The House Wednesday gave final approval and send to the Governor House Bill 169 (Delozier-R-Cumberland) which would amend the current Small Games of Chance law to allow nonprofit associations, charitable organizations and other civic groups to raise revenues to support their community as well as maintain their operation.
The bill would update the Local Option Small Games of Chance Act, which has not been changed since 1988, allowing for increased limits for prize payouts.
Small games of chance licenses are used by charitable organizations to raise funds to assist those in the local community. These nonprofit groups assist community residents by sponsoring youth sports, supporting fire companies and veteran events, refurbishing local parks, and giving out grants and scholarships to our students.
“The passage of this bill means we are actively working to preserve the role that local organizations have in our communities,” said Rep. Sheryl Delozier. “Most of the money that is spent on these small games of chance does return to the community with a multiplier effect that benefits all of us.”
House Bill 169 would increase limits for prize payouts from $500 to $1,000 for daily drawings, from $5,000 to $25,000 for weekly drawings and from $5,000 to $10,000 for raffles per calendar month.
Under the bill, at least 70 percent of proceeds raised by these organizations would be distributed for public interest purposes, and up to 30 percent of the money raised can be used by the organizations to help maintain capital projects such as fixing a roof or heating system.
“The upcoming budget season is going to be a tough one,” Rep. Delozier noted. “Allowing for increased fundraising will help our nonprofits to fill some of the gaps in funding from government and stay afloat during hard economic times. This bill is the support system our communities need.”
House Bill 169 was amended in the Senate to include measures that permit fire and emergency services to hold a raffle with a $50,000 limits. Measures to require clubs with liquor licenses to submit semi-annual reports to the Pennsylvania Department of Revenue were also among the changes to the House version of the bill.
“House Bill 169 has been overwhelmingly supported statewide by community organizations and legislators on both sides of the aisle,” said Rep. Delozier. “I am pleased we are finally able to get this bill to the governor’s desk and ensure our nonprofit organizations are able to continue to meet their expenses and fund projects and services throughout our local communities.”
A summary and House Fiscal Note are available.
