SB 398 — 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 and providing for online raffles by fire companies; and, in club licensees, further providing for distribution of proceeds.

HOUSE AMENDED PRIOR PRINTER'S NOS.NO.

345,345 1978 PRINTER'S NO.

20061978 THE GENERAL ASSEMBLY OF PENNSYLVANIA SENATE BILL Session of No.

398 2025 INTRODUCEDINTSANTARSIERO, BYMARCH BROOKS,6, FARRY,2025BROWN, BROWN, STEFANO, COSTA AND SANTARSIERO,AS MARCHREPORTED 6,FROM 2025COMMITTEE AS AMENDED ON SECONDGAMING CONSIDERATION,OVERSIGHT, HOUSE OF REPRESENTATIVES, OCTOBERAS 5,AMENDED, SEPTEMBER 29, 2026 AN ACT Amending the act of December 19, 1988 (P.L.1262, No.156), entitled "An act providing for the licensing of eligible organizations to conduct games of chance, for the licensing of persons to distribute games of chance, for the licensing registration of manufacturers of games of chance, and for suspensions and revocations of licenses and permits;

providing for local referendum by electorate;providing for online raffles by fire companies.s of chance, The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows:

and prescribing penalties," in games of chance, FURTHER PROVIDING FOR PRIZE LIMITS AND providing for online <-- raffles by fire companies.;

AND, IN CLUB LICENSEES, FURTHER <-- PROVIDING FOR DISTRIBUTION OF PROCEEDS.

The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows:

The act of December 19, 1988 (P.L.1262, No.156), <-- known as the Local Option Small Games of Chance Act, is amended by adding a section to read:

SECTION 1.

SECTION 302(B) OF THE ACT OF DECEMBER 19, 1988 <-- (P.L.1262, NO.156), KNOWN AS THE LOCAL OPTION SMALL GAMES OF CHANCE ACT, IS AMENDED TO READ:

SECTION 302.

PRIZE LIMITS.

* * * (B) AGGREGATE PRIZE LIMIT.--NO MORE THAN [$35,000] $60,000 IN PRIZES SHALL BE AWARDED FROM GAMES OF CHANCE BY A LICENSED ELIGIBLE ORGANIZATION IN ANY SEVEN-DAY PERIOD.

* * * SECTION 2.

THE ACT IS AMENDED BY ADDING A SECTION TO READ:

(a) Authorization.--AOnline raffles AUTHORIZATION.--A fire company that has a <-- valid small games of chance license issued under section 307 may conduct raffles over the Internet.Internet subject to the following:

<-- (1) An individual may purchase a ticket for the raffles only by means of a debit or credit card.

(b)(2) Methods.--The (1) Notwithstanding any other provisions of law, a fire company may acceptnot paymentconduct viamore creditthan cardtwo orraffles debitper cardyear forunder thethis purchasesection. of a raffle ticket, provided that the organization:

(i)INTERNET. Employs a method to verify that the individual who buys a raffle ticket is located within this Commonwealth at the time of sale.

TheAN organizationINDIVIDUAL may<-- notMAY acceptPURCHASE aA paymentTICKET fromFOR anTHE individualRAFFLES whoONLY isBY locatedMEANS outsideOF thisA CommonwealthDEBIT atOR theCREDIT timeCARD. of sale.

(ii)(b) EmploysExpiration.--This asection methodshall toexpire verifyDecember that31, the<-- individual2026. who buys a raffle ticket is at least 18 years of age.

The(B) organizationMETHODS.-- may<-- not(1) acceptNOTWITHSTANDING aANY paymentOTHER fromPROVISIONS anOF individualLAW, underA 18FIRE yearsCOMPANY ofMAY age.ACCEPT PAYMENT VIA CREDIT CARD OR DEBIT CARD FOR THE PURCHASE OF A RAFFLE TICKET, PROVIDED THAT THE ORGANIZATION:

(iii)(I) DoesEMPLOYS notA violateMETHOD theTO provisionsVERIFY ofTHAT 31THE U.S.C.INDIVIDUAL WHO BUYS A RAFFLE TICKET IS LOCATED WITHIN THIS COMMONWEALTH AT THE TIME OF SALE.

Ch.THE ORGANIZATION MAY NOT ACCEPT A PAYMENT FROM AN INDIVIDUAL WHO IS LOCATED OUTSIDE THIS COMMONWEALTH AT THE TIME OF SALE.

53(II) Subch.EMPLOYS A METHOD TO VERIFY THAT THE INDIVIDUAL WHO BUYS A RAFFLE TICKET IS AT LEAST 18 YEARS OF AGE.

IVTHE (relatingORGANIZATION toMAY prohibitionNOT onACCEPT fundingA ofPAYMENT unlawfulFROM InternetAN gambling).INDIVIDUAL UNDER 18 YEARS OF AGE.

(c)(III) Expiration.--ThisDOES sectionNOT shallVIOLATE expireTHE DecemberPROVISIONS 31,OF 2027.31 U.S.C.

SectionCH. 2 3.

53 SUBCH.

IV (RELATING TO PROHIBITION ON FUNDING OF UNLAWFUL INTERNET GAMBLING).

(C) EXPIRATION.--THIS SECTION SHALL EXPIRE DECEMBER 31, 2027.

Section 2.

<--20250SB0398PN1978 20250SB0398PN2006 - 2 - SECTION 3.

SECTION 502(A) OF THE ACT IS AMENDED TO READ:

<-- SECTION 502.

DISTRIBUTION OF PROCEEDS.

(A) DISTRIBUTION.--THE PROCEEDS FROM GAMES OF CHANCE RECEIVED BY A CLUB LICENSEE SHALL BE DISTRIBUTED AS FOLLOWS:

(1) NO LESS THAN [60%] 50% OF THE PROCEEDS SHALL BE PAID FOR PUBLIC INTEREST PURPOSES WITHIN ONE YEAR OF THE END OF THE CALENDAR YEAR IN WHICH THE PROCEEDS WERE OBTAINED.

(2) NO MORE THAN [40%] 50% OF THE PROCEEDS OBTAINED IN A CALENDAR YEAR MAY BE RETAINED BY A CLUB LICENSEE.