Senate Bill 862 Amending Titles 4 (Amusements) and 18 (Crimes and Offenses) of the Pennsylvania Consolidated Statutes, further providing for definitions and for the Pennsylvania Gaming Control Board; providing for applicability of other statutes; further providing for powers and duties of board; providing for code of conduct; further providing for temporary regulations, for licensed entity application appeals from board, for license or permit application hearing process, for board minutes and records, for collection of fees and fines, for regulatory authority of board, for slot machine license fee, for number of slot machines, for reports of board, for license or permit prohibition, for Category 2 slot machine licenses, for Category 3 slot machine licenses, for order of initial license issuance, for slot machine license application and for slot machine license application business entity requirements; providing for licensing of principals and for licensing of key employees; further providing for slot machine license application financial fitness requirements and for supplier and manufacturer licenses; providing for manufacturer licenses; further providing for occupation permit application, for central control computer system, for license or permit issuance, for nontransferability of licenses and for gross terminal revenue deductions; providing for itemized budget reporting; further providing for establishment of State Gaming Fund and net slot machine revenue distribution, for distributions from Pennsylvania Race Horse Development Fund, for the Compulsive and Problem Gambling Program; providing for public official financial interest, for political influence and for enforcement; providing for procedures and for conduct of public officials and employees; further providing for prohibited acts and penalties; providing for detention and for interception of oral communications; further providing for duty to provide and for submission of fingerprints and photographs; providing for repayments to State Gaming Fund; and further providing for corrupt organizations.
2006 Pa. ALS 135

Gambling is the staking of money or any other thing of value on an uncertain event. It involves chance and a hope of gaining something beyond the amount played. 1 P.L.E. CONTRACTS § 611. The word "gambling" has a common sense meaning and should be interpreted in view of that, rather than in a technical fashion. commonwealth v. Soychak, 221 Pa. Super. 458, 289 A.2d 119 (1972). "Gambling" consists of a consideration, an element of chance, and a reward.--In re Gaming Devices Seized at American Legion Post, 197 Pa. Super. 10, 176 A.2d 115 (1961).

Game of skill not a lottery. In Goldfine v. Sutton the manager of the theatre is not guilty of conducting a lottery, since the winner is determined by skill and not by chance.--Goldfine v. Sutton, 40 Pa. D. & C. 68 (1940).

1.1. Dominant factor

If a machine displays the qualities of consideration, a result determined by chance rather than skill and a reward, it will be considered to be so intrinsically connected with gambling as to be a gambling device per se.--Commonwealth v. One Merit Draw PokerMachine, 33 Pa. D. & C.3d 143 (C.P. 1984). Chance need be only the dominant factor to turn a contest into a lottery, even though skill, judgment, or research enter into the matter in some degree, where the other two elements necessary to constitute a lottery are present. Com. v. Laniewski, 98 A.2d 215, 173 Pa. Super. 245 (1953).

Chance need be only the dominant factor to turn a contest into a lottery, even though skill, judgment, or research enter into the matter in some degree, where the other two elements necessary to constitute a lottery are present.--Com. v. Laniewski, 98 A.2d 215, 173 Pa. Super. 245 (1953). Game of skill not a lottery. In Goldfine v. Sutton the manager of the theatre is not guilty of conducting a lottery, since the winner is determined by skill and not by chance.--Goldfine v. Sutton, 40 Pa. D. & C. 68 (1940).

Games of chance is defined by the code as punchboards, daily drawings, weekly drawings, raffles and pull-tabs, as defined in this act, provided that no such game shall be played by or with the assistance of any mechanical or electrical devices or media other than a dispensing machine or passive selection device and further provided that the particular chance taken by any person in any such game shall not be made contingent upon any other occurrence or the winning of any other contest, but shall be determined solely at the discretion of the purchaser. This definition shall not be construed to authorize any other form of gambling currently prohibited under any provision of Title 18 of the Pennsylvania Consolidated Statutes (relating to crimes and offenses). Nothing in this act shall be construed to authorize games commonly known as "slot machines" or "video poker." 10 P.S. § 313

1.2. Material Element
1.3. “Any” chance
1.4. Other Test
1.5. Exemptions

2. Definition of Bookmaking

Recording or registering of bets or wagers on any trial or contest of speed or power or endurance or selling pools is satisfactory definition of “bookmaking."Commonwealth v. Manduchi, 203 Pa. Super. 373, 198 A.2d 613 (1964).

A person is guilty of a misdemeanor of the first degree if he:
(1) engages in pool selling or bookmaking, 18 Pa.C.S. § 5514 (2006)

(2) occupies any place for the purpose of receiving, recording or registering bets or wagers, or of selling pools; 18 Pa.C.S. § 5514 (2006)

(3) receives, records, registers, forwards, or purports or pretends to forward, to another, any bet or wager upon the result of any political nomination, appointment or election, or upon any contest of any nature; 18 Pa.C.S. § 5514 (2006)

(4) becomes the custodian or depository, for gain or ward, of any property staked, wagered or pledged, or to be staked, wagered, or pledged upon any such result; or 18 Pa.C.S. § 5514 (2006)

(5) being the owner, lessee, or occupant of any premises, knowingly permits or suffers the same, to be used or occupied for any of such purposes. 18 Pa.C.S. § 5514 (2006)

3. Specific Gaming Device Definitions

Definition of gambling device as found in 15 USCS § 1171 was intentionally made restrictive; Congress was aiming at particular type of gambling device, namely, slot-machine or something akin thereto. United States v Three (3) Gambling Devices, etc. (1957, DC Pa) 161 F Supp 5, affd (1958, CA3 Pa) 254 F2d 395. 15 USCS § 1171

The term "gambling device" means any so-called "slot machine" or any other machine or similar to and which when operated may deliver, as the result of the application of an element of chance, any money or property, or by the operation of which a person may become entitled to receive, as the result of the application of an element of chance, any money or property. 15 USCS §§ 1171. A gambling device can be any other machine or mechanical device designed and manufactured primarily for use in connection with gambling, and which when operated may deliver, as the result of the application of an element of chance, any money or property, or by the operation of which a person may become entitled to receive, as the result of the application of an element of chance, any money or property; or any subassembly or essential part intended to be used in connection with any such machine or mechanical device, but which is not attached to any such machine or mechanical device as a constituent part. 15 USCS §§ 1171

A person is guilty of a misdemeanor of the first degree if he

(1) intentionally or knowingly makes, assembles, sets up, maintains,
sells, lends, leases, gives away, or offers for sale, loan, lease or gift, any punch board, drawing card, slot machine or any device to be used for gambling purposes, except playing cards;

(2) allows persons to collect and assemble for the purpose of unlawful gambling at any place under his control;

(3) solicits or invites any person to visit any unlawful gambling place for the purpose of gambling; or

(4) being the owner, tenant, lessee or occupant of any premises, knowingly permits or suffers the same, or any part thereof, to be used for the purpose of unlawful gambling. 18 Pa.C.S. § 5513 (2006)

A device manufactured and designed to be used as a gambling device continues to be a gambling device within the contemplation of the law even though, in fact, the device is never used for gambling purposes. United States v. Three (3) Trade Boosters, 135 F. Supp. 24, 27 (D. Pa. 1955), Nu-Ken Novelty, Inc. v. Heller, 220 Pa. Super. 431, 288 A.2d 919 (1972)

The Pennsylvania Legislature intended to make the maintenance or possession of gambling devices an offense separate and apart from that of setting up and establishing such gambling devices; Com. v. Moore, 27 Northumb. L.J. 5 (1955).it is therefore not necessary, in order to obtain a conviction under this provision, to show that the defendant set up or established the gambling device which he maintained. The mere possession of gambling devices, per se, is not the same as to "maintaining" for purpose of the statute. Commonwealth v. Rose, 257 Pa. Super. 514, 390 A.2d 1356 (1978).

The keeping or possession of a gambling device constitutes an offense under the applicable statute, even in absence of showing that such device was used for gambling or kept for gambling purposes.--Commonwealth v. Cancillieri, 166 Pa. Super. 1, 70 A.2d 669 (1950).

