing authority must
3include an affidavit executed by the club's executive officer
4affirming that, if granted a license, the club does not
5anticipate that the club's prize limits will exceed the
6determined amount for the license fee. The department shall
7prescribe an affidavit form for this purpose and make the forms
8available to the licensing authority. The license fees shall be
9as follows:

10(1) Weekly prize limit up to but not exceeding $25,000
11shall be $100.

12(2) Weekly prize limit up to but not exceeding $50,000
13shall be $1,000.

14(3) Weekly prize limit up to but not exceeding $75,000
15shall be $2,500.

16(4) Weekly prize limit up to but not exceeding $100,000
17shall be $5,000.

18(5) If the weekly prize limit exceeds $100,000, the club
19shall pay an additional $1,000 for each additional $25,000 in
20prize money per week.

21(6) A limited occasion license shall be $25.

22(c) Location of games of chance.--

23(1) Except as otherwise provided in this section, a club
24licensee, excluding a limited occasion licensee, may conduct
25small games of chance at a licensed premises. The licensed
26premises shall be indicated on the club licensee's license
27application.

28(2) Where there exists a location or premises which is
29the normal business or operating site of the club licensee
30and the location or premises is owned or leased by that club

1licensee to conduct its normal business, that site shall be
2the club licensee's licensed premises. If that location
3consists of more than one building, the club licensee shall
4identify the building that will be designated as the licensed
5premises.

6(2.1) A club licensee must notify the district attorney 
7to conduct games of chance in a different location from the 
8location of the licensed premise that is listed on the club 
9licensee's application and license. The notification must 
10include the address of the new location and the dates and 
11times the games of chance will be conducted at the new 
12location.

13(3) If a club licensee does not own or lease a specific
14location to conduct its normal business, the club licensee
15may use the premise of another eligible organization or club
16licensee to conduct games of chance or may make arrangements
17that are consistent with this act to establish a licensed
18premises, including leasing a premise under a written
19agreement for a rental. The rental may not be determined by
20either the amount of receipts realized from the conduct of
21games of chance or the number of people attending. A club
22licensee may lease a facility for a banquet in connection
23with the serving of a meal based on a per-head charge. Prior
24to the use of the premises of another club licensee or
25eligible organization to conduct games of chance, a club
26licensee must notify the district attorney regarding the use
27of the premise of another eligible organization or club
28licensee, including the address of the premise and the dates
29and times the games of chance will be operated.

30(4) A club licensee that has obtained a limited occasion

1license under subsection (e) may use another eligible
2organization's or club licensee's licensed premises to
3conduct its games of chance. When a licensed eligible
4organization or club licensee is permitting a limited
5occasion licensee to use its licensed premises for purposes
6of games of chance, the licensed eligible organization or
7club licensee shall cease the operation of its own games of
8chance during the period that the limited occasion licensee
9is conducting its games on the premises.

10(d) Off-premises games of chance.--Notwithstanding any other
11provisions of this section, the following apply:

12(1) A club licensee may conduct games of chance at a
13location off its premises when the games of chance are part
14of an annual carnival, fair, picnic or banquet held or
15participated in by the club licensee on a historical basis.
16The club licensee must notify, in writing, the district
17attorney and licensing authority of the location, date and
18times of the event where it will be conducting games of
19chance.

20(2) Raffle and 50/50 drawing tickets may be sold on the
21licensed premises in a municipality that adopted the
22provisions of this act by an affirmative vote in a municipal
23referendum.

24(e) Limited occasion licenses.--A club licensee may apply
25for a limited occasion license to conduct games of chance. A
26limited occasion license entitles a club licensee to conduct no
27more than three games of chance and not more than two raffles
28during a licensed year. Holders of a limited occasion license
29may not apply or be granted another license under this act. A
30holder of a regular license under this act may not apply for or

1be granted a limited occasion license.

2(f) Gambling facility prohibited.--It shall be unlawful for:

3(1) a person, corporation, association, partnership or
4other business entity to offer for rent or offer for use a
5building or facility to be used exclusively for the conduct
6of games of chance; and

7(2) a club licensee to lease under any terms a building
8or facility which is used exclusively for the conduct of
9games of chance.

10(g) Display.--Licenses issued under this section must be
11publicly displayed at the site where games of chance are
12conducted.

