1Amending the act of December 19, 1988 (P.L.1262, No.156),
2entitled, as amended, "An act providing for the licensing of
3eligible organizations to conduct games of chance, for the
4licensing of persons to distribute games of chance, for the
5registration of manufacturers of games of chance, and for
6suspensions and revocations of licenses and permits;
7requiring records; providing for local referendum by
8electorate; and prescribing penalties," in preliminary
9provisions, further providing for definitions; in games of
10chance, further providing for games of chance permitted, for
11prize limits, for regulations of the Department of Revenue
12and for licensing of eligible organizations to conduct games
13of chance; in club licensees, further providing for reports
14by a club licensee and for distribution of proceeds; in
15enforcement, further providing for revocation of licenses and 
16for enforcement by the Bureau of Liquor Control Enforcement;
17providing for social card games; and abrogating regulations.

18The General Assembly of the Commonwealth of Pennsylvania
19hereby enacts as follows:

20Section 1. The definitions of "games of chance," "public 
21interest purpose" and "raffle" in section 103 of the act of 

1December 19, 1988 (P.L.1262, No.156), known as the Local Option 
2Small Games of Chance Act, amended February 2, 2012 (P.L.7, 
3No.2) and October 24, 2012 (P.L.1462, No.184), are amended and 
4the section is amended by adding definitions to read:

5Section 103. Definitions.

6The following words and phrases when used in this act shall
7have the meanings given to them in this section unless the
8context clearly indicates otherwise:

9* * *

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

13 * * *

14"Games of chance." Punchboards, daily drawings, weekly
15drawings, 50/50 drawings, raffles, selective raffles, poker 
16runs, coin auctions, race night games, vertical wheel game and
17pull-tabs, as defined in this act, provided that no such game, 
18except for a vertical wheel game, shall be played by or with the
19assistance of any mechanical or electrical devices or media
20other than a dispensing machine or passive selection device and
21further provided that the particular chance taken by any person
22in any such game shall not be made contingent upon any other
23occurrence or the winning of any other contest, but shall be
24determined solely at the discretion of the purchaser. This
25definition shall not be construed to authorize any other form of
26gambling currently prohibited under any provision of Title 18 of
27the Pennsylvania Consolidated Statutes (relating to crimes and
28offenses) or authorized under 4 Pa.C.S. (relating to
29amusements). Nothing in this act shall be construed to authorize
30games commonly known as "slot machines" or "video poker."

1* * *

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

3(1) Participants meet at a designated location to
4receive instructions for the event.

5(2) Each participant receives a detailed explanation of
6the game destinations and a score card which will be
7completed as they progress to each destination.

8(3) At each designated stop on the run route, the
9participant draws or is dealt a card at random. The card
10which is drawn or dealt is recorded on the participant's
11score card.

12(4) A winner is determined as the participant which
13makes the highest poker hand at the end of the event.

14* * *

15"Public interest purpose." One or more of the following:

16(1) [The activities and operations of a nonprofit] 
17Providing benevolent, religious, educational, philanthropic, 
18humane, scientific, patriotic, social welfare, social 
19advocacy, public health, public safety, emergency response, 
20environmental [or civic objective], historic preservation, 
21conservation, athletic, sportsman's safety and education or 
22civic services or benefits.

23(2) Initiating, performing or fostering worthy public
24works or enabling or furthering the erection or maintenance
25of public structures.

26(3) Lessening the burdens borne by government or
27voluntarily supporting, augmenting or supplementing services
28which government would normally render to the people.

29(4) Improving, expanding, maintaining or repairing real
30property owned or leased by an eligible organization and

1relating operational expenses used for purposes specified in
2paragraphs (1), (2) and (3).

3The term does not include the erection or acquisition of any
4real property, unless the property will be used [exclusively]
5for one or more of the purposes specified in this definition.

6* * *

7"Race night game." A game in which a participant places a
8wager on a prerecorded horse race.

9"Raffle." A game of chance in which a participant buys a
10ticket for a chance at a prize with the winner determined by a
11random drawing of corresponding ticket stubs to take place at a
12location and date or dates printed upon each ticket. Such games
13of chance shall include lotteries but not daily drawings. Raffle
14winners may be determined by reference to drawings conducted by
15the department pursuant to the act of August 26, 1971 (P.L.351,
16No.91), known as the State Lottery Law. The term includes a 
17reverse raffle.

18* * *

19"Selective raffle." A game in which all of the following
20occur:

21(1) The participant buys a ticket or tickets for a
22chance to win a donated prize.

