3REV-1750www.revenue.pa.gov
fulfilling its purpose for one year in order to be eligible for a
games of chance license.
An auxiliary group of an eligible organization is not an
eligible organization and is not eligible for its own small
games of chance license. However, an auxiliary group may
conduct games of chance using the license of its parent
eligible organization so long as the auxiliary group is listed
on the eligible organization’s license application. All games
of chance conducted by the auxiliary group are considered
as if they were conducted by the eligible organization.
A club licensee is a specific type of eligible organization.
Any organization that is an ‘exempt organization’ under the
Internal Revenue Code Section 501(c) or 527, which is
licensed to sell liquor under Section 404 of the Pennsylvania
Liquor Code, is a ‘club’. If it obtains a games of chance
license from the county treasurer, it is a ‘club licensee’ for
small games of chance purposes. Club licensees, unlike
other licensed eligible organizations that can only use games
of chance proceeds for public interest purposes, can use
some games of chance proceeds for operating expenses.
Annual reporting requirements apply for club licensees.
A tavern eligible for a tavern gaming license is defined as a
hotel, restaurant, privately owned public golf course, brew
pub or microbrewery with a valid license to sell alcohol under
the Liquor Code and which is located in a municipality that
allows small games of chance.
The following are not eligible for tavern gaming licenses:
eating place retail dispenser (“E”) licensees; limited wineries
(“LK”); limited distilleries (“AL”); any tavern located in a
municipality that has not authorized small games of chance;
a grocery store, including a restaurant with an interior
connection to a grocery store; a restaurant where the sale
of liquid fuels or oil is conducted; a hotel or restaurant
located in a casino; a business on the grounds of a public
venue facility where a major league sports team or racing
facility conducts games or races; any liquor license held in
safekeeping; any liquor license declared to be a nuisance
under Section 611 of the Liquor Code; and any liquor license
under objection by the PLCB as a nuisance bar.
The PLCB issues tavern gaming licenses. For additional
information about the tavern gaming licensing process, visit
www.lcb.pa.gov.
Eligible Organizations/Club Licensees
The following prize limits apply:
• A prize for a single chance in any game may not
exceed $2,000.
• An eligible organization is limited to awarding $35,000
in prizes during an operating week (seven consecutive,
reoccurring operating or non-operating days).
• No more than $15,000 may be awarded in raffles
during a calendar month.
Limited exceptions to the prize limits exist:
• Raffles conducted under a special permit: Licensed
eligible organizations can apply to the county treasurer
for special permits. Raffles conducted under a special
permit are not subject to the general prize limitations
above. Licensed eligible organizations are eligible to
receive up to 10 special permits and may award up to
$150,000 from all special permit raffles. Volunteer fire,
ambulance, rescue or conservation organizations that
are not club licensees are eligible for up to 12 special
permits and may award up to $250,000 from all special
permit raffles.
• Daily and weekly drawing carryovers: Amounts paid
out in a carryover daily drawing or a weekly drawing
are not subject to the general prize limits. A carryover
occurs when there is no winner in the prior daily or
weekly drawing and the prize from such drawing is
carried over to be included as a prize in the next daily
or weekly drawing.
• 100 percent payout drawings: When a daily or
weekly drawing is conducted to award 100 percent of
the gross revenue from the game, then the prize does
not count against the $35,000 weekly prize limit.
Tavern Gaming Licensees
All tavern games are subject to the following prize limits:
• A prize for a single chance in any tavern game may not
exceed $2,000.
• A tavern gaming licensee may not award more than
$35,000 in prizes during an operating week (seven
consecutive, reoccurring operating or non-operating
days).
There are no exceptions to the prize limits for tavern games.
Eligible Organizations’/Club Licensees’ Use of Proceeds
Generally, all games of chance proceeds, except for
proceeds from major league sports drawings, are to be used
for public interest purposes. An eligible organization that has
as its primary purpose the promotion of a public interest
purpose may use small games of chance proceeds to carry
out that purpose. “Public interest purpose” is defined as one
or more of the following:
• 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 [sic].
• Initiating, performing or fostering worthy public works
or enabling or furthering the erection or maintenance
of public structures.
TAVERNS
PRIZE LIMITS
USE OF PROCEEDS OR NET REVENUE