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SMALL GAMES SMALL GAMES OF CHANCEOF CHANCE

Presented by thePresented by the

Pennsylvania State PolicePennsylvania State PoliceBureau of Liquor Control EnforcementBureau of Liquor Control Enforcement

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OVERVIEWOVERVIEW• GamblingGambling– DefinitionDefinition– Legal vs. Illegal GamblingLegal vs. Illegal Gambling– Licensed PremisesLicensed Premises

• Small Games of Chance ActSmall Games of Chance Act– Origin and PurposeOrigin and Purpose– Permitted GamesPermitted Games– Use of ProceedsUse of Proceeds– Prize LimitsPrize Limits

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OVERVIEWOVERVIEW(CONTINUED)(CONTINUED)

– Discussion of Individual GamesDiscussion of Individual Games– Licensed Premises and Location of GamesLicensed Premises and Location of Games– Record Keeping RequirementsRecord Keeping Requirements– EnforcementEnforcement– PenaltiesPenalties

• QUESTION AND ANSWER PERIODQUESTION AND ANSWER PERIOD

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GAMBLINGGAMBLING

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GAMBLINGGAMBLING

• Gambling is not specifically defined by Gambling is not specifically defined by Statute in PennsylvaniaStatute in Pennsylvania

• Instead we have to refer to Court Cases Instead we have to refer to Court Cases to define gamblingto define gambling

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GAMBLINGGAMBLINGTHE PENNSYLVANIA COURTS HAVE THE PENNSYLVANIA COURTS HAVE DETERMINED THAT GAMBLING CONSISTS DETERMINED THAT GAMBLING CONSISTS OF THREE BASIC ELEMENTS:OF THREE BASIC ELEMENTS:(PLCB V. PPC CIRCUS BAR, INC.)(PLCB V. PPC CIRCUS BAR, INC.)

CONSIDERATIOCONSIDERATIONN

+ + CHANCECHANCE

++ REWARD REWARD ==

GAMBLINGAMBLINGG

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ELEMENTS OF GAMBLINGELEMENTS OF GAMBLING• A look at each of the three elements A look at each of the three elements

individually:individually:

– ConsiderationConsideration– ChanceChance– RewardReward

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CONSIDERATIONCONSIDERATION• COST TO BEGIN PLAY OR EVENTCOST TO BEGIN PLAY OR EVENT– BETBET– WAGERWAGER

• EXAMPLESEXAMPLES– BLOCK PURCHASE IN POOLBLOCK PURCHASE IN POOL– ““BUY-IN” IN POKER TOURNAMENT BUY-IN” IN POKER TOURNAMENT – PURCHASE OF PULL TABPURCHASE OF PULL TAB– MONEY IN SLOT MACHINEMONEY IN SLOT MACHINE

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CHANCECHANCE• EVENT OUTCOME BASES WHOLLY OR EVENT OUTCOME BASES WHOLLY OR

PREDOMINANTLY ON CHANCEPREDOMINANTLY ON CHANCE– LITTLE OR NO SKILLLITTLE OR NO SKILL

• EXAMPLESEXAMPLES– ROLL OF DICE OR TURN OF CARDROLL OF DICE OR TURN OF CARD– RESULT OF RACE OR SPORTING EVENTRESULT OF RACE OR SPORTING EVENT

• SKILL – MOST ARGUED DEFENSESKILL – MOST ARGUED DEFENSE– TO BE CONSIDERED A SKILL, A PERSON WOULD HAVE TO BE CONSIDERED A SKILL, A PERSON WOULD HAVE

TO BE ABLE TO MASTER THE GAMETO BE ABLE TO MASTER THE GAME– DARTS, BILLIARDS, ETC.DARTS, BILLIARDS, ETC.– PLAYING POKER MAY INVOLVE SOME SKILL OR PLAYING POKER MAY INVOLVE SOME SKILL OR

KNOWLEDGE, HOWEVER THE CARDS ARE STILL DEALT KNOWLEDGE, HOWEVER THE CARDS ARE STILL DEALT RANDOMLYRANDOMLY

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REWARDREWARD• RETURN TO PLAYER FOR WINNING RETURN TO PLAYER FOR WINNING

