The following information briefly explains each small game of chance
as well as a summary of some of the requirements and restrictions a
licensed organization must follow. It should by no means be considered
comprehensive or all-inclusive.
1. PUNCHBOARDS
A punchboard is defined in the Act as a board, placard, or other
device marked off in a grid or columns, in which each section contains a
hidden number or numbers, or other symbol, which determines the winning
chances.
A punchboard must comply with the following:
a. At least 60% of the maximum potential gross receipts from the sale
of plays on each punchboard must be payable as prizes;
b. A prize on an individual punch may not exceed $500 in value;
c. The flare advertising prizes available from the operation of the
punch board must be made by the manufacturer and may not be altered;
however a substitute flare can be made by a licensed eligible
organization to be used with the punchboard containing the required
information;
d. Only one flare may be displayed and must be on the face or on top
of the punchboard;
e. The flare must display the winning numbers or symbols for all
prizes in the amount of $5.00 or more, contain the manufacturers' name
logo, and the cost per play; and
f. The punchboard must be purchased from a distributor licensed by the
Pennsylvania Department of Revenue.
2. PULL-TABS
A pull-tab is defined in the Act as a single folded or banded ticket,
or a strip ticket or card with the face covered to conceal one or more
numbers or symbols, where one or more of each set of tickets or cards has
been designated in advance as a winner.
A pull-tab deal must comply with the following:
a. At least 65% of the maximum potential gross receipts from the sale
of plays shall be payable as prizes;
b. A prize on an individual pull-tab may not exceed $500;
c. An individual pull-tab deal may not contain more than 4,000
individual pull-tabs;
d. The flare advertising prizes available from the pull-tab deal must
be made by the manufacturer and may not be altered unless the licensed
eligible organization makes its own flare containing the same
information. The flare must display the winning numbers or symbols for
all prizes in the amount of $5.00 or more, be placed on the face or on
the top of the dispenser used to dispense pull-tabs, contain the
manufacturer's name or logo, and cost per play. Only one flare may be
displayed; and
e. The pull-tab deal must be purchased from a distributor licensed by
the Pennsylvania Department of Revenue.
3. RAFFLES
A raffle is defined by the Act as a game in which a participant buys a
ticket for a chance at a prize with the winner determined by a random
drawing of corresponding ticket stubs to take place at a location and
date printed on the ticket.
There are two types of raffles allowed under the Act: 1) a regular
raffle; and, 2) a raffle conducted through a special permit. They differ
only in amount of prizes that can be awarded and the number that may be
held per calendar year. Raffle winners may also be determined by
reference to drawings conducted by the Department pursuant to the State
Lottery Law, (72 P.S. §3761-101, et seq.).
Both types of raffles must comply with the following:
a. Tickets must have a detachable stub, be consecutively numbered and
be accounted for separately through the use of a logbook showing to whom
the tickets were given to be sold. The ticket stub shall bear a duplicate
number corresponding to the numbers on the ticket and contain the
purchaser's name, address and telephone number. Both parts shall be
imprinted with sequential numbers commencing with "1" through the maximum
number of tickets to be sold; or in the case of a raffle where the winner
is determined by a drawing of the State Lottery, the universe of eligible
ticket numbers shall correspond to the universe of eligible numbers in
the State Lottery drawing.
b. The ticket shall contain the date, time and location of the
drawing, the name of the licensee and license number (special permit
number where applicable), price of the ticket and prizes to be awarded;
c. The drawing must be conducted openly and in plain view of the
players present;
d. Raffle tickets may be sold at locations other than the licensee's
premises but can only be sold in municipalities which have approved the
use of small games of chance. There are notice requirements that must be
met to sell outside the licensing county;
e. A purchaser does not have to be present at the drawing to win; and
f. Raffle tickets need not be purchased from licensed distributors.
In a regular raffle the maximum individual prize is $500. No more than
$5,000 in cash or merchandise may be awarded through regular raffles in a
calendar month.
A licensed organization may apply for a special permit. Only one
raffle may be conducted under each special permit. A licensed eligible
organization may receive no more than two special permits in any licensed
year with the exception of volunteer fire, ambulance and rescue
organizations, which may receive three. The total value of all raffle
prizes awarded under all special permits may not exceed $100,000 in a
calendar year.
4. DAILY DRAWINGS
A daily drawing is defined by the Act as a game in which a bona fide
member of an eligible organization selects or is assigned a number for a
chance at a prize with the winner determined by a random drawing to take
place at the licensed organization's premises during the same operating
day. Daily drawing winners may be determined with the aid of a passive
selection device or reference to the State Lottery drawings. The ticket
may not cost more than $1.00, nor may more than one chance be sold to a
member in the same operating day. Half-and-half lotteries and
member-sign-in lotteries are considered daily drawings.
Additional requirements for daily drawings include:
a. Tickets may be purchased only by bona fide members;
b. Tickets may be sold only on the licensed premises;
c. The purchaser does not have to be present at the drawing to win;
d. Prizes awarded in a daily drawing may exceed the $500 per prize and
$5,000 per week prize limits if the prize is the result of a carryover of
a drawing that resulted from the winning number in such drawing not being
among the eligible entrants that day. A prize may not exceed the prize
limits when there is a failure to conduct a drawing on an operating day
or for a drawing in which prizes were sold in excess of $1.00 or for a
drawing in which more than one chance is sold to an eligible participant;
e. A daily drawing prize may exceed the $5,000.00 weekly limit if it
is awarded pursuant to a daily drawing that is set up to award 100% of
the gross revenues generated by the drawing. Such prize, however, may not
exceed the $500 per prize limit unless it is paid pursuant to a carryover
drawing;
f. A licensed eligible organization may not conduct any daily drawings
during a week in which the organization conducts a weekly drawing; and
g. The rules of the games must be prominently posted.
5. WEEKLY DRAWINGS
A weekly drawing is defined by the Act as a game in which a bona fide
member selects or receives a number or numbers for a chance at a prize
with the winner determined by a random drawing to take place on the
eligible organization's premises at the end of a seven-day period. Weekly
drawing winners may be determined with the aid of a passive selection
device or reference to State Lottery drawings. A licensed eligible
organization may sell more than one chance in a weekly drawing to a bona
fide member. However, no chance may be sold for more than $1.00. A weekly
drawing prize may exceed $500.
Additional requirements for weekly drawings include:
a. Tickets may be purchased only by bona fide members;
b. The prize awarded in a weekly drawing may exceed the $5,000 weekly
prize limit if the prize is the result of a carryover of a weekly drawing
that result from the winning number in such drawing not being among the
eligible entrants in such drawings. The prize may not exceed the
$5,000.00 weekly prize limit if there is a failure to conduct a weekly
drawing or if it is for a weekly drawing in which chances are sold in
excess of $1.00. A weekly drawing prize may also exceed the $5,000 weekly
prize limit if it is set up to pay out 100% of the revenues generated;
and
c. An eligible organization may not conduct any daily drawings during
a week in which a weekly drawing is conducted.
