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PRINTER'S NO. 2074
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1598
Session of
2019
INTRODUCED BY MOUL, SCHMITT, MILLARD, DeLUCA AND JAMES,
JUNE 11, 2019
REFERRED TO COMMITTEE ON GAMING OVERSIGHT, JUNE 11, 2019
AN ACT
Amending the act of December 19, 1988 (P.L.1262, No.156),
entitled "An act providing for the licensing of eligible
organizations to conduct games of chance, for the licensing
of persons to distribute games of chance, for the
registration of manufacturers of games of chance, and for
suspensions and revocations of licenses and permits;
requiring records; providing for local referendum by
electorate; and prescribing penalties," in preliminary
provisions, further providing for definitions; in games of
chance, further providing for games of chance permitted, for
prize limits and for sales limited, providing for pull-tab
deal, further providing for distributor licenses, providing
for skill machine distributor licenses, further providing for
registration of manufacturers, providing for registration of
skill machine manufacturers, further providing for
regulations of department, providing for regulations of
board, further providing for licensing of eligible
organizations and for special permits and providing for
special location permits, for vertical wheel game permits and
for poker run permits; in club licensees, repealing
provisions relating to club licensee, providing for
definitions and for club licensee, further providing for
distribution of proceeds and providing for club licensee
location permits; in enforcement, further providing for
revocation of licenses and for enforcement; and, in tavern
gaming, further providing for definitions, for licenses, for
application, for approval, for prize limits, for tavern
raffle, for distribution of net revenue, for tavern games
tax, for host municipality tavern games tax and for
restricted receipts account, providing for skill machine
revenue and further providing for enforcement and for
prohibitions.
The General Assembly of the Commonwealth of Pennsylvania
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hereby enacts as follows:
Section 1. The definitions of "games of chance," "proceeds,"
"pull-tab" and "tavern games" in section 103 of the act of
December 19, 1988 (P.L.1262, No.156), known as the Local Option
Small Games of Chance Act, are amended and the section is
amended by adding definitions to read:
Section 103. Definitions.
The following words and phrases when used in this act shall,
except as provided under section 902, have the meanings given to
them in this section unless the context clearly indicates
otherwise:
* * *
"Amusement game." A mechanical, electrical or computerized
contrivance, terminal, machine or other device that requires the
insertion of a coin, currency, token or similar object to play
or activate a game and meets the following criteria:
(1) The outcome of the game is predominantly and
primarily determined by the skill of the player.
(2) Winning the game entitles the player to noncash
prizes, including gift cards or gift certificates that may
not be redeemable for cash, and the value of the noncash
prize does not exceed the cost of playing the game or the
total aggregate cost of playing multiple games.
* * *
"Bingo." As defined in section 3 of the act of July 10, 1981
(P.L.214, No.67), known as the Bingo Law.
"Board." The Pennsylvania Gaming Control Board.
* * *
"Coin auction." A game in which a participant buys a
numbered paddle for a chance to bid on a donated prize with the
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winner determined by a random drawing of corresponding numbers.
* * *
"Event game." A type of pull-tab game, played simultaneously
with bingo and with or without a seal card, in which certain
prizes are determined by the draw of a bingo ball which randomly
selects numbers or symbols that correspond to the numbers or
symbols printed by the manufacturer on the pull-tab and which
game satisfies the following:
(1) No event pull-tab may be both an instant winner and
a hold card.
(2) The game may not contain duplicate hold
combinations. If the game contains multiple sets of hold
combinations, each set must be distinguishable by color or
distinguishing features.
(3) An event pull-tab ticket may contain more than one
hold combination.
(4) The number of winners and the prize amount must be
built into the payout structure for the game by the
manufacturer.
* * *
"Games of chance." Punchboards, daily drawings, weekly
drawings, 50/50 drawings, raffles, tavern games, pools, race
night games, poker runs, coin auctions, vertical wheel games ,
event games, skill machines and pull-tabs, as defined in this
act, provided that no such game, except vertical wheel games,
event games and skill machines , shall be played by or with the
assistance of any mechanical or electrical devices or media
other than a dispensing machine or passive selection device and
further provided that the particular chance taken by any person
in any such game shall not be made contingent upon any other
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occurrence or the winning of any other contest, but shall be
determined solely at the discretion of the purchaser. This
definition shall not be construed to authorize any other form of
gambling currently prohibited under any provision of 18 Pa.C.S.
(relating to crimes and offenses) or authorized under 4 Pa.C.S.
(relating to amusements). Nothing in this act shall be construed
to authorize games commonly known as "slot machines" or "video
poker" or other games regulated by the Pennsylvania Gaming
Control Board.
* * *
"Poker run." A game operated by one or more licensed
eligible organizations in which a participant purchases a
scorecard to participate in a game where all of the following
occurs:
(1) A participant meets at a designated location to
receive instructions for the event.
(2) Each participant receives a detailed explanation of
the game destinations and a score card to be completed as the
participant progresses to each location within the county.
(3) At each designated location on the run route, the
participant draws or is dealt a playing card at random. The
card which is drawn or dealt is recorded on the participant's
score card.
(4) The participant or participants who have obtained
the highest hand or hands, according to the instructions
established for the event under paragraph (1), wins a prize
or prizes, which is determined at the final location on the
run route.
For purposes of this act, the term is not a "table game" as
defined in 4 Pa.C.S. § 1103 (relating to definitions).
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* * *
"Proceeds." [The difference between:
(1) the actual gross revenue collected by a licensed
eligible organization, or a licensee under Chapter 9, from a
game of chance; and
(2) the actual amount of prizes paid by a licensed
eligible organization, or a licensee under Chapter 9, from a
game of chance, plus the cost to purchase games of chance.]
(1) Except for a skill machine, the difference between:
(i) the actual gross revenue collected by a licensed
eligible organization, or a licensee under Chapter 9,
from a game of chance; and
(ii) the actual amount of prizes paid by a licensed
eligible organization, or a licensee under Chapter 9,
from a game of chance, plus the cost to purchase games of
chance.
(2) For a skill machine, the amount received by an
eligible organization from a distributor licensed by the
board for the operation of skill machines on its premises or
location in which it is authorized to operate games of
chance.