23(2) The participant places the ticket or tickets in a
24designated location for the prize which the participant would
25like to win.

26(3) The winner for each prize is determined by a random
27drawing of tickets with a corresponding number for the prize.

28"Vertical wheel game." A game in which a participant places
29a coin or token on a color, number or word or purchases a ticket
30containing a color, number or word and watches a spinning

1vertical wheel until the pointer of the wheel rests on a section
2of the wheel designating a winner.

3* * *

4Section 2. Section 301 of the act, amended October 24, 2012
5(P.L.1462, No.184), is amended to read:

6Section 301. Games of chance permitted.

7(a) General rule.--Every eligible organization to which a 
8license has been issued under the provisions of this chapter may 
9conduct games of chance for the purpose of raising funds for 
10public interest purposes. Except as provided in Chapter 5, all 
11proceeds of a licensed eligible organization shall be used 
12exclusively for public interest purposes, for the purchase of 
13games of chance, for the payment of the license fee or for the 
14payment of the fee for background checks, as required by this 
15act. An eligible organization, except a club licensee, may use
16the proceeds received from games of chance conducted by the 
17eligible organization to fulfill the public interest purpose of 
18the eligible organization.

19(b) Relationship to table games.--A vertical wheel game <-or a 
20Texas Hold'em card tournament is not a "table game" as defined
21in 4 Pa.C.S. § 1103 (relating to definitions). The designation
22of a vertical wheel game <-and Texas Hold'em card tournament under
23this act does not preclude the authorization of a vertical wheel
24game <-or a Texas Hold'em card tournament as a table game under 4
25Pa.C.S. Pt. II (relating to gaming).

26Section 3. Section 302 of the act, amended February 2, 2012 
27(P.L.7, No.2), is amended to read:

28Section 302. Prize limits.

29(a) Individual prize limit.--Except as provided under
30subsections (d) and (d.1), the maximum prize which may be

1awarded for any single chance shall be $1,000.

2(b) Aggregate prize limit.--No more than [$25,000] $35,000
3in prizes shall be awarded from games of chance by a licensed
4eligible organization in any seven-day period.

5(c) Raffle prize limit.--Up to $10,000 in prizes may be
6awarded in raffles in any calendar month.

7(c.1) Total limit.--All prizes awarded under this section
8shall be subject to the aggregate prize limits under subsection
9(b).

10(d) Exception for raffles.--Notwithstanding subsection (b)
11or (c), a licensed eligible organization may conduct a raffle
12and award a prize or prizes valued in excess of $1,000 each only
13under the following conditions:

14(1) The licensing authority has issued a special permit
15for the raffle under section 308.

16(2) A licensed eligible organization shall be eligible
17to receive no more than eight special permits in any licensed
18term except that a volunteer fire, ambulance or rescue
19organization that is not a club licensee shall be eligible to
20receive ten special permits in any licensed term.

21(3) Only one raffle may be conducted under each special
22permit issued under section 308.

23(4) Except as provided under subsection (d.1), the total
24of all prizes awarded under this subsection shall be no more
25than $100,000 per calendar year.

26(d.1) Additional award.--A volunteer fire, ambulance or
27rescue organization may, in addition to the total under
28subsection (d)(4), award up to $50,000 from raffles which shall
29not be subject to the aggregate limit under subsection (b), (c)
30or (d).

1<-(e.1) Texas Hold'em requirements.--A licensed eligible
2organization shall charge an entry fee of not more than $10 per
3person to play in a Texas Hold'em tournament. The licensed
4eligible organization shall pay out prizes to no more than the
5top five winning persons in a declining manner based on the
6player's final placement in the tournament. The prize pool shall
7consist solely of entry fees collected.

8(f) Daily drawing carryover.--The prize limitation contained
9in subsections (a) and (b) may be exceeded by a daily drawing
10under the following circumstances: a daily drawing may award a
11prize in excess of $1,000 if such prize is the result of a
12carryover of a drawing which resulted from the winning number in
13such drawing not being among the eligible entrants in such
14drawings. Nothing contained herein shall authorize the prize
15limitation as contained in subsections (a) and (b) to be
16exceeded as a result of a failure to conduct a drawing on an
17operating day during which chances were sold for a daily drawing
18or for a daily drawing for which chances were sold in excess of
19$1 or for which more than one chance was sold to an eligible
20participant.

21(g) Additional exception.--When a daily drawing or weekly
22drawing is set up or conducted in such a manner as to pay out or
23award 100% of the gross revenues generated from such drawing,
24the limitation contained in subsection (b) shall not apply.

