Presented by the

1

SMALL GAMES OF CHANCE

• Presented by the
• Pennsylvania State Police
• Bureau of Liquor Control Enforcement

2
OVERVIEW

• Gambling
• Definition
• Legal vs. Illegal Gambling
• Small Games of Chance Act
• Application
• Permitted Games
• Use of Proceeds
• Prize Limits

3
OVERVIEW(CONTINUED)

• Small Games of Chance Act (CONTINUED)
• Discussion of Individual Games
• Licensed Premises and Location of Games
• Gambling in P.L.C.B. licensed establishments
• Record Keeping/Reporting Requirements
• Enforcement
• Penalties
• QUESTION AND ANSWER PERIOD

4
GAMBLING
5
GAMBLING

• What activities constitute gambling?
• Gambling is not specifically defined by Statute
  in Pennsylvania
• Instead we must to refer to Commonwealth Court
  Decisions to define gambling

6
GAMBLING

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

REWARD
CONSIDERATION
CHANCE
GAMBLING
7
ELEMENTS OF GAMBLING

• Lets look at each of the three elements
  individually
• Consideration
• Chance
• Reward
• All three elements must be present to establish
  that an activity constitutes gambling.

8
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

9
CHANCE

• EVENT OUTCOME BASED WHOLLY OR PREDOMINANTLY ON
  CHANCE
• LITTLE OR NO SKILL
• EXAMPLES
• ROLL OF DICE OR TURN OF CARD
• RESULT OF RACE OR SPORTING EVENT
• SKILL
• 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

10
REWARD

• RETURN TO PLAYER FOR WINNING EVENT
• MAY BE CASH, MERCHANDISE, SERVICE OR ANYTHING OF
  VALUE
• IF VALUE OF PRIZE IS LESS THAN THE CONSIDERATION
  THEN THE CONTEST IS NOT GAMBLING
• E.G. DUCK POND GAME

11
LEGAL VS. ILLEGAL GAMBLING

• Currently, the only forms of gambling authorized
  by statute 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).

12
COMMON UNLAWFUL GAMBLING ACTIVITIES

• Texas Holdem Tournaments
• Night at the Races
• 50/50 Drawings
• Casino Nights
• Pools football, basketball, NASCAR, etc.
• Chinese Auction
• Vertical wheel or Chuck-a-luck Wheel
• Video Gambling Devices - video poker or slots
• NONE OF THESE ACTIVITIES ARE AUTHORIZED
• BYTHE SMALL GAMES OF CHANCE ACT

13
THE SMALL GAMES OF CHANCE ACT
14
APPLICATION

• Effective March 3, 2012, each application for a
  license must include the results of a criminal
  history check from the Pennsylvania State Police
  for the executive officer and secretary of the
  eligible organization making the application.
• Effective Feb. 1, 2013, each application for a
  club license must include the most recent report
  filed with the department.

15
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.

16
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

17
THE SMALL GAMES OF CHANCE ACTOPERATION OF GAMES
18
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.

19
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.

20
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.
• Intent of Subsection 502(B)(2)
• This subsection is intended 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.
  

21
OPERATION OF GAMES(CONTINUED)

• What is meant by the phrase, operates a game of
  chance?
• As the wording, the game of chance "and not
  games of chance is used in the Subsection it
  not a blanket prohibition for officers and
  employees of club licensees.
• The prohibition would apply only to those
  particular games in which they participated in
  the operation.

22
OPERATION OF GAMES(CONTINUED)

• When determining whether an individuals
  involvement in a specific game of chance
  constitutes OPERATING, the following activities
  should be considered.
• selling of chances.
• paying winners
• note-taking or recording of information
  (winners, payouts, etc of the
  individual game)
• involvement in the process of selecting a winner.
  

23
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.

24
THE SMALL GAMES OF CHANCE ACTUSE OF PROCEEDS
25
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.

26
USE OF PROCEEDS(CONTINUED)

• The proceeds from the operation of small games of
  chance may be used for only 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

27
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.

28
USE OF PROCEEDS(CONTINUED)

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

29
USE OF PROCEEDSCLUB 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 may be retained
  by a club licensee and used for certain
  operational expenses relating to the club
  licensee.

30
USE OF PROCEEDSCLUB 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.

31
USE OF PROCEEDSCLUB LICENSEES

• Proceeds retained by a club licensee for approved
  operational expenses (30) shall be expended
  within the same calendar year unless the club
  notifies the Department of Revenue that funds are
  being retained for a substantial purchase or
  project.
• Notification shall include
• a description of the purchase or project.
• the cost.
• the anticipated date of the purchase or the
  project.

32
USE OF PROCEEDSCLUB 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.

33
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

34
THE SMALL GAMES OF CHANCE ACTPRIZE LIMITS
35
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.

36
PRIZE LIMITS(CONTINUED)

• Prize limit for raffles
• 10,000 per month
• Exception Special Permit 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.

