SMALL GAMES OF CHANCE - Commonwealth Prevention Alliance

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Gambling Laws In
Pennsylvania
Sergeant James A. Jones Jr.
Corporal Rick Goodling
Pennsylvania State Police
Bureau of Liquor Control Enforcement
1
Overview
•
•
•
•
2
What is Gambling?
Facts
The Law
Final Thought & Discussion
Legal vs. Illegal Gambling
• Currently, the authorized and only legal
forms of gambling in Pennsylvania are:
– Gambling activities conducted pursuant to the
Horse Racing Industry Reform Act.
– Pennsylvania Lottery
– Bingo conducted pursuant to the Bingo Law
– Gambling activities conducted pursuant to the
Local Option Small Games of Chance Act
– Gambling activities conducted pursuant to the
Pennsylvania Race Horse Development and
Gaming Act (slots).
3
WHAT TYPES OF
ACTIVITIES
CONSTITUTE
GAMBLING?
4
“GAMBLING”
• Legal Definition
• Behavioral Definition
– Behavior is the same, however activity
does not meet legal definition of gambling.
Chance vs. Skill.
GAMBLING
Legal Definition
• Gambling is not specifically defined by
Statute in Pennsylvania
• Instead we have to refer to Court Cases
to define gambling
6
GAMBLING
Legal Definition
THE PENNSYLVANIA COURTS HAVE
DETERMINED THAT GAMBLING CONSISTS
OF THREE BASIC ELEMENTS:
(PLCB V. PPC CIRCUS BAR, INC.)
CONSIDERATION + CHANCE + REWARD =
GAMBLING
7
CONSIDERATION
• COST TO BEGIN PLAY OR EVENT
– BET
– WAGER
• EXAMPLES
– BLOCK PURCHASE IN POOL
– “BUY-IN” IN POKER TOURNAMENT
– PURCHASE OF PULL TAB
– MONEY IN SLOT MACHINE
8
CHANCE
• EVENT OUTCOME BASES WHOLLY OR
PREDOMINANTLY ON CHANCE
– LITTLE OR NO SKILL
• EXAMPLES
– ROLL OF DICE OR TURN OF CARD
– RESULT OF RACE OR SPORTING EVENT
• SKILL – MOST ARGUED DEFENSE
– TO BE CONSIDERED A SKILL, A PERSON WOULD HAVE
TO BE ABLE TO MASTER THE GAME
– DARTS, BILLIARDS, ETC.
– PLAYING POKER MAY INVOLVE SOME SKILL OR
KNOWLEDGE, HOWEVER THE CARDS ARE STILL DEALT
RANDOMLY
9
REWARD
• RETURN TO PLAYER FOR WINNING
EVENT
– MAY BE CASH, MERCHANDISE, SERVICE
OR ANYTHING OF VALUE
• IF VALUE OF PRIZE IS LESS THAN OR
EQUAL TO THE CONSIDERATION
THEN THE CONTEST IS NOT
GAMBLING
– E.G. DUCK POND GAME
10
Common Unlawful Gambling
Activities
• Texas Hold’em Tournaments
• “Night at the Races”
• “50/50 Drawings”
• Casino Nights
• Pools – football, basketball, NASCAR, etc.
• Chinese Auctions
• “Chuck-a-luck Wheel”
• Video Gambling Devices - video poker or slots
NONE OF THESE ACTIVITIES ARE AUTHORIZED
BY THE SMALL GAMES OF CHANCE ACT
11
Texas Hold’em
•
Is it legal???
12
Yes and No
When is it lawful:
U.S. ex rel. Yate v. Rundle, 326 F. Supp. 344
- States that casual wagering or the occasional playing of cards
for money does not constitute an indictable offense.
- A friendly “Neighborhood Game” between friends
- Between “Friends” does not mean at Joe’s garage
every Saturday and anyone can show and play
- The “House” DOES NOT take a cut of the pot or
accepts cash to get into the game for any reason.