EVENTEVENT– MAY BE CASH, MERCHANDISE, SERVICE MAY BE CASH, MERCHANDISE, SERVICE

OR ANYTHING OF VALUEOR ANYTHING OF VALUE• IF VALUE OF PRIZE IS LESS THAN OR IF VALUE OF PRIZE IS LESS THAN OR

EQUAL TO THE CONSIDERATION EQUAL TO THE CONSIDERATION THEN THE CONTEST IS NOT THEN THE CONTEST IS NOT GAMBLINGGAMBLING– E.G. DUCK POND GAMEE.G. DUCK POND GAME

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Legal vs. Illegal GamblingLegal vs. Illegal Gambling• Currently, the authorized and only legal Currently, the authorized and only legal

forms of gambling in Pennsylvania are:forms of gambling in Pennsylvania are:– Gambling activities conducted pursuant to the Gambling activities conducted pursuant to the

Horse Racing Industry Reform Act.Horse Racing Industry Reform Act.– Pennsylvania LotteryPennsylvania Lottery– Bingo conducted pursuant to the Bingo LawBingo conducted pursuant to the Bingo Law– Gambling activities conducted pursuant to the Gambling activities conducted pursuant to the

Local Option Small Games of Chance ActLocal Option Small Games of Chance Act– Gambling activities conducted pursuant to the Gambling activities conducted pursuant to the

Pennsylvania Race Horse Development and Pennsylvania Race Horse Development and Gaming Act (slots).Gaming Act (slots).

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Legal vs. Illegal GamblingLegal vs. Illegal Gambling(continued)(continued)

• The Courts have also decided in various The Courts have also decided in various cases that a “neighborhood poker game” is cases that a “neighborhood poker game” is which the house does not take a cut is an which the house does not take a cut is an acceptable activity.acceptable activity.– Wording is very subjectiveWording is very subjective– Courts have considered the number of players in Courts have considered the number of players in

the gamethe game• If the house take a “cut” of the pot, the If the house take a “cut” of the pot, the

activity is illegal.activity is illegal.– House of gamblingHouse of gambling

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COMMON ILLEGAL GAMBLING COMMON ILLEGAL GAMBLING ACTIVITIESACTIVITIES

• Texas Hold’em TournamentsTexas Hold’em Tournaments• ““Night at the Races”Night at the Races”• ““50/50 Drawings”50/50 Drawings”• Casino NightsCasino Nights• Pools – football, basketball, NASCAR, etc.Pools – football, basketball, NASCAR, etc.• Various dice gamesVarious dice games• ““Chuck-a-luck Wheel”Chuck-a-luck Wheel”• Video Gambling Devices - video poker or slotsVideo Gambling Devices - video poker or slotsNONE OF THESE ACTIVITIES ARE AUTHORIZED NONE OF THESE ACTIVITIES ARE AUTHORIZED

BY THE SMALL GAMES OF CHANCE ACTBY THE SMALL GAMES OF CHANCE ACT

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GAMBLING ON LICENSED GAMBLING ON LICENSED PREMISESPREMISES

• Generally, the five forms of gambling Generally, the five forms of gambling previous described are permitted on previous described are permitted on licensed premises with the proper licensed premises with the proper license or authority.license or authority.– State Lottery, Horse Racing, Bingo, SGOC State Lottery, Horse Racing, Bingo, SGOC

& Slots& Slots• However, these are the However, these are the onlyonly forms of forms of

gambling (legal or illegal) permitted on gambling (legal or illegal) permitted on a licensed premises.a licensed premises.

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GAMBLING ON LICENSED GAMBLING ON LICENSED PREMISESPREMISES

(continued)(continued)

• Even activities that would be Even activities that would be permissible elsewhere, are not permissible elsewhere, are not permitted on licensed establishments.permitted on licensed establishments.– Examples:Examples:• ““Neighborhood Poker Game”Neighborhood Poker Game”• Sale of raffle tickets (with no SGOC license)Sale of raffle tickets (with no SGOC license)• Various fund raising activities conducted by Various fund raising activities conducted by

pool or dart leagues. pool or dart leagues.

• Commonwealth vs. KehlerCommonwealth vs. Kehler

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THE SMALL GAMES THE SMALL GAMES OF CHANCE ACTOF CHANCE ACT

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ORIGIN AND PURPOSEORIGIN AND PURPOSE

• The Pennsylvania Local Option Small Games The Pennsylvania Local Option Small Games of Chance Act (the Act) was passed in 1988.of Chance Act (the Act) was passed in 1988.

