Lancaster County, PA - Official Website

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Small Games of Chance

1. What law governs the conduct of small games of chance?: The Pennsylvania Local Option Small Games of Chance Act (the act), 1988 P.L 1262, No. 156, as amended. The act allows certain nonprofit organizations, known as “eligible organizations,” to conduct specific small games of chance for the purpose of raising funds for the promotion of public interest purposes.

2. Does a local option small games of chance license permit all forms of gambling?

No, most definitely not! The Pennsylvania Crimes Code provides that all forms of gambling are illegal unless the activity is specifically authorized by the Pennsylvania Legislature. Only those specific types of small games of chance as defined by the act are permitted by virtue of being licensed under the act. Currently permitted by the act are:

Daily drawings

Pull tabs

Punch boards

Raffles (includes lotteries)

Weekly drawings

Unless otherwise authorized by law all other forms of gambling are prohibited criminal offenses under the Pennsylvania Crimes Code. For example, none of the games played at a typical Monte Carlo Night event are sanctioned by the act. Some organizations may use play money for such events, but if at any point the play money won while playing any game of chance takes on value, that gambling is in violation of the Pennsylvania Crimes Code.

3. Are quarter auctions permitted?: No. As previously stated, the Pennsylvania Crimes Code provides that all forms of gambling are illegal unless the activity is specifically authorized by the Pennsylvania Legislature. While they may be called quarter auctions, that is where any similarity to a true auction ends.

Quarter auctions are best classified as a form of progressive raffle or drawing. While they are legal in some states, quarter auctions are illegal in Pennsylvania.

4. Who can apply for and be granted a local option small games of chance license?: A license cannot be granted to an individual. Only an eligible organization as defined in Pennsylvania Local Option Small Games of Chance Act (the act), 1988 P.L 1262, No. 156 as amended, can apply. Members of interested organizations should refer to §103 of the act, or to the Pennsylvania Department of Revenue Small Games of Chance Overview prepared by the Pennsylvania Department of Revenue (both of which can be viewed or downloaded from this site) to see if their organization is eligible for licensing.

5. Are there different types of licenses?: Most organizations would be required to apply for a regular license. Those organizations that do not own, lease, or rent a property as their regular place of business are eligible for a limited occasion license. A limited occasion license permits the eligible organization to conduct two raffles per license year and to conduct the other permitted small games of chance on not more than three occasions covering a total of seven days during a license year. Finally, a special permit is required for any raffle with a prize in excess of $1,000.

Only the holder of a regular license may apply for and be granted a special permit. The holder of a regular license is permitted to apply for and be granted no more than eight special permits per license year, except that a fire, ambulance, or rescue organization (not a club) may apply for and be granted no more than 10 special permits per license year.

6. What is the fee for the various licenses?: The fee for a regular license is $100. The fee for a limited occasion license is $10. The fee for a special permit is $25.

7. How long is a license valid?: A regular and limited occasion license is valid for one year from date of issue. A special permit is valid only for the specific raffle it applies to.

8. Can an eligible organization permit its license to be used by another organization to play small games of chance?: No. Only the organization in whose name the license is issued may conduct small games of chance.

9. Can an auxiliary to an eligible organization use the license of the eligible organization to conduct small games of chance?: Yes. Auxiliary groups within eligible organizations shall be eligible to conduct small games of chance using the license issued to the eligible organization provided that the auxiliary group or groups are listed on the application for license and the license of the eligible organization. Auxiliary groups shall not include branches of lodges or chapters of a statewide organization.

10. Can an auxiliary to an eligible organization apply for and obtain its own license to conduct small games of chance?: No. While this was previously an issue in question; the amendments made to the act in 2012 now specifically prohibit an auxiliary to an eligible organization from apply for and being issued its own license.

11. How does an organization establish that it is an eligible organization?: The organization must meet the definition of an eligible organization found in §103 of the act. The organization must be able to prove that it has been in existence for one year prior to making application for a license.

Upon making application for a Local Option Small Games of Chance License, the organization’s articles of incorporation and/or bylaws must accompany the application. If the organization is not incorporated, it must provide its bylaws and any other documentation that sets forth the organization’s executive structure and purpose, most importantly providing for a president and secretary. The documentation that must accompany the license application can be found at the bottom of page two of the application.

12. Where is a criminal history check (background check) obtained?: From the Pennsylvania State Police. The act states, “Each application for a license shall include the results of 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 executive officer and secretary of the eligible organization making the application for a license or any other person required by the department.”

An application for a criminal history check can be obtained from and submitted on-line through the Pennsylvania State Police. The form can be mailed to the address appearing on the form.

13. Are school districts eligible for licensing under the act?: No, public school districts, nor any political subdivision are eligible for licensing. Parochial schools are eligible for licensing if they otherwise meet the requirements for an eligible organization.