13(h) Operation.--A club licensee may not do the following:

14(1) permit a person under 18 years of age to operate or
15play games of chance;

16(2) permit a person who has been convicted of a felony
17in a Federal or State court within the past five years or has
18been convicted in a Federal or State court within the past
19ten years of a violation of the act of July 10, 1981
20(P.L.214, No.67), known as the Bingo Law, or of this act to
21manage, set up, supervise or participate in the operation of
22games of chance;

23(3) (reserved);

24(4) conduct games of chance on a premises other than on
25the licensed premises or as otherwise provided by this
26chapter;

27(5) lease the licensed premises under either an oral or
28a written agreement for a rental that is determined by either
29the amount of receipts realized from the playing of games of
30chance or the number of people attending, except that a club

1licensee may lease a facility for a banquet where a per-head
2charge is applied in connection with the serving of a meal. A
3club licensee may not lease the premises from a person who
4has been convicted of a violation of this act or the Bingo
5Law within the past ten years; or

6(6) purchase games of chance, other than raffles, 50/50
7drawings, daily drawings and weekly drawings, from a person
8other than a registered manufacturer or licensed distributor
9approved by the department.

10(i) Bank account and records.--A club licensee with proceeds
11in excess of $5,000 in a 12-month period commencing upon the
12anniversary of the date the license was issued shall keep a bank
13account to hold the proceeds of games of chance. The bank
14account shall be separate from the other funds belonging to the
15club licensee. The account records shall show the expenditures
16and income and shall be retained by the club licensee for at
17least two years.

18(j) Application for license.--A club shall apply to the
19licensing authority for a license on a form to be prescribed by
20the Secretary of Revenue. The form must contain an affidavit to
21be affirmed by the executive officer or secretary of the club
22stating that:

23(1) a club licensee may not permit a person under 18
24years of age to operate or play games of chance;

25(2) the facility in which the games of chance are to be
26played has adequate means of ingress and egress and adequate
27sanitary facilities available in the area; and

28(3) the club is not leasing the premises from the owner
29of the premises under:

30(i) an oral agreement; or

1(ii) a written agreement at a rental that is
2determined by the amount of receipts realized from the
3playing of games of chance or by the number of people
4attending, except that a club licensee may lease a
5facility for a banquet where a per-head charge is applied
6in connection with the serving of a meal.

7(k) Proceedings.--A proceeding before the licensing
8authority is subject to 2 Pa.C.S. Chs. 5 Subch. B (relating to
9practice and procedure of local agencies) and 7 Subch. B
10(relating to judicial review of local agency action).

11(l) List of licensees.--On a semiannual basis, the licensing
12authority shall send a copy of a list of the licensees to the
13department.

14(m) List of municipalities.--With a license or renewal
15license issued to a club licensee, the licensing authority must
16include an up-to-date listing of the municipalities within the
17licensing county that have approved the referendum question on
18small games of chance.

19(n) Background checks.--An application for a license
20submitted by a club with proceeds in excess of $5,000 in a year
21shall include the results of a criminal history record
22information check obtained from the Pennsylvania State Police,
23as defined in 18 Pa.C.S. § 9102 (relating to definitions) and
24permitted by 18 Pa.C.S. § 9121(b) (relating to general
25regulations), for the executive officer and treasurer of the
26eligible organization making the application for a license or
27any other person required by the department.

28Section 303. Club licensee reporting.

29(a) Report.--

30(1) Beginning in 2013, a club licensee shall submit

1semiannual reports to the department for the preceding six-
2month period on a form and in a manner prescribed by the
3department. The form must be available in hard copy and
4electronically from the department's Internet website. The
5report may be submitted by mail to the department or through
6the department's Internet website.

7(2) The report must be filed under oath or affirmation
8of an authorized officer of the club licensee.

9(3) The report shall include the following information:

10(i) the proceeds received by the club licensee from
11each game of chance conducted, itemized by week;

12(ii) the amount of prizes paid from all games of
13chance, itemized by week;

14(iii) other costs incurred related to the conduct of
15games of chance;

16(iv) the verification of amounts distributed for
17public interest purposes itemized under section 304(a)
18(1), itemized by the recipient;

19(v) an itemized list of expenditures made or amounts
20retained and expenditures under section 304(a)(1);

21(vi) the address and the county in which the club
22licensee is located; and

23(vii) other information or documentation required by
24the department.