(ie.. For food, alcohol etc..)
13
How to Bars and Clubs get away
with it
• Remember “Consideration and
Reward”????
• For Bars and Clubs to lawfully allow Texas Hold’em:
- Allow you as the patron to enter the game with out any
consideration (money). This includes paying a cover charge,
two drink minimum, having to buy the buffet etc..
- The Reward (winnings) is LESS THAN the Consideration (buy
in money). If the buy in is $20.00 and you can only win $15.00
this is a legal game.
14
Night at the Races
• Usually used as a Fundraiser where a
DVD, or Tape of an actual or simulated
horse race is played and bets or
wagers are placed that are not in an
authorized Horse Racing facility.
• There are companies that sell Night at
the Races “kits”
15
Legal or Illegal???
Answer: Illegal
• It is based solely on “Chance”. There is no skill involved in
predicting the winner.
However
• Could be legal if the wager is more than the reward.
• (Example: you wager $10.00 but can only win $5.00)
16
“50/50 Drawings”
17
Legal or Illegal???
Answer: Illegal
However:
When used to determine the outcome for
a Small Games of Chance “Daily or
Weekly” drawing, it could be legal.
18
Casino Nights
• Usually used as a Fundraiser
• Usually consist of utilizing multiple
gambling games, poker, 50/50 tickets,
roulette etc.. to raise money.
19
Legal or Illegal???
Answer: Illegal
Again CHANCE, CONSIDERATION, REWARD
However
• Could be legal if the wager is more than the reward.
• (Example: you wager $10.00 but can only win $5.00)
20
Pools
• Football, Basketball, Nascar etc..
21
NCAA Brackets
22
Legal or Illegal???
Answer: Illegal
However
• Could be legal if the wager is more than the reward.
(Example: you wager $10.00 but can only win $5.00)
• Buck Pools – Legal due to skill?
23
Chinese Auctions
• In a Chinese auction, bidders are not prospective buyers (as in
the conventional English auction). Instead, they buy tickets,
which are chances to win items. The tickets themselves are
often as inexpensive as a penny, and bidders may buy
hundreds of these tickets. Bidders buy as many tickets as they
like, and bid them on any item(s) they want by placing one or
more ticket in the "hat" beside the item(s) they are trying to
win. At the conclusion of bidding, one winning ticket is drawn
from the "hat" beside each item, and the item is given to the
owner of that ticket.
24
Legal or Illegal???
Answer: Illegal
However
• Could be legal if the wager is more than the reward.
(Example: you place $10.00 of tickets in hat but can only win
$5.00 worth in prizes)
25
Chuck-a-Luck Wheel
26
Legal or Illegal???
Answer: Illegal
However
• Could be legal if the wager is more than the reward.
(Example: you wager $10.00 but can only win $5.00)
27
Video Gambling Devices
28
PA Crimes Code
• § 5513. Gambling devices, gambling, etc. (a) Offense defined.-A person is guilty of a misdemeanor of the first degree if he: (1)
intentionally or knowingly makes, assembles, sets up,
maintains, sells, lends, leases, gives away, or offers for sale,
loan, lease or gift, any punch board, drawing card, slot machine
or any device to be used for gambling purposes, except playing
cards; (2) allows persons to collect and assemble for the
purpose of unlawful gambling at any place under his control;
(3) solicits or invites any person to visit any unlawful gambling
place for the purpose of gambling; or (4) being the owner,
tenant, lessee or occupant of any premises, knowingly permits
or suffers the same, or any part thereof, to be used for the
purpose of unlawful gambling.
29
?????
• SO is it legal for you as
the patron to play a
video gambling
device?
30
• Answer : Yes. You as the patron cannot be arrested
for playing a video gambling device.
