PA HB1098 ~ A look behind the curtain of the Bill that allowed Small Games for PA Taverns

What appears to be a win for Taverns may be so; however once you read the HB 1098 you will find it is not going to be bringing taverns the windfall of money that they probably had thought.

Please note, Below is only my interpretation of HB1098.  The only interpretation that matters is the Pennsylvania Liquor Control Enforcement Bureau.  PA HB1098 and PA HB290 were both signed by Governor Corbett today.

Requirements:

Taverns will need to open 2 new bank accounts.

Separate Bank Accounts:

Bank Account #1.
Taverns will need to have a separate bank account used to hold the net revenue from tavern games. This account must be separate from all other funds belonging to the tavern.

Bank Account #2.

Taverns will need to open a Restricted Receipts Account that will also be known as the “Host municipality tavern games local share account’.  This account will be used by the Department to distribute monies to the taverns local municipality.
 

Pull Tabs:

Taverns will need to pay the 60% to the Commonwealth and 5% to the Restricted Receipts Account when they purchase the game(s) from their distributor.  If the Tavern does not sell all the tickets or if the top prize/payout amounts are purchased early and the customers do not continue purchasing the tickets, the taverns may lose money  on games.

Distribution of proceeds:

60% to the Commonwealth

35% retained by the Taverns

5% deposited into the Restricted Receipts Account

 

Daily Drawing and Raffle Winnings:

When someone wins the Daily Drawing and/or a Raffle, a 5% Tax is imposed upon the Net Revenue and deposited into the Restricted Receipts Account and 60% is retained for the Commonwealth.

Taverns MUST apparently must have one charitable Raffle a month with at least ½ of the proceeds going to the charity.   The charity must be clearly stated to participants of the tavern raffle.  Any net revenue made by the tavern from the raffle must be distributed as noted:

Distribution of proceeds:

60% to the Commonwealth

35% retained by the Taverns
5% deposited into the Restricted Receipts Account
 

·         After 60 days, any unclaimed raffle prizes MUST be donated to charitable organization for which the raffle was held (within 30 days after the 60 days, therefore within a total of 90 days).

 

·         Maximum individual Prize awarded for a single chance is $2,000.

 

·         Weekly aggregated prize limit can be no more than $35,000.

Some articles currently posted on the web:
http://www.pennlive.com/midstate/index.ssf/2013/11/gov_tom_corbett_signs_bill_all.html

http://readingeagle.com/article.aspx?id=520362

http://wesa.fm/post/small-games-expand-bars-pa


Resources:
Listed Above and HB1098 printers no. 2639.
http://www.legis.state.pa.us/cfdocs/legis/PN/Public/btCheck.cfm?txtType=PDF&sessYr=2013&sessInd=0&billBody=H&billTyp=B&billNbr=1098&pn=2639