• The Act permits certain eligible The Act permits certain eligible organizations, “to conduct small games of organizations, “to conduct small games of chance for the purpose of raising funds for chance for the purpose of raising funds for the promotion of “public interest purposes.” the promotion of “public interest purposes.”

• The Department of Revenue promulgates The Department of Revenue promulgates regulations pursuant to the Act .regulations pursuant to the Act .

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LEGISLATIVE INTENTLEGISLATIVE INTENT§ 312. § 312. Legislative intentLegislative intent

The General Assembly hereby declares that the playing of small The General Assembly hereby declares that the playing of small games of chance for the purpose of raising funds, by certain games of chance for the purpose of raising funds, by certain nonprofit associations, nonprofit associations, for the promotion of charitable or civic for the promotion of charitable or civic purposespurposes, is in the public interest., is in the public interest.

It is hereby declared to be the policy of the General Assembly that It is hereby declared to be the policy of the General Assembly that all phases of licensing, operation and regulation of small games of all phases of licensing, operation and regulation of small games of chance be chance be strictly controlledstrictly controlled, and that all laws and regulations with , and that all laws and regulations with respect thereto as well as all gambling laws respect thereto as well as all gambling laws should be strictly should be strictly construed and rigidly enforced.construed and rigidly enforced.

The General Assembly recognizes the possibility of association The General Assembly recognizes the possibility of association between commercial gambling and organized crime, and wishes to between commercial gambling and organized crime, and wishes to discourage commercialization of small games of chance, prevent discourage commercialization of small games of chance, prevent participation by organized crime and prevent the diversion of participation by organized crime and prevent the diversion of funds from the purposes herein authorized.funds from the purposes herein authorized.

(EMPHASIS ADDED)(EMPHASIS ADDED)

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PERMITTED GAMESPERMITTED GAMES• The Act is very specific as to the type of The Act is very specific as to the type of

games that are permitted. They are:games that are permitted. They are:– PunchboardsPunchboards– Pull-TabsPull-Tabs– Raffles (including lotteries)Raffles (including lotteries)– Daily DrawingsDaily Drawings– Weekly DrawingsWeekly Drawings

NO OTHER GAMES ARE PERMITTED BY THE ACTNO OTHER GAMES ARE PERMITTED BY THE ACT

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OPERATION OF GAMESOPERATION OF GAMES• Only licensed eligible organizations or Only licensed eligible organizations or

auxiliary group managers, officers, directors, auxiliary group managers, officers, directors, bar personnel or bona fide members of the bar personnel or bona fide members of the licensed eligible organization may conduct licensed eligible organization may conduct games of chance.games of chance.

• A person may not be compensated A person may not be compensated conducting games of chance. conducting games of chance.

• No person under the age of 18 may operate No person under the age of 18 may operate or participate in S.G.O.C.or participate in S.G.O.C.

• No one visibly intoxicated may purchase or No one visibly intoxicated may purchase or sell a chance.sell a chance.

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OPERATION OF GAMESOPERATION OF GAMES(CONTINUED)(CONTINUED)

• No person who has be convicted of a No person who has be convicted of a Felony within the last five years or of a Felony within the last five years or of a violation of the S.G.O.C. Act or Bingo violation of the S.G.O.C. Act or Bingo Act within the past ten years may:Act within the past ten years may:

– Manage S.G.O.C.Manage S.G.O.C.– Set-up S.G.O.C.Set-up S.G.O.C.– Supervise S.G.O.C.Supervise S.G.O.C.– Participate in the operation of S.G.O.C.Participate in the operation of S.G.O.C.

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USE OF PROCEEDSUSE OF PROCEEDS• The proceeds from the operation of The proceeds from the operation of

small games of chance may be used small games of chance may be used only for two purposes:only for two purposes:– purchase of small games of chance.purchase of small games of chance.– public interest purposes.public interest purposes.

• Public interest purposes are defined by Public interest purposes are defined by the Act as:the Act as:

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USE OF PROCEEDSUSE OF PROCEEDS(CONTINUED)(CONTINUED)

A.A. Benefiting persons by enhancing their Benefiting persons by enhancing their opportunity for religious or educational opportunity for religious or educational advancement, by relieving or protecting them advancement, by relieving or protecting them from disease, suffering or distress, by from disease, suffering or distress, by contributing to their physical, emotional or contributing to their physical, emotional or social well-being, by assisting them in social well-being, by assisting them in establishing themselves in life as worthy and establishing themselves in life as worthy and useful citizens or by increasing their useful citizens or by increasing their comprehension of and devotion to the comprehension of and devotion to the principles upon which this nation was principles upon which this nation was founded. founded.

