[36 Pa.B. 4475]
[Saturday, August 12, 2006]
[Continued from previous Web Page]
Subchapter E. PROHIBITED ACTIVITIES/PENALTIES
PROHIBITED ACTIVITIES § 901.501. Advertising.
(a) General. An eligible organization or other person may not advertise the prizes or their dollar value to be awarded in games of chance.
(b) Exceptions.
(1) Raffle tickets may identify the raffle prizes.
(2) An eligible organization may advertise prizes and values thereof in periodic publications that are limited in their circulation to members of the eligible organization.
§ 901.502. Persons.
(a) A person having a pecuniary interest in a distributor or manufacturer or operator of games of chance may not have been:
(1) Convicted within 10 years of a violation of the Bingo Law, or of the act or of a gambling-related offense under 18 Pa.C.S. (relating to the Crimes Code) or other comparable state or Federal law.
(2) Convicted of a felony in a state or Federal court within the last 5 years.
(b) A person 17 years of age or younger may not be permitted to operate or play games of chance.
(c) A licensed eligible organization may not permit a person who has been convicted of a felony in a Federal or state court within the past 5 years or has been convicted in a Federal or State court of a violation of the Bingo Law or the act within the past 10 years to manage, set up, supervise or participate in the operation of games of chance.
§ 901.503. Compensation.
A licensed eligible organization may not pay compensation to a person for conducting games of chance.
§ 901.504. Persons who may conduct 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.
§ 901.505. Promotional use of games of chance.
Games of chance may not be used as a part of promotional or advertising methods.
§ 901.506. Credit play.
(a) Playing of games of chance shall be on a cash basis.
(b) Cash includes checks and money orders but does not include the use of a type of credit or debit card.
(c) The consideration to play a game of chance shall be collected in full, by cash, check or money order, in advance of a play.
(d) Credit play may not be extended to a player.
(e) A licensed eligible organization may not permit the purchase of tickets by means of a deferred payment plan.
(f) Licensed eligible organizations may establish their own policies concerning acceptance of checks. A licensed eligible organization is not required to accept a check.
(g) A licensed eligible organization, manufacturer or distributor may not grant a non de minimis loan or gift to a player, a licensed eligible organization, distributor or manufacturer.
(h) Postdated or altered checks may not be accepted.
(i) On the specific date on which the check was written, a licensed eligible organization may allow a player to buy back a check with cash or return a player's check to the player as part of a prize payout. Licensed eligible organizations may not unnecessarily delay the bank deposit of a check to accommodate either of these activities.
(j) A licensed eligible organization may not lend or provide the use of gambling funds to a person as a loan.
§ 901.507. Prizes in excess of $500.
A licensed eligible organization may not award an individual prize that exceeds $500 except under a special raffle permit, a daily drawing as provided in § 901.702(e)(1) (relating to prize limits) or a weekly drawing.
§ 901.508. Prizes in excess of $5,000.
A licensed eligible organization may not award a prize that causes the total prizes awarded for an operating week to exceed $5,000 except under a special raffle permit, a daily drawing as provided in § 901.702(e)(1) or (2) (relating to prize limits) or a weekly drawing as provided in § 901.702(f)(2).
§ 901.509. Monthly raffle limit.
A licensed eligible organization may not award a raffle prize that causes the total prizes awarded in raffles to exceed $5,000 for the month except under a special raffle permit.
§ 901.510. Use of licensed premises by more than one organization.
A licensed eligible organization may not permit its premises to be used for games of chance by another licensed eligible organization at the same time that it is conducting games of chance on the premises. When a licensed eligible organization permits another licensed eligible organization to use its premises for purposes of games of chance, it shall cease the operation of its own games of chance during the period that the other licensed eligible organization is conducting its games on the premises.
§ 901.511. Other activities.
Other activities that are grounds for revocation, notice of violation, denial or termination of a certificate or license are also prohibited.
§ 901.512. Oral and written leases.
(a) An eligible organization may only lease a location or premises for the operation of games of chance under a written agreement.
(b) An eligible organization may not lease a location or premises for the operation of games of chance under a written agreement that provides for a rental price determined by the amount of receipts realized from the playing of games of chance or by the number of people attending, except that an eligible organization may lease a location or premises for a banquet where a per head charge is applied in connection with the serving of a meal.
§ 901.513. Gambling facilities prohibited.
(a) A person, corporation, association, partnership or other business entity may not offer for rent or offer for use a building or facility to be used exclusively for conducting of games of chance.
(b) A licensed eligible organization may not lease under any terms a facility or building that is used exclusively for conducting of games of chance.
PENALTIES § 901.531. Eligible organizations.
An eligible organization violating the act is guilty of a summary offense, and upon conviction will be sentenced to pay a fine not exceeding $1,000 and shall, for a first offense forfeit its license to conduct games of chance for the remainder of the license term or 6 months, whichever is longer; for a second offense, forfeit its license for the remainder of the license term and be ineligible to be licensed for the following license term; for a third or subsequent offense, forfeit its license and be ineligible for a license renewal for 30 months thereafter.
§ 901.532. Individuals.
A person who conducts, or who assists in the conduct of games of chance in violation of the act is guilty of a summary offense for the first violation, a misdemeanor of the third degree for a second violation and a misdemeanor of the first degree for a third or subsequent violation.
