Harkins: Rule permitting clubs to use of 100% of small games of chance revenue for operating expenses ends this week

HARRISBURG, June 6 – State Rep. Pat Harkins, D-Erie, is reminding clubs in Erie and throughout Pennsylvania that beginning June 10, they must resume allocating 60% of their small games of chance revenue to public interest purposes.

Harkins, who is Democratic chairman of House Gaming Committee, said the provisions of Act 118 of 2020 – which temporarily suspended the 60% rule and allowed organizations to keep 100% of their small games revenue for operating expenses – are set to expire.

“I want to remind community clubs – including civic, fraternal and veterans’ organizations – that the temporary rule allowing them to use 100% of their small games of chance revenue for operating expenses is ending this Friday, June 10,” Harkins said. “The rule was essential for helping clubs meet operating expenses at time when pandemic-related closures and restrictions on gatherings severely limited revenue.

“The legislation that established the new rule also created a time period for its application, permitting clubs to tap 100% of their small games proceeds during the governor’s disaster declaration and for up to one year following termination of the declaration. That period is ending this week, which means clubs will return to the standard rule, with 40% of the revenue used for costs and 60% for public interest programs and projects.”

Organizations eligible for Small Games of Chance licenses in Pennsylvania include charitable, religious, fraternal or veterans’ organizations; clubs and civic and service organizations; and affiliated nonprofit organizations of major league sports teams, such as booster clubs and Little League.