No chance
It started out innocently enough.
Worried about declining revenues, social clubs, veterans groups and volunteer firefighter departments got together back in 2012 and requested that the state legislature make some changes to the small games of chance law that hadn’t been updated since it was originally passed in 1988.
Basically, they asked state legislators to lift the limits on how much money they could make for their clubs and organizations. They also asked for permission to operate some additional games of chance and to streamline regulations so it was clearer what was legal and what wasn’t.
The state legislature passed a bill updating the small games of chance law and everyone patted themselves on the back for a job well done.
Except it was a job not done so well. Once they got a good look at the bill in the light of day, officials from the groups were stunned. The bill did increase the amounts of money that could be raised but it also added complex reporting and accounting requirements that officials from the smaller clubs and organizations said they didn’t have the resources to comply with.
The officials said they would have to hire accountants and attorneys to go over the paperwork, wiping out their profit margins and forcing them, in some instances, to close their doors.
This was of particular concern with officials from several local volunteer fire departments, who said the new law would cripple their fundraising efforts.
Several attempts were made to amend the law but with time running out before the new regulations were to take effect, Gov. Corbett stepped up and declared a one-year moratorium for the law last January.
The action drew applause from everyone involved as the thought was the legislature could now take its time to come up with a more comprehensive package that would truly help the civic organizations go about raising money for their communities.
The amendments were working their way through the legislature when out of nowhere came a proposal to open up the games of chance to bars and taverns across the state.
With Republican leaders in both chambers pushing the bill, it passed and now these civic groups organizations will find themselves going head to head with bars and taverns for the money of those interested in playing small games of chance.
Under the law, bars will be able to operate pull tabs similar to instant lottery tickets, a daily drawing and a monthly raffle with some proceeds going to charity. If trends in Indiana, where similar legislation was approved several years ago, hold in Pennsylvania, the state could see some 2,000 bars and taverns seeking the small games licenses, about double the number of clubs and organizations with current licenses.
Of course, the main reason why Republicans supported the bill was the Department of Revenue’s projection that the 60 percent tax on the commercial bars’ net gaming proceeds could yield $156 million annually in new tax revenue to the state.
Officials from civic groups did get some of the things they were asking for such as in increase in the prize money that can be offered and a streamlining of regulations. They were also told that it was a take-it or-leave-it proposition. If they fought against the measure, they would have to live with the former law and its stifling regulations and paperwork.
So, they let it pass without a fuss and the measure will go to Corbett who’s expected to sign it. How this is all going to work is anyone’s guess, but the end result is something officials from the civic clubs and organizations could hardly have imagined when they first requested the changes.