Section 901.1. Definitions

The following words and terms, when used in this part, have the following meanings, unless the context clearly indicates otherwise:

Act—The Local Option Small Games of Chance Act (10 P. S. § § 311—327).

Applicant—A person who prepares and files an application.

Application—A form prescribed by the Department that a manufacturer, distributor or eligible organization shall complete and file to obtain a license or certificate.

Auxiliary group—

(i) A division, subsidiary or affiliated organization or association, incorporated or unincorporated, of an eligible organization whose business and operation is subject to and restricted by the bylaws, rules, regulations and procedures of the eligible organization and that is established solely for the purpose of aiding or assisting the eligible organization and its members in the fulfillment of the eligible organization’s purposes.

(ii) The term does not include home associations.

Bingo Law—The Bingo Law (10 P. S. § § 301—308.1).

Board—The Board of Appeals of the Department as provided for in Chapter 7 (relating to Board of Appeals).

Bona fide member—An individual who holds a membership in the eligible organization as defined by that organization’s constitution, charter, articles of incorporation or bylaws.

Chance—A right purchased for consideration to participate in a game for a prize offered in the game, which right is represented by a tangible item such as a ticket, document, paper or other item.

Charitable organization—A not-for-profit group or body of persons which is created and exists for the purpose of performing a humane service; promoting the welfare of the aged, poor, infirm or distressed; combating juvenile delinquency or advancing the spiritual, mental, social and physical improvement of young men and women. The term includes the YMCA and YWCA.

Civic and service association—

(i) Any Statewide or a branch, lodge or chapter of a nonprofit National or State organization which is authorized by its written constitution, charter, articles of incorporation or bylaws to engage in a civic or service purpose within this Commonwealth, which has existed in this Commonwealth for 1 year.

(ii) The term also includes a similar local nonprofit organization, not affiliated with a National or State organization, which is recognized by a resolution adopted by the governing body of the municipality in which the organization conducts its principal activities.

(iii) The term includes:

(A) Bona fide sportsmen’s and wildlife associations, federations or clubs, Statewide or local in nature.

(B) Volunteer fire companies.

(C) Volunteer rescue squads.

(D) Volunteer ambulance associations.

(E) Bona fide senior citizens organizations.

(F) Nonprofit organizations that are recognized by a resolution adopted by the appropriate governing body and which are established to promote and encourage participation and support for extracurricular activities within the established primary and secondary public, private and parochial school systems.

Club—As defined in section 102 of the Liquor Code (47 P. S. § 1-102), that qualifies as an exempt organization under section 501(c) or 527 of the Internal Revenue Code of 1954 (26 U.S.C.A. § 501(c) or § 527) and is licensed to sell liquor at retail and has a charitable, religious or civic purpose or is organized to benefit a political party.

Daily drawing—

(i) A game in which a bona fide member selects or is assigned a number in exchange for consideration for a chance at a prize with the winner determined by a random drawing to take place on the eligible organization’s premises during the same operating day that the chances for the drawing are sold.

(ii) The term includes games commonly known as ‘‘member sign-in lotteries’’ and ‘‘half-and-half lotteries.’’

Deal—A set of pull-tabs or punches bearing the same serial number.

Department—The Department of Revenue of the Commonwealth.

Deputy Secretary—A deputy secretary of the Department.

Dispensing machine—

(i) A device designed exclusively for the dispensing of games of chance authorized by the act, including ticket jars, fish bowls and stamp machines.

(ii) The term does not include any device commonly known as a ‘‘slot machine’’ or ‘‘video poker’’ or any device that contains as one of its components a video display monitor that is capable of displaying numbers, letters, symbols or characters in winning or losing combinations.

Distributor—A person who purchases or otherwise obtains games of chance, including punchboards or pull-tabs, from a manufacturer and sells or otherwise furnishes the games of chance, with or without merchandise to be awarded as prizes in connection therewith, to another person for the resale, display or operation of the games of chance by a licensed eligible organization.

Distributor’s representative—

(i) A natural person who represents a distributor in connection with the sale or furnishing of games of chance for use in authorized activities.

(ii) The term includes the distributor’s sales personnel.

(iii) The term does not include warehouse personnel, delivery personnel and other employees who only have incidental contact with customers.

Eligible organization—An organization that meets all of the following:

(i) Nonprofit.

(ii) Charitable organization, religious organization, fraternal organization, veterans organization, club or civic and service association.

(iii) In existence and fulfilling its purposes for 1 year prior to the date of application for a license.

Flare—A card, graphic, illustration or other document that is part of a pull-tab game or punchboard and satisfies the requirements of § 901.608 or § 901.627 (relating to standards for flares), respectively.

Fraternal organization—An organization within this Commonwealth created and carried on for the mutual benefit of its members, has a limited membership and a representative form of government and is a branch, lodge or chapter of a National or State organization.

