Presentation is loading. Please wait.

Presentation is loading. Please wait.

1 Presented by the Pennsylvania State Police Bureau of Liquor Control Enforcement.

Similar presentations


Presentation on theme: "1 Presented by the Pennsylvania State Police Bureau of Liquor Control Enforcement."— Presentation transcript:

1 1 Presented by the Pennsylvania State Police Bureau of Liquor Control Enforcement

2 2 OVERVIEW GamblingGambling –Definition –Legal vs. Illegal Gambling Small Games of Chance ActSmall Games of Chance Act –Application –Permitted Games –Use of Proceeds –Prize Limits

3 3 OVERVIEW (CONTINUED) Small Games of Chance Act (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 PERIODQUESTION AND ANSWER PERIOD

4 4 GAMBLING

5 5 GAMBLING What activities constitute “gambling?”What activities constitute “gambling?” Gambling is not specifically defined by Statute in PennsylvaniaGambling is not specifically defined by Statute in Pennsylvania Instead we must to refer to Commonwealth Court Decisions to define gamblingInstead we must to refer to Commonwealth Court Decisions to define gambling

6 6 GAMBLING THE PENNSYLVANIA COURTS HAVE DETERMINED THAT GAMBLING CONSISTS OF THREE BASIC ELEMENTS: (PLCB V. PPC CIRCUS BAR, INC.) CONSIDERATION + CHANCE + REWARD = GAMBLING

7 7 ELEMENTS OF GAMBLING Let’s look at each of the three elements individually:Let’s 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 8 CONSIDERATION COST TO BEGIN PLAY OR EVENTCOST TO BEGIN PLAY OR EVENT –BET –WAGER EXAMPLESEXAMPLES –BLOCK PURCHASE IN POOL –“BUY-IN” IN POKER TOURNAMENT –PURCHASE OF PULL TAB –MONEY IN SLOT MACHINE

9 9 CHANCE EVENT OUTCOME BASED WHOLLY OR PREDOMINANTLY ON CHANCEEVENT OUTCOME BASED WHOLLY OR PREDOMINANTLY ON CHANCE –LITTLE OR NO SKILL EXAMPLESEXAMPLES –ROLL OF DICE OR TURN OF CARD –RESULT OF RACE OR SPORTING EVENT SKILLSKILL –TO BE CONSIDERED A SKILL, A PERSON WOULD HAVE TO BE ABLE TO MASTER THE GAME DARTS, BILLIARDS, ETC.DARTS, BILLIARDS, ETC. PLAYING POKER MAY INVOLVE SOME SKILL OR KNOWLEDGE, HOWEVER THE CARDS ARE STILL DEALT RANDOMLYPLAYING POKER MAY INVOLVE SOME SKILL OR KNOWLEDGE, HOWEVER THE CARDS ARE STILL DEALT RANDOMLY

10 10 REWARD RETURN TO PLAYER FOR WINNING EVENTRETURN 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 GAMBLINGIF VALUE OF PRIZE IS LESS THAN THE CONSIDERATION THEN THE CONTEST IS NOT GAMBLING –E.G. DUCK POND GAME

11 11 LEGAL VS. ILLEGAL GAMBLING Currently, the only forms of gambling authorized by statute in Pennsylvania are: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 12 COMMON UNLAWFUL GAMBLING ACTIVITIES 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. “Chinese Auction”“Chinese Auction” Vertical wheel or “Chuck-a-luck Wheel”Vertical wheel or “Chuck-a-luck Wheel” Video Gambling Devices - video poker or slotsVideo Gambling Devices - video poker or slots NONE OF THESE ACTIVITIES ARE AUTHORIZED BYTHE SMALL GAMES OF CHANCE ACT

13 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 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.Effective Feb. 1, 2013, each application for a club license must include the most recent report filed with the department. 14

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.“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.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. 15

16 16 PERMITTED GAMES The Act is very specific as to the games of chance that are permitted. They are: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 17 THE SMALL GAMES OF CHANCE ACT OPERATION OF GAMES