What makes the video gambling devices illegal is the intentionally
or knowingly makes, assembles, sets up, maintains, sells,
lends, leases, gives away, or offers for sale, loan, lease or gift,
any slot machine or any device to be used for gambling
purposes, except playing cards; (2) allows persons to collect
and assemble for the purpose of unlawful gambling at any
place under his control; (3) solicits or invites any person to
visit any unlawful gambling place for the purpose of gambling;
or (4) being the owner, tenant, lessee or occupant of any
premises, knowingly permits or suffers the same, or any part
thereof, to be used for the purpose of unlawful gambling.
31
So how do we seize unlawful
gambling devices?
- Receive a payout on the device
- Observe a payout on the device
- Get a confession that they are being used for unlawful
gambling purposes
32
How do we seize unlawful
gambling devices without proving
• Case
theirLaw
paying out on them?
• Remember Chance,
Consideration, Reward
33
Case Law
34
•
Commonwealth v. Kevin G. Dumont, 536 A.2d 342 (Pa.Super. 1987). This is the controlling
case which sets forth the criteria which the Bureau must satisfy in order to seize a video
gambling device. The Court held that “probable cause” is to be determined using a flexible
common sense standard, and the Bureau does not need to prove the three elements of
gambling prior to seizure. Officers must demonstrate that the game is “set up” for play,
that it accepts U.S. currency (consideration), that its game result is determined primarily by
chance (not by skill), and that as articulated by the Court, a knock-off device allows
accumulated points to be erased.
•
Commonwealth v. Two Electronic Poker Game Machines, 465 A.2d 973 (Pa. 1983). The
court held that the key determination in deciding whether a video gaming device was an
amusement device (legal) or an unlawful gambling device, was to evaluate it against the
three traditional elements of gambling: consideration, chance and reward. If the video
gaming device required consideration to play; if the result of the game was determined
primarily by chance; and if there was a reward for winning, then the video gaming device
would be considered so “intrinsically connected to gambling as to constitute a gambling
device per se.” In this case, the issue was not “consideration” or “chance”. The issue
focused on the question of “reward.” In cases where the Bureau must prove “reward”
through circumstantial evidence, the Pennsylvania Supreme Court provided a specific test.
Internet Cafes
35
36
Definition
A sweepstakes parlor (or sweepstakes cafe) is an
establishment that offers games of chance with
prizes in conjunction with other services, like
Internet access or telephone cards.[1] Although
often seen as gambling, owners of sweepstakes
parlors claim to operating under sweepstakes law
and thus legal because the winners are
predetermined and the entries are offered in
conjunction with the purchase of a product.
According to such laws sweepstakes parlors do
not meet a 3 prong test for gambling:
1. prize
2. chance
37
Games on Sweepstakes
38
Actual Café in PA
39
BINGO
40
Bingo Act
•
•
•
41
“Bingo” is identified as a game in which each player has a card or board
containing five horizontal rows, all but the central one containing five figures.
The central row has four figures with the word “free” marked in the center
thereof. Any pre-announced combination of spaces when completed by a
player constitutes bingo. In the absence of a preannouncement of a
combination of spaced, any combination of five in a row whether horizontal or
vertical when completed by a player constitutes bingo when its numbers are
announced and covered. A wheel or other mechanical device may be used by
any person conducting the game of bingo, and any such person may award a
prize to any player or players first completing any combination constituting
bingo.
NOTE: Any deviation from this definition, such as video bingo or instant bingo
ticket does not meet the above definition and are not approved games under
the Bingo Act.
Bingo Act
• Under Title 40, Section 5.32-4(i)(ii),
bingo can be conducted as an
event/tournament/or contest on any
licensed premises as long as the
association that holds the bingo permit
is a bona fide charitable organization
registered with the Pennsylvania
Department of State.
42
Requirements
Each bingo permit allows for bingo to be conducted two times a week. A facility can host up to
two bingo permits for a total of four bingo sessions per week. In addition, an association shall
be further permitted to conduct the game of bingo for a period not to exceed ten days at the
association’s exposition, carnival, or fair site.