4. Bucket shop laws

A bucket-shop" means a place where contracts, agreements, trades, or transactions respecting the sale or purchase of stocks, bonds, securities, grains, provisions or other commodities are made or offered to be made, to be closed, adjusted or settled upon the basis of public market quotations on a board of trade or exchange, but without a bona fide transaction on such board of trade or exchange. 18 Pa.C.S. § 7316 (2006)
Speculative transactions (Bucket-shop contracts). According to the statute, speculations on the commodities or securities market without a bona fide purchase or sale on such market are gambling, and null and void. 18 Pa.C.S. § 7316 (2006). In general, a bona fide transaction exists where there is actual delivery of the subject matter or where a future delivery is in fact intended by the parties. But, transactions in stocks by way of margin and payment of the gain or loss, without any intention to deliver the stocks, are mere wagers, and are without legal consequence. 1 P.L.E. CONTRACTS § 611

A person is guilty of a misdemeanor of the third degree if he keeps, or causes to be kept, any bucket-shop, or assists in the keeping of any bucket-shop.
18 Pa.C.S. § 7316 (2006)

A purchase of stock on margin is not necessarily a gambling transaction; the delivery may be postponed or made to depend on a future condition, and the stock may be carried on margin in the meanwhile, without affecting the legality of the operation. Pennsylvania Co-operative Potato Growers, Inc. v. Naunczek, 205 Pa. Super. 179, 208 A.2d 21 (1965).Mere settlement of differences is not sufficient delivery to make marginal transactions valid. In re Taylor & Co.'s Estate, 43 A. 975, 192 Pa. 313 (1899)

One who employs a broker to make various transactions for him as an agent in buying and selling stocks, legitimates them all, whatever their nature, by paying his indebtedness to the broker, and taking up all his stocks then held by the broker. Young v. Glendenning, 194 Pa. 550, 45 A. 364 (1900).

5. Prohibition of games of skills

"Games of skill" at which money or other value may be played for are also subject to destruction, for the statutory provision includes games of "address", which means skillful management, dexterity, or adroitness.--In re Wigton, 151 Pa. Super. 337, 30 A.2d 352 (1943).

5.1. Poker/Card Games

Electronic poker and blackjack card game machines were not illegal gaming devices per se.Commonwealth v. One Electronic Poker Game Machine, 302 Pa. Super. 350, 448 A.2d 1077 (1982), Electronic poker and blackjack machines which lacked "knock-down" button and meter to record number of games knocked down were not "gambling devices per se," in that no reward element was present.--Commonwealth v. Two Electronic Poker Game Machines, 502 Pa. 186, 465 A.2d 973 (1983). But an electronic poker machine that has a mechanism to knock down the accumulated points and the ability to accommodate the installation of meters to record the number of points paid out is a gambling device per se.--Commonwealth v. One Merit Draw Poker Machine, 33 Pa. D. & C.3d 143 (C.P. 1984).

Electronic five-card draw poker machine was not a gambling device per se under 18 Pa. Cons. Stat. § 5513 because the result was partially dependent on a player's skill and the only compensation for winning was free games. Commonwealth v. One Electro-Sport Draw Poker Machine, 297 Pa. Super. 54, 443 A.2d 295, 1981 Pa. Super. LEXIS 3883 (1981), reversed by 502 Pa. 186, 465 A.2d 973, 1983 Pa. LEXIS 674 (1983).

Expert testimony was held admissible to explain intricacies of game of poker to jury particularly where one of defense counsel exhibited lack of knowledge of game.--Commonwealth v. Indelicato, 212 Pa. Super. 240, 243 A.2d 137 (1968).

5.2. Games using dice

Evidence of barred doors, a buzzer, a lookout on guard and a group of men engaged in a crap game for money is sufficient to sustain a conviction of establishing a gambling place1 P.L.E. CRIMINAL LAW § 1332--

5.3. Billiards

The Crimes Code, 18 Pa. Cons. Stat. Ann. § 7105( 2006) , permits lesser municipalities to minimally regulate the operating hours of pool and billiard rooms through the licensing power the legislature had previously delegated to them, but also guarantees the operators of pool and billiard rooms the right to operate between 10 a.m. and 1 a.m. daily. 53 Pa. Stat. § 23107, 53 Pa. Stat. § 37601. This also permits such place to remain open on Sunday, they are not to knowingly allows or permits any person under the age of 16 years to be present in any such public poolroom or billiard room. 53 Pa. Stat. § 23107, 53 Pa. Stat. § 37601

It is unlawful to knowingly allow or permit any minor, under eighteen years of age, to even be present in the premises licensed, nor to allow or permit any minor, under eighteen years of age, to play any game of billiards, pool, or bagatelle. 53 P.S. § 15404

An employee who supervises the operations of a billiard table used for gambling cannot recover wages for his services from the owner of the table. Badgley v. Beale, 3 Watts 263 (Pa. 1834).

5.4. Bowling
5.5. Darts

State Liquor Control Board regulation, providing that licensed premises shall not have inside passage or communication to or with any business conducted by licensee, did not prohibit licensee from selling darts and accessories used in connection with electronic darts game played in same room where bar was located.--Pennsylvania State Police, Bureau of Liquor Control Enforcement v. Benny Enters., 669 A.2d 1018 (Pa. Commw. Ct. 1995).

5.6. Punchboard

Punchboards which provide prizes to be won by chance and the payment of a consideration by the player are gambling devices per se and are subject to the statutory prohibition. Commonwealth v. Cohen, 169 Pa. Super. 84, 82 A.2d 325 (1951); In re American Vending Co., 102 Sassafras St., Erie, Pa., 36 Erie 183 (1953).

One who sells punchboards and prizes to others who sell chances thereon is guilty of causing punchboards to be set up in violation of the statute. Commonwealth v. Cohen, 169 Pa. Super. 84, 82 A.2d 325 (1951). But the mere possession of gambling devices, per se, is not the same as "maintaining" for purpose of the statute, which makes it a misdemeanor to intentionally or knowingly maintain a punch board. Commonwealth v. Rose, 257 Pa. Super. 514, 390 A.2d 1356 (1978).

5.7. Pinball machine

Whether a pinball machine is a gambling device depends upon whether betting is allowed or prizes offered for a high score. Commonwealth v. Mihalow, 142 Pa. Super. 433, 16 A.2d 656 (1940). The right to play a free game on a pinball machine does not render it a gambling device. In re Wigton, 151 Pa. Super. 337, 30 A.2d 352 (1943). However, although a free game in and of itself does not constitute a "reward," the awarding of free games by a machine which possesses other characteristics can be taken to constitute a sufficient "reward," for purpose of determining the "reward" element of gambling. Commonwealth v. Two Electronic Poker Game Machines, 502 Pa. 186, 465 A.2d 973 (1983).

5.8. Slot Machine

A slot machine is a gambling device whether or not operated by coins or slots, and the prohibition extends to the parts or attachments of slot machines. Antique slot machines, however, are specifically excepted from operation of the statute. 18 Pa.C.S. § 5513(c).

Slot machines and two other devices, which owner maintained and leased to club and which were used for gambling, were "gambling devices possessed or used" in violation of certain statutory subsection for purposes of statute providing that any gambling device possessed or used in violation of provisions of such subsection were to be seized and forfeited to Commonwealth.--Commonwealth v. 9 Mills Mechanical Slot Machines, 62 Pa. Commw. 397, 437 A.2d 67 (1981).

5.8.1. Regulatory authority of board.

The board has the power and the duty to prescribe conditions for the operation of slot machine progressive systems. 2006 Pa. Legis. Serv. Act 2006 § 1207.

5.8.2. Collection of fees and fines.

The board has the following powers and duties: (1) To levy and collect fees from the various applicants, licensees and permittees to fund the operations of the board. The fees shall be deposited into the State Gaming Fund and distributed to the board upon appropriation by the General Assembly. 2006 Pa. Legis. Serv. Act 2006 § 1208.

Supplier licensees will pay a $25,000 fee upon the issuance of a license and $10,000 for the annual renewal of a supplier license. 2006 Pa. Legis. Serv. Act 2006§ 1208.Manufacturer licensees shall pay a $50,000 fee upon the issuance of a license and $25,000 for the annual renewal of a manufacturer license. 2006 Pa. Legis. Serv. Act 2006§ 1208.

Each application for a slot machine license, supplier license or manufacturer license must be accompanied by a nonrefundable fee set by the board for the cost of each individual requiring a background investigation. The reasonable and necessary costs and expenses incurred in any background investigation or other investigation or proceeding concerning any applicant, licensee, permittee or registrant shall be reimbursed to the board by those persons. 2006 Pa. Legis. Serv. Act 2006 § 1208.