18 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.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.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 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.No one visibly intoxicated may purchase or sell a chance. 19

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)]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):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. 20

21 OPERATION OF GAMES (CONTINUED) What is meant by the phrase, “operates a game of chance?”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. 21

22 OPERATION OF GAMES (CONTINUED) When determining whether an individual’s involvement in a specific game of chance constitutes “OPERATING”, the following activities should be considered.When determining whether an individual’s involvement in a specific game of chance constitutes “OPERATING”, the following activities should be considered. selling of chances.selling of chances. paying winnerspaying winners note-taking or recording of information (winners, payouts, etc of the individual game)note-taking or recording of information (winners, payouts, etc of the individual game) involvement in the process of selecting a winner.involvement in the process of selecting a winner.

23 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: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 24 THE SMALL GAMES OF CHANCE ACT USE 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 26 USE OF PROCEEDS (CONTINUED) The proceeds from the operation of small games of chance may be used for only three purposes: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:Public interest purposes are defined in the Act as:

27 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 28 USE OF PROCEEDS (CONTINUED) 3.Lessening the burdens borne by government or voluntarily supporting, augmenting or supplementing services which the government would normally render to the people. 4.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 29 USE OF PROCEEDS CLUB LICENSEES The proceeds from games of chance received by a club licensee shall be distributed as follows: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 30 USE OF PROCEEDS CLUB LICENSEES Approved “operational expenses”: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 31 USE OF PROCEEDS CLUB 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.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:Notification shall include: –a description of the purchase or project. –the cost. –the anticipated date of the purchase or the project.

32 32 USE OF PROCEEDS CLUB LICENSEES PROCEEDS FROM SGOC SHALL NOT BE UTILIZED FOR: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 33 EXAMPLES OF “PUBLIC INTEREST PUPOSE” EXPENSES Support of youth programsSupport of youth programs –e.g. sports, youth centers, etc. Donations to food pantriesDonations to food pantries Community projectsCommunity projects Donation to certain charitable or non-profit organizationsDonation 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 equipmentPurchase of fire and rescue equipment

34 34 THE SMALL GAMES OF CHANCE ACT PRIZE LIMITS

35 35 PRIZE LIMITS General Prize limits – All games of chance EXCEPT weekly drawings: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”Listed in the Act as the “Aggregate Prize Limit” Weekly drawings are only limited by the $25,000 weekly limit.Weekly drawings are only limited by the $25,000 weekly limit.

36 36 PRIZE LIMITS (CONTINUED) Prize limit for raffles:Prize limit for raffles: –$10,000 per month Exception – Special Permit RafflesException – 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.There are other exceptions for Daily and Weekly Drawing prizes under specific circumstances.

37 37 THE SMALL GAMES OF CHANCE ACT DISCUSSION OF INDIVIDUAL GAMES

38 38 DAILY DRAWINGS Term includes Sign-in Drawings and Half-and Half Drawings.Term includes Sign-in Drawings and Half-and Half Drawings. Requirements: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.(§ )May not reduce prize if winner is not present.(§ )

39 39 DAILY DRAWINGS (CONTINUED) BONA FIDE MEMBERBONA 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.”Social members may or may not be “bona fide members.” Ensure by-laws permit social members.Ensure by-laws permit social members. In most cases, bona fide members have voting rights and may hold office.In most cases, bona fide members have voting rights and may hold office.

40 40 DAILY DRAWINGS (CONTINUED) Daily Drawing prize limitsDaily 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.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.Not applicable if no drawing is held or if chances are sold for more than $1.

41 41 DAILY DRAWINGS (CONTINUED) PRIZE LIMIT EXCEPTIONS (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.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.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 42 WEEKLY DRAWINGS Requirements: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.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.May not reduce prize if winner is not present.

43 43 WEEKLY DRAWINGS (CONTINUED) Weekly Drawing prize limits: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.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 organization’s weekly prize total. Not applicable if chances are sold for more than $1.Not applicable if chances are sold for more than $1.