14. Are political parties eligible for licensing under the act?: No. An organization whose purpose is non-partisan, such as devoted to non-partisan voter registration efforts, would be eligible if they otherwise meet the requirements for an eligible organization.

15. What does the eligible organization do once it has completed its application for a license and prepared the necessary accompanying documentation?: The application and required documentation must be brought to the Office of the District Attorney where it will be reviewed by a county detective. If the application and documentation complies with the requirements of the act, authorization will be given to take the application and documentation to the Lancaster County Treasurer’s Office where the license will be issued upon payment of the applicable fee.

16. Can anyone from the organization bring the application and documentation to the District Attorney’s Office?: Yes as long as they are a bona fide member of the organization as defined by the act, and the application has been completed in its entirety, is signed by the president or secretary of the eligible organization, and the application is notarized.

17. Will documentation that must accompany a license application be returned?: No, it will be filed by the treasurer with the application and become public information.

18. Must the association provide the documentation listed on page two of the application each time application is made for a license?: Under the current procedure followed by the Office of the District Attorney and the Lancaster County Treasurer’s Office, unless specifically asked for by a county detective, the documentation listed on page two does not have to be provided again where no changes to the documentation have been made and no lapse in the license has occurred.

At present, how often a criminal history check must be completed has not been specified. The Pennsylvania Department of Revenue is charged with promulgating rules and regulations for the operation of small games of chance. They have not yet provided amended rules and regulations reflecting the changes made to the law.

An application must be prepared each time a license is renewed. At present, the completed, signed, and notarized application, along with those records that the association is required to keep concerning its conduct of small games of chance, and a copy of its previous year’s annual report to the Pennsylvania Department of Revenue must be brought to the Office of the District Attorney for a license renewal.

19. Once issued, can the license be revoked?: Yes. The Lancaster County Treasurer can revoke a license upon recommendation of the district attorney if it is found that grounds for revocation listed in §701 of the act exist.

20. Who investigates violations of the act?: The district attorney is charged with investigating violations of the act; however, any state, county, or local law enforcement official is empowered to investigate violations of the act.

21. Do some municipalities prohibit small games of chance?: Yes. Small games of chance may only be played and eligible organizations licensed in those municipalities that have approved the licensing and conduct of small games of chance by voter referendum. A list of those municipalities that have and have not passed the referendum question can be viewed or downloaded from this site.

22. Where can small games of chance be played?: Small games of chance, with certain exceptions, may only be played at the eligible organization’s licensed premises (regular place of business or other location specifically listed on the eligible organization’s application for license). Each eligible organization must list its licensed premises on its license application.

Members of the eligible organization may sell raffle tickets in any municipality in Lancaster County where small games of chance have been approved by voter referendum. An eligible organization may also conduct small games of chance off its licensed premises at an annual carnival, fair, picnic, or banquet held by the organization on an historic basis, but it is required to provide written notice to the district attorney and treasurer of its intent to do so.

23. Are there age restrictions on who can play small games of chance?: Yes. No one under 18 years of age may play small games of chance.

24. Can an eligible organization sell raffle tickets in another county?: Yes. An eligible organization may sell tickets in a county other than the county in which they are licensed, but must give written notice to the district attorney and treasurer of each county in which they intend to sell tickets of their intent to do so.

The notice must clearly set forth the location(s) and date(s) sales will take place. It is also suggested that the notice contain the eligible organization’s license number. Remember, the act applies to all counties, so sales of raffle tickets can only take place in municipalities that have approved the small games of chance question by voter referendum.

25. Can anyone conduct small games of chance for an eligible organization?: No. Only a bona fide member of the eligible organization who is at least 18 years of age, as defined by the act, may conduct small games of chance on behalf of the eligible organization.

26. Can members of an eligible organization be paid or otherwise compensated for conducting small games of chance on behalf of an eligible organization?: No. The act specifically prohibits anyone from being paid or compensated in any manner for conducting small games of chance.

27. Where does an eligible organization obtain small games of chance?: Other than raffle tickets, an eligible organization must purchase small games of chance from a licensed distributor.

28. Are there restrictions on advertising small games of chance?: Yes. §704 of the act states: “It shall be unlawful for any eligible organization or person to advertise the prizes or their dollar value to be awarded in games of chance, provided that prizes may be identified on raffle tickets. Notwithstanding the prohibition of advertising contained within this section, an eligible organization may advertise prizes and values thereof in periodic publications which are limited in their circulation to members of the eligible organization”.

29. Must an eligible organization maintain records concerning its conduct of small games of chance?: Yes. Specific records concerning types of games played, prizes awarded, and other information must be maintained and an annual report filed with the Pennsylvania Department of Revenue. Members of eligible organizations should review the Small Games of Chance Overview prepared by the Pennsylvania Department of Revenue for an explanation of required records. The overview can be viewed or downloaded from this site.