25(b) Distribution.--The department shall provide a copy of
26the report to the Bureau of Liquor Control Enforcement.

27(c) Posting.--The reports under subsection (a) shall be
28published on the department's Internet website.

29Section 304. Distribution of proceeds.

30(a) Distribution.--The proceeds from games of chance

1received by a club licensee shall be distributed as follows:

2(1) No less than 70% of the proceeds shall be paid for
3public interest purposes in the calendar year in which the
4proceeds were obtained.

5(2) No more than 30% of the proceeds obtained in a
6calendar year may be retained by a club licensee and used for
7the following operational expenses relating to the club
8licensee:

9(i) Real property taxes.

10(ii) Utility and fuel costs.

11(iii) Heating and air conditioning equipment or
12repair costs.

13(iv) Water and sewer costs.

14(v) Property or liability insurance costs.

15(vi) Mortgage payments.

16(vii) Interior and exterior repair costs, including
17repair to parking lots.

18(viii) New facility construction costs.

19(ix) Entertainment equipment including televisions,
20video and electronic games.

21(x) Other expenses adopted in regulation by the
22department.

23(a.1) Amounts retained.--An amount retained by a club
24licensee under subsection (a)(2) shall be expended within a 12-
25month period from when the proceeds were received unless the
26club licensee notifies the department that funds are being
27retained for a substantial purchase or project. The notification
28must include a description of the purchase or project, the
29anticipated cost of the purchase or project and the anticipated
30date of the purchase or project.

1(b) Prohibition.--

2(1) Proceeds may not be used for the payment of a fine
3levied against the club licensee.

4(2) An officer or employee of a club licensee who
5operates the game of chance may not participate in the game.
6This paragraph does not apply to a raffle.

7Section 305. (Reserved).

8Section 306. Records.

9A club licensee shall maintain records as required by this
10act or by the department, including invoices for the purchase of
11games of chance. Records necessary to conduct an audit under
12section 702 shall be made available to the Bureau of Liquor
13Control Enforcement or other entity authorized to enforce this
14act.

15Section 307. Raffle tickets.

16A club licensee shall maintain records relating to the
17printing or purchase of raffle tickets. Records shall include a
18receipt or invoice from the place of purchase that shows the
19cost and number or amount of tickets purchased.

20Section 308. Weekly drawings.

21A club licensee shall maintain records relating to the
22printing or purchase of materials to be used for weekly
23drawings. Records shall include a receipt or invoice from the
24place of purchase that shows the cost and number or amount of
25materials purchased.

26Section 309. Advertising.

27It is unlawful for an eligible organization or person to
28advertise the prizes or their dollar value to be awarded in
29games of chance, provided that the prizes may be identified on
30raffle tickets. Notwithstanding the prohibition of advertising

1contained within this section, an eligible organization may
2advertise prizes and values of prizes in periodic publications
3that are limited in their circulation to members of the eligible
4organization.

5CHAPTER 4

6DISTRIBUTOR AND MANUFACTURER LICENSES

7Section 401. Prohibition.

8A person may not sell, offer for sale or furnish games of
9chance for use within this Commonwealth except to an eligible 
10organization or licensed distributor under this chapter.

11Section 402. Distributor licenses.

12(a) License required.--A person may not sell, offer for sale
13or furnish games of chance to eligible organizations licensed
14under this chapter unless the person obtained a distributor
15license as provided in this section.

16(b) Application.--An applicant for the grant or renewal of a
17distributor license issued under this section shall provide to
18the department, upon the form prescribed, the following:

19(1) the applicant's State sales tax number;

20(2) the applicant's State corporate tax number;

21(3) the applicant's State employer withholding tax
22number;

23(4) the applicant's unemployment compensation account
24number;

25(5) a statement that:

26(i) the State tax reports have been filed and all
27State taxes paid;

28(ii) the State taxes are subject to a timely
29administrative or judicial appeal; or

30(iii) the State taxes are subject to a duly approved

1deferred payment plan; and

2(6) the names and business addresses of the owners,
3officers, directors, partners and sales personnel.

