HB 1050 — An Act amending the act of December 19, 1988 (P.L.1262, No.156), known as the Local Option Small Games of Chance Act, in preliminary provisions, further providing for definitions; in games of chance, further providing for prize limits and for sales limited, providing for pull-tab deals, further providing for distributor licenses, for registration of manufacturers, for regulations of department and for licensing of eligible organizations; in club licensees, further providing for distribution of proceeds; and, in enforcement, further providing for revocation of licenses and providing for other penalties.

PRINTER'S NO.   1122

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 1050
                                               Session of
                                                 2025

     INTRODUCED BY MEHAFFIE, CERRATO, DEASY, DONAHUE, MADDEN,
        MALAGARI, McNEILL, MERSKI, SANCHEZ AND STENDER,
        MARCH 24, 2025

     REFERRED TO COMMITTEE ON GAMING OVERSIGHT, MARCH 24, 2025


                                    AN ACT
 1   Amending the act of December 19, 1988 (P.L.1262, No.156),
 2      entitled "An act providing for the licensing of eligible
 3      organizations to conduct games of chance, for the licensing
 4      of persons to distribute games of chance, for the
 5      registration of manufacturers of games of chance, and for
 6      suspensions and revocations of licenses and permits;
 7      requiring records; providing for local referendum by
 8      electorate; and prescribing penalties," in preliminary
 9      provisions, further providing for definitions; in games of
10      chance, further providing for prize limits and for sales
11      limited, providing for pull-tab deals, further providing for
12      distributor licenses, for registration of manufacturers, for
13      regulations of department and for licensing of eligible
14      organizations; in club licensees, further providing for
15      distribution of proceeds; and, in enforcement, further
16      providing for revocation of licenses and providing for other
17      penalties.
18      The General Assembly of the Commonwealth of Pennsylvania
19   hereby enacts as follows:
20      Section 1.    The definitions of "games of chance" and "passive
21   selection device" in section 103 of the act of December 19, 1988
22   (P.L.1262, No.156), known as the Local Option Small Games of
23   Chance Act, are amended and the section is amended by adding
24   definitions to read:
25   Section 103.    Definitions.
 1      The following words and phrases when used in this act shall,
 2   except as provided under section 902, have the meanings given to
 3   them in this section unless the context clearly indicates
 4   otherwise:
 5      * * *
 6      "Electronic pull-tab device."        An electronic device used by a
 7   player solely to facilitate the play of an electronic pull-tab
 8   game. For the purpose of this definition, the following shall
 9   apply:
10            (1)   An electronic pull-tab device shall be a cabinet or
11      portable tablet, not including a mobile phone or other
12      personal computing device.
13            (2)   An electronic pull-tab device shall be incorporated
14      into an electronic pull-tab system and may not be used for
15      personal communication or capable of connection to an
16      unsecured or publicly accessible communication network.
17      "Electronic pull-tab game."     An electronic or digital
18   representation of a pull-tab game played on an electronic pull-
19   tab device. For the purpose of this definition, an electronic
20   pull-tab game may not replicate the game of keno, blackjack,
21   roulette, poker, craps or any other casino-style table game. The
22   reveal of numbers or symbols in an electronic pull-tab game may
23   incorporate an entertainment or bonus theme if all of the
24   following apply:
25            (1)   The reveal does not include spinning reels that
26      resemble a slot machine.
27            (2)   The reveal theme does not require an additional
28      consideration or award any prize other than the predetermined
29      prize associated with the winning electronic pull-tab ticket.
30      "Electronic pull-tab system."        Electronic pull-tab games,