5.8.3. Slot machine license fee.

The board will impose a one-time slot machine license fee by each successful applicant for a conditional Category 1, 2, or 3 license in the amount of $50,000,000 and deposited in the State Gaming Fund. No fee shall be imposed by the board for a Category 1 license if the applicant has paid a $50,000,000 fee conditional Category 1 license. 2006 Pa. Legis. Serv. Act 2006§ 1209.

5.8.4. Number of slot machines.

All slot machine licensees will be permitted to operate up to 3,000 slot machines at any one licensed facility and shall be required to operate and make available to play a minimum of 1,500 machines at any one licensed facility within one year of the issuance by the board of a slot machine license unless otherwise extended by the board, upon application and for good cause shown, for an additional period not to exceed 24 months. 2006 Pa. Legis. Serv. Act 2006 § 1210.

5.8.5. Additional slot machines.

Six months following the date of commencement of slot machine operations, the board may permit a slot machine licensee to install and operate up to 2,000 additional slot machines at its licensed facility. The board must take into account the appropriateness of the physical space where the additional slot machines will be located and the convenience of the public attending the facility and the potential benefit to economic development, employment and tourism, enhanced revenues to the Commonwealth and other economic indicators it deems applicable in making its decision for additional machines. 2006 Pa. Legis. Serv. Act 2006 § 1210.

5.8.6. Limitation

For the two and one-half years following the beginning of slot machine operations, no licensed gaming entity may make available for play by its patrons more than 50% of slot machines from the same manufacturer or its affiliate, intermediary, subsidiary or holding company. This does not apply to machines purchased pursuant to a contract or order executed by a conditional Category 1 or Category 1 slot machine licensee prior to October 20, 2006. 2006 Pa. Legis. Serv. Act 2006§ 1210.

5.8.7. License or permit prohibition.

No applicant for a license for a slot machine, including principals and key employees, who have been convicted of a felony or gambling offense in any jurisdiction shall be issued a license or permit unless 15 years has elapsed from the date of expiration of the sentence for the offense. In determining whether to issue a license to an applicant with a conviction in any jurisdiction of a felony or gambling offense, the board shall consider the following factors: 2006 Pa. Legis. Serv. Act 2006§ 1213. (1) The nature and duties of the applicant's position with the licensed entity. (2) The nature and seriousness of the offense or conduct2006 (3) The circumstances under which the offense or conduct occurred. (4) The age of the applicant when the offense or conduct was committed. 2006 Pa. Legis. Serv. Act 2006§ 1213. (5) Whether the offense or conduct was an isolated or a repeated incident. 2006 Pa. Legis. Serv. Act 2006§ 1213. and any evidence of rehabilitation, including good conduct in the community, counseling or psychiatric treatment received and the recommendation of persons who have substantial contact with the applicant. 2006 Pa. Legis. Serv. Act 2006§ 1213.

5.8.7. Authorized slot machine licenses

There are three distinct classifications of slot machine licenses. Designated by category, each permitting a licensed racing entity or person to apply for a qualifying license to place and operate slot machines at a licensed facility. 4 Pa.C.S. § 1301 (2006)

5.8.8. Required conditions

The board shall approve, condition or deny the issuance of a slot machine license of any category within the specified time. Following approval of an application for a slot machine license, the applicant shall provide formal notification to the board as soon as it fulfills all required conditions for issuance of the license;andthe board's decision approving the application is a final, binding, nonappealable determination which is not subject to a pending legal challenge. 4 Pa.C.S. § 1301 (2006). Upon receipt of such notification and conducting any necessary verification, the board shall issue a slot machine license to the applicant. 4 Pa.C.S. § 1301 (2006)

5.8.9. Category 1 slot machine license

A person may be eligible to apply for a Category 1 license to place and operate slot machines at a licensed racetrack facility if the person:

(1) has been issued a license from either the State Horse Racing Commission or the State Harness Racing Commission to conduct thoroughbred or harness race meetings respectively with pari-mutuel wagering and has conducted live horse races for not less than two years immediately preceding the effective date of this part; 4 Pa.C.S. § 1302 (2006)
(2) has been approved a license from either the State Horse Racing Commission or the State Harness Racing Commission to conduct thoroughbred or harness race meetings respectively with pari-mutuel wagering within 18 months immediately preceding the effective date of this part and will successfully conduct live racing pursuant to the requirements of section 1303. 4 Pa.C.S. § 1302 (2006);
(3) has been approved by the State Harness Racing Commission, to conduct harness race meetings with pari-mutuel wagering and will conduct live racing pursuant to the requirements of section 1303; 4 Pa.C.S. § 1302 (2006) or
(4) is a successor in interest to persons eligible under paragraph (1), (2) or (3) who comply with the requirements of section 1328 or is a successor in interest to persons otherwise eligible under paragraph (1), (2) or (3) but precluded from eligibility under the provisions of section 1330. 4 Pa.C.S. § 1302 (2006). This does not permit the approval or issuance of more than one slot machine license at a licensed racetrack facility. 4 Pa.C.S. § 1302 (2006)

5.8.9.1. Additional Requirements for Category 1 Slot machine license

An applicant for a Category 1 slot machine license must meet one of the following criteria shall be eligible for a license to place and operate slot machines only if the applicant meets one of the following criteria: 4 Pa.C.S. § 1303 (2006)
(1) the licensed racing entity or its predecessor owner has conducted live horse races for not less than two years immediately preceding the effective date of this part; 4 Pa.C.S. § 1303 (2006) or
(2) the licensed racing entity has not previously conducted live racing at a racetrack but will conduct live racing for a minimum of 150 days to begin in the year which begins two years following the issuance of its slot machine license for the racetrack unless the appropriate commission determines, upon application, that it is not practically feasible for the licensed racing entity to conduct live racing for a minimum of 150 days due to projected or actual weather conditions. 4 Pa.C.S. § 1303 (2006).
Failure to meet the required minimum number of days will result in immediate suspension of the slot machine license. 4 Pa.C.S. § 1303 (2006)

5.8.9.2. LOCATION

No Category 1 licensed facility shall be located within 20 linear miles of another Category 1 licensed facility. 4 Pa.C.S. § 1302 (2006)

5.8.9.3. LIMITATIONS.

The issuance of a Category 1 slot machine license shall entitle the licensee to operate slot machines only within the grounds of a licensed racetrack. 4 Pa.C.S. § 1303 (2006)

5.8.9.3.1.1.1. The ussuance of a Category 1 slot maching license shall entitle the license to operate slot machines only with in thegournd of a licensed racetrack. 4 Pa. C.S. § 1303 (2006)

5.8.10. Category 2 slot machine license.

5.8.10.1.1. Eligibility.

A person may be eligible to apply for a Category 2 license if the applicant, its affiliate, intermediary, subsidiary or holding company is not otherwise eligible to apply for a Category 1 license and the person is seeking to locate a licensed facility in a city of the first class, a city of the second class or a revenue-or tourism-enhanced location. It shall not be a condition of eligibility to apply for a Category 2 license to obtain a license from either the State Horse Racing Commission or the State Harness Racing Commission to conduct thoroughbred or harness race meetings respectively with pari-mutuel wagering. 2006 Pa. Legis. Serv. Act 2006 § 1304.
2006 Pa. Legis. Serv. Act 2006 § 1304.
If the person seeking a slot machine license proposes to place the licensed facility upon land designated a subzone, the person shall, at any time prior to the application being approved, submit a statement waving the exemptions, deductions, abatements or credits granted under the Keystone Opportunity Zone, Keystone Opportunity Expansion Zone and Keystone Opportunity Improvement Zone Act if the board approves the application. 2006 Pa. Legis. Serv. Act 2006§ 1304.

5.8.10.2. Location.

Only Two Category 2 licensed facilities should be located by the board within a city of the first class, and one Category 2 licensed facility and no more shall be located by the board within a city of the second class. 2006 Pa. Legis. Serv. Act 2006§ 1304.Within five days of approving a license for an applicant with a proposed licensed facility consisting of land designated a subzone, the board shall notify the Department of Community and Economic Development. The notice shall include a description of the land of the proposed licensed facility which is designated a subzone. Within five days of receiving the notice, the Secretary of Community and Economic Development shall decertify the land of the proposed licensed facility as being a subzone.2006 Pa. Legis. Serv. Act 2006§ 1304.

5.8.11. Category 3 slot machine license.

5.8.11.1.1. (a) Eligibility

A person may be eligible to apply for a Category 3 license if the applicant, its affiliate, intermediary, subsidiary or holding company has not applied for or been approved or issued a Category 1 or 2 license and the person is seeking to locate a Category 3 licensed facility in a well-established resort hotel having with greater then 275 guest rooms under common ownership and having substantial year-round recreational guest amenities.