Each association shall keep written records of the total proceeds collected, the total prize
money distributed, the total value of all merchandise awarded as a prize, and the amount of
moneys paid as rentals or wages, and to whom such rentals or wages were paid. All prizes
awarded having a value greater than $250.00 shall be specifically described in the association’s
records.
Prizes awarded shall not exceed a value of $250.00 for any one game of bingo, except for
jackpot games, which shall not exceed a value of $2,000.00 for one such game. In addition, no
more than $4,000.00 in prizes shall be awarded in any calendar day.
Each association shall deposit with a financial institution all proceeds for each day’s bingo
game in an account in the association’s name. This deposit shall be made before any of the
proceeds may be used for any other purpose, except for payment of prize money and
compensation to members employed in the operation of the game.
43
Bingo
44
•
Funds derived from the operation of the game of bingo are to be used to support the nonprofit purposes of the association.
•
No association shall permit any person who is not a bona fide member of the association
or who has been convicted of a felony or a violation of this act to manage, set up,
supervise or participate in the operation of the association’s bingo games. Nothing
contained in this act shall be construed to prohibit individuals under 18 years of age from
participating in the operation of the game and being compensated if written permission is
obtained from their parent or guardian.
•
No person shall participate in the operation of bingo games on more than four days in any
calendar week, except at expositions, carnivals, or fairs where merchandise is being
awarded as a prize.
•
No person may be employed in the operation or the actual running of a bingo game for
compensation greater than $50.00 per day, except employees of outside operators. Any
person compensated shall be paid individually by check or by cash, in which case the
payee shall sign a written receipt. In addition, no person shall receive compensation from
more than one source for services rendered in the operation of a bingo game.
Bingo
45
•
No person under the age of 18 shall be permitted to play bingo unless accompanied by an
adult.
•
Only associations licensed to conduct bingo shall be permitted to advertise their bingo
games. Such advertisements shall contain the date, time, location, whether cash or
merchandise prizes will be awarded, and the name of the association licensed to conduct
the bingo game and the name of the individual in charge of the operation of the game. An
association shall not advertise the prizes which will be awarded, or their dollar value, nor
shall they advertise a guaranteed prize dollar value.
•
The association shall own both the premises upon with the bingo is played and the
personal property used in the conduct of the game, or shall sign a written agreement
leasing such premises or personal property from the owner for a fee. The fee may not be
determined by either the amount of receipts realized from the playing of bingo or the
number of people attending bingo games. An association shall not lease such premises or
personal property from any person who has been convicted of a felony of a violation of the
Bingo Act.
•
No supplier of merchandise, nor any person who has been convicted of a felony or a
violation of this act, shall have a pecuniary interest in the operation of or proceeds from the
bingo game.
Electronic Bingo
Legal or Illegal?
46
Electronic Bingo
• Answer: Illegal
• This is a unlawful gambling device
disguised as a Bingo machine.
• No skill, push a button, win or loose.
47
THE SMALL GAMES
OF CHANCE ACT
Gateway to gambling?
48
ORIGIN AND PURPOSE
• The Pennsylvania Local Option Small Games of
Chance Act (the Act) was passed in 1988.
• The Act permits certain eligible organizations, “to
conduct small games of chance for the purpose of
raising funds for the promotion of public interest
purposes.
• The Department of Revenue promulgates regulations
pursuant to the Act .
• Significant changes made by Act 2 of 2012.
LEGISLATIVE
INTENT
§ 312. Legislative intent
The General Assembly hereby declares that the playing of small games of
chance for the purpose of raising funds, by certain nonprofit
associations, for the promotion of charitable or civic purposes, is in the
public interest. In some cases the proceeds from games of chance may
be utilized to support certain operating expenses of certain organizations.