30. Must the activity of a licensed organization be reported?

Yes, beginning February 1, 2013, eligible organizations must electronically file an annual report with the Pennsylvania Department of Revenue for the preceding calendar year. Eligible organizations will be required to report the following with respect to small games of chance:

Amount of proceeds used for public interest purposes

Gross revenue collected from small games of chance

Number of W-2G forms issued

Proceeds

Total expenses associated with small games of chance

Total gross winnings reported on W-2G forms

Total prizes paid

There are additional reporting requirements for those organizations who have been issued a club license.

31. Are there limitations on what an eligible organization my use the proceeds of small games of chance for?: Yes. The act permits the proceeds to be used for only public interest purposes, as defined in §103.

32. Are there limits on prizes?: Yes there are very specific prize limits. Prize limits can be found in §302 of the act. Members of eligible organizations should review the act and the Small Games of Chance Overview prepared by the Pennsylvania Department of Revenue for an explanation of prize limits. The Local Option Small Games of Chance Act and the overview can be viewed or downloaded from this site.

33. May animals be awarded as prizes?: No. Under 18 P.A. C.S.A. §5511.1, no animal, except goldfish, may be given away as a prize in any game of chance. This prohibition does not apply to domestic animals given away or sold in connection with any agricultural, educational, or vocational program sponsored or sanctioned by the Pennsylvania Department of Agriculture.

34. Are there specific guidelines for what information must be contained on a raffle ticket?

Yes. The Pennsylvania Department of Revenue is charged with promulgating rules and regulations for the operation of small games of chance. They have not yet provided amended rules and regulations reflecting the changes made to the law. The current regulations are applicable.

The following section of the Pennsylvania Administrative Code, Title 61 (Revenue) addresses this question:
§ 901.745. Printing Requirements
The following information shall be printed upon each raffle ticket sold:

The date and time of the drawing

The location of the drawing

The name of the club conducting the raffle

The price of the ticket

The prize or prizes to be awarded

The small games of chance license number of the club

The special permit number, if applicable

35. Must raffle tickets be accounted for in a certain manner?: Yes. The Pennsylvania Department of Revenue is charged with promulgating rules and regulations for the operation of small games of chance. They have not yet provided amended rules and regulations reflecting the changes made to the law. The current regulations are applicable. The following section of the Pennsylvania Administrative Code, Title 61 (Revenue) addresses this question.

36. How many raffles can my organization hold?: The number of raffles held would be dictated by monthly prize limits as set forth in §302 of the act.

37. Can the price of a raffle ticket include more than the price of the ticket?: No. For instance, the price charged cannot include a raffle ticket and food product. The Pennsylvania Department of Revenue is charged with promulgating rules and regulations for the operation of small games of chance. They have not yet provided amended rules and regulations reflecting the changes made to the law. The current regulations are applicable.

The following section of the Pennsylvania Administrative Code, Title 61 (Revenue) addresses this question.

§ 901.743. Raffle Tickets
(a) Tickets for entry into a raffle shall be sold or issued separately and each ticket shall constitute a separate and equal chance to win with other tickets sold or issued. A person may not be required to obtain more than one ticket, or to pay for anything other than the ticket, to enter a raffle.

38. Can the advertised date for a raffle drawing be postponed?: Yes, but only for two reasons. The Pennsylvania Department of Revenue is charged with promulgating rules and regulations for the operation of small games of chance. They have not yet provided amended rules and regulations reflecting the changes made to the law. The current regulations are applicable.

The section of the Pennsylvania Administrative Code, Title 61 (Revenue), addresses this question.

39. What procedure must a licensed organization follow if a raffle prize goes unclaimed?: The Pennsylvania Department of Revenue is charged with promulgating rules and regulations for the operation of small games of chance. They have not yet provided amended rules and regulations reflecting the changes made to the law. The current regulations are applicable.

The section of the Pennsylvania Administrative Code, Title 61 (Revenue) addresses this question.

This series of frequently asked questions is not meant to, nor could it ever address every conceivable question concerning raffles. Responsibility for insuring that raffles are conducted consistent with the provisions of the Pennsylvania Local Option Small Games of Chance Act (the Act), 1988 P.L 1262, No. 156, as amended, rests with the licensed organization.

40. Are raffles and drawings the same?: No. A drawing is defined by the act as a game in which a bona fide member of an eligible organization selects or is assigned a number for a chance at a prize with the winner determined by a random drawing to take place at the licensed organization’s premises during the same operating day. Daily drawing winners may be determined with the aid of a passive selection device or reference to the state lottery drawings.

Daily drawing chances may not be sold for an amount in excess of $1, and no more than one chance per individual may be sold per drawing. Nothing in this definition shall restrict an eligible organization from conducting more than one drawing per day.

41. May drawing tickets be sold to the public?: No, only a bona fide member of an eligible organization may participate in a drawing. This includes 50/50 drawings. See the preceding question for more details.