§ 901.533. Distributors and manufacturers.
A person who distributes games of chance without a license or in violation of the act or this part and a manufacturer of games of chance who delivers games of chance for sale or distribution in this Commonwealth who fails to obtain a certificate thereof, is guilty of a misdemeanor of the first degree. A license or certificate is not required for the manufacture or distribution of raffle, daily drawing or weekly drawing tickets.
§ 901.535. Contingent fees.
A person who distributes, manufactures or operates a game of chance and who requires a payment equal to a percentage of the total winnings of a game for equipment furnished or to play a game commits a misdemeanor of the first degree.
Subchapter F. MANUFACTURING STANDARDS
PULL-TAB MANUFACTURING STANDARDS § 901.601. Uniform minimum quality standards.
(a) Standards. Pull-tab games manufactured for sale or other distribution in this Commonwealth shall conform to the act, this part and NAGRA's manufacturing standards for pull-tab games, as amended, to the extent consistent with this part. Copies of NAGRA standards are available from the Department.
(b) Packaging. Packaging shall also be in conformity with NAGRA criteria. Copies of these criteria are available from the Department.
(c) Randomization.
(1) Pull-tabs in a deal must be distributed and mixed among all other pull-tabs in a deal so as to eliminate any pattern in the location of winning and losing pull-tabs in a deal or between deals.
(2) A deal may not be segregated into sub-deals or portions so that a part of a deal may be distinguished or played separately from the rest of the deal.
§ 901.602. Flares.
A flare provided by the manufacturer must accompany every deal. However, a licensed eligible organization may alter a flare as provided in § 901.731(b)(2) (relating to punchboard and pull-tab operation).
§ 901.608. Standards for flares.
(a) A pull-tab game flare must be made only by the manufacturer. Except as provided by § 901.731(b)(2) (relating to punchboard and pull-tab operation), a flare may not be altered after it leaves the manufacturer's possession and control.
(b) Except as otherwise provided in this part, a flare for a pull-tab game must comply with NAGRA manufacturing standards for pull-tab game flares.
(c) A pull-tab game flare must:
(1) Be placed only upon the face, or on the top, of a dispenser used to dispense the pull-tabs.
(2) Clearly set out each of the prizes available and the number or symbol that wins each prize.
(3) Set out the winning numbers or symbols for prizes of $5 or more in cash or merchandise with a cash value of $5 or more.
(d) The flare for any pull-tab game containing hold tickets must provide for a section on the flare, either on the front or back, that contains the hold ticket numbers or symbols and a corresponding space beside each number or symbol upon which the holder of each hold ticket shall sign his name.
(e) A seal card may serve as a pull-tab game flare if it meets all the requirements of a flare.
PUNCHBOARD MANUFACTURING STANDARDS § 901.621. Flares.
A flare provided by the manufacturer must accompany every punchboard. However, a licensed eligible organization may alter a flare as provided in § 901.731(b)(2) (relating to punchboard and pull-tab operation).
§ 901.622. Standards for construction.
Punchboards sold for use in this Commonwealth must be in compliance with the following standards:
(1) General.
(i) A punchboard must have a face sheet that covers the punchboard receptacles.
(ii) The flare for the punchboard may be manufactured to serve as the face sheet for the punchboard.
(iii) A punchboard, its punches and its flare must be assigned an identical serial number.
(iv) Each punchboard receptacle must contain an identical number of punches.
(2) Patterns. The punchboard must be manufactured with special care to eliminate patterns between punchboards, or portions of punchboards, from which the location or approximate location of winning punches may be determined. A manufacturer shall employ at least the following steps to ensure that no pattern exists:
(i) The form or permanent number sheets from which the individual punches shall be cut must be mixed prior to cutting.
(ii) After the punches have been crimped, the punches must be thoroughly mixed prior to insertion in punchboards.
(iii) When filing punchboards, workers may not alter the procedures for filling sets of punchboards.
(iv) No more than eight punchboards from one set of boards may be included in a case of punchboards for shipment to this Commonwealth.
(3) Serial numbers. Serial numbers set forth on the form or permanent number sheets shall be nonsequential to ensure that no pattern is created which would permit the tracking of boards through the serial number.
(4) Guaranteed numbers. Numbers or symbols designated as winners on the flare shall be guaranteed by the manufacturer as being present in the board. The manufacturer may place a sticker or equivalent on the back of each punchboard setting forth additional numbers or symbols that are guaranteed to be in the board. The additional numbers of symbols on the back of the board may not exceed 5% of the total punches in the board.
(5) Security. Punchboards must be sealed so it is impossible to determine the number or symbol of a punch prior to being punched out of the board by a method or device including the use of markings or light.
(6) Step-up boards.
(i) Cards, straws or punches that contain the winners in the step-up portion of a punchboard must be completely sealed to prevent premature winner identification. The items must be thoroughly mixed to ensure that no pattern of winners exists.
(ii) Step-up boards that contain winners covered by seals must have at least 25 different face sheets for use on that specific step-up board. Face sheets shall be utilized in a manner to ensure random distribution during the manufacturing process.
§ 901.627. Standards for flares.