25(h) Weekly drawing carryover exception.--Weekly drawings
26shall be governed by the prize limitation contained in
27subsection (b). The prize limitation contained in subsection (b)
28may be exceeded by a weekly drawing under the following
29circumstances: a weekly drawing may award a prize where the cash
30value is in excess of [$25,000] $35,000 if such prize is the

1result of a carryover of a drawing or drawings which resulted
2from the winning number or numbers in such drawing or drawings
3not being among the eligible entrants in such drawings. Nothing
4contained in this chapter shall authorize the prize limitation
5under subsection (b) to be exceeded as a result of a failure to
6conduct a drawing for a week during which chances were sold for
7a weekly drawing or for a weekly drawing for which chances were
8sold in excess of $1.

9Section 4. Section 306(b) and (c) of the act, amended
10October 24, 2012 (P.L.1462, No.184), are amended and the section
11is amended by adding subsections to read:

12Section 306. Regulations of department.

13* * *

14(a.1) Review.--The department shall, on an annual basis,
15review the regulations adopted under this act to determine if
16the regulations relating to games of chance require revision or 
17abrogation. The department shall submit a report to the General 
18Assembly by March 1, 2015, and every two years thereafter. The 
19report shall include recommendations for changes to this act or 
20to regulations adopted under this act, if any, including 
21recommendations for additional games of chance. The 
22recommendations for additional games of chance shall not include 
23any game regulated by the Pennsylvania Gaming Control Board 
24under 4 Pa.C.S. (relating to amusements), keno games or any game 
25that requires Internet access to play. The report shall be 
26submitted to the Majority Leader and Minority Leader of the 
27Senate, the Majority Leader and Minority Leader of the House of 
28Representatives and the chairperson and minority chairperson of 
29the standing committees of the Senate and the chairperson and 
30minority chairperson of the standing committees of the House of 

1Representatives with jurisdiction over this act.

2(b) Limitation on recordkeeping requirements.--This section
3shall not be construed to authorize the department to promulgate
4regulations providing for recordkeeping requirements for
5licensed eligible organizations which require unreasonable or
6unnecessary information or a repetitious listing of information.
7The department shall strive to keep such recordkeeping
8requirements from being an undue hardship or burden on licensed
9eligible organizations. For individual prizes of $600 or more, 
10records shall include the name and address of the winner. An 
11eligible organization shall not obtain or retain receipts of 
12prizes that are donated. An eligible organization shall provide 
13each winner with a receipt of the value of the prize won of $600 
14or more, unless the prize is cash. Except as provided under 
15section 701(b), the department may not require the retention of
16records for a period in excess of two years.

17(c) Reporting requirements.--[Each eligible organization
18which has proceeds in excess of $2,500 in a calendar year shall
19submit an annual report to the department including:] Except for 
20an organization licensed under section 307(b)(1)(i), each 
21eligible organization shall submit an annual report to the 
22department for the 12-month period commencing upon the 
23anniversary of the date the license was issued. The form for the 
24report shall be available in hard copy and electronically from 
25the department's Internet website. The report may be submitted 
26by mail to the department or through the department's Internet 
27website. The report shall include the following:

28(1) Prizes awarded as required under section 335 of the
29act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform
30Code of 1971.

1(2) Amounts expended for public interest purposes.

2Section 5. Section 307(a), (b), (b.1), (b.2), (b.3), (d.1)
3and (h) of the act, amended February 2, 2012 (P.L.7, No.2) and
4October 24, 2012 (P.L.1462, No.184), are amended and subsection
5(b.1) is amended by adding a paragraph to read:

6Section 307. Licensing of eligible organizations to conduct
7games of chance.

8(a) License required.--No eligible organization shall
9conduct or operate any games of chance unless such eligible
10organization has obtained and maintains a valid license [or 
11limited occasion license] issued pursuant to this section. An 
12auxiliary group of a licensed eligible organization shall be
13eligible to conduct games of chance using the license issued to
14the eligible organization provided that the auxiliary group [or
15groups are] is listed on the application and license of the
16eligible organization. An auxiliary group is not eligible to 
17obtain a license [or a limited occasion license]. No additional
18licensing fee shall be charged to an eligible organization for
19an auxiliary [group's eligibility under this chapter. Auxiliary
20groups] group of the organization. An auxiliary group shall not
21include branches, lodges or chapters of a Statewide
22organization.