It is hereby declared to be the policy of the General Assembly that all
phases of licensing, operation and regulation of small games of chance
be strictly controlled, and that all laws and regulations with respect
thereto as well as all gambling laws should be strictly construed and
rigidly enforced.
The General Assembly recognizes the possibility of association between
commercial gambling and organized crime, and wishes to discourage
commercialization of small games of chance, prevent participation by
organized crime and prevent the diversion of funds from the purposes
herein authorized.
(EMPHASIS ADDED)
TYPES OF LICENSES
• “Regular” License – issued to eligible organizations
which own their own premise or lease a specific
location to conduct normal business. Permits holders
to operate SGOC during entire licensing year.
• Limited Occasion License – issued to eligible
organizations which do not own their own premises or
which do not lease a specific location to conduct their
normal business.
– no more than three occasions covering a total of seven days a
year.
– no more than two raffles during a licensed year where prizes
may not exceed the established limits for regular monthly
raffles.
•
THE SMALL GAMES
OF CHANCE ACT
OPERATION OF GAMES
52
OPERATION OF GAMES
• Only licensed eligible organizations or
auxiliary group managers, officers, directors,
bar personnel or bona fide members of the
licensed eligible organization may conduct
games of chance.
• A person may not be compensated
conducting games of chance.
– Example: seller of winning ticket wins a prize or a
prize is provided to the top ticket seller.
PERMITTED GAMES
• The Act is very specific as to the games of
chance that are permitted. They are:
–
–
–
–
–
Punchboards
Pull-Tabs
Raffles (including lotteries)
Daily Drawings
Weekly Drawings
NO OTHER GAMES ARE PERMITTED
BY THE ACT
OPERATION OF GAMES
• Only licensed eligible organizations or
auxiliary group managers, officers, directors,
bar personnel or bona fide members of the
licensed eligible organization may conduct
games of chance.
• A person may not be compensated
conducting games of chance.
– Example: seller of winning ticket wins a prize or a
prize is provided to the top ticket seller.
OPERATION OF GAMES
(CONTINUED)
• No person under the age
of 18 may operate or
participate in S.G.O.C.
• No one visibly
intoxicated may
purchase or sell a
chance.
OPERATION OF GAMES
(CONTINUED)
• An officer or employee of a club licensee
who operates a game of chance shall not
participate in the game. [§502(B)(2)]
– This does not apply to a raffle.
• Interpretation of subsection 502(B)(2):
– The apparent intent of this subsection of the Act is to
prohibit persons with inside knowledge, influence or control
of a game from participating in that game in an effort to
prevent any fraudulent or criminal activities.
OPERATION OF GAMES
(CONTINUED)
• No person who has be convicted of a
Felony within the last five years or of a
violation of the S.G.O.C. Act or Bingo Act
within the past ten years may:
– Manage S.G.O.C.
– Set-up S.G.O.C.
– Supervise S.G.O.C.
– Participate in the operation of S.G.O.C.
OPERATION OF GAMES
• Only licensed eligible organizations or
auxiliary group managers, officers, directors,
bar personnel or bona fide members of the
licensed eligible organization may conduct
games of chance.
• A person may not be compensated
conducting games of chance.
– Example: seller of winning ticket wins a prize or a
prize is provided to the top ticket seller.
OPERATION OF GAMES
(CONTINUED)
• No person under the age
of 18 may operate or
participate in S.G.O.C.
• No one visibly
intoxicated may
purchase or sell a
chance.
THE SMALL GAMES
OF CHANCE ACT
USE OF PROCEEDS
61
USE OF PROCEEDS
PROCEEDS - Defined in the Act as the
difference between:
– the actual gross revenue collected by a licensed
eligible organization from a game of chance; and
– the actual amount of prizes paid by a licensed
eligible organization from a game of chance, plus
the cost to purchase games of chance.
Proceeds are to be maintained in a
Separate bank account.