"Progressive pull-tab game." A game of one or more pull-tab
deals, each bearing a different serial number that, in addition
to any consolation prize awarded by a winning ticket, offers a
winning player a chance to select and open a sealed tab on the
flare that accompanies the game to determine if the jackpot
prize has been won, and the jackpot prize of which game is
predetermined by the manufacturer and consists of an amount to
which each deal of the game where the jackpot prize is not won
contributes to an accumulating jackpot prize level.
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* * *
"Pull-tab." A single folded or banded ticket or a strip
ticket or card with a face covered to conceal one or more
numbers or symbols, where one or more of each set of tickets or
cards has been designated in advance as a winner. The term
includes a subset pull-tab game and progressive pull-tab game.
* * *
"Skill." The knowledge, dexterity, adroitness, acumen or
other mental or physical ability of an individual.
"Skill-based contest." A competitive event among two or more
individuals or teams through which individuals or teams compete
against each other in one or more games utilizing electronic,
computerized or mechanical devices, including, but not limited
to, personal computers and home video game consoles, and meets
the following criteria:
(1) Winning individuals or teams are determined solely
by the skill of individuals or teams relative to the skill of
other individuals or teams competing in the competitive
event.
(2) Elements of chance do not affect or have a de
minimis effect on the outcome of the game utilized in the
competitive event.
(3) One or more winning individuals or teams are awarded
a prize, including cash, that may exceed the cost of any
consideration paid for entry into the competitive event.
(4) The electronic or mechanical device utilized in the
competitive event is not a device or game that may only be
operated lawfully by a person with the required authorization
under 4 Pa.C.S. (relating to amusements).
"Skill machine."
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(1) A mechanical, electrical or computerized
contrivance, terminal, machine or other device that:
(i) is used to play or operate a game upon insertion
of a coin, bill, ticket, token or similar object or upon
payment of consideration, including the use of an
electronic payment system;
(ii) winning outcomes are determined primarily by
the player's skill; and
(iii) awards a winning individual, directly or
indirectly, cash, merchandise or anything of value for
playing or operating the game in excess of the cost of
playing or operating the game.
(2) The term shall not include an amusement game or a
device used in a skill-based contest.
"Subset pull-tab game." A game consisting of a single pull-
tab deal of tickets having the same serial number that is
segregated and packaged by the manufacturer into smaller
subdeals, each of which is played separately from the rest of
the subsets during the game, and the winning tickets purchased
by a player of which game will bear a designation that entitles
the player to select and open a sealed tab on the flare which
accompanies the game to determine the prize level to be awarded
to the player.
"Tavern games." Pull-tabs, race night games, tavern weekly
drawings, tavern daily drawings, skill machines and tavern
raffles.
"Vertical wheel game." A game in which a participant places
a coin or token on a color, number or word or purchases a ticket
containing a color, number or word and watches a spinning
vertical wheel until the pointer of the wheel rests on a section
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of the wheel designating a winner. Vertical wheel game chances
may not be sold for an amount in excess of $10. For the purposes
of this act, the term is not a "table game" as defined in 4
Pa.C.S. § 1103.
* * *
Section 2. Sections 301, 302 and 303(b) of the act are
amended to read:
Section 301. Games of chance permitted.
[Every] (a) General rule.--Except as otherwise provided in
subsection (b), every eligible organization to which a license
has been issued under the provisions of this chapter may conduct
games of chance for the purpose of raising funds for public
interest purposes. Except as provided in Chapter 5, all proceeds
of a licensed eligible organization shall be used exclusively
for public interest purposes, for the purchase of games of
chance or for the payment of the license fee, as required by
this act. An eligible organization whose primary purpose is the
promotion of a public interest may utilize the proceeds from
small games of chance to fulfill that purpose.
(b) Exception.--An event game may only be operated by a
licensed eligible organization that:
(1) is an association as defined in section 3 of the act
of July 10, 1981 (P.L.214, No.67), known as the Bingo Law;
and
(2) holds a bingo license issued to the association
under section 5 of the Bingo Law.
Section 302. Prize limits.
(a) Individual prize limit.--
(1) Except as provided under subsections (d) [and
(d.1)], (d.1) and (d.2), the maximum prize which may be
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awarded for:
(i) any single chance shall be $2,000[.]; and
(ii) any single play of a skill machine shall be
$2,000.
(2) For an event game, the maximum prize limit contained
in paragraph (1) shall only apply to the prizes awarded
through the play of the event game and shall not apply to the
prizes awarded through the play of bingo that is
simultaneously conducted with the event game.
[(b) Aggregate prize limit.--No more than $35,000 in prizes
shall be awarded from games of chance by a licensed eligible
organization in any seven-day period.]
(c) Raffle prize limit.--Up to $15,000 in prizes may be
awarded in raffles in any calendar month.
[(c.1) Total limit.--All prizes awarded under this section
shall be subject to the aggregate prize limits under subsection
(b).]
(d) Exception for raffles.--Notwithstanding subsection [(b)
or] (c), a licensed eligible organization may conduct a raffle
under section 308 and award a prize or prizes valued in excess
of $3,000 each only under the following conditions:
(1) The licensing authority has issued a special permit
for the raffle under section 308.
(2) A licensed eligible organization shall be eligible
to receive no more than ten special permits in any [licensed
term] calendar year except that a volunteer fire, ambulance,
rescue or conservation organization that is not a club
licensee shall be eligible to receive 12 special permits in
any [licensed term] calendar year.
(3) Only one raffle may be conducted under each special
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permit issued under section 308.
(4) Except as provided under subsection (d.1), the total
of all prizes awarded under this subsection shall be no more
than $150,000 per calendar year, which shall not be subject
to the aggregate limit under subsection [(b) or] (c).
(d.1) Additional award.--A volunteer fire, ambulance, rescue
or conservation organization may, in addition to the total under
subsection (d)(4), award up to $100,000 from raffles which shall
not be subject to the aggregate limit under subsection [(b),]
(c) or (d).
(d.2) Exception for poker runs.--Notwithstanding subsection
(a), a licensed eligible organization may conduct a poker run
under section 311 and award a prize or prizes valued in excess
of $2,000, subject to the following conditions:
(1) The licensing authority has issued a poker run
permit to each participating eligible organization under
section 311.
(2) Only one poker run may be conducted under each poker
run permit issued under section 311.