23(b) Issuance and fees.--The following shall apply:

24(1) [The licensing authority shall license, upon
25application, within 30 days any eligible organization] Within 
2630 days of receiving an application from an organization, the 
27licensing authority shall grant a license to an eligible 
28organization meeting the requirements for licensure contained
29in this chapter to conduct and operate games of chance at
30such locations within the county or in such manner as stated

1on the application as limited by subsection (b.1). The
2license fee to be charged to [each] an eligible organization
3shall be [$100, except for limited occasion licenses which
4shall be $10]<- $25, <-unless the eligible organization made more 
5than $40,000 in proceeds from games of chance in the previous 
6licensing year. If an eligible organization made more than 
7$40,000 in proceeds from games of chance in the previous 
8licensing year, the license fee shall be $100. <-as follows:

9(i) For an eligible organization making $40,000 or
10less in proceeds from games of chance in the preceding
11calendar year, $25.

12(ii) For an eligible organization making more than 
13$40,000 in proceeds from games of chance in the preceding 
14calendar year, $100.

15(2) Licenses shall be [renewable annually upon] issued 
16for a period of one year and may be renewed on or after the
17anniversary of the date of issue. The license fee shall be 
18used by the licensing authority to administer this act.

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

20(1) Except as otherwise provided in this section, a
21licensed eligible organization[, except a limited occasion
22licensee,] may conduct small games of chance at a licensed
23premises. The licensed premises shall be indicated on the
24eligible organization's license application. [Only one
25license shall be issued per licensed premises. Except as
26provided under paragraph (4), a licensed eligible
27organization may not share a licensed premises with another
28licensed eligible organization; and no licensed eligible
29organization may permit its premises to be used for small
30games of chance by another licensed eligible organization.]

1(2) Where there exists a location or premises which is
2the normal business or operating site of the eligible
3organization and the location or premises is owned or leased
4by that eligible organization to conduct its normal business,
5that site shall be the eligible organization's licensed
6premises. If that location consists of more than one
7building, the eligible organization shall identify the 
8building that will be designated as the licensed premises.

9(2.1) An eligible organization must notify the district 
10attorney to conduct games of chance in a different location 
11from the location of the licensed premise that is listed on 
12the eligible organization's application and license. The 
13notification must include the address of the new location and 
14the dates and times the games of chance will be conducted at 
15the new location.

16(3) When an eligible organization does not own or lease
17a specific location to conduct its normal business, the
18eligible organization may use the premise of another eligible 
19organization to conduct games of chance or may make
20arrangements that are consistent with this act to establish a 
21licensed premises, including leasing a premise under a
22written agreement for a rental; however, the rental may not 
23be determined by either the amount of receipts realized from
24the conduct of games of chance or the number of people
25attending. An eligible organization may lease a facility for
26a banquet in connection with the serving of a meal based on a 
27per-head charge. Prior to the use of the premises of another 
28eligible organization to conduct games of chance, an eligible 
29organization must notify the district attorney regarding the 
30use of the premise of another eligible organization, 

1including the address of the premise and the dates and times 
2the games of chance will be operated.

3[(3.1) Notwithstanding paragraphs (1), (2) and (3), if
4an eligible organization is unable to conduct games of chance
5at the location listed on its application and license due to
6natural disaster, fire or other circumstance that renders the
7location unusable, the eligible organization may submit a
8written request to the district attorney to conduct games of
9chance in a different location, including the licensed
10premises of another eligible organization. The request must
11include the change in the location and the dates and times
12the games of chance will be operated at the alternative
13location. The district attorney shall establish a limit on
14the duration of the authorization to conduct games of chance
15at the alternative location. Following the expiration of the
16authorization period, the eligible organization must return
17to the location specified in its application and license or
18apply to the licensing authority for a new permanent location
19for the conduct of games of chance. The district attorney may
20approve or deny the request or stipulate additional
21requirements as a condition of approval. If an eligible
22organization permits another eligible organization to use its
23licensed premises to conduct games of chance under this
24paragraph, the eligible organization shall cease its
25operation of games of chance during the time the eligible
26organization utilizing its premises is conducting its games
27of chance] (Reserved).

28(3.2) Notwithstanding paragraphs (1), (2) and (3), the
29following eligible organizations established to raise funds
30shall not be required to conduct a 50/50 drawing or a raffle

1at a licensed premises or to own, lease or establish a
2licensed premises:

3(i) A nonprofit sports team.

4(ii) A primary or secondary school-sponsored club,
5sports team or organization.