(a) A punchboard flare must be made only by the manufacturer. Except as provided by § 901.731(b)(2) (relating to punchboard and pull-tab operation), a flare may not be altered after it leaves the manufacturer's possession and control.
(b) A punchboard flare must:
(1) Be placed only upon the face or on the top of a punchboard.
(2) Clearly set out each of the prizes available and the number or symbol that wins each prize.
(3) Set out the winning numbers or symbols for prizes of $5 or more in cash or merchandise worth $5 or more at retail so that each prize is won and awarded.
(c) The flare for any punchboard containing hold tickets must provide for a section on the flare, either on the front or back, that contains the hold ticket numbers or symbols and a corresponding space beside each number or symbol upon which the holder of each hold ticket shall sign his name.
(d) A seal card may serve as a punchboard flare if it meets all the requirements of a flare.
GENERAL MANUFACTURING STANDARDS § 901.631. Subcontracting and manufacturer responsibility.
(a) A registered manufacturer may subcontract for the manufacturer or production of the parts, pieces, accessories and other items that make up a completed game of chance.
(b) A subcontractor who only manufacturers or produces parts, pieces, accessories and other items used to manufacturer a completed game of chance is not required to be registered with the Department.
(c) A registered manufacturer that assembles and markets a completed game of chance is responsible for complying with the provisions and requirements of this part to sell the game of chance for use in this Commonwealth.
§ 901.632. Predetermination of rules, winning chances and prizes.
Except as provided in § 901.731(b)(2) (relating to punchboard and pull-tab operation), a manufacturer of a pull-tab game or punchboard shall predetermine the rules, prize structure, prizes, prize values, winning pull-tabs or punches and the corresponding prize for each pull-tab or punch during the manufacturing of the pull-tab game or punchboard. A person may not alter a pull-tab game or punchboard manufactured by a registered manufacturer and offered for sale and use within this Commonwealth.
§ 901.633. Prohibition against participant control of winning chances or prizes.
A game of chance may not be manufactured for sale and use in this Commonwealth in which a participant who purchases a chance in the game can control, effect or choose the winning chance or chances or the corresponding prize or prizes.
Subchapter G. OPERATION OF GAMES
ELIGIBLE ORGANIZATION OPERATION OF GAMES § 901.701. Games of chance permitted.
(a) A licensed eligible organization may conduct games of chance only for the purpose of raising funds for public interest purposes as defined in the act or this part.
(b) A licensed eligible organization shall use games of chance proceeds exclusively for public interest purposes or for the purchase of games of chance permitted by the act or this part. For purposes of this subsection, the term ''games of chance'' includes merchandise prizes awarded in a game of chance.
(c) A game of chance may not be conducted in this Commonwealth in which a participant who purchases a chance in the game can control, effect or choose the winning chance or chances or the corresponding prize or prizes.
§ 901.701a. License required.
(a) Eligible organizations. An eligible organization may not conduct or operate games of chance unless the eligible organization obtains and maintains a valid license. An eligible organization shall be in existence and fulfilling its purposes for 1 year prior to the date of application for a license.
(b) Auxiliary groups.
(1) An auxiliary group may conduct or operate games of chance under its parent organization's license. An auxiliary group may not be licensed separately. Any auxiliary group that conducts games of chance must be listed on the parent organization's license application.
(2) An auxiliary group that conducts games of chance under its parent organization's license acts in lieu of the eligible organization and is bound by the restrictions and limitations of the eligible organization and its license under the act and this part. Prizes from games of chance conducted by an auxiliary group must be included in the total prizes paid out by the licensed eligible organization for purposes of determining the licensed eligible organization's adherence to the prize limits under the act and this part.
(3) A licensing authority may not charge an additional licensing fee for an auxiliary group's right to conduct games of chance under its parent eligible organization's license.
§ 901.701b. Display.
The licensed eligible organization shall at all times publicly display its license at the site where it conducts games of chance.
§ 901.701c. Location of games.
(a) A license will be valid at and authorize the holder to conduct games of chance on the eligible organization's licensed premises as provided in § 901.704 (relating to licensed premises).
(b) A licensed eligible organization may conduct games of chance at a location off its premises when the games of chance are part of a reoccurring, annual carnival, fair, picnic or banquet held or participated in by that eligible organization. The organization shall notify, in writing, the district attorney and licensing authority of the location, date and times of the events.
(c) A license issued by a licensing authority in one county will be valid for purposes of selling raffle tickets in municipalities of another county which have specifically approved games of chance by an affirmative vote in a municipal referendum. A licensed eligible organization that plans to sell raffle tickets in a municipality located in a county other than the county in which it is licensed shall notify that county's district attorney and licensing authority as to the location and the dates that the organization plans to sell raffle tickets.
§ 901.702. Prize limits.
(a) Maximum individual prize limit. The maximum cash value of a prize that may be awarded for a single chance in a game of chance is $500.
(b) Weekly limit. No more than $5,000 in cash or merchandise may be awarded as prizes in games of chance conducted by a licensed eligible organization during an operating week.
(c) Raffle limit. No more than $5,000 in cash or merchandise may be awarded as prizes in raffles in a calendar month except under a special raffle permit.