(3) The total of all prizes awarded for a single poker
run may not exceed $15,000.
(f) Daily drawing carryover.--The prize limitation contained
in [subsections] subsection (a) [and (b)] may be exceeded by a
daily drawing under the following circumstances: a daily drawing
may award a prize in excess of $2,000 if such prize is the
result of a carryover of a drawing which resulted from the
winning number in such drawing not being among the eligible
entrants in such drawings. Nothing contained herein shall
authorize the prize limitation as contained in [subsections]
subsection (a) [and (b)] to be exceeded as a result of a failure
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to conduct a drawing on an operating day during which chances
were sold for a daily drawing or for a daily drawing for which
chances were sold in excess of $1 or for which more than one
chance was sold to an eligible participant.
[(g) Additional exception.--When a daily drawing or weekly
drawing is set up or conducted in such a manner as to pay out or
award 100% of the gross revenues generated from such drawing,
the limitation contained in subsection (b) shall not apply.
(h) Weekly drawing carryover exception.--Weekly drawings
shall be governed by the prize limitation contained in
subsection (b). The prize limitation contained in subsection (b)
may be exceeded by a weekly drawing under the following
circumstances: a weekly drawing may award a prize where the cash
value is in excess of $35,000 if such prize is the result of a
carryover of a drawing or drawings which resulted from the
winning number or numbers in such drawing or drawings not being
among the eligible entrants in such drawings. Nothing contained
in this chapter shall authorize the prize limitation under
subsection (b) to be exceeded as a result of a failure to
conduct a drawing for a week during which chances were sold for
a weekly drawing or for a weekly drawing for which chances were
sold in excess of $1.]
(i) Concurrent operation.--Nothing under this act shall
prohibit the concurrent operation of daily or weekly drawings.
Section 303. Sales limited.
* * *
(b) Limitation.--No game of chance, other than a raffle
under section 302(d) or a poker run under section 302(d.2),
sold, offered for sale or furnished to a licensed eligible
organization for use within this Commonwealth shall contain,
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permit, depict or designate a prize having a prize limit in
excess of $2,000.
Section 3. The act is amended by adding a section to read:
Section 303.2. Pull-tab deal.
Nothing in this act shall be construed:
(1) To prohibit the sale of a pull-tab deal which
contains more than 4,000 individual pull-tabs.
(2) To place any restriction on the number of pull-tabs
that may be put out for public play as part of a single deal.
Section 4. Section 304(i) of the act is amended to read:
Section 304. Distributor licenses.
* * *
(i) Exception.--This section shall not apply to the
manufacture or distribution of raffle tickets, 50/50 drawings,
daily drawings, weekly drawings, poker runs, coin auctions,
vertical wheel games , tavern raffles, tavern daily drawings,
tavern weekly drawings, skill machines or pools.
Section 5. The act is amended by adding a section to read:
Section 304.2. Skill machine distributor licenses.
(a) License required.--No person shall place for operation a
skill machine on the premises of an eligible organization
licensed under this chapter or tavern licensed under Chapter 9
unless such person shall have obtained a distributor license
from the board as provided in this section.
(b) Application.--An applicant for the grant or renewal of a
distributor license issued pursuant to this section shall
provide to the board, upon a form prescribed by the board, all
of the following:
(1) The applicant's State sales tax number.
(2) The applicant's State corporate tax number.
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(3) The applicant's State employer withholding tax
number.
(4) The applicant's unemployment compensation account
number.
(5) A statement that:
(i) all State tax reports have been filed and all
State taxes paid;
(ii) all State taxes are subject to a timely
administrative or judicial appeal; or
(iii) all State taxes are subject to a duly approved
deferred payment plan.
(6) The names and business addresses of all owners,
officers, directors, partners and sales personnel.
(7) Any other information required by the board
necessary to ensure the integrity of skill machines or
compliance with this act.
(c) Waiver of confidentiality.--An applicant for the grant
or renewal of a distributor license issued pursuant to this
section shall, by the filing of an application insofar as it
relates to the department, waive any confidentiality with
respect to State tax information in the possession of the
department, the Office of Attorney General or the Department of
Labor and Industry regarding the applicant, regardless of the
source of the information, and shall consent to the providing of
the information to the department by the Office of Attorney
General or the Department of Labor and Industry.
(d) Background.--The department shall conduct and annually
update a criminal history record check on each individual listed
under subsection (b)(6).
(e) Review of tax status.--Upon receipt of any application
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for the grant or renewal of a distributor license issued
pursuant to this section, the board shall require the department
to review the State tax status of the applicant. The department
shall request State tax information regarding the applicant from
the Office of Attorney General or the Department of Labor and
Industry and the information shall be provided.
(f) Limitation on approval.--The board shall not approve an
application for the grant or renewal of a distributor license
issued pursuant to this section where the applicant has failed
to:
(1) provide information required by subsection (b);
(2) file required State tax reports; or
(3) pay State taxes not subject to a timely
administrative or judicial appeal or subject to a duly
authorized deferred payment plan.
(g) Records.--A distributor licensee shall keep records,
reports and books as the department prescribes. Applicants shall
be required to make the records, reports and books available as
required by the board pursuant to regulation.
(h) Ineligibility.--The board shall not issue or renew a
distributor license to a person, including a corporation, firm
or partnership that has as an officer, director or other person
in a supervisory or management position, or employee eligible to
make sales on behalf of the distributor, who:
(1) has been convicted of a felony in a state or Federal
court within the past five years; or
(2) has been convicted within 10 years of the date of
application in a state or Federal court of a violation of any
of the following:
(i) This act.
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(ii) The act of July 10, 1981 (P.L.214, No.67),
known as the Bingo Law.
(iii) A gambling-related offense under 4 Pa.C.S.
(relating to amusements).
(iv) A gambling-related offense under 18 Pa.C.S.
(relating to crimes and offenses).
(v) A Federal or State law comparable to the
statutes listed under subparagraphs (i), (ii), (iii) and
(iv).
(i) License and renewal fees.--The fee for a distributor
license shall be $2,000. Licenses shall be renewable on an
annual basis.
(j) Prohibition.--An eligible organization or tavern
licensed under Chapter 9 may not be licensed as a distributor.
Section 6. Section 305(d) of the act is amended to read:
Section 305. Registration of manufacturers.