6[(4) An eligible organization that has obtained a
7limited occasion license under subsection (b.3) may use
8another eligible organization's licensed premises to conduct
9its games of chance. When a licensed eligible organization is
10permitting a limited occasion licensee to use its licensed
11premises for purposes of games of chance, it shall cease the
12operation of its own games of chance during the period that
13the limited occasion licensee is conducting its games on the
14premises.]

15(5) For purposes of major league sports drawings, the
16facility at which a major league sports team conducts its
17games shall constitute a premises for purposes of this act.

18(b.2) Off-premises games of chance.--Notwithstanding any
19other provisions of this section, all of the following apply:

20(1) A licensed eligible organization may conduct games
21of chance at a location off its premises when the games of 
22chance are part of an annual carnival, fair, picnic or
23banquet held or participated in by that licensed eligible
24organization on a historical basis. The licensed eligible
25organization must notify, in writing, the district attorney
26and licensing authority of the location, date and times of
27the event where it will be conducting games of chance.

28(2) Raffle and 50/50 drawing tickets may be sold off the
29licensed premises in a municipality which has adopted the
30provisions of this act by an affirmative vote in a municipal

1referendum. [A licensed eligible organization which plans to
2sell raffle tickets in a municipality located in a county
3other than the county in which the eligible organization is
4licensed shall notify that county's district attorney and
5licensing authority as to the location and the dates that the
6licensed eligible organization plans to sell raffle tickets.]

7[(b.3) Limited occasion licenses.--Eligible organizations
8which do not own their own premises or which do not lease a
9specific location to conduct their normal business may apply for
10a limited occasion license to conduct games of chance on not
11more than three occasions covering a total of seven days during
12a licensed year. A limited occasion license entitles an eligible
13organization to conduct no more than two raffles during a
14licensed year where prizes may not exceed the established limits
15for regular monthly raffles. Holders of a limited occasion
16license may not apply or be granted any other license or special
17permit under this act. No holder of a regular license or special
18permit under this act shall apply or be granted a limited
19occasion license.]

20* * *

21(d.1) Bank account and records.--The licensed eligible
22organization, except for an organization licensed under 
23subsection (b)(1)(i), shall keep a bank account to hold the
24proceeds of games of chance, which shall be separate from all
25other funds belonging to the licensed eligible organization.
26Account records shall show all expenditures and income and shall
27be retained by the licensed eligible organization for at least
28two years.

29* * *

30(h) Background checks.--Each application for a license

1submitted by an eligible organization [which has proceeds in
2excess of $2,500 in a year] , except for an organization 
3licensed under subsection (b)(1)(i), shall include the results
4of a criminal history record information check obtained from the
5Pennsylvania State Police, as defined in 18 Pa.C.S. § 9102
6(relating to definitions) and permitted by 18 Pa.C.S. § 9121(b)
7(relating to general regulations), for the executive officer and
8[secretary] treasurer of the eligible organization making the
9application for a license or any other person required by the
10department.

11Section 6. Sections 501 and 502 of the act, added February
122, 2012 (P.L.7, No.2), are amended to read:

13Section 501. Club licensee.

14(a) Report.--

15(1) Beginning in 2013, a club licensee shall submit
16semiannual reports to the department for the preceding six-
17month period on a form and in a manner prescribed by the
18department. The form shall be available in hard copy and 
19electronically from the department's Internet website. The 
20report may be submitted by mail to the department or through 
21the department's Internet website.

22(2) The report must be filed under oath or affirmation
23of an authorized officer of the club licensee.

24(3) The report shall include all of the following
25information:

26(i) The proceeds received by the club licensee from
27each game of chance conducted, itemized by week.

28(ii) The amount of prizes paid from all games of
29chance, itemized by week.

30(iii) Other costs incurred related to the conduct of 

1games of chance.

2(iv) The verification of amounts distributed for 
3public interest purposes itemized under section 
4[502(a)(1)] 502(a)(2)(i), itemized by the recipient.

5(v) An itemized list of expenditures made or amounts 
6retained and expenditures under section [502(a)(2)] 
7502(a)(2)(ii).

8(vi) The address and the county in which the club 
9licensee is located.

10(vii) Other information or documentation required by 
11the department.

12(b) Distribution.--The department shall provide a copy of
13the report to the Bureau of Liquor Control Enforcement.

14(c) Posting.--The reports under subsection (a) shall be
15published on the department's Internet website.

16Section 502. Distribution of proceeds.

17(a) Distribution.--The proceeds from games of chance
18received by a club licensee shall be distributed as follows:

19[(1) No less than 70% of the proceeds shall be paid to
20organizations for public interest purposes in the calendar
21year in which the proceeds were obtained.