USE OF PROCEEDS
(CONTINUED)
• The proceeds from the operation of
small games of chance may be used
only for three purposes:
– purchase of small games of chance.
– public interest purposes.
– Certain operating expenses of certain
eligible organizations.
• Public interest purposes are defined in
the Act as:
USE OF PROCEEDS
(CONTINUED)
1. The activities and operations of a nonprofit
benevolent, religious, educational,
philanthropic, humane, scientific, patriotic,
social welfare, social advocacy, public health,
public safety, emergency response,
environmental or civic objective.
2. Initiating, performing or fostering worthy
public works or enabling or furthering the
erection or maintenance of public structures.
USE OF PROCEEDS
(CONTINUED)
3. Lessening the burdens borne by
government or voluntarily supporting,
augmenting or supplementing services
which the government would normally
render to the people.
4. Improving, expanding, maintaining or
repairing real property owned or leased by
an eligible organization and relating
operational expenses used for purposes
specified in paragraphs (1), (2) and (3).
– The term does not include the erection or
acquisition of any real property, unless the
property will be used exclusively for one or more
of the purposes specified in this definition.
USE OF PROCEEDS
CLUB LICENSEES
The proceeds from games of chance received
by a club licensee shall be distributed as
follows:
– No less than 70% of the proceeds shall be paid to
organizations for public interest purposes in the
calendar year in which the proceeds were
obtained.
– No more than 30% of the proceeds obtained in a
calendar year may be retained by a club licensee
and used for certain operational expenses relating
to the club licensee.
USE OF PROCEEDS
CLUB LICENSEES
• Approved “operational expenses”:
–
–
–
–
–
–
–
Real property taxes.
Utility and fuel costs.
Heating and air conditioning equipment or repair costs.
Water and sewer costs.
Property or liability insurance costs.
Mortgage payments.
Interior and exterior repair costs, including repair to parking
lots.
– New facility construction costs.
– Entertainment equipment, including television, video and
electronic games.
USE OF PROCEEDS
CLUB LICENSEES
• PROCEEDS FROM SGOC SHALL NOT
BE UTILIZED FOR:
– WAGES
– ALCOHOL OR FOOD PURCHASES
– FOR THE PAYMENT OF ANY FINE LEVIED
AGAINST THE CLUB LICENSEE.
EXAMPLES OF “PUBLIC
INTEREST PUPOSE” EXPENSES
• Support of youth programs
– e.g. sports, youth centers, etc.
• Donations to food pantries
• Community projects
• Donation to certain charitable or non-profit
organizations
– “Non-profit” does not necessarily indicate an
organization serves a “public interest purpose.”
• Purchase of fire and rescue equipment
THE SMALL GAMES
OF CHANCE ACT
PRIZE LIMITS
70
PRIZE LIMITS
• General Prize limits – All games of
chance EXCEPT weekly drawings:
– $1,000 for single chance.
– $25,000 total for operating week.
• Listed in the Act as the “Aggregate Prize Limit”
• Weekly drawings are only limited by the
$25,000 weekly limit.
PRIZE LIMITS
(CONTINUED)
• Prize limit for raffles:
– $10,000 per month
• Exception – Special Raffles
–
–
–
–
$100,000 per year. ($150,000 for certain organizations)
No $1,000 limit on individual chance.
Not added to weekly prize total.
Not available to Limited Occasion Licensees.
• There are other exceptions for Daily and
Weekly Drawing prizes under specific
circumstances.
THE SMALL GAMES
OF CHANCE ACT
DISCUSSION OF
INDIVIDUAL GAMES
73
DAILY DRAWINGS
• Term includes Sign-in Drawings and Half-and
Half Drawings.
• Requirements:
– Chances may only be purchased by bona fide
members.
– May only be sold on the licensed premises.
– No more than $1 per chance.
– No more than one chance per member.
– Drawing MUST be conducted during same
operating day in which chances were sold.
– No requirement that person be present.