Game of chance or game—

(i) The following games: punchboards, daily drawings, weekly drawings, raffles and pull-tab games.

(ii) The term includes all of the parts, accessories and items necessary to play such games. The term also includes dispensing machines and passive selection devices.

(iii) The term does not include a game played by or with the assistance of mechanical, electronic or electrical devices or media or a game in which the particular chance taken by a person in the game is made contingent upon another occurrence or the winning of another contest.

(iv) This definition does not authorize another form of gambling currently prohibited under 18 Pa.C.S. (relating to the Crimes Code).

(v) The term does not include games commonly known as ‘‘slot machines’’ or ‘‘video poker.’’

Hold ticket—A pull-tab or punch in a subset of pull-tabs or punches in a deal one or more of which are designated in advance as a winning pull-tab or punch for a specific prize. The winning pull-tab or punch is revealed after all hold tickets are purchased. Hold tickets are typically used in conjunction with seal cards.

Home association—A corporation, association or other organization organized under the laws of the Commonwealth by a veterans organization in conformity with its local, State or National bylaws and meets all of the following:

(i) Affiliated with the veterans organization.

(ii) Has a separate legal existence from the veterans organization.

(iii) Accepts into its membership persons who are not eligible for membership in the veterans organization.

(iv) The board of directors, officers and members with voting rights or other controlling interests consist solely of bona fide veterans organization members.

Ideal prizes—The maximum amount to be awarded in prizes if the game of chance is played to its fullest, all plays are sold and all potential prizes are awarded.

Law enforcement official—A municipal police officer, a member of the State Police, the sheriff of a county or a deputy sheriff.

License—A document issued by:

(i) The Department, upon application, to a distributor authorizing the distributor to purchase games of chance from a registered manufacturer and sell games of chance in this Commonwealth to licensed eligible organizations, also known as a distributor’s license.

(ii) A licensing authority, upon application, to an eligible organization authorizing the eligible organization to purchase games of chance from licensed distributors and conduct games of chance in this Commonwealth, on a yearly basis, known as a game of chance license, or on a limited basis, known as a limited occasion license.

Licensed premises—The specific location upon which a licensed eligible organization is authorized to conduct games of chance.

Licensee—A distributor or eligible organization that has been issued a license.

Licensing authority—The county treasurer, or in a home rule county or city of the first class, where there is no elected treasurer, the designee of the governing authority.

Limited occasion license—A license issued by a licensing authority to an eligible organization authorizing the organization to conduct games of chance on a limited basis.

Manufacturer—

(i) A person who assembles from raw materials or subparts a completed game of chance for use in authorized activities, and who sells or otherwise furnishes the same to a licensed distributor.

(ii) The term does not include printers of only raffle, daily drawing or weekly drawing tickets.

Manufacturer registration certificate or certificate—A document issued by the Department, upon application, to a manufacturer authorizing the manufacturer to sell games of chance that the Department has approved to distributors licensed to sell games of chance in this Commonwealth.

Manufacturer’s representative—

(i) A natural person who represents a manufacturer in connection with the sale or furnishing of games of chance for use in authorized activities.

(ii) The term includes the manufacturer’s sales personnel.

(iii) The term does not include warehouse personnel, delivery personnel and other employees who only have incidental contact with the customers.

NAGRA—The North American Gaming Regulators Association or its successors.

Nonoperating day—A period of time equivalent to an eligible organization’s operating day except that the eligible organization is closed to normal activities or to its members during that period of time.

Normal business or operating site—The location at which an eligible organization conducts its activities as permitted and enumerated in its constitution, charter, articles of incorporation, bylaws or other document of formation.

Office of Attorney General—The Attorney General of the Commonwealth of Pennsylvania.

Operating day—The period of time during any 24 hour period during which an eligible organization conducts its normal activities or holds itself open to its members.

Operating week—Seven consecutive operating days or nonoperating days.

Passive selection device—A device that is used to hold or denote all of the possible winning numbers or entrants in a daily drawing, weekly drawing or raffle. The device may not have the capability of being utilized to conduct or aid in unauthorized or illegal forms of gambling.

Person—A natural person, unincorporated association, company, corporation, joint stock company, group, agency, syndicate, trust or trustee, receiver, fiduciary, partnership, conservator, the Commonwealth or a political subdivision or instrumentality of the Commonwealth or of another state or the Federal government or officers thereof.

Petition—A written statement of facts, under oath, submitted by one of the following:

(i) A manufacturer or distributor who disagrees with the Department’s decision to deny or refuse to renew its application.

(ii) A registered manufacturer or licensed distributor who disagrees with the Department’s decision to revoke his certificate or license.

Petitioner—A manufacturer or distributor who files a petition.