22(2) No more than 30% of the proceeds obtained in a
23calendar year may be retained by a club licensee and used for
24the following operational expenses relating to the club
25licensee:

26(i) Real property taxes.

27(ii) Utility and fuel costs.

28(iii) Heating and air conditioning equipment or
29repair costs.

30(iv) Water and sewer costs.

1(v) Property or liability insurance costs.

2(vi) Mortgage payments.

3(vii) Interior and exterior repair costs, including
4repair to parking lots.

5(viii) New facility construction costs.

6(ix) Entertainment equipment, including television,
7video and electronic games.

8(x) Other expenses adopted in regulation by the
9department.]

10(1) $40,000 may be retained by the club licensee. Except 
11as prohibited by subsection (b)(1), there are no additional
12restrictions on the use of these proceeds by the club
13licensee.

14(2) Any club licensee proceeds remaining after
15distribution under paragraph (1) shall be distributed as
16follows:

17(i) No less than 70% of the proceeds shall be used
18for public interest purposes in the 12-month period from
19which the proceeds were obtained.

20(ii) No more than 30% of the proceeds obtained in a
21calendar year may be retained by a club licensee and used
22for the following operational expenses relating to the
23club licensee:

24(A) Real property taxes.

25(B) Utility and fuel costs.

26(C) Heating and air conditioning equipment or
27repair costs.

28(D) Water and sewer costs.

29(E) Property or liability insurance costs.

30(F) Mortgage payments.

1(G) Interior and exterior repair costs,
2including repair to parking lots.

3(H) New facility construction costs.

4(I) Entertainment equipment, including
5television, video and electronic games.

6(J) Other expenses adopted in regulation by the
7department.

8(a.1) Amounts retained.--Amounts retained by a club licensee
9under subsection (a)(2) shall be expended within [the same
10calendar year] a 12-month period from when the proceeds were 
11received unless the club licensee notifies the department that
12funds are being retained for a substantial purchase or project.
13Notification shall include a description of the purchase or
14project, the anticipated cost and the anticipated date of the
15purchase or project.

16(b) Prohibition.--

17(1) Proceeds shall not be used for wages, alcohol or
18food purchases or for the payment of any fine levied against
19the club licensee.

20(2) An officer or employee of a club licensee who
21operates the game of chance shall not participate in the
22game. This paragraph shall not apply to a raffle.

23Section 7. Section 701 of the act, amended February 2, 2012
24(P.L.7, No.2), is amended to read:

25Section 701. Revocation of licenses.

26(a) Grounds.--The following shall be grounds for suspension, 
27revocation or nonrenewal of a license:

28(1) Any of the proceeds derived from the operation of
29games of chance by an eligible organization are used for any
30purpose other than for:

1(i) public interest purposes;

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

3(iii) a purpose permitted by Chapter 5.

4(1.1) Any of the funds derived from the operation of
5games of chance by a club licensee are used in a manner that
6does not comply with section 502.

7(2) Any person under 18 years of age is operating or
8playing games of chance.

9(3) The eligible organization has permitted any person
10who has been convicted of a felony in a Federal or State
11court within the past five years or has been convicted in a
12Federal or State court within the past ten years of a
13violation of the act of July 10, 1981 (P.L.214, No.67), known
14as the Bingo Law, or of this act, to manage, set up,
15supervise or participate in the operation of games of chance.

16(4) The facility in which the games of chance are played
17does not have adequate means of ingress and egress and does
18not have adequate sanitary facilities available in the area.

19(5) Any person or persons other than a manager, officer,
20director, bar personnel or a bona fide member of an eligible
21organization have been involved in managing, setting up,
22operating or running games of chance.

23(6) Any person has received compensation for conducting
24games of chance.

25(7) Any prize has been awarded in excess of the limits
26permitted under this act.

27(8) The eligible organization has violated any condition
28of a special permit issued pursuant to section 308.

29(9) The eligible organization conducts the games of
30chance under a lease which calls for:

1(i) leasing such premises from the owner thereof
2under an oral agreement; or

3(ii) leasing such premises from the owner thereof
4under a written agreement at a rental which is determined
5by the amount of receipts realized from the playing of
6games of chance.

7(10) False or erroneous information was provided in the
8original application or in any information provided to the 
9licensing authority or the department in any report.

10(11) An eligible organization has been convicted of a
11violation of this act as evidenced by a certified record of
12the conviction.

13[(12) The eligible organization has permitted another
14eligible organization to conduct games of chance on its
15licensed premises without suspending its own operation of
16games of chance during the period that the other licensed
17eligible organization is conducting its games on the
18premises.]