The applicant for a Category 3 license shall be the owner or be a wholly owned subsidiary of the owner of the established resort hotel. A Category 3 license may only be granted upon the express condition that an individual may not enter a gaming area of the licensee if the individual is not a registered overnight guest of the established resort hotel or if the individual is not a patron of one or more of the amenities provided by the established resort hotel. 2006 Pa. Legis. Serv. Act 2006§ 1305.

If at the time of application, an applicant has terminated public office or employment as an executive-level public employee within the last year, the applicant shall be eligible to apply for a slot machine license under this section but may not be issued a license until one year following the date of termination as a public official or executive-level public employee. 2006 Pa. Legis. Serv. Act 2006§ 1305.

If the person seeking a slot machine license proposes to place the licensed facility upon land designated a subzone, the person shall, at any time prior to the application being approved, submit a statement waiving the exemptions, deductions, abatements or credits granted under the Keystone Opportunity Zone, Keystone Opportunity Expansion Zone and Keystone Opportunity Improvement Zone Act if the board approves the application. 2006 Pa. Legis. Serv. Act 2006§ 1305.

5.8.11.2. Location

No Category 3 license shall be located by the board within 15 linear miles of another licensed facility. 2006 Pa. Legis. Serv. Act 2006§ 1305.Within five days of approving a license for an applicant with a proposed licensed facility consisting of land designated a subzone, the board shall notify the Department of Community and Economic Development. The notice shall include a description of the land of the proposed licensed facility which is designated a subzone. Within five days of receiving the notice the Secretary of Community and Economic Development shall decertify the land of the proposed license facility as being a subzone. Upon decertification a political subdivision may amend the ordinance, resolution or other required action which granted the exemptions, deductions, abatements or credits required by the Keystone Opportunity Zone, Keystone Opportunity Expansion Zone and Keystone Opportunity Improvement Zone Act to repeal the exemptions, deductions, abatements or credits for the land decertified. 2006 Pa. Legis. Serv. Act 2006§ 1305.

5.8.11.3. Number of slot machines.-

A Category 3 license granted under the provisions of this section shall entitle the licensed entity to operate no more than 500 slot machines at the licensed facility. 2006 Pa. Legis. Serv. Act 2006§ 1305.

5.8.11.4. Category 3 license fee.

The board shall impose a one-time Category 3 license fee to be paid by each successful applicant in the amount of $5,000,000 to be deposited in the State Gaming Fund. 2006 Pa. Legis. Serv. Act 2006§ 1305.

5.8.12. § 1309. Slot machine license application.

The application for any category of slot machine license shall include at a minimum:The name, address, and photograph of the applicant and of all directors and owners and key employees and their positions within the corporation or organization, as well as any additional financial information required by the board. 2006 Pa. Legis. Serv. Act 2006§ 1309

5.8.13. § 1313. Slot machine license application financial fitness requirements.

The board will make an assement into the financial viability of the proposed licensed facility, after review of the application, that the applicant is likely to maintain a financially successful, viable and efficient business operation and will likely be able to maintain a steady level of growth of revenue to the Commonwealth pursuant to code. 2006 Pa. Legis. Serv. Act 2006§ 1313 (e)

5.8.14. Supplier licenses

A person seeking to provide slot machines or associated equipment to a slot machine licensee within this Commonwealth through a contract with a licensed manufacturer shall apply to the board for a supplier license. 2006 Pa. Legis. Serv. Act 2006§ 1317. An application for a supplier license shall be on the form required by the board, accompanied by the application fee and shall include all of the following:

(1) The name and business address of the applicant, and the applicant's affiliates, intermediaries, subsidiaries and holding companies; the principals and key employees of each business; and a list of employees and their positions within the each business, as well as any financial information required by the board. 2006 Pa. Legis. Serv. Act 2006§ 1317.

(1.1) A statement that the applicant and each affiliate, intermediary, subsidiary or holding company of the applicant are not slot machine licensees. 2006 Pa. Legis. Serv. Act 2006§ 1317.
(1.2) Proof that the applicant has or will establish a principal place of business in this Commonwealth. A supplier licensee shall maintain its principal place of business in this Commonwealth to remain eligible for licensure. 2006 Pa. Legis. Serv. Act 2006§ 1317.

(2) The consent to a background investigation of the applicant, its, principals and key employees or other persons required by the board and a release to obtain any and all information necessary for the completion of the background investigation. 2006 Pa. Legis. Serv. Act 2006§ 1317.
(3) The details of any equivalent license granted or denied by other jurisdictions where gaming activities as authorized by this part are permitted and consent for the board to acquire copies of applications submitted or licenses issued in connection therewith. 2006 Pa. Legis. Serv. Act 2006§ 1317.
(4) The type of goods and services to be supplied and whether those goods and services will be provided through purchase, lease, contract or otherwise. 2006 Pa. Legis. Serv. Act 2006§ 1317.
(5) Any other information determined by the board to be appropriate. 2006 Pa. Legis. Serv. Act 2006§ 1317.

After all the requirements have been met, the board may approve the application and issue the applicant a supplier license. The license shall be for a period of one year, upon expiration, the license may be renewed, the license shall be nontransferable, and any other condition established by the board.

5.8.15. Renewal.

Two months prior to expiration of a supplier license, the supplier licensee must submit a renewal application and fee to the board. 2006 Pa. Legis. Serv. Act 2006§ 1317(d) If the renewal application satisfies the requirements of subsection, the board may renew the licensee's supplier license. 2006 Pa. Legis. Serv. Act 2006§ 1317. (d) If the board receives a complete renewal application but fails to act upon the renewal application before the expiration of the supplier license, the supplier license can continue in effect for an additional six-month period or until acted upon by the board, whichever occurs first. 2006 Pa. Legis. Serv. Act 2006§ 1317. (d) No limitation shall be placed on the number of supplier licenses issued or the time period to submit applications for licensure except as required to comply with initial license issuance). 2006 Pa. Legis. Serv. Act 2006§ 1317.

5.8.16. Manufacturer licenses.

A person seeking to manufacture slot machines and associated equipment for use in this Commonwealth must apply to the board for a manufacturer license. 2006 Pa. Legis. Serv. Act 2006§ 1317.1. An application for a manufacturer license must be on the form with the fee required by the board, and must include all of the following: 2006 Pa. Legis. Serv. Act 2006§ 1317.1.

(1) The name and business address of the applicant and the applicant's affiliates, intermediaries, subsidiaries and holding companies; the principals and key employees of each business; and a list of employees and their positions within each business, as well as any financial information required by the board. 2006 Pa. Legis. Serv. Act 2006§ 1317.1. (b)
(2) A statement that the applicant and each affiliate, intermediary, subsidiary or holding company of the applicant are not slot machine licensees. 2006 Pa. Legis. Serv. Act 2006§ 1317.1.(b)
(3) The consent to a background investigation of the applicant, its principals and key employees or other persons required by the board and a release to obtain any and all information necessary for the completion of the background investigation. 2006 Pa. Legis. Serv. Act 2006§ 1317.1. (b)
(4) The details of any equivalent license granted or denied by other jurisdictions where gaming activities as authorized by this part are permitted and consent for the board to acquire copies of applications submitted or licenses issued in connection therewith. 2006 Pa. Legis. Serv. Act 2006§ 1317.1. (b)
(5) The type of slot machines or associated equipment to be manufactured or repaired. 2006 Pa. Legis. Serv. Act 2006§ 1317.1. (b)
(6) Any other information determined by the board to be appropriate. 2006 Pa. Legis. Serv. Act 2006§ 1317.1.(b)

When the foregoing requirements have been met, the board may approve the application and grant the applicant a manufacturer license consistent with all of the following: 2006 Pa. Legis. Serv. Act 2006§ 1317.1.(c)

(1) The license will be for a period of one year. Upon expiration, a license may be renewed, the license shall be nontransferable, and any other condition established by the board. 2006 Pa. Legis. Serv. Act 2006§ 1317.1.(c)
(2) The manufacturer licessee must seek renewal six months prior to expiration of a manufacturer license, the manufacturer licensee must submit a renewal application and fee to the board. 2006 Pa. Legis. Serv. Act 2006§ 1317.1. (d)If the renewal application satisfies the requirements the board may renew the licensee's manufacturer license. 2006 Pa. Legis. Serv. Act 2006§ 1317.1. (d)If the board receives a complete renewal application but fails to act upon the renewal application before the expiration of the manufacturer license, the manufacturer license must continue in effect for an additional six-month period or until acted upon by the board, whichever occurs first. 2006 Pa. Legis. Serv. Act 2006§ 1317.1. (d)