B.B. Initiating, performing or fostering worthy Initiating, performing or fostering worthy public works or enabling or furthering the public works or enabling or furthering the erection or maintenance of public structures. erection or maintenance of public structures.

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USE OF PROCEEDSUSE OF PROCEEDS(CONTINUED)(CONTINUED)

C.C. Lessening the burdens borne by Lessening the burdens borne by government or voluntarily supporting, government or voluntarily supporting, augmenting or supplementing services augmenting or supplementing services which the government would normally which the government would normally render to the people. render to the people.

D.D. Improving, expanding, maintaining or Improving, expanding, maintaining or repairing real property owned or leased by repairing real property owned or leased by an eligible organization and used for an eligible organization and used for purposes specified in clauses (A)—(C). purposes specified in clauses (A)—(C). – The term does not include the erection or The term does not include the erection or

acquisition of any real property, unless the acquisition of any real property, unless the property will be used exclusively for one or more property will be used exclusively for one or more of the purposes specified in this definition. of the purposes specified in this definition.

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IMPROPER USE OF PROCEEDSIMPROPER USE OF PROCEEDS

• PayrollPayroll• Property TaxesProperty Taxes• UtilitiesUtilities• Beer / Wine / LiquorBeer / Wine / Liquor• Operating SuppliesOperating Supplies• Amusement / EntertainmentAmusement / Entertainment• Property / Fire InsuranceProperty / Fire Insurance

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APPROPRIATE USE OF APPROPRIATE USE OF PROCEEDSPROCEEDS

• Support of youth programs e.g. sports, Support of youth programs e.g. sports, youth centers, etc.youth centers, etc.

• Donations to food pantriesDonations to food pantries• Community projectsCommunity projects• Donation to certain charitable or non-profit Donation to certain charitable or non-profit

organizationsorganizations• Purchase of fire and rescue equipmentPurchase of fire and rescue equipment• Required building repairs and maintenance.Required building repairs and maintenance.– If structure is used for “Public Interest Purposes.”If structure is used for “Public Interest Purposes.”

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PRIZE LIMITSPRIZE LIMITS• General Prize limits – All games of General Prize limits – All games of

chance EXCEPT weekly drawings:chance EXCEPT weekly drawings:– $500 for single chance.$500 for single chance.– $5,000 total for operating week.$5,000 total for operating week.

• Weekly drawings are only limited by the Weekly drawings are only limited by the $5,000 weekly limit.$5,000 weekly limit.

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PRIZE LIMITSPRIZE LIMITS(CONTINUED)(CONTINUED)

• Prize limit for raffles:Prize limit for raffles:– $5,000 per month$5,000 per month

• Exception – Special Raffles Exception – Special Raffles – $100,000 per year.$100,000 per year.– No $500 limit on individual chance.No $500 limit on individual chance.– Not added to weekly prize totalNot added to weekly prize total

• There are other exceptions for Daily There are other exceptions for Daily and Weekly Drawing prizes under and Weekly Drawing prizes under specific circumstances.specific circumstances.

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DISCUSSION OF DISCUSSION OF INDIVIDUAL GAMESINDIVIDUAL GAMES

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DAILY DRAWINGSDAILY DRAWINGS• Term includes Sign-in Drawings and Half-and Term includes Sign-in Drawings and Half-and

Half Drawings.Half Drawings.• Requirements:Requirements:– Chances may only be purchased by Chances may only be purchased by bona fide bona fide

members.members.– May only be sold on the licensed premises.May only be sold on the licensed premises.– No more than $1 per chance.No more than $1 per chance.– No more than one chance per member.No more than one chance per member.– One drawing per operating day.One drawing per operating day.– No requirement that person be present.No requirement that person be present.

• May not reduce prize if winner is not present .(May not reduce prize if winner is not present .(§901.784)§901.784)– May not be conducted during a week in which a May not be conducted during a week in which a

weekly drawing is conducted.weekly drawing is conducted.