19(13) A club licensee has failed to file an accurate
20report under section 501(a).

21(14) A club licensee has failed to comply with section
22502.

23(15) Failure to file reports under section 501.

24(b) Production of records.--The district attorney may
25require licensees to produce their books, accounts and records
26relating to the conduct of games of chance in order to determine
27if a violation of this act has occurred. Licensees shall also be
28required, upon request, to provide their license, books,
29accounts and records relating to the conduct of games of chance
30to the licensing authority, the Bureau of Liquor Control

1Enforcement or to a law enforcement agency or official. A club
2licensee shall retain records for a period of [five] two years.

3Section 8. Section 702(b) of the act, amended October 24,
42012 (P.L.1462, No.184), is amended to read:

5Section 702. Enforcement.

6* * *

7(b) Bureau of Liquor Control Enforcement.--The following 
8shall apply to enforcement:

9(1) If the licensee is a club licensee, the Bureau of Liquor 
10Control Enforcement may enforce the provisions of this act in 
11accordance with subsection (g). An administrative law judge 
12under section 212 of the act of April 12, 1951 (P.L.90, No.21), 
13known as the Liquor Code, may impose the penalties under 
14subsection (d) following the issuance of a citation by the 
15bureau.

16(2) Unless the Bureau of Liquor Control Enforcement has 
17jurisdiction over a club licensee under section 702(b)(1), the
18Bureau of Liquor Control Enforcement shall have no jurisdiction
19to enforce the provisions of this act on any special occasion
20permit holder under section 408.4 of the act of April 12, 1951
21(P.L.90, No.21), known as the Liquor Code.

22* * *

23Section 9. The act is amended by adding a chapter to read:

24CHAPTER 8

25SOCIAL CARD GAMES

26Section 801. Definitions.

27The following words and phrases when used in this chapter
28shall have the meanings given to them in this section unless the
29context clearly indicates otherwise:

30"Nonbanking card game." A card game where players play

1against one another rather than against the house. Nonbanking
2card games may include any of the following:

3(1) Poker games.

4(2) Hearts.

5(3) Rummy.

6(4) Pinochle.

7(5) Bid Whist.

8"Nonbanking card game tournament" or "tournament." A series
9of card games held by a licensed eligible organization during a
10consecutive period of time of not more than 24 hours and not
11held as part of any other games of chance.

12"Pyramid" or "build-up." A card game in which a prize must
13be returned in order to play another game or to be eligible for
14another bigger prize, or a game in which the prize must be
15forfeited if a later game is lost.

16"Social card game" or "card game." A nonbanking card game
17that is played by members at the licensed premises of an
18eligible organization.

19Section 802. Authorization to conduct social card games.

20(a) Authorization.--Notwithstanding any provision of 18
21Pa.C.S. (relating to crimes and offenses) or of this act or any
22other law or regulation to the contrary, social card games may
23be played at the licensed premises of an eligible organization
24in accordance with the requirements of this chapter.

25(b) Conditions.--The following shall apply:

26(1) Card games may only be played by and between members
27of the eligible organization.

28(2) The eligible organization or any other person shall
29not have an interest, financial or otherwise, in the outcome
30of any card game.

1(3) Only nonbanking card games may be played with
2members playing against each other.

3(4) Wagering shall be entirely at the discretion of each
4player.

5(5) The maximum prize or payout for a card game shall be
6limited to $100.

7(6) The eligible organization shall not charge a fee for
8play.

9(7) Not more than ten members may play at any table in a
10card game.

11(8) Card games may only be played in a room set aside
12for those activities at the licensed premises of the eligible
13organization.

14(9) Not more than five gaming tables may be made
15available for the play of card games by the eligible
16organization.

17(10) No card games may be played between the hours of 1
18a.m. and 1 p.m.

19(11) No eligible organization or any other person shall
20collect, obtain or charge any percentage of or shall collect
21or obtain any portion of any wager or winnings of any player
22in a card game, except a player may collect his winnings.

23(12) No eligible organization or any other person shall
24collect, or obtain any money from or charge or impose any fee
25upon, any person that either enables the person to play or
26results in or from the person playing a card game, except
27that this paragraph shall not preclude the collection of a
28membership fee by the eligible organization that is unrelated
29to participation in the play of a card game authorized under
30this chapter.

1(13) An eligible organization that allows the use of its
2premises for the play of card games by its members in
3accordance with this chapter shall submit a schedule of the
4proposed dates of such card games and any card game
5tournament to the licensing authority.