4(c) Waiver of confidentiality.--An applicant for the grant
5or renewal of a distributor license issued under this section
6shall, by the filing of an application insofar as it relates to
7the department, waive any confidentiality with respect to State
8tax information in the possession of the department, the Office
9of Attorney General or the Department of Labor and Industry
10regarding the applicant, regardless of the source of the
11information, and shall consent to the providing of the
12information to the department by the Office of Attorney General
13or the Department of Labor and Industry.

14(d) Review of tax status.--Upon receipt of an application
15for the grant or renewal of a distributor license issued under
16this section, the department shall review the State tax status
17of the applicant. The department shall request State tax
18information regarding the applicant from the Office of Attorney
19General or the Department of Labor and Industry and the
20information must be provided.

21(e) Limitation on approval.--The department may not approve
22an application for the grant or renewal of a distributor license
23issued under this section where the applicant has failed to:

24(1) provide the information required by subsection (b);

25(2) file required State tax reports; or

26(3) pay any State taxes not subject to a timely
27administrative or judicial appeal or subject to a duly
28authorized deferred payment plan.

29(f) Records.-- A distributor licensee shall keep the
30records, reports and books prescribed by the department.

1Applicants shall be required to make the records, reports and
2books available as required by the department under regulation.

3(g) Ineligibility.--The department may not issue or renew a
4distributor license for the sale of games of chance to a person,
5including:

6(1) a legal entity with an officer, director or other
7person in a supervisory or management position, including a
8corporation, firm or partnership; or

9(2) an employee eligible to make sales on behalf of the
10distributor who has been convicted:

11(i) of a felony in a Federal or State court within
12the past five years; or

13(ii) within ten years of the date of application in
14a Federal or State court of a violation of the act of
15July 10, 1981 (P.L.214, No.67), known as the Bingo Law,
16or of this act or of a gambling-related offense under 18
17Pa.C.S. (relating to crimes and offenses) or other
18comparable Federal or State law.

19(h) License and renewal fees.--The fee for a distributor
20license is $1,000. A license shall be renewable on an annual
21basis.

22(i) Exception.--This section does not apply to the
23manufacture or distribution of raffle tickets.

24Section 403. Registration of manufacturers.

25(a) Registration required.--No manufacturer of games of
26chance shall sell any games of chance to any person unless the
27manufacturer has registered with the department and has been
28issued a certificate of registration.

29(b) Annual certificate and fee.--A certificate under this
30section shall be valid for one year. The annual fee for

1registration shall be $2,000.

2(c) Prohibited sales.--A manufacturer shall not sell games
3of chance to any person not licensed as a distributor unless the
4manufacturer is also a licensed distributor.

5(d) Applicability.--This section shall not apply to the
6manufacture or distribution of raffle tickets, 50/50 drawings,
7daily drawings or weekly drawings.

8CHAPTER 5

9MAJOR LEAGUE SPORTS DRAWING

10Section 501. Licensing of affiliated nonprofit organization to
11conduct a major league sports drawing.

12(a) License required.--No affiliated nonprofit organization
13shall conduct or operate a major league sports drawing unless
14the affiliated nonprofit organization has obtained and maintains
15a valid license issued under this section.

16(b) Issuance and fees.--Within 30 days of receiving an
17application from an organization, the licensing authority shall
18grant a license to an affiliated nonprofit organization meeting
19the requirements for licensure contained in this chapter to
20conduct and operate a major league sports drawing at the
21locations within the county or in a manner as stated on the
22application as limited by subsection (c). The license fee to be
23charged to each affiliated nonprofit organization shall be $100.
24Licenses shall be renewable annually upon the anniversary of the
25date of issue. The license fee shall be used by the licensing
26authority to administer this act.

27(c) Location of games of chance.--Except as otherwise
28provided in this section, a licensed affiliated nonprofit
29organization may conduct a major league sports drawing at a
30licensed premises. The licensed premises shall be indicated on

1the affiliated nonprofit organization's license application.

2(d) Display.--Licenses issued under this section shall be
3publicly displayed at the site where games of chance are
4conducted.

5(e) Operation.--Each licensed affiliated nonprofit
6organization shall be prohibited from all of the following:

7(1) Permitting any person under 18 years of age to
8operate or play games of chance.