* * *
(d) Exception.--This section shall not apply to the
manufacture or distribution of raffle tickets, 50/50 drawings,
daily drawings, weekly drawings, poker runs, coin auctions,
vertical wheel games , tavern raffles, tavern daily drawings,
tavern weekly drawings, skill machines or pools.
Section 7. The act is amended by adding a section to read:
Section 305.1. Registration of skill machine manufacturers.
(a) Registration required.--No manufacturer shall sell any
skill machine to any distributor licensed under section 304.1
or manufacture a skill machine for use in this Commonwealth
unless the manufacturer has registered with the board and has
been issued a certificate of registration.
(b) Annual certificate; fee.--A certificate under this
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section shall be valid for one year. The annual fee for
registration shall be $2,000.
(c) Prohibited sales.--A manufacturer shall not sell any
skill machine to any person not licensed as a distributor under
section 304.2.
(d) Prohibition.--An eligible organization or tavern
licensed under Chapter 9 may not be registered as a
manufacturer.
(e) Concurrent authorizations.--A registered manufacturer
may also be licensed as a distributor under section 304.2.
Section 8. Section 306 of the act is amended to read:
Section 306. Regulations of department.
(a) Authorization.--The department shall promulgate
regulations to:
(1) Impose minimum standards [and restrictions]
applicable to games of chance manufactured for sale in this
Commonwealth[, which may include standards and restrictions
which specify the maximum number of chances available to be
sold for any single game of chance or prize and such other
standards and restrictions] as the department deems necessary
for the purposes of this chapter. The department shall
consider standards adopted by the National Association of
Gambling Regulatory Agencies and other standards commonly
accepted in the industry.
(2) Establish procedures by which manufacturers may
register and distributors of games of chance may apply for
licensure on forms which the department shall provide.
Procedures shall include a requirement that manufacturer and
distributor applicants provide criminal history record
information obtained from the Pennsylvania State Police under
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18 Pa.C.S. § 9121(b) (relating to general regulations) for
each officer and manager of the manufacturer's or
distributor's organization and for any other individual
specified by the department. As used in this paragraph, the
term "criminal history record information" has the meaning
given in 18 Pa.C.S. § 9102 (relating to definitions).
(3) Provide for the suspension or revocation of
distribution licenses or manufacturer certificates for
violations of this act or regulations of the department.
(3.1) Establish procedures to ensure that race night
games are secure, random and totally dependent upon chance.
(3.2) Nothing in this act shall be construed to require
games of chance distributed for play in this Commonwealth to
be approved by the department.
(4) Carry out other provisions of this act.
(b) Limitation on recordkeeping requirements.--This section
shall not be construed to authorize the department to promulgate
regulations providing for recordkeeping requirements for
licensed eligible organizations which require unreasonable or
unnecessary information or a repetitious listing of information.
The department shall strive to keep such recordkeeping
requirements from being an undue hardship or burden on licensed
eligible organizations. [Except as provided under section
701(b), the] The department may not require the retention of
records for a period in excess of two years. If an individual
prize is in excess of $600, the record shall include the name
and address of the winner. An eligible organization shall
provide each winner with a receipt of the value of the prize
when the prize exceeds $600.
(c) (Reserved).
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(d) Application.--This section shall not apply to skill
machines.
Section 9. The act is amended by adding a section to read:
Section 306.1. Regulations of board.
(a) Authorization.--The board shall promulgate regulations
to:
(1) Impose minimum standards and restrictions applicable
to skill machines manufactured for sale and operation in this
Commonwealth as the board deems necessary for the purposes of
this chapter or necessary to protect the integrity and
fairness of skill machines.
(2) (i) Establish procedures by which manufacturers may
register and distributors may apply for licensure on
forms which the board shall provide. Procedures shall
include a requirement that manufacturer and distributor
applicants provide criminal history record information
obtained from the Pennsylvania State Police under 18
Pa.C.S. § 9121(b) (relating to general regulations) for
each officer and manager of the manufacturer's or
distributor's organization and for any other individual
specified by the board.
(ii) As used in this paragraph, the term "criminal
history record information" has the meaning given in 18
Pa.C.S. § 9102 (relating to definitions).
(3) Provide for the suspension or revocation of
distribution licenses or manufacturer certificates
for violations of this act or regulations of the board.
(4) Establish standards and information requirements for
irremovable plates that must be conspicuously placed on every
skill machine manufactured for use in this Commonwealth.
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(5) Require every skill machine manufactured for use in
this Commonwealth to be tested and certified by the board.
(6) Establish a fee to be paid by registered
manufacturers for the testing and certification of skill
machines.
(7) Prohibit skill machines from accepting credit or
debit cards for play or operation.
(b) Promulgation.--In order to facilitate the prompt
implementation of this section, regulations promulgated by the
board shall be deemed temporary regulations which shall expire
no later than two years following the publication of the
temporary regulations. The board may promulgate temporary
regulations not subject to:
(1) Sections 201, 202, 203, 204 and 205 of the act of
July 31, 1968 (P.L.769, No.240), referred to as the
Commonwealth Documents Law.
(2) Section 204(b) of the act of October 15, 1980
(P.L.950, No.164), known as the Commonwealth Attorneys Act.
(3) The act of June 25, 1982 (P.L.633, No.181), known as
the Regulatory Review Act.
(c) Expiration.--The authority provided to the board to
adopt temporary regulations in subsection (b) shall expire two
years following the publication of the temporary regulations.
Regulations adopted after that date shall be promulgated as
provided by law.
Section 10. Section 307(a)(1), (b), (b.1) and (b.2) of the
act are amended, subsection (d) is amended by adding a paragraph
and the section is amended by adding a subsection to read:
Section 307. Licensing of eligible organizations.
(a) License required.--The following shall apply:
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(1) An eligible organization shall not conduct or
operate games of chance unless the eligible organization has
obtained a valid license as follows:
(i) A regular license which must be renewed
annually.
(ii) A triennial license which must be renewed every
three years.
[(ii)] (iii) A monthly license which permits the
eligible organization to conduct games of chance, except
for skill machines, for a 30-consecutive-day period.
