HB 2038 — 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; and, in games of chance, further providing for prize limits.

PRINTER'S NO.     2608

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 2038
                                               Session of
                                                 2025

     INTRODUCED BY SCHLEGEL, COOK, BANTA, K.HARRIS, WATRO AND CIRESI,
        NOVEMBER 17, 2025

     REFERRED TO COMMITTEE ON GAMING OVERSIGHT, NOVEMBER 17, 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; and, in games
10      of chance, further providing for prize limits.
11      The General Assembly of the Commonwealth of Pennsylvania
12   hereby enacts as follows:
13      Section 1.    The definitions of "daily drawing" and "weekly
14   drawing" in section 103 of the act of December 19, 1988
15   (P.L.1262, No.156), known as the Local Option Small Games of
16   Chance Act, are amended and the section is amended by adding a
17   definition to read:
18   Section 103.    Definitions.
19      The following words and phrases when used in this act shall,
20   except as provided under section 902, have the meanings given to
21   them in this section unless the context clearly indicates
22   otherwise:
 1      * * *
 2      "Daily drawing."    A game of chance in which a bona fide
 3   member selects or is assigned a number for a chance at a prize
 4   with the winner determined by random drawing to take place on
 5   the licensed eligible organization's licensed premises during
 6   the same operating day. The term includes games of chance
 7   commonly known as "member sign-in lotteries" and "half-and-half
 8   lotteries." Daily drawing winners may be determined with the aid
 9   of a passive selection device or reference to drawings conducted
10   by the department pursuant to the act of August 26, 1971
11   (P.L.351, No.91), known as the State Lottery Law. Daily drawing
12   chances may not be sold for an amount in excess of [$1] $10, and
13   no more than one chance per individual may be sold per drawing.
14   Nothing in this definition shall restrict an eligible
15   organization from conducting more than one drawing per day.
16   After a daily drawing is held, a bona fide member may
17   immediately select a number for a chance at a prize for the next
18   day's daily drawing.
19      * * *
20      "Monthly drawing."    A game of chance in which a bona fide
21   member selects or is assigned a number or numbers for a chance
22   at a prize with the winner determined by random drawing to take
23   place on the licensed eligible organization's licensed premises
24   during an operating month. Nothing in this act shall be
25   construed to prohibit the carrying over of a jackpot where the
26   winning number has not been entered in the game in a particular
27   month. Monthly drawing winners may be determined with the aid of
28   a passive selection device or reference to drawings conducted by
29   the Department of Revenue pursuant to the act of August 26, 1971
30   (P.L.351, No.91), known as the State Lottery Law. Monthly

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 1   drawing chances may not be sold for an amount in excess of $10.
 2      * * *
 3      "Weekly drawing."    A game of chance in which a bona fide
 4   member selects or receives a number or numbers for a chance at a
 5   prize with the winner determined by a random drawing to take
 6   place on the licensed eligible organization's licensed premises
 7   at the end of a seven-day period. Weekly drawing winners may be
 8   determined with the aid of a passive selection device or
 9   reference to drawings conducted by the Department of Revenue
10   pursuant to the act of August 26, 1971 (P.L.351, No.91), known
11   as the State Lottery Law. Weekly drawing chances may not be sold
12   for an amount in excess of [$1] $10. After a weekly drawing is
13   held, a bona fide member may immediately select a number for a
14   chance at a prize for the next weekly drawing.
15      Section 2.    Section 302 of the act is amended by adding a
16   subsection to read:
17   Section 302.    Prize limits.
18      * * *
19      (h.1)   Monthly drawing carryover exception.--Monthly drawings
20   shall be governed by the prize limitation contained in
21   subsection (b). The prize limitation contained in subsection (b)
22   may be exceeded by a monthly drawing under the following
23   circumstances: a monthly drawing may award a prize where the
24   cash value is in excess of $35,000 if such prize is the result
25   of a carryover of a drawing or drawings which resulted from the
26   winning number or numbers in such drawing or drawings not being
27   among the eligible entrants in such drawings. Nothing contained
28   in this chapter shall authorize the prize limitation under
29   subsection (b) to be exceeded as a result of a failure to
30   conduct a drawing for a month during which chances were sold for

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1   a monthly drawing or for a monthly drawing for which chances
2   were sold in excess of $1.
3      * * *
4      Section 3.   This act shall take effect in 60 days.




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