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DAILY DRAWINGSDAILY DRAWINGS(CONTINUED)(CONTINUED)

• BONA FIDE MEMBERBONA FIDE MEMBER– Any individual who holds a membership in Any individual who holds a membership in

the eligible organization as defined by that the eligible organization as defined by that organization's constitution, charter, organization's constitution, charter, articles of incorporation or bylaws. articles of incorporation or bylaws. • Social members may or may not be “bona fide Social members may or may not be “bona fide

members.”members.”• Ensure by-laws permit social members.Ensure by-laws permit social members.• In most cases, bona fide members have voting In most cases, bona fide members have voting

rights and may hold office.rights and may hold office.

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DAILY DRAWINGSDAILY DRAWINGS(CONTINUED)(CONTINUED)

• Daily Drawing prize limitsDaily Drawing prize limits– Subject to $500/chance $5,000/week prize Subject to $500/chance $5,000/week prize

limits.limits.

– EXCEPTIONS:EXCEPTIONS:• Prize may exceed the $500 per chance limit if a Prize may exceed the $500 per chance limit if a

portion of the prize is a “carryover” of a portion of the prize is a “carryover” of a drawing with drawing with nono winner. winner.

• Not applicable if no drawing is held or if Not applicable if no drawing is held or if chances are sold for more than $1.chances are sold for more than $1.

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DAILY DRAWINGSDAILY DRAWINGS(CONTINUED)(CONTINUED)

• PRIZE LIMIT EXCEPTIONS PRIZE LIMIT EXCEPTIONS (continued)(continued)

– Prizes may cause an organizations prize Prizes may cause an organizations prize total to exceed the $5,000 weekly limit if the total to exceed the $5,000 weekly limit if the drawing is set up to pay out 100% of the drawing is set up to pay out 100% of the gross revenues. gross revenues. • In this case, the prizes are not added to the In this case, the prizes are not added to the

weekly total.weekly total.• Such prizes may not, however, exceed the $500 Such prizes may not, however, exceed the $500

per chance limit unless it is paid pursuant to a per chance limit unless it is paid pursuant to a “carryover” drawing.“carryover” drawing.

– The rules of the game must be prominently The rules of the game must be prominently displayed.displayed.

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WEEKLY DRAWINGSWEEKLY DRAWINGS• Requirements:Requirements:– Chances may only be purchased by Chances may only be purchased by bona fide bona fide

members.members.– May only be sold on the licensed premises.May only be sold on the licensed premises.– No more than $1 per chance.No more than $1 per chance.– More than one chance per member permitted.More than one chance per member permitted.– No requirement that person be present.No requirement that person be present.

• May not reduce prize if winner is not present.May not reduce prize if winner is not present.– May not be conducted during a week in which a May not be conducted during a week in which a

daily drawings are conducted.daily drawings are conducted.

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WEEKLY DRAWINGSWEEKLY DRAWINGS(CONTINUED)(CONTINUED)

• Weekly Drawing prize limits:Weekly Drawing prize limits:– Prize Prize may may exceed $500 per chance limit.exceed $500 per chance limit.– Subject to $5,000 per week limit.Subject to $5,000 per week limit.

– EXCEPTIONEXCEPTION• Prize may exceed the $5,000 per week limit if a portion of Prize may exceed the $5,000 per week limit if a portion of

the prize is a “carryover” of a drawing with the prize is a “carryover” of a drawing with nono winner. winner.• Not applicable if no drawing is held or if chances are sold Not applicable if no drawing is held or if chances are sold

for more than $1.for more than $1.• A weekly drawing may also exceed the $5,000 prize limit if A weekly drawing may also exceed the $5,000 prize limit if

it is it is set upset up to pay out 100% of the revenues generated. to pay out 100% of the revenues generated.– In this case, the prizes are not added when calculating the In this case, the prizes are not added when calculating the

organization’s weekly prize total.organization’s weekly prize total.

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PUNCHBOARDSPUNCHBOARDS• A Punchboard must comply with the A Punchboard must comply with the

following:following:– Must be purchased from licensed distributor.Must be purchased from licensed distributor.– Minimum 60% payout.Minimum 60% payout.– Winning punchboard plays should be perforated Winning punchboard plays should be perforated

or punched when redeemed.or punched when redeemed.– Prize for individual punch may not exceed $500.Prize for individual punch may not exceed $500.– Flare provided by manufacturer must be unaltered Flare provided by manufacturer must be unaltered

and on display.and on display.• Substitute flare may be displayed if it meets all Substitute flare may be displayed if it meets all

requirements.requirements.