Public interest purposes—

(i) Any of the following:

(A) Benefiting persons by enhancing their opportunity for religious or educational advancement, by relieving or protecting them from disease, suffering or distress, by contributing to their physical, emotional or social well-being, by assisting them in establishing themselves in life as worthy and useful citizens or by increasing their comprehension of and devotion to the principles upon which this nation was founded.

(B) Initiating, performing or fostering worthy public works or enabling or furthering the erection or maintenance of public structures.

(C) Lessening the burdens borne by government or voluntarily supporting, augmenting or supplementing services which the government would normally render to the people.

(D) Improving, expanding, maintaining or repairing real property owned or leased by an eligible organization and used for purposes specified in clauses (A)—(C).

(ii) 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.

Pull-tab—A game piece in a pull-tab game made completely of paper or paper products with concealed numbers or symbols that must be exposed by the player to determine wins or losses.

Pull-tab game—A deal of pull-tabs and its corresponding flare.

Punch—A crimped strip of paper or similar material that is enclosed in a punchboard receptacle and contains either a winning or losing number or symbol printed on one side and a serial number printed on the other.

Punchboard—A board, placard or other device comprised of receptacles, usually laid out in a grid or column pattern, containing a deal of hidden punches and its corresponding flare. Upon the payment of consideration, a player may select and remove the punches contained in a receptacle. A prize is awarded to a player who selects a receptacle containing a punch with a predetermined winning number or symbol.

Raffle—

(i) A game in which a participant buys a ticket for a chance at a prize with the winner determined by a random drawing of corresponding ticket stubs to take place at a location and date or dates printed upon each ticket.

(ii) The term includes lotteries but not daily or weekly drawings.

(iii) The term does not include the paying of money or merchandise at roulette wheels, at cards, dice, other tables or another form of gambling not specifically authorized by law.

Registrant—A manufacturer who is issued a manufacturer registration certificate.

Registration—The process of applying to the Department for a manufacturer registration certificate.

Religious organization—A not-for-profit group or body of persons which is created and exists for the predominant purpose of regularly holding or conducting religious activities or religious education, without pecuniary benefit to an officer, member or shareholder, except as reasonable compensation for actual services rendered to the organization.

Responsible person—A person who is connected or associated with an eligible organization, distributor or manufacturer in a manner that meets at least one of the following criteria:

(i) Has the control, receipt, custody or disposal of or pays the compensation of an employee.

(ii) Has the control, receipt, custody or disposal of the games of chance proceeds.

(iii) Has the control, receipt, custody and disposal of available cash on hand or other quick or liquid assets or pays the liabilities of the eligible organization, manufacturer or distributor.

(iv) Has the duty, power or authority to do one of the following:

(A) Direct the deduction and withholding of tax.

(B) Direct the collection and payment of sales and use tax.

(C) Control the financial affairs of the entity.

(D) Direct the payment of the entity’s liabilities.

(E) Direct the payment of the tax deducted and withheld from the compensation of an employee.

(F) Direct the disposition and use of games of chance proceeds.

(G) Account for and report tax deducted and withheld from the compensation of an employee.

(H) Direct the filing of State tax reports and returns.

(I) Direct the payment of State taxes.

(J) Direct the transaction involved with the sale, manufacture or use of games of chance.

(v) Is an eligible organization’s manager, officer, director or bar personnel involved with the conduct of games of chance.

Seal card—A board or placard that contains a seal or seals that, when removed or opened, reveal predesignated winning numbers, letters or symbols.

Secretary—The Secretary of the Department.

Seven-day period—The period of days Monday through Sunday.

Special raffle permit—A document issued by a licensing authority to a licensed eligible organization that authorizes the eligible organization to conduct a raffle with prize limits exceeding the standard prize limits for raffles.

Stamp machine—A device designed exclusively to dispense preprinted pull-tab tickets which does not make a change to, mark on or alter in any way the ticket placed in the device. The device may not print or produce tickets in any manner. The term is also known as a vending machine for pull-tab tickets.

State Lottery Law—The State Lottery Law (72 P. S. § § 3761-101—3761-315).

Veterans organization—

(i) A Congressionally chartered organization within this Commonwealth, or any branch or lodge or chapter of a nonprofit National or State organization within this Commonwealth, the membership of which consists of individuals who were members of the armed services or armed forces of the United States.

(ii) The term includes home associations.

Weekly drawing—A game in which a bona fide member selects or receives a number or numbers in exchange for consideration during an operating week for a chance at a prize with the winner determined by a random drawing to take place on the eligible organization’s premises on the last operating day of the eligible organization’s operating week.

The provisions of this § 901.1 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475; amended January 25, 2013, effective January 26, 2013, 43 Pa.B. 532. Immediately preceding text appears at serial pages (321838) to (321845).

Notation

Authority

The provisions of this § 901.1 amended under section 6 of The Fiscal Code (72 P. S. § 6) and section 306 of the Local Option Small Games of Chance Act (10 P. S. § 328.306).