A licensed manufacturer or its designee, as licensed by the board, may supply or repair any slot machine or associated equipment manufactured by the licensed manufacturer. 2006 Pa. Legis. Serv. Act 2006§ 1317.1. (d) A manufacturer may contract with a supplier to provide slot machines or associated equipment to a slot machine licensee within this Commonwealth. 2006 Pa. Legis. Serv. Act 2006§ 1317.1. (d)

5.8.17. Prohibitions

No person may manufacture slot machines or associated equipment for usein Pennsylvania by a slot machine licensee unless the person has been issued a manufacturer license. 2006 Pa. Legis. Serv. Act 2006§ 1317.1. (e) In addition, no slot machine licensee may use slot machines or associated equipment unless the slot machines were manufactured by a person that has been issued a manufacturer license. 2006 Pa. Legis. Serv. Act 2006§ 1317.1. (e) No person issued a manufactuerer license shall apply for or be issued a supplier licenses. 2006 Pa. Legis. Serv. Act 2006§ 1317.1. (e) No limitation shall be placed on the number of manufacturer licenses issued or the time period to submit applications for licensure, except as required to comply with the initial license issuance). 2006 Pa. Legis. Serv. Act 2006§ 1317.1. (e)

5.8.18. License or permit issuance.

The board will determine the eligibility of a trust or similar business entity to be a licensed entity. 2006 Pa. Legis. Serv. Act 2006§ 1325 No trust or similar business entity will be eligible to hold any beneficial interest in a licensed entity unless each trustee, grantor and beneficiary of the trust, including a minor child beneficiary, qualifies for and is granted a license as a principal. The board may waive compliance if the trustee is a banking or lending institution and the board is satisfied that the trustee is not significantly involved in the activities of the licensed entity. Also, a banking or lending institution acting as a trustee must produce at the request of the board any information relating to the trust. 2006 Pa. Legis. Serv. Act 2006§ 1325

No beneficiary of a trust or similar business entity who is a minor child shall control or be significantly involved in the activities of a licensed entity or its holding company or intermediary. No beneficiary of a trust or similar business entity who is a minor child shall be permitted to vote to elect directors of a licensed entity or its holding company or intermediary. 2006 Pa. Legis. Serv. Act 2006§ 1325 Nor may any trust or similar business entity hold any beneficial interest in a licensed entity unless the board determines that the entity is not engaged in any activity being used to evade the public protections. 2006 Pa. Legis. Serv. Act 2006§ 1325

5.8.19. Nontransferability of licenses.

A license or permit granted or renewed must not be sold, transferred or assigned to any other person nor shall a licensee or permittee pledge or grant a security interest in or lien on the license or permit. The board has the sole discretion to issue, renew, condition or deny the issuance of a slot machine license based upon the purposes and requirements of this part. 2006 Pa. Legis. Serv. Act 2006§ 1327

5.8.20. Financial and employment interests.

Unless otherwise provided by rule or order of the Pennsylvania Supreme Court, an executive-level public employee, public official or party officer, or an immediate family member shall not intentionally or knowingly hold a financial interest in an applicant or a slot machine licensee, manufacturer licensee, supplier licensee or licensed racing entity, shall be employed, shall solicit or accept, any complimentary service, shall offer or deliver to an executive-level public employee, public official or party officer, or an immediate family member thereof, any complimentary service, from an applicant or a slot machine licensee, manufacturer licensee, supplier licensee or licensed racing entity, or in a holding company, affiliate, intermediary or subsidiary, while the individual is an executive-level public employee, public official or party officer and for one year following termination of the individual's status as an executive-level public employee, public official or party officer. 2006 Pa. Legis. Serv. Act 2006§ 1512.

An individual who violates this section commits a misdemeanor and upon conviction, be sentenced to pay a fine of not more than $1,000 or to imprisonment for not more than one year, or both. 2006 Pa. Legis. Serv. Act 2006§ 1512. An executive-level public employee, public official or party officer, or an immediate family member thereof, who holds a prohibited financial interest shall divest the financial interest within three months of the effective date of the restrictions. Thereafter, they shall have 30 days from the date the individual knew or had reason to know of the violation or 30 days from the publication in the Pennsylvania Bulletin of the application or licensure, whichever occurs earlier, to divest the financial interest. The Ethics Commission may, for good cause, extend the time period 2006 Pa. Legis. Serv. Act 2006§ 1512.

5.8.20.1. Political influence.

(1)An applicant for a slot machine license, manufacturer license, supplier license, principal license or, key employee license, OR HORSE OR HARNESS RACING LICENSE. 2006 Pa. Legis. Serv. Act 2006§ 1513.
(2) A slot machine licensee, licensed manufacturer, licensed supplier or licensed racing entity. 2006 Pa. Legis. Serv. Act 2006§ 1513.
(3) A licensed principal or licensed key employee of a slot machine licensee, licensed manufacturer, licensed supplier or licensed racing entity. 2006 Pa. Legis. Serv. Act 2006§ 1513.
(4) An affiliate, intermediary, subsidiary or holding company of a slot machine licensee, licensed manufacturer, licensed supplier or licensed racing entity.2006 Pa. Legis. Serv. Act 2006§ 1513.
(5) A licensed principal or licensed key employee of an affiliate, intermediary, subsidiary or holding company of a slot machine licensee, licensed manufacturer, licensed supplier or licensed racing entity. 2006 Pa. Legis. Serv. Act 2006§ 1513.
(6) A person who holds a similar gaming license in another jurisdiction and the affiliates, intermediaries, subsidiaries, holding companies, principals or key employees thereof. 2006 Pa. Legis. Serv. Act 2006§ 1513.

The foregoing persons are prohibited from contributing any money or in-kind contribution to a candidate for nomination or election to any public office in Pennysilvania, or to any political party committee or other political committee in this Commonwealth or to any group, committee or association organized in support of a candidate, political party committee or other political committee in this Commonwealth. 2006 Pa. Legis. Serv. Act 2006§ 1513.

Prohibited individuals can not make a political contribution of money or an in-kind contribution to any association or organization, including a nonprofit organization, that has been solicited by, or knowing that the contribution or a portion thereof will be contributed to the elected official, executive-level public employee or candidate for nomination or election to a public office in Pennsylvania. 2006 Pa. Legis. Serv. Act 2006§ 1513.

6. Express Exemptions

6.1. Social Gaming

A common gambler is one who gambles for his livelihood, or maintains a gambling establishment. However, the mere act of playing cards for money is not a criminal offense. United States ex rel. Yates v. Rundle, 326 F. Supp. 344 (E.D. Pa. 1971).

The laws of Pennsylvania hold that the minimal detriment to a participant in a promotional contest is sufficient consideration for a valid contract. Gottlieb v. Tropicana Hotel & Casino, 109 F. Supp. 2d 324, 329 (D. Pa. 2000)

6.2. Charity Gaming

Gambling in violation of the statutory prohibition is not valid because it is conducted for charitable purposes. Commonwealth v. Wida, 12 Pa. D. & C.3d 1 (1979). See. 1 P.L.E. CONTRACTS § 611 Bingo. Any association for a charitable or civic purpose, when licensed pursuant to statute, may conduct the game of bingo. 1 P.L.E. CONTRACTS § 611

6.3. Chucky Cheese Gaming Exemptions
6.4. Commercial gaming – casino/ slots

6.5. Lottery

All lotteries, except that operated by the State, are, by statute, common nuisances, and any transfer of property made in pursuance thereof is invalid and void. 18 Pa.C.S. § 5512 (2006) A person who in any way participates in the operation of a lottery is guilty of a misdemeanor, 18 Pa.C.S. § 5512 (2006) as is any person who participates in the sale or advertisement for sale of lottery tickets. 18 Pa.C.S. § 5512 (2006) However, the purchaser of a lottery ticket will not be prosecuted or penalized and is in all respects a competent witness to prove the offense. 18 Pa.C.S. § 5512 (2006) A lottery is defined as any scheme whereby money or other valuable consideration is paid to another and in return, either value or nothing is received, according to some formula of chance. Three elements must be present: a prize to be won, the determination of the winner by chance, and consideration. Commonwealth v. Lane, 242 Pa. Super. 283, 286 (Pa. Super. Ct. 1976) Any scheme is prohibited if the elements of a lottery are present. Commonwealth v. Bufalini, 223 Pa. Super. 489, 302 A.2d 352 (1973) The laws of Pennsylvania hold that the minimal detriment to a participant in a promotional contest is sufficient consideration for a valid contract. Gottlieb v. Tropicana Hotel & Casino, 109 F. Supp. 2d 324, 329 (D. Pa. 2000)

The test is whether the defendant was "'substantially engaged in or taking part in' the conducting of a lottery." Commonwealth v. Bufalini, 223 Pa.Super. 489, 490 n. 1, 302 A.2d 352, 353 n. 1 (1973). Chance need be only the dominant factor to turn a contest into a lottery, even though skill, judgment, or research enter into the matter in some degree, where the other two elements necessary to constitute a lottery are present.--Com. v. Laniewski, 98 A.2d 215, 173 Pa. Super. 245 (1953).