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PULL-TABSPULL-TABS• A pull-tab deal must comply with the A pull-tab deal must comply with the

following:following:– Must be purchased from licensed distributor.Must be purchased from licensed distributor.– Minimum 65% payout.Minimum 65% payout.– Prize for individual pull-tab may not exceed $500.Prize for individual pull-tab may not exceed $500.– Flare provided by manufacturer must be unaltered Flare provided by manufacturer must be unaltered

and on display.and on display.• Substitute flare may be displayed if it meets all Substitute flare may be displayed if it meets all

requirements.requirements.– No more than 4,000 pull-tabs per deal.No more than 4,000 pull-tabs per deal.– Only one flare displayed per deal.Only one flare displayed per deal.– Winners and prizes must be predetermined by the Winners and prizes must be predetermined by the

manufacturer.manufacturer.

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PULL-TABSPULL-TABS(CONTINUED)(CONTINUED)

– Winning pull-tabs should be Winning pull-tabs should be perforated or punched when perforated or punched when redeemed.redeemed.

• Tip Boards are a form of pull-tabTip Boards are a form of pull-tab– Must meet all requirements for pull-Must meet all requirements for pull-

tabs.tabs.– Prizes must be predetermined by Prizes must be predetermined by

manufacturer.manufacturer.

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RAFFLESRAFFLES• Two types:Two types:– Regular RaffleRegular Raffle

• Prizes counted towards $5,000 weekly limitPrizes counted towards $5,000 weekly limit• Limited to $5,000 per month in prizes.Limited to $5,000 per month in prizes.

– Special Permit RaffleSpecial Permit Raffle• Licensed organizations may apply for two per year.Licensed organizations may apply for two per year.

– Three for fire, ambulance and rescue organizations.Three for fire, ambulance and rescue organizations.• May award a total of $100,000 in prizes per year total.May award a total of $100,000 in prizes per year total.• Prizes do not count towards weekly prize limits.Prizes do not count towards weekly prize limits.

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RAFFLESRAFFLES(CONTINUED)(CONTINUED)

• Both types of raffles must comply with Both types of raffles must comply with the following:the following:– TicketsTickets• Must be sequentially numbered and have a Must be sequentially numbered and have a

detachable stub with the same number.detachable stub with the same number.• Must be accounted for by the use of a logbook Must be accounted for by the use of a logbook

showing to whom they were given to be sold.showing to whom they were given to be sold.• Stub must contain the purchaser’s name Stub must contain the purchaser’s name

address and phone number.address and phone number.• Must contain the date time and location of Must contain the date time and location of

drawing, the name of the licensee and license drawing, the name of the licensee and license number.number.

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RAFFLESRAFFLES(CONTINUED)(CONTINUED)

– Tickets (con’t)Tickets (con’t)• Must list the cost of the ticket and the available prizes.Must list the cost of the ticket and the available prizes.

• There There mustmust be a winner in a raffle. be a winner in a raffle.• Drawing must be conducted in plain view of Drawing must be conducted in plain view of

players present.players present.– Use of state lottery number is permissible.Use of state lottery number is permissible.

• Only when tickets sales equal the total possible Only when tickets sales equal the total possible numbers. numbers.

• E.g. 1000 tickets must be sold to utilize the daily number.E.g. 1000 tickets must be sold to utilize the daily number.• Winners need not be present.Winners need not be present.• Tickets do not have to be purchased from Tickets do not have to be purchased from

licensed distributors.licensed distributors.

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LICENSED PREMISES AND LICENSED PREMISES AND LOCATION OF GAMESLOCATION OF GAMES

• GENERAL RULEGENERAL RULE

– Games of chance may only be conducted Games of chance may only be conducted on the licensed eligible organizations on the licensed eligible organizations licensed premises.licensed premises.

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LICENSED PREMISES AND LICENSED PREMISES AND LOCATION OF GAMESLOCATION OF GAMES

(CONTINUED)(CONTINUED)

• When a premises exists, the eligible When a premises exists, the eligible organization shall identify its licensed organization shall identify its licensed premises on its license application.premises on its license application.

– When a premises consists of more than When a premises consists of more than one building, the organization must one building, the organization must indicate the specific building where the indicate the specific building where the game will be conducted.game will be conducted.