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 1   electronic pull-tab devices and an associated computer or
 2   device, including all related hardware and software, used to
 3   facilitate the play of electronic pull-tab games and store and
 4   manage game data between and from points-of-sale.
 5      * * *
 6      "Event game."    A pull-tab game, played with or without a seal
 7   card, in which certain prizes are determined by the draw of a
 8   bingo ball or some other approved specified event which randomly
 9   selects numbers or symbols that correspond to the numbers or
10   symbols printed by the manufacturer on the pull-tab. For the
11   purpose of this definition, the following shall apply:
12          (1)     An event pull-tab may not be both an instant winner
13      and a hold card.
14          (2)     A game may not contain duplicate hold combinations.
15      If a game contains multiple sets of hold combinations, each
16      set shall be distinguishable by color or distinguishing
17      features.
18          (3)     An event pull-tab may contain more than one hold
19      combination.
20          (4)     The number of winners and prize amounts shall be
21      built into the payout structure for the game by the
22      manufacturer.
23      * * *
24      "Games of chance."    Punchboards, daily drawings, weekly
25   drawings, 50/50 drawings, raffles, tavern games, pools, race
26   night games and [pull-tabs] pull-tab games, including paper and
27   electronic pull-tab games, event games, subset pull-tab games,
28   pick-board games and progressive pull-tab games, as defined in
29   this act, provided that no such game shall be played by or with
30   the assistance of any mechanical or electrical devices or media

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 1   other than a dispensing machine [or], passive selection device
 2   or electronic pull-tab system and further provided [that] the
 3   particular chance taken by any person in any such game shall not
 4   be made contingent upon any other occurrence or the winning of
 5   any other contest, but shall be determined solely at the
 6   discretion of the purchaser. This definition shall not be
 7   construed to authorize any other form of gambling currently
 8   prohibited under any provision of 18 Pa.C.S. (relating to crimes
 9   and offenses) or authorized under 4 Pa.C.S. (relating to
10   amusements). Nothing in this act shall be construed to authorize
11   games commonly known as "slot machines" or "video poker" or
12   other games regulated by the Pennsylvania Gaming Control Board.
13      * * *
14      "Passive selection device."    A device which is used to hold
15   or denote the universe of possible winning numbers or entrants
16   in a daily drawing, bingo game, event game or raffle. Such a
17   device may not have the capability of being utilized to conduct
18   or aid in the conducting of unauthorized or illegal forms of
19   gambling.
20      "Pick-board game."   A pull-tab game played with a flare
21   containing more than one sealed tab that when opened reveal
22   predesignated winning numbers or symbols. For the purpose of
23   this definition, certain tickets in the game shall bear a
24   designation providing one or more players the opportunity to win
25   a prize by selecting which sealed tab to open from among the
26   sealed tabs on the flare.
27      * * *
28      "Progressive pull-tab game."    A pull-tab game played with a
29   seal card or multiple seal cards designed by the manufacturer to
30   include a jackpot prize that is carried over to a subsequent

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 1   deal of pull-tab tickets of the same form number if the jackpot
 2   prize is not won. For the purpose of this definition, the amount
 3   dedicated to the progressive jackpot shall be predetermined by
 4   the manufacturer and built into the payout structure for the
 5   game, however, the progressive jackpot does not need to be a
 6   predetermined amount.
 7      * * *
 8      "Pull-tab game."     A deal of pull-tab tickets with a finite
 9   number of winning and losing tickets and a predetermined prize
10   structure. For the purpose of this definition, each pull-tab
11   within a game shall have a unique serial number and be sold for
12   the same price.
13      * * *
14      "Subset pull-tab game."      A pull-tab game consisting of a
15   single pull-tab deal, with all tickets bearing the same serial
16   number, that is packaged by the manufacturer into smaller
17   subsets, each of which is played separately. For the purpose of
18   this definition, the following shall apply:
19            (1)   Each subset shall have a corresponding flare, which
20      shall contain at least one sealed tab.
21            (2)   Certain tickets in each subset shall bear a
22      designation providing one or more players the opportunity to
23      win a prize when the sealed tab or tabs are opened.
24      * * *
25      Section 2.     Section 302(a) and (b) of the act are amended to
26   read:
27   Section 302.    Prize limits.
28      (a)   Individual prize limit.--Except as provided under
29   subsections [(d) and (d.1)] (d), (d.1), (f) and (h), the maximum
30   prize which may be awarded for any single chance shall be