Fraudulent intent is not a necessary constituent in the conviction of a defendant [***18] for setting up a lottery or selling lottery tickets. Commonwealth v. Mittelman, 154 Pa. Super. 572, 583 (Pa. Super. Ct. 1944). In a prosecution for conducting a lottery, evidence as to the customary operation of the type of lottery known as the numbers game is admissible. Commonwealth v. Mattera, 151 Pa. Super. 135, 30 A.2d 168 (1943)
Money which is seized while being used as an integral part of a lottery is subject to forfeiture. Fairmount Engine Co. v. Montgomery County, 135 Pa. Super. 367, 5 A.2d 419 (1939).

A contract to purchase lottery tickets is not enforceable, and payment of a lottery prize will not be compelled. However, a Pennsylvania citizen is not prohibited by statute from participating in a lottery which is legal in the state where it is carried on, and a contract related to such participation is enforceable. McNight v. Biesecker, 13 Pa. 328 (1850).

The State Lottery Law, adopted in 1971, established a lottery to be operated by the State. 72 P.S. § 3761-101 (2006) Under the law, the Secretary of Revenue is empowered to operate and administer the lottery, and to promulgate rules and regulations governing its establishment and operation. 72 P.S. § 3761-303.All lottery sales agents are licensed, and ticket prices fixed by rule or regulation. 72 P.S. § 3761-305.Sales to certain persons, such as minors, are prohibited. Finally, all moneys remaining after payment of prizes and operating expenses remain in a fund allocated for purpose of providing property tax relief for the elderly and to provide free or reduced mass transit service for them. 72 P.S. § 3761-305.

The Lottery Law prohibits the private contractual assignment of a winner's right to the prize. 72 P.S. § 3761-306. Pennsylvania law permits the sale of lottery winnings. By statute, future prize payments may be assigned so long as the assignment is made pursuant to an appropriate judicial order; this order must be entered by the Court of Common Pleas where the assignor resides or where the division's headquarters are located. A court must issue an order approving the assignment of lottery winnings if:

(1) the assignment is in writing, executed by the assignor and subject to the laws of the Commonwealth;
(2) the assignor provides a sworn affidavit to the court attesting that the assignor is of sound mind, is not acting under duress, has been advised regarding the assignment by his or her own independent legal counsel, and understands and agrees that, with regard to the assigned payments, the Commonwealth and the secretary must have no further liability or responsibility to make the payments to the assignor; and
(3) the proposed assignment does not include or cover payments or portions of payments alleged to be subject to offset under judicial order, unless appropriate provision is made in the order to satisfy the obligations giving rise to the claim for offset, or to offset under any other statute..Rupert v. United States, 358 F. Supp. 2d 421 (M.D. Pa. 2004).

Horse Racing

The PA State Horse Racing Commission is established as a departmental administrative commission. The Commission has general jurisdiction over all pari-mutuel thoroughbred activities in the Commonwealth and the corporations engaged therein. The Commission actively participates in all regional regulatory activities offering reciprocity to all racing jurisdictions. Participation with the North American Parimutuel Regulators Association (NAPRA) affords us opportunities to interact with every racing jurisdiction in the country. http://www.agriculture.state.pa.us/agriculture/cwp/view.asp?a=3&q=128999

It is unlawful to race horses for money. 18 Pa.C.S. § 7103. There can be no recovery upon a check given for the entrance fee to a horse race. 18 Pa.C.S. § 7103

A person is guilty of a misdemeanor of the third degree if he races, runs, paces or trots any horse, mare or gelding for money, goods or other valuable things, or contributes or collects any money, goods or valuable things to make up a winnings, or prints or causes to be printed, sets up or causes to be set up any advertisement mentioning the time and place for the running, pacing or trotting of any horses, mares or geldings, or knowingly suffers any such advertisement to be attached to his property or to remain on his property. 18 Pa.C.S. § 7103 (2006)

Money, goods and valuable things lost on an illegal horse race, or the value thereof, may be recovered from the winner by a civil action. 18 Pa.C.S. § 7103(b). The courts have thus enforced recovery of losses at horse racing. App v. Coryell, 3 P. & W. 494 (1832).

Racing at exhibitions of agricultural societies and associations, trials of speed in any incorporated driving park, races given by regularly incorporated trotting or thoroughbred racing associations, or races conducted pursuant to other applicable provisions of law are not illegal. 18 Pa.C.S. § 7103 (2006)

6.5.1. Harness Racing

The State Harness Racing Commission is established as a departmental administrative commission within the Department of Agriculture. The commission has general jurisdiction over all pari-mutuel and Agricultural County Fair harness racing activities throughout the Commonwealth and other engaged corporations . The commission consist of three members appointed by the Governor, by and with the advice and consent of the Senate.

Through The Association of Racing Commissioners International the Pennsylvania Harness Racing Commission participates in all matters of regulatory importance throughout the United States and Canada. The Pennsylvania Harness Racing Commission is regulatorily responsible for protecting and maintaining the Integrity of Standardbred Racing in the Commonwealth of Pennsylvania.
http://www.agriculture.state.pa.us/agriculture/CWP/view.asp?A=3

6.6. Other pari-mutuel

7. Specific Internet prohibition
8. Penalties for unlawful gambling

8.1. Player versus operator

Although it is not unlawful to merely play numbers game, it is unlawful to be writer, backer, pickup man, or any other person concerned in managing, conducting or carrying on of any lottery. The test is whether defendant was substantially engaged in or taking part in conducting of lottery.--Commonwealth v. Lane, 242 Pa. Super. 283, 363 A.2d 1271 (1976).

One who employs a broker to make various transactions for him as an agent in buying and selling stocks, legitimates them all, whatever their nature, by paying his indebtedness to the broker, and taking up all his stocks then held by the broker.--Young v. Glendenning, 194 Pa. 550, 45 A. 364 (1900).

Guilt of establishing or causing to be established a gambling device, or permitting persons, to assemble for purpose of playing a gambling device, was not established by proof of motives of police officers who gambled on device on defendant's premises, since motives of an occasional customer do not determine character of a man's business.--Commonwealth v. Mihalow, 142 Pa. Super. 433, 16 A.2d 656 (1940).

Executive officers of corporation which kept and possessed punch cards and boards and aided customer to keep and exhibit such devices for gambling purposes could not be convicted under statute of keeping and possessing gambling devices and aiding others to do so, in absence of evidence that officers had knowledge of illegal acts.--Commonwealth v. Keppel, 128 Pa. Super. 80, 193 A. 138 (1937).

Where defendant was charged with having set up and established gambling game, that there was no evidence that defendant was actually seen placing a bet was not material, since to sustain such an indictment it is not necessary to prove that defendant participated in it.--Commonwealth v. Gauci, 152 Pa. Super. 437, 32 A.2d 920 (1943

Mere presence of defendant in a numbers headquarters also frequented by players does not support a conviction for setting up and maintaining an illegal lottery.--Commonwealth v. Moore, 180 Pa. Super. 538, 118 A.2d 212 (1956).

In Commonwealth v. Manuszak, 155 Pa. Super. 309, 38 A.2d 355 (1944). The one who acted as lookout or doorman of gambling place was liable as a principal. Commonwealth v. Manuszak, 155 Pa. Super. 309, 38 A.2d 355 (1944).