9(2) Permitting any person who has been convicted of a
10felony in a Federal or State court within the past five years
11or has been convicted in a Federal or State court within the
12past ten years of a violation of the act of July 10, 1981
13(P.L.214, No.67), known as the Bingo Law, or of this act to
14manage, set up, supervise or participate in the operation of
15games of chance.

16(3) Conducting games of chance on any premises other
17than on the licensed premises or as otherwise provided by
18this chapter.

19(f) Bank account and records.--Each affiliated nonprofit
20organization which has proceeds in excess of $5,000 in a 12-
21month period commencing upon the anniversary of the date the
22license was issued shall keep a bank account to hold the
23proceeds of the major league sports drawing, which shall be
24separate from all other funds belonging to the licensed
25affiliated nonprofit organization. Account records shall show
26all expenditures and income and shall be retained by the
27licensed affiliated nonprofit organization for at least two
28years.

29(g) Application for license.--Each affiliated nonprofit
30organization shall apply to the licensing authority for a

1license on a form to be prescribed by the Secretary of Revenue.
2The form shall contain an affidavit to be affirmed by the
3executive officer or secretary of the affiliated nonprofit
4organization stating all of the following:

5(1) No person under 18 years of age will be permitted by
6the affiliated nonprofit organization to participate in a
7major league sports drawing.

8(2) The facility in which the games of chance are to be
9played has adequate means of ingress and egress and adequate
10sanitary facilities available in the area.

11(h) Proceedings.--Proceedings before the licensing authority
12are subject to 2 Pa.C.S. Chs. 5 Subch. B (relating to practice
13and procedure of local agencies) and 7 Subch. B (relating to
14judicial review of local agency action).

15(i) List of licensees.--The licensing authority, on a
16semiannual basis, shall send a copy of all licensees under this
17section to the department.

18(j) List of municipalities.--The licensing authority shall
19include with any license or renewal license issued to an
20affiliated nonprofit organization, an up-to-date listing of
21those municipalities within the licensing county which have
22approved the referendum question on small games of chance.

23(k) Background checks.--Each application for a license
24submitted by an affiliated nonprofit organization which has
25proceeds in excess of $5,000 in a year shall include the results
26of a criminal history record information check obtained from the
27Pennsylvania State Police, as defined in 18 Pa.C.S. § 9102
28(relating to definitions) and permitted by 18 Pa.C.S. § 9121(b)
29(relating to general regulations), for the executive officer and
30treasurer of the eligible organization making the application

1for a license or any other person required by the department.

2Section 502. Conduct of professional sports drawing.

3(a) General rule.--A person may purchase one or more
4professional sports drawing tickets at a home game, and each
5ticket purchased shall represent one entry in the drawing for a
6winner. A single ticket shall be randomly chosen as the winner
7after a certain number of tickets are sold or a specified time
8period expires as designated by the affiliated nonprofit
9organization.

10(b) Frequency.--An affiliated nonprofit organization may
11conduct no more than one professional sports drawing per home
12game.

13(c) Sales restricted.--Tickets for a professional sports
14drawing may not be sold in any seating area designated as a
15family section.

16(d) Distribution.--The prize amount of a professional sports
17drawing shall be 50% of the total amount collected from the sale
18of professional sports drawing tickets. The other 50% of the
19total amount collected from the sale of professional sports
20drawing tickets shall be donated within seven days from the date
21of the drawing by the affiliated nonprofit organization
22conducting the professional sports drawing to a designated
23charitable organization for which the drawing was conducted.

24(e) Designated charitable organization.--The affiliated
25nonprofit organization conducting the professional sports
26drawing shall disclose to all ticket purchasers the designated
27charitable organization for which the professional sports
28drawing is being conducted.

29(f) Eligibility.--In order to receive proceeds from a
30professional sports drawing, a charitable organization must be

1in existence and fulfilling its purposes for at least two years
2prior to the drawing and shall be eligible for exemption under
3section 501(c)(3) of the Internal Revenue Code of 1986 (Public
4Law 99-514, 26 U.S.C. § 501(c)(3)). A political subdivision
5shall not qualify as a charitable organization under this
6section.

7(g) Unclaimed prizes.--Any professional baseball sports
8drawing prize remaining unclaimed by a winner at the end of the
9major league sports team's or its affiliate's season shall be
10donated within 30 days from the end of the season by the
11affiliated nonprofit organization to the designated charitable
12organization for which the professional sports drawing was
13conducted.