(d) Special raffle permit. A licensed eligible organization may conduct a raffle and award a prize valued in excess of $500 only if it has obtained a special raffle permit. The total cash value of prizes awarded under all special raffle permits during a calendar year may be no more than $100,000.
(e) Prize limit exceptions for daily drawings.
(1) A licensed eligible organization may award a prize in excess of the prize limitations in subsections (a) and (b) if the prize is the result of a carryover of a drawing when the following conditions apply:
(i) The winning number was not held by one of the eligible entrants in the drawing.
(ii) The carryover is not the result of the licensed eligible organization's failure to hold a drawing on an operating day during which chances for a daily drawing were sold.
(iii) The chances for the daily drawing were not sold for an amount in excess of $1.
(iv) An eligible participant may not be sold more than one chance.
(2) A prize awarded in a daily drawing that is set up to pay out 100% of the gross revenues from the drawing is not included as a prize for purposes of the limitation in subsection (b).
(f) Prize limit exceptions for weekly drawings.
(1) The prize limitation in subsection (a) does not apply to weekly drawings. Weekly drawings are subject to the prize limitations in subsection (b).
(2) A prize awarded in a weekly drawing will not be considered a prize for purposes of the limitation in subsection (b) if either:
(i) The prize is the result of a carryover of a drawing when the winning number was not held by one of the eligible entrants in the drawing, and the following conditions apply:
(A) The carryover is not the result of the licensed eligible organization's failure to hold a weekly drawing at the end of the operating week during which chances were sold.
(B) The chances for the weekly drawing were not sold for an amount in excess of $1.
(ii) The drawing is set up to pay out 100% of the gross revenues from such drawing.
§ 901.703. Place of conduct.
A licensed eligible organization shall conduct games of chance only on the licensed eligible organization's licensed premises or at places as otherwise provided by the act and this part. A licensed eligible organization may sell raffle tickets off the licensed premises but only in municipalities that have approved games of chance through a valid referendum.
§ 901.704. Licensed premises.
(a) An eligible organization's licensed premises must be the location or premises owned or leased by the organization for use as its normal business or operating site. When the premises consists of more than one building, the organization shall designate which building will be used as the licensed premises for the operation of games of chance. If the organization wishes to conduct games of chance in a different building on its licensed premises, it shall notify, in writing, the district attorney and the licensing authority of the change in building site and the date and times that will be affected at least 10 days prior to conducting games at the different site.
(b) If an eligible organization does not own or lease a location or premises for use as its normal business or operating site, the organization may:
(1) With the written consent of another eligible organization, use another eligible organization's licensed premises for purposes of conducting games of chance so long as such use complies with §§ 901.510 and 901.709 (relating to use of licensed premises by more than one organization; and eligible organizations per premises).
(2) Lease a location or premises on which to conduct games of chance as long as the lease does not violate § 901.513 (relating to gambling facilities).
(3) Make other arrangements to acquire a location or premises, consistent with the act and this part, on which to conduct games of chance.
(c) An eligible organization may not lease a location or premises as a licensed premises under an oral agreement. An eligible organization may lease a location or premises under a written agreement. The rental price may not be based on either the amount of receipts realized from the playing of games of chance or the number of people attending. An eligible organization may lease a facility for a banquet where a per head charge is applied in connection with the serving of a meal.
(d) An eligible organization may not lease a location or premises as a licensed premises from any person who has been convicted of a violation of the act or this part within 10 years of the date of the lessor's conviction.
§ 901.705. Purchase of games.
A licensed eligible organization shall purchase games of chance only from a licensed distributor. Raffles, daily drawings and weekly drawings are excluded from this requirement.
§ 901.706. Persons who may not operate or play games of chance.
(a) A person 17 years of age or younger may not be permitted to operate or play games of chance.
(b) A licensed eligible organization may not permit a person who has been convicted of a felony in a state or Federal court within the past 5 years or a violation of the Bingo Law or the act in a State or Federal court within the past 10 years to manage, set up, supervise or participate in the operation of games of chance.
§ 901.707. Compensation.
A licensed eligible organization may not pay compensation to a person for conducting games of chance.
§ 901.708. Persons who 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.
§ 901.709. One eligible organization per premises.
Only one licensed eligible organization may use a licensed premise to conduct games of chance. A licensed eligible organization may allow another licensed eligible organization that does not own or lease a normal business premises to conduct games of chance on its premises. When an eligible organization uses the premises of another eligible organization, each eligible organization shall notify its respective licensing authority and district attorney in writing at least 10 days prior to using the premises.
§ 901.710. Other standards and requirements.
A licensed eligible organization may not provide for play or purchase a game of chance that violates the act or this part.
§ 901.711. (Reserved).
§ 901.712. Raffle, daily drawing and weekly drawing game rules and prizes.
An eligible organization shall establish the rules, prize structure, prizes, and prize values in a raffle, daily drawing or weekly drawing prior to conducting the raffle, daily drawing or weekly drawing.
PUNCHBOARD AND PULL-TAB OPERATION PROCEDURES § 901.731. Punchboard and pull-tab operation.