37
THE SMALL GAMES OF CHANCE ACTDISCUSSION OF
INDIVIDUAL GAMES
38
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)

39
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.

40
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.

41
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.

42
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.

43
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 aggregate (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 organizations weekly prize
  total.
• Not applicable if chances are sold for more than
  1.

44
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

45
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.

46
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.

47
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
  license year.
• Ten for fire, ambulance and rescue organizations.
• May award a total of 100,000 in prizes per
  license year.
• 150,000 for fire, ambulance and rescue
  organizations.
• Prizes do not count towards weekly prize limits.

48
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 purchasers 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.

49
RAFFLES(CONTINUED)

• Tickets (cont)
• 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.

50
THE SMALL GAMES OF CHANCE ACTLICENSED PREMISES
AND LOCATION OF GAMES
51
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.

52
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.

53
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) organizations
  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.

54
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.

55
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.

56
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.

57
GAMBLING ON P.L.C.B. LICENSED PREMISESCLUB
LICENSEES
58
GAMBLING ON P.L.C.B. LICENSED PREMISES

• Generally, the five forms of gambling previous
  listed are permitted on a P.L.C.B. licensed
  premises with the proper license or authority.
• State Lottery, Horse Racing, Bingo, S.G.O.C.
  Slots
• However, these are the only forms of gambling
  (legal or illegal) permitted on a licensed
  premise.

59
GAMBLING ON P.L.C.B. LICENSED PREMISES(continued
)

• Even activities that would be permissible
  elsewhere, are not permitted on P.L.C.B. licensed
  establishments.
• Examples
• Neighborhood Poker Game
• Sale of raffle tickets (with no S.G.O.C. license)
• Commonwealth vs. Kehler

60
GAMBLING ON P.L.C.B. LICENSED PREMISES(continued
)

• Where all three elements of gambling exist, if
  one or more element occurs on the P.L.C.B.
  licensed premise, gambling is considered to have
  occurred on the premise.
• Example Dice Poker Runs the element of
  chance FREQUENTLY occurs on P.L.C.B. licensed
  premises.

61
GAMBLING ON P.L.C.B. LICENSED PREMISES
(CONTINUED)

• If a P.L.C.B . licensee wishes to permit another
  organization to conduct S.G.O.C. on their
  premise, that organization MUST be registered as
  a charitable organization with the Pennsylvania
  Department of State.
• Self sponsored event regulations.
• Administrative violation for the P.L.C.B.
  licensee.

62
THE SMALL GAMES OF CHANCE ACTREQUIRED RECORDS
63
REQUIRED RECORDS

• GENERAL REQUIREMENTS
• Generally SGOC records must be maintained for a
  period of two years.
• From last day of month in which game ended.
• Club licensees must retain records for five
  years.
• Records must include separate totals for each
  operating week.

64
REQUIRED RECORDS(CONTINUED)

• GENERAL RECORDS INCLUDE
• Number of W-2G forms issued and the gross
  winnings reported.
• Gross revenue collected.
• Total expenses
• Total prizes paid
• Proceeds separate bank account MUST be
  maintained.
• Amount of proceeds used for public interest
  purposes

65
REQUIRED RECORDS(CONTINUED)

• GENERAL RECORDS FOR CLUB LICENSEES INCLUDE
• Number of W-2G forms issued and the gross
  winnings reported.
• Gross revenue collected, itemized by week and
  type of game.
• Total expenses, itemized by week and type of
  game.
• Total prizes paid, itemized by week and type of
  game.

66
REQUIRED RECORDS(CONTINUED)

• GENERAL RECORDS FOR CLUB LICENSEES (CONTINUED)
• Proceeds, itemized by week and type of game,
  detailing the following
• Separate bank account must be utilized.
• Amount of proceeds used for public interest
  purposes.
• Dates, recipients and amounts.
• Amount of proceeds used for operational expenses.
• Details regarding amount used for each permitted
  expense.

67
REQUIRED RECORDS(CONTINUED)

• RAFFLES
• Record for each raffle should include
• Gross proceeds received.
• Expenses.
• List of merchandise, prizes and their receipts.
• Names and address for all winners over 100.
• Cash value of all prizes.

68
REQUIRED RECORDS(CONTINUED)

• PUNCH-BOARDS AND PULL-TABS
• Punch-Board and Pull-Tab records should include
• Name and serial number of games.
• Date placed into and removed from play.
• Total number of plays in each game.
• Cost per play, cost of prizes paid and cash value
  of all prizes in games.
• If a prize is awarded in excess of 100
• The form and serial number of the game.
• The name of the game.
• Date of win.
• The amount of cash or the cash value and
  description of merchandise.
• The full name and address of the winner.

