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Games of chance law revision is in effect, raising weekly payout limits five times over

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A winning pull-tab at an area club can net twice as much money under new rules that up the ante on prize-winning payouts.

Amendments to state law regulating small games of chance run by the likes of fire companies or fraternal and veterans organizations raise the ceiling on prize limits from $500 to $1,000.

Limits to weekly payouts were raised five-fold from $5,000 to $25,000. Also, monthly limits on winnings from raffles were raised from $5,000 to $10,000.

Payouts can exceed limits when prizes - either cash or merchandise - are carried over.

The game goes on

The generous cushion in payouts afforded to clubs should help avoid an exodus by gaming customers who may have otherwise vacated their barstools when the weekly limit is reached.

"It was difficult because sometimes depending on who was playing the machines or the tickets ... we might have reached that goal on a Wednesday," said Bill Milbrand, treasurer and house committee member of Independence Fire Association, Shamokin.

"What are you supposed to do when the machine is sitting there in the club?"

Milbrand said the fire company was fined earlier this year for exceeding the weekly payout limit.

Along with pull-tabs, games authorized by state law are punch-boards, raffles, daily and weekly drawings.

Up to 30 percent of gaming proceeds are now allowed to be used toward operational expenses, which Milbrand said previously was not allowed. The rest must go toward charitable purposes or be used in the public interest.

In 1995, the Independence fire company spent $371,000 on the purchase of a new fire truck. All of that money came from gaming proceeds, Milbrand said, and no money was sought from city coffers.

Tougher scrutiny

With the increase in payouts comes increased scrutiny on those running the games.

Act 2 of 2012 now requires state police to perform criminal background checks on a club's executive officer and secretary when seeking renewal of a small games license.

Beginning Feb. 1, 2013, licensees are required to submit to the state Department of Revenue annual and semi-annual reports documenting, among other things, gross winnings paid out, gross revenue, total expenses and proceeds used for public interest purposes.

Honest accounting

Greg Schoffler, treasurer of Fraternal Order of Eagles, Mount Carmel, said the club updates its books weekly, so the new reporting requirements shouldn't add much of a burden.

What they will do is prove the revenue was earned honestly and dispersed appropriately so the community can benefit.

"So many people played games with that over the years, (the state) wants more control over it," Schoffler said. "You have to have some sort of accounting involved."

Milbrand said volunteers could struggle with the additional accounting requirements.

"With the amount of paperwork they have us to do, it's tough for a volunteer," he said.

The rules changes took effect March 3 after having been signed into law in February.


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