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Governor signs 2 bills changing rules for small games of chance

Two bills to assist Pennsylvania’s nonprofit organizations with fundraising through small games of chance were signed into law by Gov. Josh Shapiro Thursday afternoon.

The first, Senate Bill 398, allows licensed small games of chance distributing organizations to conduct raffles over the internet.

The second, Senate Bill 416, allows licensed organizations to accept alternative forms of payment for the purchase of a raffle ticket, such as credit or debit cards or contactless pay, if the merchant is able to prove that each customer is a resident of Pennsylvania. Previously, the law regarding small games of chance only allowed organizations to accept cash or checks as payment.

Due to recently added amendments, both bills also will increase the weekly maximum amount nonprofit organizations can distribute through small games of chance from $35,000 to $60,000; and allow organizations to keep half of all proceeds, up from the previous maximum of 40%. The other half of proceeds are required to be set aside for “public interest purposes.”

Both bills passed unanimously in the Senate by a 50-0 vote.

“This long-awaited clarification is a very welcome change that provides greater certainty for organizations like ours and will benefit volunteer fire departments and nonprofits across the commonwealth,” Michael Davis, president of the Prospect-Franklin Township Volunteer Fire Department, said. “While donations and traditional fundraising efforts remain incredibly important, they can only go so far.”

“Any time that the state makes it easier for us to help raise money is always a benefit,” Larry Shuler of the Butler Bureau of Fire said. “A lot of people don’t carry cash and checks anymore, so that’s definitely a huge benefit.”

In Pennsylvania, licensed organizations are allowed to offer specific types of small games of chance to raise funds, in accordance with the Local Option Small Games of Chance Act of 1988. Types of games allowed by the act include raffles, pull-tab games and 50/50 drawings.

In Butler County, volunteer fire departments — such as Prospect, Saxonburg and Connoquenessing — make frequent use of raffles and other small games of chance as a fundraising tool.

As a member of the House Appropriations Committee, Rep. Marci Mustello, R-11th, played a role in amending Senate Bill 398 to include the increases for the maximum weekly prize distribution and the 50% allowance.

“These organizations depend on successful fundraising to sustain their missions,” Mustello said in a news release. “Increasing the prize limit gives them more room to grow those efforts, while allowing clubs to retain more of their proceeds helps cover the costs of staying open. I am pleased both chambers supported these practical changes, and I urge the governor to sign this legislation.”

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