14(h) Definition.--For purposes of professional sports
15drawings, the facility at which a major league sports team or
16its affiliate conducts its games shall constitute a premises.

17Section 503. Advertising.

18It shall be unlawful for an affiliated nonprofit organization
19or person to advertise the prizes or their dollar value to be
20awarded in major league sports drawings. Notwithstanding the
21prohibition of advertising contained within this section, an
22affiliated nonprofit organization may advertise prizes and
23values of prizes in periodic publications which are limited in
24circulation to members of the affiliated nonprofit organization.

25CHAPTER 6

26REGULATIONS OF DEPARTMENT

27Section 601. Regulations.

28(a) Authorization.--The department shall promulgate
29regulations to:

30(1) Impose minimum standards and restrictions applicable

1to games of chance manufactured for sale in this
2Commonwealth, which may include standards and restrictions
3which specify the maximum number of chances available to be
4sold for any single game of chance or prize and other
5standards and restrictions as the department deems necessary
6for the purposes of this chapter. The department shall
7consider standards adopted by the National Association of
8Gambling Regulatory Agencies and other standards commonly
9accepted in the industry.

10(2) Establish procedures by which manufacturers may
11register and distributors of games of chance may apply for
12licensure on forms which the department shall provide.
13Procedures shall include a requirement that manufacturer and
14distributor applicants provide criminal history record
15information obtained from the Pennsylvania State Police under
1618 Pa.C.S. § 9121(b) (relating to general regulations) for
17each officer and manager of the manufacturer's or
18distributor's organization and for any other individual
19specified by the department. As used in this paragraph, the
20term "criminal history record information" has the meaning
21given in 18 Pa.C.S. § 9102 (relating to definitions).

22(3) Provide for the suspension or revocation of
23distribution licenses or manufacturer certificates for
24violations of this act or regulations of the department.

25(4) Carry out other provisions of this act.

26CHAPTER 7

27ENFORCEMENT

28Section 701. Revocation of licenses.

29(a) Grounds.--The following shall be grounds for suspension,
30revocation or nonrenewal of a license:

1(1) Any of the proceeds derived from the operation of
2games of chance by an eligible organization are used for any
3purpose other than for:

4(i) public interest purposes;

5(ii) the purchase of games of chance; or

6(iii) a purpose permitted by Chapter 3.

7(1.1) Any of the funds derived from the operation of
8games of chance by a club licensee are used in a manner that
9does not comply with section 304.

10(2) Any person under 18 years of age is operating or
11playing games of chance.

12(3) The eligible organization or club licensee has
13permitted any person who has been convicted of a felony in a
14Federal or State court within the past five years or has been
15convicted in a Federal or State court within the past ten
16years of a violation of the act of July 10, 1981 (P.L.214,
17No.67), known as the Bingo Law, or of this act, to manage,
18set up, supervise or participate in the operation of games of
19chance.

20(4) The facility in which the games of chance are played
21does not have adequate means of ingress and egress and does
22not have adequate sanitary facilities available in the area.

23(5) Any person or persons other than a manager, officer,
24director, bar personnel or a bona fide member of an eligible
25organization have been involved in managing, setting up,
26operating or running games of chance.

27(6) The eligible organization conducts the games of
28chance under a lease which calls for:

29(i) leasing the premises from the owner of the
30premises under an oral agreement; or

1(ii) leasing the premises from the owner of the
2premises under a written agreement at a rental which is
3determined by the amount of receipts realized from the
4playing of games of chance.

5(7) False or erroneous information was provided in the
6original application or in any information provided to the
7licensing authority or the department in any report.

8(8) An eligible organization has been convicted of a
9violation of this act as evidenced by a certified record of
10the conviction.

11(9) A club licensee has failed to file an accurate
12report under section 303(a).

13(10) A club licensee has failed to comply with section
14304.

15(11) Reports were not filed under section 303.

16(b) Production of records.--The district attorney may
17require eligible organizations and club licensees to produce
18their books, accounts and records relating to the conduct of
19games of chance in order to determine if a violation of this act
20has occurred. Club licensees shall also be required, upon
21request, to provide their licenses, books, accounts and records
22relating to the conduct of games of chance to the licensing
23authority, the Bureau of Liquor Control Enforcement or to a law
24enforcement agency or official. A club licensee shall retain
25records for a period of two years.