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LICENSED PREMISES AND LICENSED PREMISES AND LOCATION OF GAMESLOCATION OF GAMES

(CONTINUED)(CONTINUED)

• When a organization does not own or When a organization does not own or lease a specific location to conduct its lease a specific location to conduct its normal business, they may use another normal business, they may use another licensed (SGOC) organization’s licensed (SGOC) organization’s premises to conduct games or enter premises to conduct games or enter into a written lease agreement at an into a written lease agreement at an unlicensed location.unlicensed location.– In cases were an organization uses the In cases were an organization uses the

premises of another the host organization premises of another the host organization cannotcannot operate SGOC on the same operate SGOC on the same operating day.operating day.

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LICENSED PREMISES AND LICENSED PREMISES AND LOCATION OF GAMESLOCATION OF GAMES

(CONTINUED)(CONTINUED)

• EXCEPTIONSEXCEPTIONS– Raffle tickets may be sold in any Raffle tickets may be sold in any

municipality that has approved a small municipality that has approved a small games of chance referendum.games of chance referendum.

• If an licensed organization plans to sell raffle If an licensed organization plans to sell raffle tickets in a county other than that in which it is tickets in a county other than that in which it is licensed, they must notify the District Attorney licensed, they must notify the District Attorney and licensing authority of the other county as and licensing authority of the other county as to the dates and location of sales.to the dates and location of sales.

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LICENSED PREMISES AND LICENSED PREMISES AND LOCATION OF GAMESLOCATION OF GAMES

(CONTINUED)(CONTINUED)

• EXCEPTIONS: EXCEPTIONS: (CONTINUED)(CONTINUED)

– Annual Carnivals, Fairs, Picnics or Annual Carnivals, Fairs, Picnics or BanquetsBanquets• Upon notice to the District Attorney and Upon notice to the District Attorney and

licensing authority of the county in which licensing authority of the county in which licensed, an organization may conduct SGOC licensed, an organization may conduct SGOC off its licensed premises when such games are off its licensed premises when such games are part of an annual Carnival, Fair, Picnic or part of an annual Carnival, Fair, Picnic or Banquet held by the organization on a Banquet held by the organization on a historichistoric basis.basis.

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RECORD KEEPINGRECORD KEEPING

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REQUIRED RECORDSREQUIRED RECORDS

• GENERAL REQUIREMENTSGENERAL REQUIREMENTS

– SGOC records must be maintained for a SGOC records must be maintained for a period of two years.period of two years.• From last day of month in which game ended.From last day of month in which game ended.

– Annual records must include separate Annual records must include separate totals for each operating week.totals for each operating week.

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REQUIRED RECORDSREQUIRED RECORDS(CONTINUED)(CONTINUED)

• GENERAL RECORDS INCLUDEGENERAL RECORDS INCLUDE ::

– Gross proceeds from SGOC.Gross proceeds from SGOC.– Expenses related to SGOC.Expenses related to SGOC.• Cost of gamesCost of games• Cost of PrizesCost of Prizes

– Details of how proceeds are utilized.Details of how proceeds are utilized.• A separate checking account A separate checking account shouldshould be be

utilized.utilized.– Invoices for SGOC.Invoices for SGOC.

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REQUIRED RECORDSREQUIRED RECORDS(CONTINUED)(CONTINUED)

• Record for each raffle should include:Record for each raffle should include:– Gross proceeds received.Gross proceeds received.– Expenses.Expenses.– List of merchandise, prizes and their List of merchandise, prizes and their

receipts.receipts.– Names and address for all winners over Names and address for all winners over

$100.$100.– Cash value of all prizes.Cash value of all prizes.

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REQUIRED RECORDSREQUIRED RECORDS(CONTINUED)(CONTINUED)

• Punch-Board and Pull-Tab records should Punch-Board and Pull-Tab records should include:include:– Name and serial number of games.Name and serial number of games.– Date placed into and removed from play.Date placed into and removed from play.– Total number of plays in each game.Total number of plays in each game.– Cost per play, cost of prizes paid and cash value Cost per play, cost of prizes paid and cash value

of all prizes in games.of all prizes in games.– If a prize is awarded in excess of $100:If a prize is awarded in excess of $100:

• The form and serial number of the game.The form and serial number of the game.• The name of the game.The name of the game.• Date of win.Date of win.• The amount of cash or the cash value and description of The amount of cash or the cash value and description of

merchandise.merchandise.• The full name and address of the winner.The full name and address of the winner.

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REQUIRED RECORDSREQUIRED RECORDS(CONTINUED)(CONTINUED)

• All unplayed chances must be retained All unplayed chances must be retained for two yearsfor two years

• All winning chances for prizes in All winning chances for prizes in excess of $100 must also be retained excess of $100 must also be retained for two years.for two years.