8.2. Misdemeanor versus felony

Under the Crimes Code, it is a misdemeanor of the first degree if a person intentionally or knowingly makes, assembles, sets up, maintains, sells, lends, leases, gives away, or offers for sale, loan, lease or gift, any punch board, drawing card, slot machine or any device to be used for gambling purposes, except playing cards. It is also a misdemeanor of the first degree if a person allows persons to collect and assemble for the purpose of unlawful gambling at any place under his control; solicits or invites any person to visit any unlawful gambling place for the purpose of gambling; or being the owner, tenant, lessee or occupant of any premises, knowingly permits or suffers the same, or any part thereof, to be used for the purpose of unlawful gambling. 18 Pa.C.S. § 5513. In addition, the statute prohibits a person from allowing gambling at any place under his or her control, soliciting or inviting someone to gamble unlawfully, and from owning, leasing, or occupying premises used for unlawful gambling.18 Pa.C.S. § 5513. However, the mere act of playing cards for money is not a criminal offense. United States ex rel. Yates v. Rundle, 326 F. Supp. 344 (E.D. Pa. 1971).

A person that violates subsection (a)(2) through (12) commits a misdemeanor of the first degree. A person that is convicted of a second or subsequent violation of subsection (a)(2) through (12) commits a felony of the second degree. 2006 Pa. Legis. Serv. Act 2006§ 1518. (b)(ii)

8.3. Simple versus aggravated

9. State of Anne/ recover of debts

Equity will not aid a gambling transaction, nor will the law enforce any recovery under a wager. One who knowingly lends money to another for the purpose of furthering a gambling transaction cannot recover it.

Recovery may be had, if the lender did not know of the contemplated illegal use. In addition, where a loan in a specific transaction does not arise out of a bet and is independent of a specific gambling transaction, the loan is enforceable. The test whether a demand is capable of being enforced at law is whether plaintiff requires the aid of the illegal transaction to establish his case. P.L.E. CONTRACTS § 611

In general, a party cannot recover on an instrument given in consideration of a gambling transaction. A bond given to cover margins in a stock gambling transaction is void, and a judgment entered thereon will not be enforced. 1 P.L.E. CONTRACTS § 611

Prior to 1907, a bona fide holder for value without notice could recover from the maker of a promissory note given in a stock-gambling transaction. The court distinguished authorities to the contrary on the ground that the transactions dealt with therein were declared void by statute. The court then observed that there was no statute in the instant case and allowed recovery. Subsequent to this decision, a statute was enacted providing that all transactions respecting the sale or purchase of securities or commodities, which are settled upon the basis of public market quotations on a board of trade or exchange, but without a bona fide transaction on such board of trade or exchange, are gambling, and criminal acts, and null and void. 1 P.L.E. CONTRACTS § 611

A deposit of money with third persons, who are stakeholders, for the purpose of being used by a broker as margins for the purchase and sale of mere differences in the market price of stocks and grain in specie, is a mere wagering contract; and if the money is still in the hands of the stakeholder and not paid over to the persons who made the transaction it may be recovered.--Dauler v. Campbell, 178 Pa. 23, 35 A. 857 (1896).

A recovery may be had from the stakeholder under a gambling contract, where the stake has not actually been paid over to the winner, though the contingency upon which the bet turns has happened.--Davis v. Fleshman, 245 Pa. 224, 91 A. 489 (1914).

The forfeiture provisions are not limited to games of chance, but apply also to so-called "games of skill" if used for gambling purposes. Nu-Ken Novelty, Inc. v. Heller, 220 Pa. Super. 431, 288 A.2d 919 (1972). Devices made for gambling, and incapable of lawful use, are not protected by the ordinary laws relating to personal property, and the owner has no standing to assert property rights in them.--Commonwealth v. Kaiser, 80 Pa. Super. 26 (1922).

10. Gaming Board

10.1. Composition

The Pennsylvania Gaming Control Board (PGCB), which consists of seven voting members, three of whom are appointed by the governor and four who are appointed by the leaders of Pennsylvania's legislative caucuses. 4 PA. CONS. STAT. § 1201 The board has three ex officio members: the secretary of revenue, the secretary of agriculture and the state treasurer. 4 PA. CONS. STAT. § 1202(e).The ex officio members have no voting rights. The board chairman is selected by the governor 4 PA. CONS. STAT. § 1201(j).
All board actions must be authorized by a qualified majority vote except for actions resulting in suspension, revocation, not renewing, voiding, or requiring forfeiture of a license or permit. 4 PA. CONS. STAT. § 1201(f).
A qualified majority vote consists of an agreement by all four legislative appointees and at least 4 PA. CONS. STAT. § 1201(f).

10.2. General Powers

The board shall have general and sole regulatory authority over the conduct of gaming. The board shall ensure the integrity of the acquisition and operation of slot machines and associated equipment and have sole regulatory authority over every aspect of the authorization and operation of slot machines. 2006 Pa. Legis. Serv. Act 2006 4 Pa.C.S. § 1201. The board must also employ individuals as necessary to carry out the powers and duties of the board, who shall serve at the board's pleasure. 2006 Pa. Legis. Serv. Act 2006 4 Pa.C.S. § 1201

11. If lawful commercial casino gaming:

 

11.1. Games – what type of games are permitted and prohibited?
11.2. Limits – What are the limits on bet size, payouts, loss limits, etc?
11.3. Taxes and Feed
11.4. Operational requirements,

11.4.1. hours
11.4.2. advertising
11.4.3. entertainment
11.4.4. exclusion
11.4.5. gambling age
11.4.6. mandatory exclusions
11.4.7. discretionary exclusions
11.4.8. voluntary exclusions by problem gamblers

11.5. Compulsive Gamblers

§ 1509. Compulsive and problem gambling program.

(a) The Department of Health in connection with the Mid-Atlantic Addiction Training Institute, shall develop program guidelines for public education, awareness and training regarding compulsive and problem gambling and the treatment and prevention of compulsive and problem gambling. The guidelines must include strategies for the prevention of compulsive and problem gambling. The program shall include: 2006 Pa. Legis. Serv. Act 2006§ 1509

(1) Maintenance of a compulsive gamblers assistance organization's toll-free problem gambling telephone number to provide crisis counseling and referral services to families experiencing difficulty as a result of problem or compulsive gambling. 2006 Pa. Legis. Serv. Act 2006§ 1509
(2) The promotion of public awareness regarding the recognition and prevention of problem or compulsive gambling. 2006 Pa. Legis. Serv. Act 2006§ 1509
(3) Facilitation, through in-service training and other means, of the availability of effective assistance programs for problem and compulsive gamblers and family members affected by problem and compulsive gambling. 2006 Pa. Legis. Serv. Act 2006§ 1509
(4) Conducting studies to identify adults and juveniles in this Commonwealth who are or are at risk of becoming problem or compulsive gamblers. 2006 Pa. Legis. Serv. Act 2006§ 1509
(5) Providing grants to and contracting with organizations which provide services as set forth in this section. 2006 Pa. Legis. Serv. Act 2006§ 1509
(6) Providing reimbursement for organizations for reasonable expenses in assisting the Department of Health in carrying out the purposes of this section. 2006 Pa. Legis. Serv. Act 2006§ 1509

11.6. Gaming Contracts

Gaming contracts are void. If any person or persons shall lose any money or other valuable thing, at or upon any match of cock-fighting, bullet-playing or horseracing, or at or upon any game of address, game of hazard, play or game whatsoever, the person or persons who shall lose their money or other valuable thing shall not be compelled to pay or make good the same; and every contract, note, bill, bond, judgment, mortgage, or other security or conveyance whatsoever, given, granted, drawn or entered into for the security or satisfaction of the same, or any part thereof, shall be utterly void and of none effect.73 P.S. § 2031

In general, betting and gambling contracts are unenforceable, Plotnick v. Pennsylvania Public Utility Com., 143 Pa. Super. 550, 18 A.2d 542 (1941).and a betting contract is void if made in Pennsylvania.A bet upon an election, regarded as a contract, is totally void, where there has been no deposit of the thing bet. Waters v. Hixenbaugh's Adm'rs, 25 Pa. 131 (Pa. 1855)
If a betting contract was made in a state where it may be enforced, it may also be enforced in Pennsylvania. However, the law of the place of making and the law of the place of performance govern the legality and enforceability of betting contracts. 1 P.L.E. CONTRACTS § 611

11.7. Gaming Crimes

11.7.1. General Gaming Crimes

Under the Crimes Code, it is a misdemeanor of the first degree if a person intentionally or knowingly makes, assembles, sets up, maintains, sells, lends, leases, gives away, or offers for sale, loan, lease or gift, any punch board, drawing card, slot machine or any device to be used for gambling purposes, except playing cards. It is also a misdemeanor of the first degree if a person allows persons to collect and assemble for the purpose of unlawful gambling at any place under his control; solicits or invites any person to visit any unlawful gambling place for the purpose of gambling; or being the owner, tenant, lessee or occupant of any premises, knowingly permits or suffers the same, or any part thereof, to be used for the purpose of unlawful gambling. 18 Pa.C.S. § 5513. In addition, the statute prohibits a person from allowing gambling at any place under his or her control, soliciting or inviting someone to gamble unlawfully, and from owning, leasing, or occupying premises used for unlawful gambling.18 Pa.C.S. § 5513. However, the mere act of playing cards for money is not a criminal offense. United States ex rel. Yates v. Rundle, 326 F. Supp. 344 (E.D. Pa. 1971).

