LCE: Spirit of gaming law as important as letter
PERRYOPOLIS — While some small games of chance license holders are saying the updated law is going to put them out of business, a state Liquor Control Enforcement officer says it actually should help them.
“If your club follows its mission, there are no problems. When you decide your club is a place for cheap drinks and socializing, that’s when you run into trouble,” state police Sgt. James Jones told an audience of about 500 Thursday evening at Frazier High School.
Under the old law, clubs holding a liquor license had to give 100 percent of the money brought in by small games of chance to an organization providing a community service. The new law allows 30 percent of the money raised to be used for various club expenses but not for buying food or beverages for the club’s social hall.
Jones in an interview Friday said that doesn’t mean clubs such as veterans organizations and fire departments with social clubs need to give 70 percent of their gaming proceeds to an outside organization. The organization could use the money for its own public interest activities, such as purchasing flags or markers for veterans’ graves, or buying and maintaining firefighting equipment.
“By the letter of the law, they’re supposed to give it away. The spirit of the law is to use it in the public interest,” Jones said.
Jones said the key to avoiding citations under the law is proper documentation of how the money is spent, setting up a separate bank account specifically for gaming proceeds.
Issues were raised Thursday about only permitting members of organizations to sell raffle tickets and other games of chance. A new provision in the law requires the prize to be given away, creating the possibility of an organization taking a loss if it doesn’t sell all of the necessary tickets because it cannot retain the prize if the winning ticket isn’t sold. Jones said a simple change to club bylaws could remedy the issue.
“The (law) has all the tools for all these organizations to raise all the money they want,” Jones said. “They can change their bylaws at will and can be as inclusive as they want to be in their membership classes.”
For example, organizations could establish an associate membership specifically to help with fundraising activities, Jones said.
Jones said reporting requirements always have existed, the revised law simply clarifies the reporting procedures.
“Our only intent was to get the organizations to keep records,” Jones said.
Jones said the goal is to prevent thefts and fraud within organizations, such as ticket sellers keeping money collected for a 50-50 raffle that uses tickets on a roll instead of a printed ticket with a stub and accountability as to the number of tickets sold.
“For the one that gets caught, there are probably a dozen others,” Jones said.
The law does contain penalties for violations, including fines and license suspensions for the clubs and possible criminal offenses for individuals. The law may be enforced by the state police, the district attorney or any local law enforcement officer, Jones said.
“I would hope it’s not fear of enforcement that makes them comply, but being respected members of the community,” Jones said.
Additional information about the law, including information on record-keeping schedules, is available online at http://www.lce.state.pa.us.