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REQUIRED RECORDSREQUIRED RECORDS(CONTINUED)(CONTINUED)

• Additionally, separate annual records Additionally, separate annual records must be kept for:must be kept for:– The number and amount of all prizes The number and amount of all prizes

awarded in excess of $100.awarded in excess of $100.– The total amount of all prizes awarded in The total amount of all prizes awarded in

each 7-day period.each 7-day period.– The amount of raffle prizes awarded each The amount of raffle prizes awarded each

month.month.

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ENFORCEMENTENFORCEMENT

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ENFORCEMENTENFORCEMENT• District Attorneys and other law enforcement District Attorneys and other law enforcement

officials investigate criminal violations of the officials investigate criminal violations of the Act.Act.

• The Act provides for criminal penalties and The Act provides for criminal penalties and SGOC permit suspensions for violations.SGOC permit suspensions for violations.

• BLCE handles most violations BLCE handles most violations administratively.administratively.– Egregious or continued violations may result in Egregious or continued violations may result in

criminal charges against individuals and/or the criminal charges against individuals and/or the eligible organization.eligible organization.

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ENFORCEMENTENFORCEMENT(CONTINUED)(CONTINUED)

• ACCESS TO RECORDSACCESS TO RECORDS– The Liquor Code gives BLCE officers access to The Liquor Code gives BLCE officers access to

the business records of all establishments the business records of all establishments licensed by the PLCB.licensed by the PLCB.• Records must be maintained on site.Records must be maintained on site.• May be reviewed without a warrant.May be reviewed without a warrant.• These include all small games of chance records.These include all small games of chance records.

– The SGOC Act permits the District Attorney or an The SGOC Act permits the District Attorney or an authorized representative to review the records of authorized representative to review the records of licensed organizations, distributors and licensed organizations, distributors and manufacturers without a warrant. manufacturers without a warrant.

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ENFORCEMENTENFORCEMENT(CONTINUED)(CONTINUED)

• Common sense approach to Common sense approach to enforcementenforcement– Each case is considered separately.Each case is considered separately.– Cases are discussed with the appropriate Cases are discussed with the appropriate

District Attorney prior to criminal charges District Attorney prior to criminal charges being filed.being filed.

– Investigation are sometimes conducted to Investigation are sometimes conducted to verify how proceeds are utilized.verify how proceeds are utilized.• ExampleExample – Prizes paid in an extra raffle – Prizes paid in an extra raffle

conducted to benefit a sick child put the conducted to benefit a sick child put the organization over the $5000 prize weekly limit.organization over the $5000 prize weekly limit.– May be considered as a mitigating factor.May be considered as a mitigating factor.

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PENALTIESPENALTIES

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PENALTIESPENALTIESEligible organizationsEligible organizations•   An eligible organization violating the act is An eligible organization violating the act is

guilty of a summary offense, and shall pay a guilty of a summary offense, and shall pay a fine of up to $1000 and:fine of up to $1000 and:– 11stst offense – forfeit its license for remainder of offense – forfeit its license for remainder of

the license term or six months, whichever is the license term or six months, whichever is longer.longer.

– 22ndnd or subsequent offense - forfeit its license for or subsequent offense - forfeit its license for the remainder of the license term and be ineligible the remainder of the license term and be ineligible to be licensed for the following license termto be licensed for the following license term

– 33rdrd or subsequent offense, forfeit its license and or subsequent offense, forfeit its license and be ineligible for a license renewal for 30 months be ineligible for a license renewal for 30 months thereafter.thereafter.

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PENALTIESPENALTIESIndividualsIndividuals•   A person who conducts, or who assists in A person who conducts, or who assists in

the conduct of games of chance in violation the conduct of games of chance in violation of the act is guilty of:of the act is guilty of:– 11stst offense - a summary offense - a summary– 22ndnd offense - a misdemeanor of the third degree offense - a misdemeanor of the third degree– 33rdrd offense - a misdemeanor of the first degree offense - a misdemeanor of the first degree

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PENALTIESPENALTIES• Rigging games or accepting Rigging games or accepting

contingency fees on the operation of contingency fees on the operation of games in a Misdemeanor of the First games in a Misdemeanor of the First Degree.Degree.

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QUESTIONS?QUESTIONS?