(a) A person 17 years of age and younger or a person visibly intoxicated or visibly under the influence of a controlled substance may not be allowed to play or sell a punchboard or pull-tab. It is the responsibility of the licensee and the responsibility of the person physically selling the punchboard or pull-tab deal to determine that an unauthorized person is not allowed to play or sell.
(b) Limitations on punchboards, pull-tabs and flares are as follows:
(1) A licensed eligible organization may not permit the display or operation of a punchboard or pull-tab which may have been marked, defaced, tampered with or otherwise placed in a condition or operated in a manner which may deceive the public or which affects the chances of winning or losing upon the taking of a chance thereon.
(2) A licensed eligible organization may alter a flare to indicate that merchandise of equivalent value will substitute for a cash prize in a punchboard or pull-tab game.
(c) Records, reports and receipts relating to a punchboard or pull-tab deal in play shall be retained on the licensed premises as long as the deal or punchboard is in play and shall be made available on demand to law enforcement officers, county officials or the Department.
(d) When licensed eligible organizations purchase merchandise to be used as prizes on punchboards or pull-tab deals, the following information must be on the invoice provided by the seller:
(1) The date of the purchase.
(2) The company's name and adequate business address.
(3) A full description of each item purchased.
(4) The quantity of items purchased.
(5) The cost per individual items purchased.
(e) Limitations on pull-tab dispensing machines are as follows:
(1) Pull-tabs may not be placed out for public play unless the total number of pull-tabs originally in the deal is clearly disclosed on the face of the flare advertising the prizes available from that deal. The total number of pull-tabs originally in the deal will be placed upon the flare by the manufacturer prior to the series being sold to a distributor.
(2) A pull-tab may not be added to a deal after that deal has been shipped from its place of manufacture.
(3) If an entire deal is not placed in a dispensing machine at one time, the pull-tabs in the deal shall be placed in the dispensing machine randomly and in a manner that does not compromise the randomization of the tickets as packaged by the manufacturer.
(4) A pull-tab deal once placed in or upon a pull-tab container out for play may not be removed from the container until the deal is permanently removed from public play, except as follows:
(i) Pull-tabs actually played by consumers.
(ii) Pull-tabs removed by representatives of the county, or other law enforcement agency inspecting the games of chance.
(5) Once a pull-tab has been removed from public play it may not again be put out for public play.
(6) Deals may not be commingled.
(f) A person may not sell or transfer to another person in this Commonwealth, for use within this Commonwealth, or place out for public play a container for pull-tabs not so constructed to allow a consumer to clearly see the pull tabs within or upon the container prior to playing the game. Stamp machines are excluded from this requirement.
(g) A person may not sell or transfer to another person in this Commonwealth, for use within this Commonwealth, or put out for public play, a pull-tab deal which contains more than 4,000 individual pull-tabs or 4,000 stapled packets of jar tickets.
§ 901.733. Control of prizes.
(a) Prizes shall be displayed in the immediate vicinity of the punchboard or pull-tab container and the prizes shall be in full view of a person prior to that person purchasing the opportunity to play.
(b) When the prize is cash, it shall be displayed as follows:
(1) If the punchboard or pull-tab deal contains the opportunity to win cash and merchandise prizes, the money itself may not be displayed but a coupon designating the cash available to be won shall be substituted.
(2) If the only prizes which may be won are cash prizes, they shall be clearly and fully described or represented by a coupon displayed upon the flare attached to the face or displayed in the immediate vicinity of the pull-tab container.
(c) The licensed eligible organization shall display prizes so arranged that a customer can easily determine which prizes are available from a particular punchboard or pull-tab deal located upon the premises.
(d) The prize shall be paid or delivered to the winner as soon as possible.
(e) A licensed eligible organization may not offer to pay or actually pay cash in lieu of merchandise prizes which may be won.
(f) When a person wins a cash prize of over $100 or wins a merchandise prize with a cash value of over $100 from the play of a punchboard or pull-tab deal, the licensed eligible organization shall make a record of the win. The record must disclose, at a minimum, the following information:
(1) The serial number of the pull-tab deal or punchboard from which the prize was won.
(2) The name of the punchboard or pull-tab deal.
(3) The month, day and year of the win.
(4) The amount of the prize won if the prize is cash.
(5) A description of the prize won and its cash value if the prize is merchandise.
(6) The printed full name of the winner.
(7) The address of the winner which will include the street address, the city, the state and zip code.
(8) The form number of the punchboard or deal.
(g) A licensed eligible organization shall keep the record of prizes awarded containing the information required in subsection (f), and of winning plays for a minimum of 2 years and shall display the record to a representative of the Department, county licensing authority, district attorney or law enforcement official upon demand. The licensed eligible organization shall immediately mark or perforate the winning pull-tab or punch so that the play cannot be presented again for payment.
§ 901.734. Punchboard and pull-tab inventory and retention.
A licensed eligible organization shall control and account for punchboard and pull-tab games as follows:
(1) A licensed eligible organization shall closely monitor punchboards and pull-tab games purchased to assure that serial numbers are correctly entered in records and that each punchboard and pull-tab game purchased is recorded. The following control procedures apply:
(i) By the close of business on the last day of a licensed eligible organization's license term and before operating punchboards and pull-tab games after that date, the licensed eligible organization shall take a physical inventory of punchboards and pull-tab games in play and awaiting play and record the following information separately for punchboards and pull-tab games:
(A) The name of the game.