* * *
(b) Issuance.--The licensing authority shall issue a license
within 30 days of the submission of an application by an
eligible organization that meets the requirements under this
chapter. Upon issuance, the licensing authority shall provide
the eligible organization with a unique license number , the
first number or numbers of which shall be the uniform county
code numbers used by the Department of Revenue for the filing of
tax returns .
(b.1) Fee.--The [license fee to be charged to each eligible
organization for a regular license shall be $125. The license
fee to be charged for a monthly license shall be $25. A regular
license must be renewed annually. The fee shall be used by the
licensing authority to administer this act.] licensing authority
shall charge a license fee to each eligible organization to be
used by the licensing authority to administer this act. The fees
shall be as follows:
(1) A regular license fee shall be $125.
(2) A triennial license fee shall be $375.
(3) A monthly license fee shall be $25.
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(b.2) Location.--[An] Except as provided for in section 311
and notwithstanding sections 309 and 505.2, an eligible
organization that holds a license under subsection (a) and that
is not a club licensee may conduct small games of chance in the
county where the license is issued at a premises which is the
operating site of the eligible organization or at a premises or
other location not prohibited by local ordinance, and for which
the treasurer has been notified. The following shall apply:
(1) No more than three licensees, including the licensee
that owns or leases the premises, may conduct small games of
chance simultaneously at a premises or location.
(2) A licensee shall ensure that the conduct of small
games of chance by different organizations are separate and
clearly identified within a premises or location.
(3) A licensee that is not a club licensee may conduct
games of chance simultaneously with the conduct of games of
chance by a club licensee on not more than three occasions
covering a total of seven days during the year.
(4) The following shall apply:
(i) Notwithstanding paragraph (1), if a club
licensee is unable to conduct games of chance at the
location listed on its application and license due to
natural disaster, fire or other circumstance that renders
the location unusable, the club licensee may submit a
written request to the district attorney to conduct games
of chance in a different location, including the licensed
premises of another eligible organization.
(ii) A request under subparagraph (i) must include
the change in the location and the dates and times the
games of chance will be operated at the alternative
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location.
(iii) The district attorney shall approve or deny
the request and shall establish a limit on the duration
of the authorization to conduct games of chance at the
alternative location. Following the expiration of the
authorization period, the club licensee must return to
the location specified in its application and license or
apply to the licensing authority for a new permanent
location. The district attorney may stipulate additional
requirements as a condition of approval.
(iv) If a club licensee permits another club
licensee to use its licensed premises under this
paragraph to conduct games of chance, the host club
licensee must cease its operation of games of chance
during the time the club licensee utilizing its premises
is conducting its games of chance.
* * *
(b.5) License renewal.--A regular license or triennial
license may be renewed by the eligible organization up to 90
days prior to the expiration of the license. A renewed regular
or triennial license shall contain the same unique license
number provided to the eligible organization under subsection
(b) , the first number or numbers of which shall be the uniform
county code numbers used by the Department of Revenue for the
filing of tax returns .
* * *
(d) Operation.--Each licensed eligible organization shall be
prohibited from the following:
* * *
(7) (i) receiving a profit from a skill machine that
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has not been manufactured or distributed by a person
authorized by the board to manufacture or distribute
skill machines;
(ii) permitting the operation of a skill machine on
its premises that has not been manufactured or
distributed by a person authorized by the board to
manufacture or distribute skill machines; or
(iii) permitting the operation of more than five
skill machines on its premises or location in which it is
authorized to operate games of chance.
* * *
Section 11. Section 308 of the act is amended to read:
Section 308. Special raffle permits.
(a) Issuance and fee.--The licensing authority shall issue a
special permit for each raffle in which the licensed eligible
organization proposes to award individual prizes in excess of
$3,000. The licensing authority may establish and collect a fee
not to exceed $25 for the issuance of special permits under this
section.
(b) Permit application.--Each special permit application
shall specify the location where the actual drawing will be
held, the number of chances to be sold, the price per chance and
the prize to be awarded.
Section 12. The act is amended by adding sections to read:
Section 309. Special location permits.
(a) Special permit required.--Notwithstanding section 307
(b.2), a licensed eligible organization that is not a club
licensee may conduct games of chance in any county outside the
county where the license is issued at a premises or other
location not prohibited by local ordinance or this act and for
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which the licensing authority of the county in which the
licensed eligible organization proposes to conduct games of
chance has issued a special location permit under this section.
(b) Permit application.--Each special location permit
application shall be submitted on a form and in a manner as
required by the licensing authority, provided that each
application shall specify:
(1) The games of chance to be offered.
(2) The date, time and location of where the games of
chance will be offered.
(3) The prices for chances to be sold.
(4) The prizes to be awarded.
(5) The license number of the licensed eligible
organization.
(6) The address of the operating site of the licensed
eligible organization.
(c) Issuance and fee.--Prior to issuing a special location
permit, the licensing authority shall confirm with the licensing
authority that issued the license to the eligible organization
that the eligible organization's license is valid. A licensed
eligible organization whose license is valid and proposes to
offer games of chance at a location not otherwise prohibited by
local ordinance or this act shall be considered suitable for
issuance of a special location permit by the licensing
authority. The licensing authority may establish and collect a
fee not to exceed $25 for the issuance of special location
permits under this section.
(d) Limitations.--The following limitations shall apply to a
licensed eligible organization issued a special location permit
under this section:
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(1) A licensed eligible organization shall be eligible
to receive no more than ten special location permits in a
calendar year, except that a volunteer fire, ambulance,
rescue or conservation organization that is not a club
licensee shall be eligible to receive 12 special location
permits in a calendar year.
(2) A special location permit shall authorize the
licensed organization to conduct games of chance only at the
location, time and date as indicated on the application for
the special location permit, provided that the duration does
not exceed one calendar day.
(3) No more than three licensed eligible organizations,
including the licensed eligible organization that owns or
leases the premises, may conduct games of chance
simultaneously at a premises or location.
(4) A licensed eligible organization shall ensure that
the conduct of games of chance by different licensed eligible
organizations are separate and clearly identified within a
premises or location.
(5) A licensed eligible organization that is not a club
licensee may conduct games of chance simultaneously with the
conduct of games of chance by a club licensee not more than a
total of seven days during the calendar year.
(e) Proceeds.--A licensed eligible organization shall use
proceeds from games of chance operated under a special location
permit for public interest purposes within or directly
benefiting the county in which the licensing authority issued
the special location permit. Nothing in this paragraph shall be
construed to require proceeds to be used exclusively for public
interest purposes within the county.