44 44 PUNCHBOARDS A Punchboard must comply with the following: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.Substitute flare may be displayed if it meets all requirements. –All winners must be predetermined by the manufacturer

45 45 PULL-TABS A pull-tab deal must comply with the following: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.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 46 PULL-TABS (CONTINUED) –Winning pull-tabs should be perforated, punched or marked when redeemed. Tip Boards are a form of pull- tabTip Boards are a form of pull- tab –Must meet all requirements for pull-tabs. –Prizes must be predetermined by manufacturer.

47 47 RAFFLES Two types:Two types: –Regular Raffle Prizes counted towards $25,000 weekly limit.Prizes counted towards $25,000 weekly limit. Limited to $10,000 per month in prizes.Limited to $10,000 per month in prizes. –Special Permit Raffle Licensed organizations may apply for eight per license year.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.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.Prizes do not count towards weekly prize limits.

48 48 RAFFLES (CONTINUED) Both types of raffles must comply with the following: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 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.Must be accounted for by the use of a logbook showing to whom they were given to be sold. Stub must contain the purchaser’s name address and phone number.Stub must contain the purchaser’s name address and phone number. Must contain:Must contain: –The date time and location of drawing –The name of the licensee –SGOC license number –Special raffle permit number if applicable.

49 49 RAFFLES (CONTINUED) –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 must be a winner in a raffle.There must be a winner in a raffle. Drawing must be conducted in plain view of players present.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.Only when tickets sales equal the total possible numbers. E.g tickets must be sold to utilize the daily number.E.g 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 licensed distributors.Tickets do not have to be purchased from licensed distributors.

50 50 THE SMALL GAMES OF CHANCE ACT LICENSED PREMISES AND LOCATION OF GAMES

51 51 LICENSED PREMISES AND LOCATION OF GAMES GENERAL RULEGENERAL RULE –Games of chance may only be conducted on the licensed eligible organizations licensed premises. Address / location on SGOC license.Address / location on SGOC license. Eligible organization may not share the same premise.Eligible organization may not share the same premise. –One license per location.

52 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 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 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) organization’s premises to conduct games or enter into a written lease agreement at an unlicensed location.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) organization’s 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.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. 54

55 55 LICENSED PREMISES AND LOCATION OF GAMES (CONTINUED) EXCEPTIONSEXCEPTIONS –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.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 56 LICENSED PREMISES AND LOCATION OF GAMES (CONTINUED) EXCEPTIONS: (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 57 GAMBLING ON P.L.C.B. LICENSED PREMISES CLUB LICENSEES

58 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.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.However, these are the only forms of gambling (legal or illegal) permitted on a licensed premise.

59 59 GAMBLING ON P.L.C.B. LICENSED PREMISES (continued) 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.Even activities that would be permissible elsewhere, are not permitted on P.L.C.B. licensed establishments. –Examples: “Neighborhood Poker Game”“Neighborhood Poker Game” Sale of raffle tickets (with no S.G.O.C. license)Sale of raffle tickets (with no S.G.O.C. license) Commonwealth vs. KehlerCommonwealth vs. Kehler

60 60 GAMBLING ON P.L.C.B. LICENSED PREMISES (continued) 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.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 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.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 62 THE SMALL GAMES OF CHANCE ACT REQUIRED RECORDS THE SMALL GAMES OF CHANCE ACT REQUIRED RECORDS

63 63 REQUIRED RECORDS GENERAL REQUIREMENTSGENERAL REQUIREMENTS –Generally SGOC records must be maintained for a period of two years. From last day of month in which game ended.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 64 REQUIRED RECORDS (CONTINUED) GENERAL RECORDS INCLUDE: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 65 REQUIRED RECORDS (CONTINUED) GENERAL RECORDS FOR CLUB LICENSEES INCLUDE: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 66 REQUIRED RECORDS (CONTINUED) GENERAL RECORDS FOR CLUB LICENSEES (CONTINUED):GENERAL RECORDS FOR CLUB LICENSEES (CONTINUED): –Proceeds, itemized by week and type of game, detailing the following: Separate bank account must be utilized.Separate bank account must be utilized. Amount of proceeds used for public interest purposes.Amount of proceeds used for public interest purposes. –Dates, recipients and amounts. Amount of proceeds used for operational expenses.Amount of proceeds used for operational expenses. –Details regarding amount used for each permitted expense.

