HB 2432 — 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 games of chance, further providing for prize limits, providing for raffle prize limits and further providing for licensing of eligible organizations and for special permits; and, in club licensees, further providing for distribution of proceeds.

PRINTER'S NO.   3237

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 2432
                                               Session of
                                                 2026

     INTRODUCED BY MUSTELLO, M. BROWN, COOPER, KAUFFMAN, ROWE, BANTA
        AND BERNSTINE, APRIL 20, 2026

     REFERRED TO COMMITTEE ON GAMING OVERSIGHT, APRIL 21, 2026


                                     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 games of chance,
 9      further providing for prize limits, providing for raffle
10      prize limits and further providing for licensing of eligible
11      organizations and for special permits; and, in club
12      licensees, further providing for distribution of proceeds.
13      The General Assembly of the Commonwealth of Pennsylvania
14   hereby enacts as follows:
15      Section 1.    Section 302(a), (b), (c), (c.1), (d) and (d.1) of
16   the act of December 19, 1988 (P.L.1262, No.156), known as the
17   Local Option Small Games of Chance Act, are amended to read:
18   Section 302.    Prize limits.
19      (a)   Individual prize limit.--[Except as provided under
20   subsections (d) and (d.1), the] The maximum prize which may be
21   awarded for any single chance shall be [$2,000] $3,000.
22      (b)   Aggregate prize limit.--No more than [$35,000] $50,000
23   in prizes shall be awarded from games of chance by a licensed
 1   eligible organization in any seven-day period.
 2      [(c)    Raffle prize limit.--Up to $15,000 in prizes may be
 3   awarded in raffles in any calendar month.
 4      (c.1)    Total limit.--All prizes awarded under this section
 5   shall be subject to the aggregate prize limits under subsection
 6   (b).
 7      (d)     Exception for raffles.--Notwithstanding subsection (b)
 8   or (c), a licensed eligible organization may conduct a raffle
 9   under section 308 and award a prize or prizes valued in excess
10   of $3,000 each only under the following conditions:
11             (1)   The licensing authority has issued a special permit
12      for the raffle under section 308.
13             (2)   A licensed eligible organization shall be eligible
14      to receive no more than ten special permits in any licensed
15      term except that a volunteer fire, ambulance, rescue or
16      conservation organization that is not a club licensee shall
17      be eligible to receive 12 special permits in any licensed
18      term.
19             (3)   Only one raffle may be conducted under each special
20      permit issued under section 308.
21             (4)   Except as provided under subsection (d.1), the total
22      of all prizes awarded under this subsection shall be no more
23      than $150,000 per calendar year, which shall not be subject
24      to the aggregate limit under subsection (b) or (c).
25      (d.1)    Additional award.--A volunteer fire, ambulance, rescue
26   or conservation organization may, in addition to the total under
27   subsection (d)(4), award up to $100,000 from raffles which shall
28   not be subject to the aggregate limit under subsection (b), (c)
29   or (d).]
30      * * *

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 1      Section 2.     The act is amended by adding a section to read:
 2   Section 302.1.    Raffle prize limits.
 3      (a)   Raffle prize limit.--The maximum prize which may be
 4   awarded for a raffle shall be $5,000.
 5      (b)   Monthly raffle prize limit.--Up to $30,000 in prizes may
 6   be awarded in raffles in a calendar month.
 7      (c)   Exception for raffles.--A licensed eligible organization
 8   may conduct a raffle under section 308 and award a prize or
 9   prizes valued in excess of $5,000 each only under the following
10   conditions:
11            (1)   The licensing authority has issued a special permit
12      for the raffle under section 308.
13            (2)   There shall be no limit on the number of special
14      permits a licensed eligible organization may obtain under
15      section 308.
16            (3)   Only one raffle may be conducted under each special
17      permit issued under section 308.
18            (4)   Except as provided under subsection (d), the total
19      of all prizes awarded under this subsection shall be no more
20      than $300,000 per calendar year, which is not subject to the
21      limit under subsection (a).
22      (d)   Additional award.--A volunteer fire, ambulance, rescue
23   or conservation organization may, in addition to the total under
24   subsection (c)(4), award up to $500,000 which is not subject to
25   the limit under subsection (a).
26      Section 3.     Section 307(a), (b) and (b.2) of the act are
27   amended and the section is amended by adding a subsection to
28   read:
29   Section 307.     Licensing of eligible organizations.
30      (a)   License required.--The following shall apply:

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 1            (1)   An eligible organization shall not conduct or
 2      operate games of chance unless the eligible organization has
 3      obtained a valid license as follows:
 4                  (i)    A regular license which must be renewed
 5            annually.
 6                  (ii)    A monthly license which permits the eligible
 7            organization to conduct games of chance for a 30-
 8            consecutive-day period.
 9            (2)   An auxiliary group of a licensed eligible
10      organization may conduct games of chance using the license
11      issued to the eligible organization if the auxiliary group is
12      listed on the application and license of the eligible
13      organization. An auxiliary group shall not be eligible to
14      obtain a license if the auxiliary group is listed on the
15      application. No additional licensing fee shall be charged for
16      an auxiliary group[. If the eligible organization is a club
17      licensee,] if the auxiliary group is listed on the
18      application. If the auxiliary group is listed on the
19      application of the licensed organization, the games of chance
20      conducted by the auxiliary group must be held on the [club's]
21      licensed organization's licensed premises.
22            (3)   Auxiliary groups not listed on the application with
23      an eligible organization may apply for a license as an
24      eligible organization.
25      (b)     Issuance.--The licensing authority shall issue a license
26   within [30] 10 days of the submission of an application by an
27   eligible organization that meets the requirements under this
28   chapter.
29      * * *
30      (b.2)    Location.--An eligible organization that is not a club