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 1   [$2,000] $5,000.
 2      (b)   Aggregate prize limit.--No more than [$35,000] $70,000
 3   in prizes shall be awarded from [games of chance] a game of
 4   chance not subject to the limitation under section 303(c) by a
 5   licensed eligible organization in any seven-day period.
 6      * * *
 7      Section 3.     Section 303(b) of the act is amended and the
 8   section is amended by adding a subsection to read:
 9   Section 303.     Sales limited.
10      * * *
11      (b)   Limitation.--No game of chance, other than a raffle
12   under section 302(d), a progressive pull-tab game or subset
13   pull-tab game, which is sold, offered for sale or furnished to a
14   licensed eligible organization for use within this Commonwealth,
15   shall contain, permit, depict or designate a single prize having
16   a prize limit in excess of [$2,000.] $5,000.
17      (c)   Maximum prize.--No pull-tab game, electronic pull-tab
18   game or punchboard, which is sold, offered for sale or furnished
19   to a licensed eligible organization for use within this
20   Commonwealth, shall have a single chance costing more than $10.
21      Section 4.     The act is amended by adding a section to read:
22   Section 303.2.     Pull-tab deals.
23      (a)   Sale or transfer.--Nothing in this act shall be
24   construed to prohibit a person from selling or transferring to
25   another person for use within this Commonwealth a pull-tab deal
26   or electronic pull-tab game that contains more than 4,000
27   individual pull-tabs.
28      (b)   Paper pull-tabs.--Nothing in this section shall be
29   construed to impose a restriction on the number of paper pull-
30   tabs that can be put out for public play as part of a single

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 1   deal.
 2      (c)   Last remaining tickets.--Nothing in this section shall
 3   prohibit a pull-tab deal from awarding a cash prize or chance at
 4   a seal prize to the purchaser of the last remaining ticket in
 5   the deal.
 6      Section 5.     Section 304(g) introductory paragraph of the act
 7   is amended to read:
 8   Section 304.     Distributor licenses.
 9      * * *
10      (g)   Ineligibility.--The department shall not issue or renew
11   a distributor license for the sale of games of chance to a
12   person, including any corporation, firm or partnership which has
13   as an officer, director or other person in a supervisory or
14   management position, [or] an employee eligible to make sales on
15   behalf of the distributor or an affiliated person or entity,
16   who:
17            * * *
18      Section 6.     Section 305 of the act is amended by adding a
19   subsection to read:
20   Section 305.     Registration of manufacturers.
21      * * *
22      (c.1)    Ineligibility.--The department shall not issue or
23   renew a certificate under this section for the sale of games of
24   chance to a person, including any corporation, firm or
25   partnership which has as an officer, director or other person in
26   a supervisory or management position, an employee eligible to
27   make sales on behalf of the manufacturer or an affiliated person
28   or entity, who:
29            (1)   has been convicted of a felony in a Federal or state
30      court within the past five years; or

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 1            (2)   has been convicted within ten years of the date of
 2      application in a Federal or state court of a violation of any
 3      of the following:
 4                  (i)    this act;
 5                  (ii)    the act of July 10, 1981 (P.L.214, No.67),
 6            known as the Bingo Law;
 7                  (iii)    a gambling-related offense under 4 Pa.C.S.
 8            (relating to amusements);
 9                  (iv)    a gambling-related offense under 18 Pa.C.S.
10            (relating to crimes and offenses); and
11                  (v)    a Federal or state law comparable to the
12            statutes listed under subparagraphs (i), (ii), (iii) and
13            (iv).
14      * * *
15      Section 7.        Section 306(a)(1) and (2) of the act are amended
16   to read:
17   Section 306.     Regulations of department.
18      (a)     Authorization.--The department shall promulgate
19   regulations to:
20            (1)   Impose minimum standards and restrictions applicable
21      to games of chance manufactured for sale in this
22      Commonwealth[, which may include standards and restrictions
23      which specify the maximum number of chances available to be
24      sold for any single game of chance or prize and such other
25      standards and restrictions] as the department deems necessary
26      for the purposes of this chapter. The department shall
27      consider standards adopted by the [National Association of
28      Gambling Regulatory Agencies] North American Gaming
29      Regulators Association and other standards commonly accepted
30      in the industry.