69
REQUIRED RECORDS(CONTINUED)

• PUNCH-BOARDS AND PULL-TABS (CONTINUED)
• All unplayed chances must be retained for two
  years
• All winning chances for prizes in excess of 100
  must also be retained for two years.

70

• DAILY AND WEEKLY DRAWINGS
• Eligible organizations records must include
• Type of drawing (daily and/or weekly).
• Operating day or week in which chances are sold
  and the date/time of drawing.
• List of entrants.
• Each entrants assigned number.
• Gross proceeds and payout percentage.
• Winners name. (and address if gt 100)
• Winners signed acknowledgment of receipt of
  prize.
• Notation if the drawing is a carryover and the
  amount carried over.

71
REQUIRED RECORDS(CONTINUED)

• Additionally, separate annual records must be
  kept for
• The number and amount of all prizes awarded in
  excess of 100.
• The total amount of all prizes awarded in each
  7-day period.
• The amount of raffle prizes awarded each month.

72
THE SMALL GAMES OF CHANCE ACTREPORTING
REQUIRMENTS
73
REPORTING REQUIREMENTS

• Each eligible organization shall submit an annual
  report to the department including
• Prizes awarded as required under section 335 of
  the act of March 4, 1971 (P.L.6, no.2), known as
  the tax reform code of 1971.
• Prizes a that require the issuance of IRS Form
  W-2G.
• Amounts expended for public interest purposes.
• Eligible organizations may complete reports
  online.

74
REPORTING REQUIREMENTS

• Club licensees
• Beginning in 2013 club licensees shall submit
  semi-annual reports to the Department of Revenue
  for the preceding six-month period.
• The report must be filed under oath or
  affirmation of an authorized officer of the club
  licensee.
• Clubs will be able to complete the report online
• Reports will be provided to B.L.C.E. and made
  available to the public.
• Semi-annual reports will meet the general annual
  reporting requirement.

75
REPORTING REQUIREMENTS

• Club licensees
• The report shall include all of the following
  information
• The proceeds received by the club licensee from
  each game of chance conducted, itemized by week.
• The amount of prizes paid from all games of
  chance, itemized by week.
• Other costs incurred related to the conduct of
  games of chance.
• The verification of amounts distributed for
  public interest itemized by the recipient.
• An itemized list of expenditures made or amounts
  retained and expenditures . (30 for operating
  expenses)
• The address and the county in which the club
  licensee is located.

76
THE SMALL GAMES OF CHANCE ACTENFORCEMENT
77
ENFORCEMENT

• District Attorneys and other law enforcement
  officials investigate criminal violations of the
  Act.
• The Act provides for civil penalties, criminal
  penalties and SGOC permit suspensions for
  violations.
• BLCE handles most violations administratively.
• Egregious or continued violations may result in
  criminal charges against individuals and/or the
  eligible organization.

78
ENFORCEMENT(CONTINUED)

• ACCESS TO RECORDS
• Licensees are required, upon request, to provide
  their license, books, accounts and records
  relating to the conduct of games of chance to
• The licensing authority.
• The Bureau Of Liquor Control Enforcement.
• A law enforcement agency or official.
  701(B)
• The Liquor Code gives B.L.C.E. officers access to
  the business records of all establishments
  licensed by the P.L.C.B.
• Generally, records must be maintained on site.
• May be reviewed without a warrant.
• These include all small games of chance records.

79
ENFORCEMENT(CONTINUED)

• CLUB LICENSEES
• Violations of the S.G.O.C. Act do not constitute
  violations of the Liquor Code until a club
  licensee has committed three or more.
• Violations may still be addressed either civilly
  or criminally pursuant to the SGOC Act.
• B.L.C.E. IS MANDATED TO AUDIT 5 OF CLUB
  LICENSEES ANNUALLY.

80
THE SMALL GAMES OF CHANCE ACTPENALTIES
81
PENALTIESCRIMINAL

• Eligible organizations
• An eligible organization violating the act is
  guilty of a summary offense, and shall pay a fine
  of up to 1000 for a first offense and 1,500 for
  each subsequent offense and
• 1st offense forfeit its license for not more
  than 30 days.
• 2nd or subsequent offense - forfeit its license
  for not less than 30 nor more than 180 days.
• 3rd or subsequent offense For a third offense
  within three years of the first offense, the
  eligible organization shall forfeit its license
  and be ineligible for a license renewal for 30
  months thereafter.

82
PENALTIESCRIMINAL

• Individuals
•  A person who conducts, or who assists in the
  conduct of games of chance in violation of the
  act is guilty of
• 1st offense - a summary
• 2nd offense - a misdemeanor of the third degree
• 3rd offense - a misdemeanor of the first degree

83
PENALTIESCRIMINAL

• Rigging games or accepting contingency fees on
  the operation of games in a Misdemeanor of the
  First Degree.