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 1   licensee that holds a license under subsection (a) [and that is
 2   not a club licensee] may conduct small games of chance in the
 3   county where the license is issued at a premises which is the
 4   operating site of the eligible organization or at a premises or
 5   other location not prohibited by local ordinance, and for which
 6   the treasurer has been notified. The following shall apply:
 7          (1)    No more than three licensees, including the licensee
 8      that owns or leases the premises, may conduct small games of
 9      chance simultaneously at a premises or location.
10          (2)    A licensee shall ensure that the conduct of small
11      games of chance by different organizations are separate and
12      clearly identified within a premises or location.
13          [(3)    A licensee that is not a club licensee may conduct
14      games of chance simultaneously with the conduct of games of
15      chance by a club licensee on not more than three occasions
16      covering a total of seven days during the year.
17          (4)    The following shall apply:
18                 (i)    Notwithstanding paragraph (1), if a club
19          licensee is unable to conduct games of chance at the
20          location listed on its application and license due to
21          natural disaster, fire or other circumstance that renders
22          the location unusable, the club licensee may submit a
23          written request to the district attorney to conduct games
24          of chance in a different location, including the licensed
25          premises of another eligible organization.
26                 (ii)    A request under subparagraph (i) must include
27          the change in the location and the dates and times the
28          games of chance will be operated at the alternative
29          location.
30                 (iii)    The district attorney shall approve or deny

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 1          the request and shall establish a limit on the duration
 2          of the authorization to conduct games of chance at the
 3          alternative location. Following the expiration of the
 4          authorization period, the club licensee must return to
 5          the location specified in its application and license or
 6          apply to the licensing authority for a new permanent
 7          location. The district attorney may stipulate additional
 8          requirements as a condition of approval.
 9                (iv)   If a club licensee permits another club
10          licensee to use its licensed premises under this
11          paragraph to conduct games of chance, the host club
12          licensee must cease its operation of games of chance
13          during the time the club licensee utilizing its premises
14          is conducting its games of chance.]
15      (b.3)   Location for a club licensee.--A club licensee may
16   conduct small games of chance in the county where the license is
17   issued at a premises which is the operating site of the club
18   licensee or at a premises or other location not prohibited by
19   local ordinance, for which the treasurer has been notified in
20   accordance with the following:
21          (1)     No more than three eligible organizations, including
22      the club licensee, that own or lease the premises, may
23      conduct small games of chance simultaneously at a premises or
24      location.
25          (2)     A club licensee shall ensure that the conduct of
26      small games of chance by different organizations are separate
27      and clearly identified within a premises or location.
28          (3)     Notwithstanding paragraph (1), if a club licensee is
29      unable to conduct games of chance at the location listed on
30      the club licensee's application and license due to natural

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 1      disaster, fire or other circumstance that renders the
 2      location unusable, the club licensee may submit a written
 3      request to the district attorney to conduct games of chance
 4      in a different location, including the licensed premises of
 5      another eligible organization.
 6            (4)   A request under paragraph (3) must include the
 7      change in the location and the dates and times the games of
 8      chance will be operated at the alternative location.
 9            (5)   The district attorney shall approve or deny the
10      request and shall establish a limit on the duration of the
11      authorization to conduct games of chance at the alternative
12      location. Following the expiration of the authorization
13      period, the club licensee must return to the location
14      specified in the club licensee's application and license or
15      apply to the licensing authority for a new permanent
16      location. The district attorney may stipulate additional
17      requirements as a condition of approval.
18            (6)   If a club licensee permits another club licensee to
19      use the licensed premises under this paragraph to conduct
20      games of chance, the host club licensee must cease the
21      operation of games of chance during the time the club
22      licensee utilizing the premises is conducting the games of
23      chance.
24      * * *
25      Section 4.    Sections 308(a) and 502(a) of the act are amended
26   to read:
27   Section 308.    Special permits.
28      (a)     Issuance and fee.--The licensing authority shall issue a
29   special permit for each raffle in which the licensed eligible
30   organization proposes to award individual prizes in excess of

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 1   [$3,000] $5,000. The licensing authority may establish and
 2   collect a fee not to exceed $25 for the issuance of special
 3   permits under this section.
 4      * * *
 5   Section 502.    Distribution of proceeds.
 6      (a)   Distribution.--The proceeds from games of chance
 7   received by a club licensee shall be distributed as follows:
 8            (1)   No less than [60%] 40% of the proceeds shall be paid
 9      for public interest purposes within one year of the end of
10      the calendar year in which the proceeds were obtained.
11            (2)   No more than [40%] 60% of the proceeds obtained in a
12      calendar year may be retained by a club licensee.
13      * * *
14      Section 5.    This act shall take effect in 60 days.




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