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 1            (2)   Establish procedures by which manufacturers may
 2      register and distributors of games of chance may apply for
 3      licensure on forms which the department shall provide.
 4      Procedures shall include a requirement that manufacturer and
 5      distributor applicants provide criminal history record
 6      information obtained from the Pennsylvania State Police under
 7      18 Pa.C.S. § 9121(b) (relating to general regulations) for
 8      each [officer and manager of the manufacturer's or
 9      distributor's organization and for any other individual
10      specified by the department] person specified under sections
11      304(g) and 305(c.1). As used in this paragraph, the term
12      "criminal history record information" has the meaning given
13      in 18 Pa.C.S. § 9102 (relating to definitions).
14            * * *
15      Section 8.        Section 307(d) of the act is amended by adding
16   paragraphs to read:
17   Section 307.     Licensing of eligible organizations.
18      * * *
19      (d)   Operation.--Each licensed eligible organization shall be
20   prohibited from the following:
21            * * *
22            (7)   Conducting electronic pull-tab games utilizing more
23      than the following number of devices at a location:
24                  (i)    Ten devices if occupancy limits for the location
25            are greater than 250.
26                  (ii)    Seven devices if occupancy limits for the
27            location are more than 100 and up to 250.
28                  (iii)    Five devices if occupancy limits for the
29            location are less than or equal to 100.
30            (8)   Utilizing an electronic pull-tab system that has not

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 1      been tested by an independent gaming test laboratory approved
 2      by the department as meeting the standards adopted by the
 3      department.
 4      * * *
 5      Section 9.     Section 502(a) of the act is amended to read:
 6   Section 502.     Distribution of proceeds.
 7      (a)   Distribution.--The proceeds from games of chance
 8   received by a club licensee shall be distributed as follows:
 9            (1)    No less than [60%] 25% of the proceeds shall be paid
10      for public interest purposes within one year of the end of
11      the calendar year in which the proceeds were obtained.
12            (2)    No more than [40%] 75% of the proceeds obtained in a
13      calendar year may be retained by a club licensee.
14      * * *
15      Section 10.     Section 701(a) of the act is amended by adding a
16   paragraph to read:
17   Section 701.     Revocation of licenses.
18      (a)   Grounds.--The following shall be grounds for suspension,
19   revocation or nonrenewal of a license:
20            * * *
21            (16)    Operation of an electronic pull-tab device that was
22      not obtained from a licensed distributor.
23      * * *
24      Section 11.     The act is amended by adding a section to read:
25   Section 709.     Other penalties.
26      In addition to any other penalty specified under this
27   chapter, a person who conducts, finances, manages, supervises,
28   directs or owns an electronic gambling device intended for use
29   in this Commonwealth in violation of this act shall be subject
30   to a civil penalty not to exceed $25,000 for each device, which

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 1   shall be payable to the county where the device was operated.
 2   The Attorney General or the district attorney of the county may
 3   cause an action in equity to be brought in the name of the
 4   Commonwealth or the county, as applicable, to:
 5          (1)    enjoin the operation of an electronic gambling
 6      device specified under this section;
 7          (2)    request an attachment against the electronic
 8      gambling device and money within the device; and
 9          (3)    recover the civil penalty specified under this
10      section.
11      Section 12.   This act shall take effect in 60 days.




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