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(f) Additional permits.--A licensed eligible organization
issued a special location permit under this section may also
apply to the licensing authority for a special raffle permit in
accordance with section 308 and a vertical wheel game permit in
accordance with section 310. A special raffle permit or a
vertical wheel game permit shall only be valid for the duration
of the special location permit.
Section 310. Vertical wheel game permits.
(a) Special permit required.--Notwithstanding any other
provisions of this act, a licensed eligible organization may
operate a vertical wheel game at one location not prohibited by
local ordinance or this act for no more than seven consecutive
days upon issuance of a vertical wheel game permit from the
licensing authority.
(b) Permit application.--Each vertical wheel game permit
application shall be submitted on a form and in a manner as
required by the licensing authority, provided that each
application shall specify the location where the vertical wheel
game will be offered, the price per chance and the prizes to be
awarded.
(c) Issuance and fee.--A licensed eligible organization
whose license is valid, who proposes to offer the vertical wheel
game at a location not otherwise prohibited by local ordinance
or this act and whose application specifies that no single
chance will be sold in excess of $10 shall be considered
suitable for issuance of a vertical wheel game permit by the
licensing authority. The licensing authority may establish and
collect a fee not to exceed $25 for the issuance of vertical
wheel game permits under this section.
(d) Limitation.--A licensing authority may issue no more
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than four vertical wheel game permits under this section to any
one licensed eligible organization in a calendar year.
Section 311. Poker run permits.
(a) Special permit required.--A licensed eligible
organization may operate a poker run for no more than one day
upon issuance of a poker run permit from the licensing
authority. Licensed eligible organizations may jointly operate a
single poker run, provided that each participating licensed
eligible organization is issued a poker run permit. No more than
five licensed eligible organizations may jointly operate a poker
run.
(b) Permit application.--Each poker run permit application
shall be submitted on a form and in a manner as required by the
licensing authority. A licensing authority may require the
submission of a single consolidated application for a poker run
to be operated jointly by multiple licensed eligible
organizations. Each application shall include:
(1) The poker run locations of operation.
(2) The date and hours of operation of the poker run.
(3) The price per chance.
(4) The prizes to be awarded.
(5) A copy of the agreement required under subsection
(e) if the poker run will be operated jointly with other
licensed eligible organizations.
(6) Any other information required by the licensing
authority.
(c) Issuance and fee.--A licensed eligible organization
whose license is valid, who proposes to offer a poker run at
locations permitted under subsection (d) and whose application
specifies that the total of all prizes to be awarded for the
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poker run will not exceed $15,000 shall be considered suitable
for issuance of a poker run permit. The licensing authority may
establish and collect a fee not to exceed $25 for the issuance
of poker run permits under this section. A licensing authority
shall issue no more than two poker run permits to a single
licensed eligible organization in any calendar year.
(d) Locations.--A poker run may only be operated at
locations within the county in which the eligible organization
has been issued a poker run permit under this section and a
license under section 307 by the licensing authority, provided
that the locations are not prohibited by local ordinance. A club
licensee issued a poker run permit under this section may
operate a poker run, either independently or jointly with other
eligible organizations, at its own licensed premises, locations
outside its licensed premises not prohibited by local ordinance
or at the licensed premises of another club licensee also
holding a poker run permit.
(e) Joint operation agreement.--If a poker run is to be
jointly operated by more than one licensed eligible
organization, each licensed eligible organization must enter
into a written agreement that is signed by the executive officer
or secretary of each participating eligible organization. The
written agreement shall contain at minimum:
(1) The date and hours of operation of the poker run.
(2) The locations where the poker run will be operated.
(3) The responsibilities of each eligible organization
for operating the poker run.
(4) Use of the proceeds from the poker run.
(5) A list of other games of chance that will be
operated at poker run locations, itemized by licensed
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eligible organization.
(f) Concurrent operation.--The following shall apply to the
concurrent operation of a poker run with other games of chance
operated by a licensed eligible organization holding a poker run
permit:
(1) Except at the licensed premises of a club licensee,
an eligible organization that is not a club licensee may
operate other games of chance at any location where the poker
run is operated.
(2) A club licensee operating a poker run may
concurrently operate other games of chance at its licensed
premises. A club licensee may not operate any game of chance,
other than a poker run, outside its licensed premises during
the operation of a poker run.
(3) If a poker run is operated by more than one licensed
eligible organization, each licensed eligible organization
issued a poker run permit that is not a club licensee may
operate other games of chance at any poker run location,
provided that:
(i) The location is not the licensed premises of a
club licensee.
(ii) The operation of games of chance by each
licensed eligible organization is separate and clearly
identified at the poker run location.
(g) Applicability.--Section 307(b.2) shall not apply to a
poker run or other games of chance operated at poker run
locations by a licensed eligible organization issued a poker run
permit under this section.
Section 13. Section 501 of the act is repealed:
[Section 501. Club licensee.
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(a) Report.--
(1) Beginning in 2014, a club licensee with proceeds in
excess of $20,000 in a calendar year shall submit annual
reports to the department for the preceding 12-month period
on a form and in a manner prescribed by the department.
(2) The report under paragraph (1) must be filed under
oath or affirmation of an authorized officer of the club
licensee and shall include all of the following information:
(i) The proceeds received by the club licensee from
each game of chance conducted, itemized by week.
(ii) The amount of prizes paid from all games of
chance, itemized by week.
(iii) Other costs incurred related to the conduct of
games of chance.
(iv) Verification and itemization of amounts
distributed for public interest.
(vii) Other information or documentation required by
the department.
(b) Distribution.--The department shall provide a copy of
the report to the Bureau of Liquor Control Enforcement.
(c) Posting.--The reports under subsection (a) shall be
published on the department's Internet website.]
Section 14. The act is amended by adding sections to read:
Section 501.1. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Proceeds." As follows:
(1) For any game of chance, other than a poker run
operated jointly with other licensed eligible organizations
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under section 311, the difference between:
(i) the actual gross revenue collected by a club
licensee from a game of chance; and
(ii) the actual amount of prizes paid by a club
licensee from a game of chance plus the cost to purchase
games of chance.