• May not reduce prize if winner is not present .(§901.784)
DAILY DRAWINGS
(CONTINUED)
• BONA FIDE MEMBER
– Any individual who holds a membership in
the eligible organization as defined by that
organization's constitution, charter,
articles of incorporation or bylaws.
• Social members may or may not be “bona fide
members.”
• Ensure by-laws permit social members.
• In most cases, bona fide members have voting
rights and may hold office.
DAILY DRAWINGS
(CONTINUED)
• Daily Drawing prize limits
– Generally subject to $1,000/chance limit
and prizes are added when calculating
$25,000/week prize limit.
– EXCEPTIONS:
• Prize may exceed the $1,000 per chance limit if
a portion of the prize is a “carryover” of a
drawing with no winner.
• Not applicable if no drawing is held or if
chances are sold for more than $1.
DAILY DRAWINGS
(CONTINUED)
• PRIZE LIMIT EXCEPTIONS (continued)
– Prizes in daily drawings may cause an
organizations prize total to exceed the
$25,000 weekly limit if the drawing is set up
to pay out 100% of the gross revenues.
• In this case, the prizes are not added to the
weekly total.
• Such prizes may not, however, exceed the $1,000
per chance limit unless it is paid pursuant to a
“carryover” drawing.
– The rules of the game must be prominently
displayed.
WEEKLY DRAWINGS
• Requirements:
– Chances may only be purchased by bona fide
members.
– May only be sold on the licensed premises.
– No more than $1 per chance.
– One drawing per operating week.
• Drawing MUST be conducted during same operating
week in which chances were sold.
– More than one chance per member permitted.
– No requirement that person be present.
• May not reduce prize if winner is not present.
WEEKLY DRAWINGS
(CONTINUED)
• Weekly Drawing prize limits:
– Prize may exceed $1,000 per chance limit.
– Generally prizes in a weekly drawing are added
when calculating weekly prized totals. ($25,000
per week limit.)
– EXCEPTION
• A weekly drawing may also exceed the $25,000 prize
limit if it is set up to pay out 100% of the revenues
generated.
– In this case, the prizes are not added when calculating the
organization’s weekly prize total.
• Not applicable if chances are sold for more than $1.
PUNCHBOARDS
A Punchboard must comply with the
following:
– Must be purchased from licensed distributor.
– Minimum 60% payout.
– Winning punchboard plays should be
perforated, punched or marked when
redeemed.
– Prize for individual punch may not exceed
$1,000.
– Flare provided by manufacturer must be
unaltered and on display.
• Substitute flare may be displayed if it meets all
requirements.
– All winners must be predetermined by the
manufacturer
PULL-TABS
• A pull-tab deal must comply with the
following:
– Must be purchased from licensed
distributor.
– Minimum 65% payout.
– Prize for individual pull-tab may not exceed
$1,000.
– Flare provided by manufacturer must be
unaltered and on display.
• Substitute flare may be displayed if it meets
all requirements.
– No more than 4,000 pull-tabs per deal.
– Only one flare displayed per deal.
– Winners and prizes must be predetermined
by the manufacturer.
PULL-TABS
(CONTINUED)
– Winning pull-tabs should be
perforated, punched or marked
when redeemed.
Tip Boards are a form of pull-tab
– Must meet all requirements for
pull-tabs.
– Prizes must be predetermined by
manufacturer.
82
RAFFLES
• Two types:
– Regular Raffle
• Prizes counted towards $25,000 weekly limit.
• Limited to $10,000 per month in prizes.
– Special Permit Raffle
• Licensed organizations may apply for eight per year.
– Ten for fire, ambulance and rescue organizations.
• May award a total of $100,000 in prizes per year total.
– $150,000 for fire, ambulance and rescue organizations.
• Prizes do not count towards weekly prize limits.
83
RAFFLES
(CONTINUED)
• Both types of raffles must comply with the
following:
– Tickets
• Must be sequentially numbered and have a detachable
stub with the same number.