(B) The serial or series number.
(C) The form number.
(ii) At the time punchboards and pull-tab games are delivered, a licensed eligible organization shall assure that purchase invoice data is correct by comparing the actual serial numbers on each punchboard or pull-tab game to the numbers entered on the purchase invoices.
(iii) The purchases of punchboards or pull-tab games shall be recorded on a standard distributor's invoice, which includes space for the licensed eligible organization to either attach a records entry label or enter the serial number and the date the punchboard or the pull-tab game was placed out for play. For punchboards or pull-tab games purchased, the licensed eligible organization shall enter the data and the serial number in the space on the invoice, adjacent to the distributors entry, by either attaching a records entry label or by written entry.
(2) A punchboard or pull-tab game which is removed from play, unplayed punches or pull-tabs and winning punches or pull-tabs for prizes in excess of $100 shall be retained by the licensed eligible organization for at least 2 years following the last day of the month in which it was removed from play. The board, unplayed punches or pull-tabs, flare and winning punches or pull-tabs must remain available for inspection on the licensed premises.
(3) A punchboard or pull-tab game which is not placed out for public play or is not returned to the distributor from whom it was originally purchased must be retained on the licensed premises and made available for inspection for at least 2 years.
RAFFLES § 901.741. Prize limits.
A prize awarded may not have a value in excess of $500 unless the raffle is conducted under a special raffle permit. A licensed eligible organization may not award more than $5,000 in cash or merchandise in raffles in a calendar month.
§ 901.742. Drawing dates.
Raffles may have one or more drawing dates except a raffle where the winner is determined by a drawing conducted by the Department under the State Lottery Law, in which case the drawing date will be the date of the applicable Department drawing. The drawing dates and times must be printed on the raffle tickets.
§ 901.743. Raffle tickets.
(a) Tickets for entry into a raffle shall be sold or issued separately and each ticket shall constitute a separate and equal chance to win with other tickets sold or issued. A person may not be required to obtain more than one ticket, or to pay for anything other than the ticket, to enter a raffle.
(b) Tickets for use in a raffle must have a stub or other detachable section, be consecutively numbered and be accounted for separately through the use of a log book showing to whom the tickets were given to be sold. The ticket stub or other detachable section of the ticket must bear a duplicate number corresponding to the numbers on the ticket and contain the purchaser's name, complete address and telephone number. Both parts must be imprinted with sequential numbers commencing with the number ''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 conducted by the Department under the State Lottery Law, the universe of eligible ticket numbers must correspond to the universe of eligible numbers in the State Lottery drawing.
(c) A raffle ticket shall be sold for the price stated on the ticket.
(d) A person may not be required to be present at a raffle drawing to be eligible for the prize drawing or to claim the prize awarded.
(e) A ticket seller shall return the stubs or other detachable section of tickets sold to the eligible organization. The eligible organization shall then place each stub or other detachable section of ticket sold into a receptacle out of which the winning tickets are to be drawn. The receptacle must be designed so that each ticket placed therein has an equal opportunity with every other ticket to be the one withdrawn.
(f) If a ticket stub or other detachable portion was not placed in the receptacle from which the winners were drawn, prior to the drawing, the purchase price of the ticket must be refunded to the purchaser.
(g) The purchaser's name, address and telephone number must appear on the stubs or other detachable section.
§ 901.744. Control of raffle prizes.
A licensed eligible organization conducting a raffle in which real or personal property prizes are to be awarded shall have paid for in full or otherwise become the owner, without lien or interest of others, of the real or personal property prior to the drawing at which the winners of the prizes are to be determined.
§ 901.745. Printing requirements.
The following information must be printed upon each raffle ticket sold:
(1) The dates and times of the drawings.
(2) The location of the drawings.
(3) The name of the licensed eligible organization conducting the raffle.
(4) The games of chance license number of the licensed eligible organization.
(5) The special raffle permit number, if applicable.
(6) The price of the ticket.
(7) The prize or prizes to be awarded.
§ 901.746. Prize awarding.
(a) A licensed eligible organization shall award raffle prizes on the dates indicated on the raffle ticket unless the licensed eligible organization approves a different date and purchasers of tickets are notified in writing. The dates of the drawing may be extended only if one of the following occurs:
(1) Weather or a state of emergency declared by the Governor has caused a postponement of the event at which the drawing was to occur.
(2) Not enough tickets are sold to cover the cost of the prizes and an extension will make a material difference.
(b) The fact that a desired level of profit will not be obtained is not a basis for an extension of the date of the drawing.
(c) If a raffle prize remains unclaimed by the winner for 90 days following the date of the raffle drawing and the licensed eligible organization has made a good faith effort to contact the winner by means of telephone and registered mail, for redemption of the prize, the licensed eligible organization may retain the prize or award it in another game of chance. A record of the attempted contact shall be maintained for a minimum of 2 years.
§ 901.748. Prohibition of joint raffles held by licensees.
A licensed eligible organization may not join together with another licensed eligible organization to conduct a raffle.
§ 901.749. Open drawing.
(a) A drawing and allotment by chance shall be conducted openly and in plain view of players present.