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PENALTIESCIVIL PENALTIES

• eligible organizations, other than a club
  licensees
• For an initial violation, up to 500.
• For a second violation, up to 1,000.
• For a third or subsequent violation, up to
  1,500.

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PENALTIESCIVIL PENALTIES

• club licensees
• FOR AN INITIAL VIOLATION, UP TO 800.
• FOR A SECOND VIOLATION, UP TO 1,000.
• FOR A THIRD OR SUBSEQUENT VIOLATION, UP TO
  2,000.
• THE INTENTIONAL OR WILLFUL FAILURE OF A CLUB
  LICENSEE TO PROVIDE ACCURATE RECORDS SHALL RESULT
  IN A LICENSE SUSPENSION OF A MINIMUM OF SIX
  MONTHS.

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PENALTIES (CONTINUED)

• The licensing authority, or, in the case of a
  club licensee, the Bureau Of Liquor Control
  enforcement may impose the following penalties
• A civil penalty.
• Suspension or revocation of the license.
  702(D)

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PENALTIES (CONTINUED)

• Grounds for suspension, revocation or non-renewal
  of license
• Use of proceeds for other than authorized
  purposes.
• Permitting persons under 18 to operate or play
  games of chance.
• Permitting person convicted of enumerated crimes
  to set up, manage, supervise or participate n the
  operation of games of chance.
• Facility does not meet minimum requirements.
• Permitting unauthorized persons to operate games
  of chance.
• Compensating persons for conducting games of
  chance.
• Exceeding prize limits.
• Violation the provisions of a special permit.
• Providing false or erroneous information to the
  Dept. Of Revenue or issuing authority.

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PENALTIES (CONTINUED)

• Grounds for suspension, revocation or non-renewal
  of license (CONTINUED)
• A criminal conviction of an eligible
  organization for a violation of the Act.
• Conducting games of chance while permitting
  another organization to do so.
• Failure to file required reports.
• Failing to file an accurate semi-annual report.
  (Club Licensees)
• Failure to comply with regulations with respect
  to distribution of proceeds. (Club Licensees)
• The issuing authority plays an important role.
• Responsible to suspend or revoke license upon
  notification and verification of violation.
• Non-renewals.

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• BINGO

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Bingo

• 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.

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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.
• A prize may be awarded to any player or players
  first completing any combination constituting
  bingo.

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Bingo(Who is eligible)

• ASSOCIATION A volunteer fire or ambulance co,
  religious, charitable, fraternal, veterans,
  civic, county fair, or agricultural assoc., or
  any separate chartered auxiliary of any of the
  above associations, organized as a nonprofit
  organization which shall have existed, and
  conducted business for two years prior to
  application.

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Bingo

• Exception Elderly residents of a senior
  citizens housing project may apply immediately
  upon it being organized.

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Bingo(When can the game be conducted)

• 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.

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Bingo(Who can be compensated)

• No person may be employed in the operation or the
  actual running of a bingo game for compensation
  greater than 50.00 per day.
• 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.
•  

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Bingo

• Individuals under 18 years of age may
  participating in the operation of the game and
  being compensated if written permission is
  obtained from their parent or guardian.

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Bingo(Who can play)

• No person under the age of 18 shall be permitted
  to play bingo unless accompanied by an adult.

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Bingo(Prizes)

• 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.
• no more than 4,000.00 in prizes shall be awarded
  in any calendar day.

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Bingo(advertising)

• Only associations licensed to conduct bingo shall
  be permitted to advertise their bingo games.
• Advertisements may contain date, time,
  location, cash or prizes, and the name of the
  association.
• . An association shall not advertise the prizes
  which will be awarded, or their dollar value, nor
  shall they advertise a guaranteed prize dollar
  value.
• An association shall not advertise the prizes
  which will be awarded, or their dollar value, nor
  shall they advertise a guaranteed prize dollar
  value.

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Bingo(Bank account)

• Each association shall deposit with a financial
  institution all proceeds for each days bingo
  game in an account in the associations name.
• 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.

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Bingo(Records)

• Each association shall keep written records of
• - total proceeds collected
• - total prize money distributed
• - total value of all merchandise awarded as
  a prize
• - the amount of moneys paid as rentals or wages,
  and to whom such rentals or wages were paid.

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Bingo

• All prizes awarded having a value greater than
  250.00 shall be specifically described in the
  associations records.
• Funds derived from the operation of the game of
  bingo are to be used to support the non-profit
  purposes of the association

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Bingo(Rental agreements)

• If an association doesnt own the premises where
  bingo is played, the personal property used, or
  the equipment, they shall sign a written
  agreement leasing such premises, property,
  and/or equipment 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.

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Bingo

• 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,
  property or equipment from any person who has
  been convicted of a felony or a violation of the
  Bingo Act

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QUESTIONS?