(2) For a poker run operated jointly by a club licensee
with other licensed eligible organizations under section 311,
an amount, unless otherwise specified in the joint operation
agreement between the club licensee and the other licensed
eligible organizations, equal to:
(i) the difference between the actual gross revenue
collected from the operation of the poker run and the
actual amount of prizes paid from the poker run plus the
cost to purchase the poker run; divided by
(ii) the total number of eligible organizations
jointly operating the poker run.
Section 501.2. Club licensee.
(a) Report.--
(1) A club licensee with proceeds in excess of $20,000
in a calendar year shall submit annual reports to the
department for the preceding 12-month period on a form and in
a manner prescribed by the department.
(2) The report under paragraph (1) must be filed under
oath or affirmation of an authorized officer of the club
licensee and shall include all of the following information:
(i) The proceeds received by the club licensee from
each game of chance conducted.
(ii) The amount of prizes paid from all games of
chance.
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(iii) Other costs incurred related to the conduct of
games of chance.
(iv) Verification and itemization of amounts
distributed for public interest.
(v) Other information or documentation required by
the department.
(b) Distribution.--The department shall provide a copy of
the report to the Bureau of Liquor Control Enforcement.
(c) Posting.--The reports under subsection (a) shall be
published on the department's publicly accessible Internet
website.
Section 15. Section 502(a.1) of the act is amended to read:
Section 502. Distribution of proceeds.
* * *
(a.1) Amounts retained.--
(1) Notwithstanding subsection (a), [if in a calendar
year beginning January 1, 2013, the proceeds from a game of
chance for a club licensee are $40,000 or less, the licensee
shall be eligible to retain the first $20,000 in proceeds in
the following calendar year before subsection (a) applies.]
in each calendar year beginning on or after January 1, 2019,
a club licensee may retain the greater of the following:
(i) the first $20,000 in proceeds before subsection
(a) applies; or
(ii) an amount necessary for the purchase or repair
of electronic pull-tab dispensing machines or a point-of-
sale software system which records data relative to the
sale of games of chance before subsection (a) applies.
(2) Amounts retained by a club licensee under subsection
(a)(2) shall be expended within one year of the end of the
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calendar year in which the proceeds were obtained unless the
club licensee notifies the department that funds are being
retained for a substantial public interest purchase or
project.
* * *
Section 16. The act is amended by adding a section to read:
Section 505.2. Club licensee location permits.
(a) Special permit required.--Notwithstanding section
307(b.2), a club licensee may conduct games of chance outside
the club licensee's licensed premises in the county where the
license is issued at a premises or other location not prohibited
by local ordinance or this act and for which the licensing
authority has issued a club licensee location permit under this
section.
(b) Permit application.--Each club licensee location permit
application shall be submitted on a form and in a manner as
required by the licensing authority, provided that each
application shall specify:
(1) The games of chance to be offered.
(2) The dates, times and location of where the games of
chance will be offered.
(3) The prices for chances to be sold.
(4) The prizes to be awarded.
(c) Issuance and fee.--A club licensee whose license is
valid and proposes to offer games of chance at a location not
otherwise prohibited by local ordinance or this act shall be
considered suitable for issuance of a club licensee location
permit by the licensing authority. The licensing authority may
establish and collect a fee not to exceed $25 for the issuance
of club licensee location permits under this section.
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(d) Limitations.--The following limitations shall apply to a
club licensee issued a club licensee location permit under this
section:
(1) The club licensee shall be eligible to receive no
more than two club licensee location permits in a calendar
year.
(2) The club licensee location permit shall authorize
the club licensee to conduct games of chance only at the
location, times and dates as indicated on the application for
the club licensee location permit, provided that the duration
does not exceed seven consecutive calendar days.
(3) No more than three licensed eligible organizations,
including the licensed eligible organization that owns or
leases the premises, may conduct games of chance
simultaneously at a premises or location.
(4) A licensed eligible organization shall ensure that
the conduct of games of chance by different licensed eligible
organizations are separate and clearly identified within a
premises or location.
(5) Except as provided for in section 307(b.2)(4), a
club licensee may not conduct games of chance at the licensed
premises of another club licensee.
(e) Additional permits.--
(1) A club licensee issued a club licensee location
permit under this section may operate a raffle or vertical
wheel game in accordance with sections 308 and 310.
(2) A club licensee location permit shall not be
required for the operation of a poker run in accordance with
section 311.
Section 17. Section 701(a)(8) and (b) of the act are amended
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and subsection (a) is amended by adding a paragraph to read:
Section 701. Revocation of licenses.
(a) Grounds.--The following shall be grounds for suspension,
revocation or nonrenewal of a license:
* * *
(8) The eligible organization has violated any condition
of a [special] permit issued pursuant to section 308, 309,
310, 311 or 505.2.
* * *
(16) The eligible organization:
(i) receives proceeds from a skill machine that has
not been manufactured or distributed by a person
authorized by the board to manufacture or distribute
skill machines;
(ii) permits the operation of a skill machine on its
premises that has not been manufactured or distributed by
a person authorized by the board to manufacture or
distribute skill machines; and
(iii) permits the operation of more than five skill
machines on its premises or location in which it is
authorized to operate games of chance.
(b) Production of records.--The district attorney may
require licensees to produce their books, accounts and records
relating to the conduct of games of chance in order to determine
if a violation of this act has occurred. Licensees shall also be
required, upon request, to provide their license, books,
accounts and records relating to the conduct of games of chance
to the licensing authority, the Bureau of Liquor Control
Enforcement or to a law enforcement agency or official. [A club
licensee shall retain records for a period of five years.]
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Section 18. Section 702(g) of the act is amended to read:
Section 702. Enforcement.
* * *
(g) [General rule] Violations of Liquor Code.--
(1) Except as provided in paragraph (2), a violation of
this act by a club licensee shall not constitute a violation
of the Liquor Code.
(2) If a club licensee has committed three or more
violations of this act, the Bureau of Liquor Control
Enforcement may enforce a violation of this act as a
violation of the Liquor Code.
(3) A violation of this act shall not constitute a
violation of the Liquor Code for the purposes of section
471(c) of the Liquor Code.
(4) A violation of section 304.1 or 304.2 shall not
constitute a violation of the Liquor Code.