Federal law prohibits the transportation of slot machines or components thereof into any state. 15 U.S.C.S. § 1171

Punchboards which provide prizes to be won by chance and the payment of a consideration by the player are gambling devices per se and are subject to the statutory prohibition. Commonwealth v. Cohen, 169 Pa. Super. 84, 82 A.2d 325 (1951).

A conviction for setting up a gambling device may be sustained even though no game is actually played. One who sells punchboards and prizes to others who sell chances thereon is guilty of causing punchboards to be set up in violation of the statute. 1 P.L.E. CONTRACTS § 615

The Legislature intended to make the maintenance or possession of gambling devices an offense separate and apart from that of setting up and establishing such gambling devices; it is therefore not necessary, in order to obtain a conviction under this provision, to show that the defendant set up or established the gambling device which he maintained. But mere possession of gambling devices, per se, is not tantamount to "maintaining" for purpose of the statute, which makes it a misdemeanor to intentionally or knowingly maintain a punch board. 1 P.L.E. CONTRACTS § 615

It is unlawful to race horses for money, 18 Pa.C.S. § 7103 (2006) and it is a misdemeanor to sell pools upon the result of any political nomination, appointment or election, or upon any contest of any nature. Under this statute, it is also a misdemeanor to assist in selling pools and bookmaking, and to own, lease or occupy premises used for that purpose.1 P.L.E. CONTRACTS § 615

It is unlawful for any public utility knowingly to furnish any person with a private wire for use in furtherance of gambling or for gambling purposes. 1 P.L.E. CONTRACTS § 615

It is also a misdemeanor to keep a bucket shop or to participate in any of the activities related.1 P.L.E. CONTRACTS § 615 In addition, it is a misdemeanor to transmit information pertaining to the activities of a bucket shop, to permit a bucket shop to be operated in premises over which one has control, or to enter into any transaction of the nature described in the statutory definition of a bucket shop. 1 P.L.E. CONTRACTS § 615

Allowing gambling to be carried on upon premises in one's possession or under one's control, or under the control of one's subordinates or associates, is a misdemeanor. In addition, all who aid and assist in the operation of the establishment are guilty. 1 P.L.E. CONTRACTS § 615

Under statute providing that, whoever "occupies" any place with books, apparatus, or paraphernalia for purpose of recording or registering bets or wagers is guilty of a misdemeanor, one can "occupy" a place within the statute without having brought the apparatus and articles into the place, and one "occupies" when he does business in or holds possession of.--Commonwealth v. Parente, 184 Pa. Super. 125, 133 A.2d 561 (1957), aff'd, 392 Pa. 48, 139 A.2d 924 (1958).

A person is guilty of a misdemeanor of the first degree if he:

(1) sets up, or maintains, any lottery or numbers game;

(2) manufactures or prints, or sells, exposes for sale or has in his possession with intent to sell any unlawful lottery or numbers ticket or share, or any writing, token or other device purporting or intending to entitle the holder or bearer, or any other person, to any prize to be drawn or obtained in any lottery, or numbers game; or

(3) publishes any advertisement of any lottery or numbers game. 18 Pa.C.S. § 5512 (2006)

It is unlawful for a person to willfully:(i) fail to report, pay or truthfully account for and pay over any license fee, tax or assessment imposed under this part; or attempt in any manner to evade or defeat any license fee, tax or assessment imposed in the code. 2006 Pa. Legis. Serv. Act 2006§ 1518. (a)(2)

It is unlawful for any licensed entity, gaming employee, key employee or any other person to permit a slot machine to be operated, transported, repaired or opened on the premises of a licensed facility by a person other than a person licensed or permitted by the board. 2006 Pa. Legis. Serv. Act 2006§ 1518. (a)(3)

It is unlawful for any licensed entity or other person to manufacture, supply or place slot machines into play or display slot machines on the premise of a licensed facility without the authority of the board. 2006 Pa. Legis. Serv. Act 2006§ 1518. (a)(4)

Unless otherwised by license renewals, it is unlawful for a licensed entity or other person to manufacture, supply, operate, carry on or expose for play any slot machine after the person's license has expired and prior to the actual renewal of the license. 2006 Pa. Legis. Serv. Act 2006§ 1518. (a)(5)

Unless otherwise authorized, it is unlawful for an individual while on the premises of a licensed facility to knowingly use currency other than lawful American Currency or other coin intended to be used in the slot machine. with the intent to cheat or defraud a licensed gaming entity or the Commonwealth or damage the slot machine. 2006 Pa. Legis. Serv. Act 2006§ 1518. (a)(6)

In a slot machine it is lawful for an individual to use gaming billets,

tokens or similar objects issued by the licensed gaming entity which are approved by the board. 2006 Pa. Legis. Serv. Act 2006§ 1518. (a)(6)(ii)

It unlawful for an individual to use or possess a cheating or thieving device, counterfeit or altered billet, ticket, token or similar objects accepted by a slot machine or counterfeit or altered slot machine-issued tickets or vouchers. 2006 Pa. Legis. Serv. Act 2006§ 1518. (a)(7)(i) An authorized employee of a licensee or an employee of the board may possess and use a cheating or thieving device, counterfeit or altered billet, ticket, token or similar objects accepted by a slot machine or counterfeit or altered slot machine-issued tickets or vouchers in performance of the duties of employment. 2006 Pa. Legis. Serv. Act 2006§ 1518. (a)(7)(ii)

It is unlawful for a person or licensed entity to possess any device, equipment or material which the person or licensed entity knows has been manufactured, distributed, sold, tampered with or serviced in violation of the provisions with the intent to use the device, equipment or material as though it had been manufactured, distributed, sold, tampered with or serviced pursuant to code. 2006 Pa. Legis. Serv. Act 2006§ 1518. (a)(9) It is unlawful for a person to sell, offer for sale, represent or pass off as lawful any device, equipment or material which the person or licensed entity knows has been manufactured, distributed, sold, tampered with or serviced in violation of this part. 2006 Pa. Legis. Serv. Act 2006§ 1518. (a)

It is unlawful for an individual to work or be employed in a position the duties of which would require licensing or permitting under the provisions of this part without first obtaining the requisite license or permit issued under the Code. 2006 Pa. Legis. Serv. Act 2006§ 1518. (a)(10)

It is unlawful for a licensed gaming entity that is a licensed racing entity and that has lost the license issued to it by either the State Horse Racing Commission or the State Harness Racing Commission under the Race Horse Industry Reform Act or that has had that license suspended to operate slot machines at the racetrack for which its slot machine license was issued, unless the license issued to it will be subsequently reissued or reinstated within 30 days after the loss or suspension. 2006 Pa. Legis. Serv. Act 2006§ 1518. (a)(11)

It is unlawful for a licensed entity to employ or continue to employ an individual in a position the duties of which require a license or permit if the individual: 2006 Pa. Legis. Serv. Act 2006§ 1518. (a)(12)

(i) Is not licensed or permitted
(ii) Is prohibited from accepting employment from a licensee. 2006 Pa. Legis. Serv. Act 2006§ 1518. (a)(12) (i) (ii)

It is unlawful for any person under 18 years of age to be permitted in the area of a licensed facility where slot machines are operated. 2006 Pa. Legis. Serv. Act 2006§ 1518. (a)(13)

11.7.2. Specific Gaming Crimes

A member of the board shall be removed from office by the appointing authority: (1) for misconduct in office, willful neglect of duty or conduct evidencing unfitness for office or incompetence; or (2) upon conviction of an offense graded as a felony, an infamous crime, an offense under this part or an equivalent offense under Federal law or the law of another jurisdiction. 2006 Pa. Legis. Serv. Act 2006 4 Pa.C.S. § 1201