Sunday, September 24, 2006

For an activity to be "gambling" in Pennsylvania there must be payment of a
consideration or fee for the chance to win a prize. The winner must be
determined by chance. The legal forms of gambling in the state are
activities governed by the Race Horse Industry Reform Act, the Pennsylvania
Lottery, bingo and small games of chance. One way to put these groups on a
more level playing field might be to expand the types of games authorized
under small games of chance laws and increase what can be bingo winnings,
some county officials have said. Legislators plan to revisit small games of
chance and bingo laws in the state. About two years ago, Somerset County
Jerry Spangler spoke on behalf of Pennsylvania District Attorneys
Association before the state House Judiciary Committee on proposals to
update the bingo and small games of chance laws.

Meanwhile, the lines seem to be tightening around just what these groups can
do to raise money with fundraisers that use bingo and small games of chance.

Video horse racing is one of the popular fundraising events for nonprofit
groups in the state.

Laurel Arts in Somerset had incorporated that particular game of chance in
its Casino Night fundraiser for a couple years. The event usually raised
about $4,000.

Last year, that all changed.

Last year, the nonprofit art group changed the name to Vegas Night and
changed several games of chance, including video horse racing. The group
ended up discontinuing video horse racing.

"We found out that video horse racing is not specifically listed in the
small game of chance legislation," said Michael Knecht, Laurel Arts
executive director.

"Our budget is pretty complex. We count on everything to balance the
budget," Knecht said.

By not being able to incorporate video horse racing, the event brought in
less funds for Laurel Arts.

Losing any amount of funds is "a big hit," he said.

"Technology has been changing. The laws governing small games of chance or
those related should be revisited to make sure it is still effective as
written," Knecht added. "If it isn't then it should be updated."

Prize limits haven't changed in 18 to 25 years, Spangler said. The law of
small games of chance was passed in 1988; the bingo act was passed in 1981.

Spangler told Laurel Arts board members to eliminate video horse racing just
to be sure they are in compliance with state law.

"He said if it was not there in the law to stay away from it," Knecht added.

Meanwhile, until the law is interpreted to include video horse racing as a
legal small games of chance, it is best for nonprofit organizations to take
a "proactive stance to be sure they are complying with the law and eliminate
it."

"Our event is legal and everyone has a good time and it is still productive
as a fundraiser," he said about Vegas Night, tentatively planned for Feb.
23.

"The last thing our nonprofit needs is to have police show up and arrest our
patrons for something considered illegal," he added.

Laurel Arts is not the only organization having trouble with interpreting
what the law means.

There are those groups that use bingo as a fundraiser and others who just
enjoy playing the game.

For those playing bingo for entertainment, the law states they can do so as
long as winning prizes are of "nominal value."

What is not clear with the law is just what constitutes nominal value.

Playing bingo for cash at Somerset County senior centers was temporarily
suspended until the state bingo law is clarified, according to Karen
Ritchey, deputy administrator for Area Agency of Aging of Somerset County.