26Section 702. Enforcement.

27(a) Licensing authority.--The licensing authority may
28enforce the provisions of this act and may impose the penalties
29under section 703.

30(b) Bureau of Liquor Control Enforcement.--The following

1shall apply to enforcement:

2(1) If the licensee is a club licensee, the Bureau of
3Liquor Control Enforcement may enforce the provisions of this
4act in accordance with subsection (g). An administrative law
5judge under section 212 of the act of April 12, 1951 (P.L.90,
6No.21), known as the Liquor Code, may impose the penalties
7under section 703 following the issuance of a citation by the
8bureau.

9(2) Unless the Bureau of Liquor Control Enforcement has
10jurisdiction over a club licensee under paragraph (1), the
11Bureau of Liquor Control Enforcement shall have no
12jurisdiction to enforce the provisions of this act on any
13special occasion permit holder under section 408.4 of the
14Liquor Code.

15(c) Random audits.--The Bureau of Liquor Control Enforcement
16shall conduct annual random audits of 5% of all club licensees.

17(d) Powers and duties.--The district attorney or, in the
18case of a club licensee, the Bureau of Liquor Control
19Enforcement may impose the following penalties:

20(1) A civil penalty.

21(2) Suspension or revocation of the license.

22(e) District attorney.--The district attorney of the county
23that issued the license shall investigate alleged violations of
24this act for eligible organizations and club licensees. If the
25district attorney finds probable cause to believe that a
26criminal violation has occurred, the district attorney may file
27criminal charges and prosecute the complaint against the alleged
28violator in the court of common pleas of the county except in
29counties of the first class where the complaint may be filed in
30the municipal court.

1(f) Law enforcement officials.--Nothing in this act may
2restrict or limit the power of a State, county or local law
3enforcement official to conduct investigations and file criminal
4charges under this act.

5(g) General rule.--

6(1) Except as provided in paragraph (2), a violation of
7this act by a club licensee shall not constitute a violation
8of the Liquor Code.

9(2) If a club licensee has committed three or more
10violations of this act, the Bureau of Liquor Control
11Enforcement may enforce a violation of this act as a
12violation of the Liquor Code.

13(3) A violation of this act shall not constitute a
14violation of the Liquor Code for the purposes of section
15471(c) of the Liquor Code.

16Section 703. Civil and administrative penalties.

17(a) Eligible organizations.--

18(1) An eligible organization, other than a club
19licensee, that violates this act shall be subject to the
20following civil penalties:

21(i) For an initial violation, up to $500.

22(ii) For a second violation, up to $1,000.

23(iii) For a third or subsequent violation, up to
24$1,500.

25(2) An eligible organization or club licensee that
26violates this act shall be subject to the following
27administrative sanctions:

28(i) For a first offense, the eligible organization
29or club licensee shall forfeit its license to conduct
30games of chance for a period of not more than 30 days.

1(ii) For a second offense, the eligible organization
2or club licensee shall forfeit its license for a period
3of not less than 30 days nor more than 180 days.

4(iii) For a third or subsequent offense within three
5years of the first offense, the eligible organization or
6club licensee shall forfeit its license and be ineligible
7for a license renewal for 30 months.

8(b) Club licensees.--A club licensee that violates this act
9shall be subject to the following civil penalties:

10(1) For an initial violation, up to $800.

11(2) For a second violation, up to $1,000.

12(3) For a third or subsequent violation, up to $2,000.

13(c) Records.--The intentional failure of a club licensee to
14provide accurate records shall result in a license suspension of
15a minimum of six months.

16Section 704. Criminal penalties.

17(a) Eligible organizations and club licensees.--An eligible
18organization or club licensee that violates this act commits a
19summary offense and shall, upon conviction, be sentenced to pay
20a fine of not more than $1,000 for a first offense and $1,500
21for a subsequent offense.

22(b) Individuals.--

23(1) Except as otherwise set forth in paragraph (2) or
24(3), an individual who conducts or assists in the conducting
25of games of chance in violation of this act commits a summary
26offense.