• Must be accounted for by the use of a logbook showing
to whom they were given to be sold.
• Stub must contain the purchaser’s name address and
phone number.
• Must contain:
–
–
–
–
The date time and location of drawing
The name of the licensee
SGOC license number
Special raffle permit number if applicable.
RAFFLES
(CONTINUED)
– Tickets (con’t)
• Must list the cost of the ticket and the available prizes.
• There must be a winner in a raffle.
• Drawing must be conducted in plain view of players
present.
– Use of state lottery number is permissible.
• Only when tickets sales equal the total possible numbers.
• E.g. 1000 tickets must be sold to utilize the daily number.
• Winners need not be present.
• Tickets do not have to be purchased from licensed
distributors.
THE SMALL GAMES
OF CHANCE ACT
LICENSED PREMISES AND
LOCATION OF GAMES
86
LICENSED PREMISES AND
LOCATION OF GAMES
• GENERAL RULE
– Games of chance may only be
conducted on the licensed eligible
organizations licensed premises.
• Address / location on SGOC license.
• Eligible organization may not share the
same premise.
– One license per location.
LICENSED PREMISES AND
LOCATION OF GAMES
(CONTINUED)
• When a premises exists, the eligible
organization shall identify its licensed
premises on its license application.
– When a premises consists of more than
one building, the organization must
indicate the specific building where the
game will be conducted.
LICENSED PREMISES AND
LOCATION OF GAMES
(CONTINUED)
• When a organization does not own or lease
a specific location to conduct its normal
business, they may obtain a Limited
Occasion License and utilize another
licensed (SGOC) organization’s premises to
conduct games or enter into a written lease
agreement at an unlicensed location.
– In cases were an organization uses the premises of
another, the “host” organization may not operate
SGOC at the same time.
LICENSED PREMISES AND
LOCATION OF GAMES
(CONTINUED)
• A licensed eligible organization may
not permit another licensed eligible
organization holding a SGOC license to
conduct games of chance on their
licensed premise.
– Does not apply to limited occasion
licensees.
LICENSED PREMISES AND
LOCATION OF GAMES
(CONTINUED)
• EXCEPTIONS
– Raffle tickets may be sold in any
municipality that has approved a
small games of chance referendum.
• If an licensed organization plans to sell
raffle tickets in a county other than
that in which it is licensed, they must
notify the District Attorney and
licensing authority of the other county
as to the dates and location of sales.
LICENSED PREMISES AND
LOCATION OF GAMES
(CONTINUED)
• EXCEPTIONS: (CONTINUED)
– Annual Carnivals, Fairs, Picnics or Banquets
• A licensed eligible organization may conduct games
of chance at a location off its premises when they
are part of an annual carnival, fair, picnic or banquet
held or participated in by that licensed eligible
organization on a historical basis.
– Notification in writing to the district attorney and licensing
authority.
– Notification must include the location, date and times of
the event.
ENFORCEMENT
• District Attorneys and other law
enforcement officials investigate
criminal violations of the Act.
• The Act provides for criminal penalties
and SGOC permit suspensions for
violations.
93
PENALTIES
Eligible organizations
• An eligible organization violating the act is
guilty of a summary offense, and shall pay a
fine of up to $1000 and:
– 1st offense – forfeit its license for remainder of
the license term or six months, whichever is
longer.
– 2nd or subsequent offense - forfeit its license for
the remainder of the license term and be ineligible
to be licensed for the following license term
– 3rd or subsequent offense, forfeit its license and
be ineligible for a license renewal for 30 months
thereafter.
94
In Conclusion…
• Gambling is a growing problem in
Pennsylvania
• The problem is exacerbated by
improper Small Games of Chance
activity.
• Eligible organizations have a
responsibility to adhere to all laws and
regulations.
• Awareness is the key
95
QUESTIONS?
96
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