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

10(1) The wagering limits for each type of card game.

11(2) The rules of play.

12(3) Information on where a person can obtain help for
13problem gambling, including the telephone number for the
14Pennsylvania Compulsive Gambling Hotline.

15(d) Prohibitions.--

16(1) It shall be unlawful for an eligible organization
17to:

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

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

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

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

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

29(vi) Knowingly allow any person to employ or attempt
30to employ any device, scheme or artifice to cheat or

1defraud any player in a card game.

2(vii) Advertise any card game in violation of
3section 704.

4(2) A licensed organization that violates paragraph (1)
5shall be subject to the penalties imposed under section
6702(d).

7(e) Applicability.--The requirements of sections 502 and 503
8shall not apply to social card games authorized under this
9chapter.

10Section 803. Card game tournaments.

11(a) Authorization.--Notwithstanding any other provision of
12law or regulation to the contrary, an eligible organization may
13conduct nonbanking card game tournaments. A card game tournament
14conducted by an eligible organization shall comply with all of
15the following:

16(1) Only nonbanking card games shall be played in a card
17game tournament.

18(2) Each card game shall be conducted in a fair and
19honest manner and shall not be operated on a build-up or
20pyramid basis.

21(3) Every player in a tournament shall be given the same
22chance of winning the tournament. Second-chance entries or
23multiple entries shall be prohibited.

24(4) The eligible organization shall conduct each
25tournament and shall not contract with or permit another
26person to conduct the tournament or any card game during the
27tournament.

28(5) Only the eligible organization may receive or have
29any fixed or contingent right to receive, directly or
30indirectly, any profit, remuneration or compensation from or

1related to a card game in a card game tournament, except any
2amount that a person may win as a player on the same basis as
3the other players.

4(6) The eligible organization shall not hold more than
5five card game tournaments annually.

6(7) The eligible organization shall not hold a card game
7tournament within seven calendar days of another tournament
8conducted by the eligible organization.

9(8) The eligible organization may hold only one card
10game tournament during any period of 24 consecutive hours,
11starting from the time the tournament begins.

12(9) At the conclusion of each tournament, the eligible
13organization conducting the tournament shall announce the
14name of the winning player and the amount of winnings.

15(10) The eligible organization shall limit the number of
16tables used in the tournament to not more than five with not
17more than ten players at each table.

18(11) A card game tournament shall only be held in a room
19at the licensed premises designated by the eligible
20organization for the conduct of card games.

21(12) Players in tournaments shall be limited to the
22members of the eligible organization.

23(13) Players shall be 21 years of age or older.

24(14) The card game tournament shall not provide any
25direct financial benefit to the eligible organization or any
26other person, except winning players in the tournament.

27(15) The value of all prizes awarded for each
28tournament, except for a Texas Hold'em tournament, shall not
29exceed $200.

30(16) For a tournament involving Texas Hold'em, all of

1the following shall apply:

2(i) The payment of an entry fee or other
3consideration for participating is prohibited.

4(ii) The value of all prizes awarded to an
5individual winner of a tournament or contest at a single
6table shall not exceed $200 each day.

7(17) The eligible organization shall ensure that
8reasonable accommodations are made for players with
9disabilities.

10(b) Required postings.--Notwithstanding subsection (a), the
11eligible organization shall prominently post the tournament
12rules on a sign in the tournament playing room at least 24 hours
13before the tournament begins. The sign shall be at least 30
14inches by 30 inches, and the rules shall be easily readable. The
15sign shall include all of the following:

16(1) In permanent letters three inches high, the words
17"Tournament Rules."

18(2) Card game or games to be played in the tournament
19and the rules of each card game.

20(3) The prize for each card game and tournament.

21(4) How winners will be determined.

22(5) Any other tournament rules.

23(c) Prizes.--Cash or merchandise prizes may be awarded for
24each card game tournament. All of the following shall apply:

25(1) The eligible organization shall distribute the
26prizes awarded on the day the prizes are won.

27(2) Donated or merchandise prizes shall not be
28repurchased by the eligible organization.

29(3) Only prizes that can be won shall be displayed in
30the room where the tournament will be held.

1Section 10. The provisions of 61 Pa. Code §§ 901.463(4)
2(relating to raffle records), 901.464(9) (relating to punchboard
3and pull-tab records), 901.464a(9) (relating to daily and weekly
4drawing records), 901.466(1) (relating to prize records) and
5901.733(f) (relating to control of prizes) are abrogated.

6Section 11. This act shall take effect immediately.