(b) A licensed eligible organization shall immediately exhibit and hold open for inspection drawn raffle ticket stubs or detachable sections until the end of the raffle. A licensed eligible organization shall retain the stubs or detachable sections as provided under the act or this part.
§ 901.751. Ticket sales.
A licensed eligible organization may only sell raffle tickets in municipalities that have approved the use of games of chance by means of a valid local referendum in accordance with the act. A licensed eligible organization may sell raffle tickets at locations other than the licensed eligible organization premises. A licensed eligible organization that plans to sell raffle tickets in a municipality located in a county other than the county in which it is licensed shall notify that county's district attorney and licensing authority in writing of the location and date that the eligible organization plans to sell raffle tickets at least 10 days prior to selling raffle tickets in that county.
§ 901.752. Printer requirements.
An entity providing raffle tickets to a licensed eligible organization shall attach a copy of the organization's games of chance license to the raffle ticket purchase invoice or other document evidencing the sale. If the raffle pays a prize or prizes in excess of $500 each, a copy of the licensed eligible organization's special raffle permit shall also be attached.
§ 901.753. Means of determining winning numbers.
A licensed eligible organization may use the following means to determine the winners in a raffle:
(1) A random drawing of ticket stubs.
(2) A passive selection device.
(3) By reference to a drawing of the Department under the State Lottery Law. Both the date and the name of the drawing that will be used must be identified on the raffle ticket. This method may only be used if the licensed eligible organization sells enough tickets equal to the universe of possible winning numbers in the Department drawing. If insufficient tickets are sold, an alternate means of determining the winning number must be used.
§ 901.761. (Reserved).
§ 901.762. (Reserved).
§ 901.763. (Reserved).
§ 901.764. (Reserved).
§ 901.765. (Reserved).
§ 901.766. (Reserved).
§ 901.767. (Reserved).
§ 901.768. (Reserved).
§ 901.769. (Reserved).
§ 901.770. (Reserved).
§ 901.771. (Reserved).
§ 901.772. (Reserved).
§ 901.773. (Reserved).
§ 901.774. (Reserved).
§ 901.775. (Reserved).
§ 901.776. (Reserved).
§ 901.777. (Reserved).
§ 901.778. (Reserved).
DAILY DRAWINGS § 901.781. Daily drawing procedures.
(a) A licensed eligible organization may sell chances for and hold only one daily drawing during each operating day. A bona fide member may purchase a chance in a daily drawing only during the operating day on which the drawing will be held.
(b) Daily drawing winners must be determined by random drawing. Daily drawing winners may be determined with the aid of a passive selection device or by reference to drawings conducted by the Department under the State Lottery Law.
(c) A daily drawing must take place on the eligible organization's licensed premises and be conducted in plain view.
(d) A daily drawing must begin and end on the same operating day. An eligible organization may conduct no more than 7 daily drawings during an operating week.
(e) A licensed eligible organization may not sell chances for or conduct a daily drawing during a period when weekly drawing chances are being sold or a weekly drawing is taking place.
(f) Immediately prior to each daily drawing, the eligible organization shall announce the prize amount for the drawing.
(g) The name of a daily drawing prize winner or the fact that a winner was not selected must be prominently displayed on the licensed premises for at least 7 days after the drawing date. If a winner does not claim a prize within 7 days of the drawing, the eligible organization shall notify the winner of the prize and the requirements for claiming the prize. See § 901.784 (relating to claiming prizes).
§ 901.782. Daily drawing chances.
(a) Only a bona fide member of an eligible organization may purchase a chance in a daily drawing.
(b) A licensed eligible organization shall sell a chance in a daily drawing only to a bona fide member.
(c) A chance in a daily drawing may not be sold to or purchased by one bona fide member for the benefit of another bona fide member.
(d) A licensed eligible organization may not sell a chance in a daily drawing for more than $1.
(e) A licensed eligible organization may sell no more than one chance per daily drawing to each of its bona fide members.
(f) A chance in a daily drawing may be sold and purchased only on the eligible organization's licensed premises.
§ 901.783. Posting rules.
(a) An eligible organization shall prominently display the rules for each daily drawing in the area where the chances for the drawing are sold.
(b) At a minimum, the posted rules must include:
(1) The cost of the chance.
(2) The manner of selecting the winner.
(3) The time during which chances may be purchased.
(4) The time of the drawing.
(5) The payout percentage.
(6) Whether the drawing is a carryover drawing and the amount of the carryover jackpot.
(7) The requirements and time limits for claiming prizes as provided for in § 901.784 (relating to claiming prizes).
§ 901.784. Claiming prizes.
(a) The winner of a daily drawing need not be present at the time of the drawing to claim the prize.
(b) An eligible organization may not impose a penalty or limit the amount of a prize based upon a winning member's nonattendance at the time of the drawing.
(c) Only the daily drawing winner may claim the daily drawing prize.
(d) A daily drawing winner shall claim the prize in person and sign for receipt of the prize.
(e) A prize winner shall claim the prize within 30 days from the date of the drawing.
§ 901.785. Invalid State Lottery drawing.
A drawing of the State Lottery that is invalidated must also result in an invalid drawing in a licensed eligible organization's daily drawing which is tied to the State Lottery drawing.