67 67 REQUIRED RECORDS (CONTINUED) RAFFLES Record for each raffle should include: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 68 REQUIRED RECORDS (CONTINUED) PUNCH-BOARDS AND PULL-TABS Punch-Board and Pull-Tab records should include: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 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 merchandise.The amount of cash or the cash value and description of merchandise. The full name and address of the winner.The full name and address of the winner.

69 69 REQUIRED RECORDS (CONTINUED) PUNCH-BOARDS AND PULL-TABS (CONTINUED) All unplayed chances must be retained for two yearsAll unplayed chances must be retained for two years All winning chances for prizes in excess of $100 must also be retained for two years.All winning chances for prizes in excess of $100 must also be retained for two years.

70 70 DAILY AND WEEKLY DRAWINGS Eligible organizations records must include: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 entrant’s assigned number. –Gross proceeds and payout percentage. –Winner’s name. (and address if > $100) –Winners signed acknowledgment of receipt of prize. –Notation if the drawing is a “carryover” and the amount carried over.

71 71 REQUIRED RECORDS (CONTINUED) Additionally, separate annual records must be kept for: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 72 THE SMALL GAMES OF CHANCE ACT REPORTING 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 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 76 THE SMALL GAMES OF CHANCE ACT ENFORCEMENT

77 77 ENFORCEMENT District Attorneys and other law enforcement officials investigate criminal violations of the Act.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.The Act provides for civil penalties, criminal penalties and SGOC permit suspensions for violations. BLCE handles most violations administratively.BLCE handles most violations administratively. –Egregious or continued violations may result in criminal charges against individuals and/or the eligible organization.

78 78 ENFORCEMENT (CONTINUED) ACCESS TO RECORDSACCESS 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.Generally, 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.

79 79 ENFORCEMENT (CONTINUED) CLUB LICENSEESCLUB 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.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 80 THE SMALL GAMES OF CHANCE ACT PENALTIES

81 81 PENALTIES CRIMINAL 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: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: –1 st offense – forfeit its license for not more than 30 days. –2 nd or subsequent offense - forfeit its license for not less than 30 nor more than 180 days. –3 rd 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 82 PENALTIES CRIMINAL Individuals A person who conducts, or who assists in the conduct of games of chance in violation of the act is guilty of: A person who conducts, or who assists in the conduct of games of chance in violation of the act is guilty of: –1 st offense - a summary –2 nd offense - a misdemeanor of the third degree –3 rd offense - a misdemeanor of the first degree

83 83 PENALTIES CRIMINAL Rigging games or accepting contingency fees on the operation of games in a Misdemeanor of the First Degree.Rigging games or accepting contingency fees on the operation of games in a Misdemeanor of the First Degree.

84 84 PENALTIES CIVIL 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.

85 85 PENALTIES CIVIL 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.

86 86 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)]

87 87 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.

88 88 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.

89 BINGO

90 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.

91 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.

92 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.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.

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

94 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.

95 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.

96 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.

97 Bingo (Who can play) No person under the age of 18 shall be permitted to play bingo unless accompanied by an adult.

98 Bingo (Prizes) Prizes awarded shall not exceed a value of $ for any one game of bingo, except for jackpot games, which shall not exceed a value of $2, for one such game. no more than $4, in prizes shall be awarded in any calendar day.

99 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.

100 Bingo (Bank account) Each association shall deposit with a financial institution all proceeds for each day’s bingo game in an account in the association’s 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.

101 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.

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

103 Bingo (Rental agreements) If an association doesn’t 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.

104 Bingo 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

105 105 QUESTIONS?


Download ppt "1 Presented by the Pennsylvania State Police Bureau of Liquor Control Enforcement."

Similar presentations


Ads by Google