Section 19. The definitions of "bureau" and "net revenue" in
section 902 of the act are amended and the section is amended by
adding a definition to read:
Section 902. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
* * *
["Bureau." The Bureau of Investigations and Enforcement of
the Pennsylvania Gaming Control Board.]
* * *
"Net revenue." As follows:
(1) For [tavern games] a tavern game required to be
purchased from a licensed distributor under this act, the
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difference between:
(i) the amount of the face value, as indicated by
the manufacturer, minus the cost of the game, collectible
by a licensee from [a] the tavern game; and
(ii) the maximum amount of prizes payable, as
indicated by the manufacturer, by a licensee from [a] the
tavern game.
(2) For [tavern games] a tavern game not required to be
purchased from a licensed distributor, the term has the same
meaning as proceeds.
(3) For a skill machine, the total cash received by a
skill machine minus the total cash paid out to players as a
result of playing a skill machine.
* * *
"Tavern weekly drawing." A game in which:
(1) an individual at a tavern selects or is assigned a
number for a chance at a prize with the winner determined by
random drawing to take place at the tavern at the end of a
seven-day period;
(2) a winner may be determined with the aid of a passive
selection device or reference to drawings conducted by the
department under the act of August 26, 1971 (P.L.351, No.91),
known as the State Lottery Law;
(3) chances are not sold for an amount in excess of $1;
and
(4) no more than one chance per individual is sold per
drawing.
Section 20. Sections 903, 904, 905, 907(a), 908.1 and 909 of
the act are amended to read:
Section 903. Licenses.
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(a) Application.--A restaurant licensee may apply to the
board for a license to conduct tavern games at a licensed
premises located in a municipality that has adopted a referendum
to allow small games of chance under section 703.
(b) Information.--The application under subsection (a) shall
include the following information:
(1) The name, address and photograph of the applicant.
(2) A current tax lien certificate issued by the
department and a certificate from the Department of Labor and
Industry of payment of all workers' compensation and
unemployment compensation owed.
(3) The details of any license issued under 4 Pa.C.S.
Pt. II (relating to gaming), the act of April 12, 1951
(P.L.90, No.21), known as the Liquor Code, or this act which
was applied for or in which the applicant or other owner has
an interest.
(4) Certified consent by the applicant, including each
owner and officer of the restaurant licensee, to a background
investigation [by the bureau] in accordance with subsection
(e).
(5) Relating to criminal information, disclosure of all
arrests and citations of the applicant, including nontraffic
summary offenses. The information shall include all of the
following:
(i) A brief description of the circumstances
surrounding the arrest or issuance of the citation.
(ii) The specific offense charged.
(iii) The ultimate disposition of the charge,
including any dismissal, plea bargain, conviction,
sentence[, pardon, expungement] or order of Accelerated
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Rehabilitative Disposition.
(6) Financial interests and transactions as required by
the [bureau] board.
(7) Relating to citations of the applicant issued under
the Liquor Code.
(8) Relating to disclosure of conditional license
agreements entered into under the Liquor Code.
(9) Any other information required by the board.
[(c) Duty of bureau.--The bureau shall conduct a background
investigation of each applicant, the scope of which shall be
determined by the bureau.]
(d) Review.--[Within six months of receipt of the background
investigation report from the bureau, the] The board shall
approve or disapprove the application within 30 days of receipt
of the application.
(e) Background investigation.--Each applicant shall include
information and documentation as required to establish personal
and financial suitability, honesty and integrity. Information
shall include:
(1) [Criminal history record information.] A criminal
history record information check obtained from the
Pennsylvania State Police as defined in 18 Pa.C.S. § 9102
(relating to definitions) and permitted by 18 Pa.C.S. §
9121(b) (relating to general regulations), for the applicant,
including each owner and officer of the restaurant licensee.
(2) Financial background information.
(3) Regulatory history before the board or other
Commonwealth agency.
(4) Other information required by the [bureau] board.
(f) Personal interview.--If the [bureau] board determines
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that the results of the background report investigation warrant
additional review of the individual, the [bureau] board shall
conduct a personal interview with the applicant and may request
information and interviews from other personal or professional
associates.
(g) Cooperation.--The applicant shall cooperate with the
[bureau] board as requested during the conduct of the background
investigation. Any refusal to provide the information required
under this section or to consent to a background investigation
shall result in the immediate denial of a license by the board.
[(h) Costs.--The applicant shall reimburse the bureau for
the actual costs of conducting the background investigation. The
board shall not approve an applicant that has not fully
reimbursed the bureau for the investigation.]
(i) Approval.--[The bureau shall transmit the investigative
report and may make a recommendation to the board.] The board
shall review the information [obtained] required under this
section to determine if the applicant possesses the following:
(1) Financial stability, integrity and responsibility.
(2) Sufficient business experience and ability to
effectively operate tavern games as part of the restaurant
licensee's operator.
(3) Character, honesty and integrity to be licensed to
operate tavern games in a responsible and lawful manner.
(j) Disapproval.--The board may disapprove the issuance of a
tavern gaming license for the following reasons:
(1) A license shall not be issued to a restaurant
licensee whose liquor license is in safekeeping pursuant to
section 474.1 of the Liquor Code.
(2) A license shall not be issued to a location that is
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subject to a pending objection under section 470(a.1) of the
Liquor Code.
(3) A license shall not be issued to a location that is
subject to:
(i) a pending license suspension under section 471
of the Liquor Code; or
(ii) a one-year prohibition on the issuance or
transfer of a license under section 471(b) of the Liquor
Code.
Section 904. Application.
(a) Application fee.--An applicant shall pay the board a
nonrefundable application fee of [$1,000] $500.
[(b) Investigative fee.--An applicant shall pay an
investigative fee of $1,000 to the bureau.
(c) Costs.--In addition to the fee under subsection (b), an
applicant and any owner and officer of the applicant shall pay
for the actual costs of a background investigation conducted by
the bureau that exceed the application fee. The bureau may:
(1) Charge an estimated amount to be provided prior to
the background investigation.
(2) Submit for reimbursement from the applicant for the
additional costs incurred in the background investigation.
(d) Funds.--Funds collected under subsections (b) and (c)
shall augment the funds appropriated to the Pennsylvania Gaming
Control Board under 4 Pa.C.S. (relating to amusements).]