§ 901.786. Unclaimed prize money.
A daily drawing prize that remains unclaimed more than 30 days after the drawing shall be retained by the eligible organization for public interest purposes.
WEEKLY DRAWINGS § 901.791. Weekly drawing procedures.
(a) A licensed eligible organization may sell chances for and hold only one weekly drawing during an operating week. Bona fide members may purchase chances in a weekly drawing only during the operating week in which the drawing will be held. The drawing shall be held at the end of the operating week.
(b) Weekly drawing winners must be determined by random drawing. Weekly drawing winners may be determined with the aid of a passive selection device or with reference to drawings conducted by the Department under the State Lottery Law.
(c) A weekly drawing must take place on the eligible organization's licensed premises and be conducted in plain view.
(d) A licensed eligible organization may not sell chances for or conduct a weekly drawing during a period when daily drawing chances are being sold or a daily drawing is taking place.
(e) Immediately prior to each weekly drawing the eligible organization shall announce the prize amount for the drawing.
(f) The name of a weekly drawing prize winner or the fact that a winner was not selected must be prominently displayed on the licensed premises for at least 7 days after the drawing date. If a winner does not claim a prize within 7 days of the drawing, the eligible organization shall notify the winner of the prize and the requirements for claiming the prize. See § 901.784 (relating to claiming prizes).
§ 901.792. Weekly drawing chances.
(a) Only a bona fide member of an eligible organization may purchase chances in a weekly drawing.
(b) A licensed eligible organization shall sell chances in a weekly drawing only to a bona fide member.
(c) Chances in a weekly drawing may not be sold to or purchased by one bona fide member for the benefit of another bona fide member.
(d) A licensed eligible organization may not sell chances in a weekly drawing for more than $1 each.
(e) Chances in a weekly drawing may be sold and purchased only on the eligible organization's licensed premises.
§ 901.793. Posting rules.
(a) An eligible organization shall prominently display the rules for each weekly drawing in the area where the chances for the drawing are sold.
(b) At a minimum, the posted rules must include:
(1) The cost of the chance.
(2) The manner of selecting the winner.
(3) The time during which chances may be purchased.
(4) The time of the drawing.
(5) The payout percentage.
(6) Whether the drawing is a carryover drawing and the amount of the carryover jackpot.
(7) The requirements and time limits for claiming prizes as provided for in § 901.794 (relating to claiming prizes).
§ 901.794. Claiming prizes.
(a) The winner of a weekly drawing need not be present at the time of the drawing to claim the prize.
(b) An eligible organization may not impose a penalty or limit the amount of a prize based upon a winning member's nonattendance at the time of the drawing.
(c) Only the weekly drawing winner may claim the weekly drawing prize.
(d) A weekly drawing winner shall claim the prize in person and sign for receipt of the prize.
(e) A prize shall be claimed within 30 days from the date of the drawing.
§ 901.795. Invalid State Lottery drawing.
A drawing of the State Lottery that is invalidated must also result in an invalid drawing in a licensed eligible organization's weekly drawing which is tied to the State Lottery drawing.
§ 901.796. Unclaimed prize money.
A licensed eligible organization shall retain for public interest purposes a weekly drawing prize that remains unclaimed more than 30 days after the drawing.
Subchapter H. SPECIAL RAFFLE PERMITS
SPECIAL RAFFLE PERMITS § 901.801. Prize limit.
The total value of all special raffle permit prizes during a calendar year may be no more than $100,000.
§ 901.802. Raffle number limit.
Only one raffle may be conducted under each special raffle permit.
§ 901.803. Special raffle permit limit.
A licensed eligible organization is eligible to receive two special raffle permits in a calendar year, except volunteer fire, ambulance and rescue organizations are eligible to receive three special raffle permits in a calendar year.
§ 901.804. Issuance of permits.
Special raffle permits shall be obtained from the licensing authority at least 30 days before the date on which ticket sales are to begin.
§ 901.805. Rule applicability.
The rules contained in this part apply to special raffle permits. To the extent they are inconsistent with §§ 901.801--901.804, this section and §§ 901.806--901.811, these provisions supersede those elsewhere in this part.
§ 901.806. Required permit.
A special raffle permit is required for each raffle in which a licensed eligible organization proposes to award an individual prize having a cash value in excess of $500 or total prizes having a cash value in excess of $5,000.
§ 901.807. (Reserved).
§ 901.808. Special raffle permit application.
The application for a special raffle permit must be made to the licensing authority. The application must include the following information:
(1) The licensed eligible organization's name.
(2) The licensed eligible organization's games of chance license number.
(3) The location of the drawing.
(4) The number of chances to be sold.
(5) The price per chance.
(6) The cash value of the prizes to be awarded.
(7) The date of the drawing.
(8) The date sales will begin.
(9) The certified statement that this part, including the advertising prohibition, will be obeyed.
§ 901.810. Effective period.
A special raffle permit will remain effective from the date on which ticket sales begin until the earlier of the date of the drawing, the expiration date of their games of chance license held when the special raffle permit was issued or 6 months.
§ 901.811. (Reserved).
[Pa.B. Doc. No. 06-1543. Filed for public inspection August 11, 2006, 9:00 a.m.]
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