Small Games of Chance: Five Bills Advance That Would Support Nonprofit Fundraising Efforts

What happened:
On September 29, committees in both chambers advanced five bills updating Pennsylvania’s 1988 Local Option Small Games of Chance Act — the law governing raffles, pull-tabs, and similar games run by licensed nonprofits.

In the House Gaming Oversight Committee, two Senate-passed bills cleared with amendments and now go to the House floor:

• SB 416 (Sen. Devlin Robinson, R-Allegheny) would let licensed organizations accept credit cards, debit cards, and other electronic payments for raffle tickets. It passed the committee unanimously. The committee added a requirement that buyers be verified as located in Pennsylvania at the time of purchase, on top of the bill’s existing 18-and-older age check. PANO supports this bill.
• SB 398 (Sen. Michele Brooks, R-Mercer) would let licensed fire companies run online raffles. The Senate version was a pilot allowing two online raffles in a trial year; the committee unanimously amended it to allow unlimited online raffles during 2027. It does not affect existing in-person raffles.

In the Senate Community, Economic and Recreational Development Committee, three bills advanced to the full Senate:

• SB 995 (Sen. Chris Gebhard, R-Lebanon) would raise the weekly prize cap from $35,000 — unchanged since 2013 — to $60,000.
• SB 465 (Sen. Dan Laughlin, R-Erie) would let licensed clubs keep up to 50% of small games proceeds for operating costs, up from 40%. At least 50% would still have to go to public interest purposes.
• SB 330 (Sen. Michele Brooks, R-Mercer) would amend the Sports Raffle Charities Act to require major league and collegiate teams running 50/50 drawings to direct 5% of that revenue to local fire departments.

Why it matters:
Under current law, licensed nonprofits can accept only cash or checks for raffle tickets, and raffles must be held in person with printed tickets. Many organizations are unaware of this — a pandemic-era allowance for electronic payments has expired, and in August, nonprofits including fire companies running online raffles were told to stop. In Lancaster, one nonprofit has had to refund raffle proceeds after learning its payment method violated state law. Volunteer fire companies, VFWs, youth sports leagues, and community organizations across the state rely on these games to fund equipment, programs, and scholarships.

What nonprofits should do now:

• Check your compliance. Until a bill is signed, the cash-or-check rule stands. If your organization sells raffle tickets online or by card, review your practices with your county treasurer or legal counsel.
• Contact your state House member and urge a floor vote on SB 416 before session ends. A version of this bill passed the Senate last session and died in the House.

Where things stand:
Because the House committee amended SB 416 and SB 398, both will need to return to the Senate for a concurrence vote after passing the House. SB 995, SB 465, and SB 330 await full Senate votes and then House action. With only about 11 combined session days scheduled before the election and the session ending November 30, any bill not signed by then dies and must start over in 2027. PANO will share updates as these bills move. Sources: Sen. Gebhard | Altoona Mirror

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Photo by Igor Ovsyannykov from Pixabay.