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FOR IMMEDIATE RELEASE |
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State
Rep. Dante Santoni |
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Santoni holds hearing on small games of chance bill
HARRISBURG, June 2 – The House Gaming Oversight Committee today held a public
hearing on legislation that would expand Pennsylvania's small games of chance
law by increasing prize limits for clubs that utilize the games, according to
state Rep. Dante Santoni, D-Berks, who is chairman of the committee.
Under H.B. 2379, daily and weekly prize limits would increase from $500 to
$1,000 and from $5,000 to $20,000, respectively.
"Enhancing the fundraising abilities of our local service clubs and nonprofit organizations is vital for their survival, and ensures there will be revenue available to these organizations for projects that directly benefit the communities they serve," Santoni said.
Santoni said the bill also would give licensed liquor establishments, like taverns, the ability to offer small games with certain requirements. Taverns would be required to donate 20 percent of their weekly gross small games revenue to a charitable organization identified in the license application. Another 30 percent of their proceeds would go to the state to be placed in a pension stabilization reserve fund.
The fund would be used to help the state make mandatory contributions to the State Employees Retirement System and the Public School Employees' Retirement System. Both funds are in financial trouble and the legislature is looking at ways to help stabilize them. In the case of SERS, mandatory state contributions are expected to grow from more than $226 million this year to $1.7 billion in 2012-13.
"The recent economic downturn and other factors have resulted in a looming financial crisis for Pennsylvania's two public pension systems," Santoni said. "The projected shortfalls in the funds are of great concern to me, to my colleagues and to all Pennsylvania taxpayers. We should be exploring all options that could help solve this crisis."
In addition to the bill's sponsor, Rep. Eugene DePasquale, those who attended the hearing and offered remarks were representatives from the Office of the State Fire Commissioner, Pennsylvania Federation of Fraternal and Social Organizations, Pennsylvania State Police, Pennsylvania Tavern Association and the Lancaster Bingo Company, a distributor of charitable gaming supplies, including pull tabs, jar tickets, bingo paper, daubers, and other merchandise.
The
21-year-old Local Option Small Games of Chance Act allows certain nonprofit
organizations to conduct such games to raise money for public interest
purposes. Small games covered in the act include pull-tabs, punchboards,
raffles (including lottery) and drawings.
The organizations that would be affected by the bill are veterans' clubs, charities, nonprofit organizations, religious groups, civil service groups, volunteer fire departments and independently owned taverns.
Santoni said the committee
will take the remarks presented by the various groups and consider the
legislation at a future meeting.
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