27(2) Except as set forth in paragraph (3), an individual
28who, after being sentenced under paragraph (1), conducts or
29assists in the conducting of games of chance in violation of
30this act commits a misdemeanor of the third degree.

1(3) An individual who, after being sentenced under
2paragraph (2), conducts or assists in the conducting of games
3of chance in violation of this act commits a misdemeanor of
4the first degree.

5(c) Distributors and manufacturers.--

6(1) A person that distributes games of chance without a
7license or in violation of this act or a regulation under
8this act commits a misdemeanor of the third degree.

9(2) Except as set forth in paragraph (3), a manufacturer
10of games of chance that delivers games of chance for sale or
11distribution in this Commonwealth without registering and
12obtaining a permit commits a misdemeanor of the first degree.

13(3) Paragraph (2) does not apply to the manufacture or
14distribution of raffle tickets.

15(d) Rigging.--A person commits a misdemeanor of the first
16degree if, with intent to prevent a game of chance from being
17conducted in accordance with this act or the rules and usages
18governing the game of chance, the person does any of the
19following:

20(1) Confers a benefit upon a participant or person
21associated with the game of chance.

22(2) Receives a benefit as a participant or person
23associated with the game of chance.

24(3) Injures a participant in, or person associated with,
25the game of chance.

26(4) Threatens to injure a participant in, or person
27associated with, the game of chance.

28(5) Tampers with the game of chance.

29(e) Contingent fees.--A person that distributes,
30manufactures or operates a game of chance and that requires, for

1equipment furnished or to play the game of chance, payment equal
2to a percentage of the total winnings of the game of chance
3commits a misdemeanor of the first degree.

4Section 705. Prohibition from participation.

5None of the following may have a pecuniary interest in the
6operation of or proceeds from games of chance:

7(1) A licensed distributor.

8(2) A person that has been convicted of:

9(i) a felony;

10(ii) a violation of the act of July 10, 1981
11(P.L.214, No.67), known as the Bingo Law;

12(iii) a violation of this act; or

13(iv) a violation of a statute of another
14jurisdiction which is:

15(A) graded as a felony under the law of that
16jurisdiction; or

17(B) similar to a statute listed in subparagraph
18(ii) or (iii).

19CHAPTER 8

20LOCAL OPTION

21Section 801. Election to be held.

22(a) Authorization.--

23(1) A question on the will of the electorate with
24respect to the the issuance under this act of licenses within
25the limits of a municipality may be placed on the ballot if
26any of the following apply:

27(i) A petition is filed with the signatures of
28electors representing at least 25% of the highest vote
29cast for an office in the municipality at the last
30preceding general election with the county board of

1elections.

2(ii) The governing body of the municipality adopts,
3by a majority vote, a resolution to place the question on
4the ballot and files a copy of the with the county board
5of elections of the county.

6(2) If paragraph (1) applies, the county board of
7elections shall cause the question to be placed on the ballot
8or on the voting machine board and submitted at the primary
9election immediately preceding the municipal election. The
10question shall be in the following form:

11Do you favor the issuance of licenses to conduct small
12games of chance in the of ?

13(3) An election may be held not more than once in four
14years.

15(b) Vote.--If a majority of the electors voting on the
16question vote "yes," then the licensing authority may issue and
17renew licenses in the municipality. If a majority of the
18electors voting on the question vote "no," then the licensing
19authority may not issue nor renew licenses in the municipality.

20(c) Voting proceedings.--Proceedings under this section
21shall be in accordance with the act of June 3, 1937 (P.L.1333,
22No.320), known as the Pennsylvania Election Code.

23(d) Applicability.--This act applies only to those eligible
24organizations located in municipalities which have adopted the
25provisions of this act by an affirmative vote in a municipal
26referendum in accordance with the provisions of this section.

27(e) Withdrawal of approval.--This section may also be used
28to withdraw approval of the electorate.

29CHAPTER 51

30MICSELLANEOUS PROVISIONS

1Section 5101. Repeal.

2Repeals are as follows:

3(1) The General Assembly declares that the repeal under
4paragraph (2) is necessary to effectuate this act.

5(2) The act of December 19, 1988 (P.L.1262, No.156),
6known as the Local Option Small Games of Chance Act, is
7repealed.

8Section 5102. Effective date.

9This act shall take effect in 90 days.