Small Games of Chance Overview (REV-1750)

1REV-1750www.revenue.pa.gov

Pennsylvania Department of Revenue

REV-1750

Small Games of Chance Overview

REV-1750 (SU) 11-19

The Pennsylvania Department of Revenue has prepared

this overview on Pennsylvania’s Local Option Small Games

of Chance Act, 1988 P.L. 1262, No. 156, as amended, for

use by the general public. This overview is for informational

purposes only. Nothing contained herein should be

considered legal advice. Any person or entity with legal

questions regarding the Local Option Small Games of

Chance Act should review the provisions of the Act for

guidance or consult private legal counsel.

The Pennsylvania Crimes Code provides that all forms of

gambling are illegal unless the Pennsylvania Legislature

specifically authorizes the gambling activity by statute.

Gambling exists when there is a payment of consideration

or a fee or something of value for the opportunity for a prize

or reward, the winner of which is determined by chance.

Effectively, the three elements are: (1) consideration, (2)

chance and (3) prize or reward.

Currently, the only authorized and legal forms of gambling

in Pennsylvania are:

• Those gambling activities conducted pursuant to the

Race Horse Industry Reform Act.

• Pennsylvania Lottery (including Powerball and Mega

Millions).

• Bingo conducted pursuant to the Bingo Law.

• Those gambling activities conducted pursuant to the

Pennsylvania Race Horse Development and Gaming

Act (Slots and Table Games).

• Those gambling activities conducted pursuant to the

Local Option Small Games of Chance Act.

• Those gambling activities conducted pursuant to the

Sport Raffle Charities Act (SRCA).

This overview discusses the gambling activities conducted

pursuant to the Local Option Small Games of Chance Act.

The Pennsylvania Local Option Small Games of Chance Act

was passed in 1988 and has been amended several times

since its enactment, most notably by Acts 2 and 184 of 2012

and Acts 90 and 92 of 2013.

The small games of chance law authorizes certain non-profit

organizations, known as eligible organizations (including

club licensees), and for-profit taverns to conduct limited

types of gambling.

LICENSED ELIGIBLE ORGANIZATIONS

Licensed eligible organizations are authorized to conduct the

following games of chance:

• Pull-tab games.

• Punchboards.

• Raffles (including special permit raffles).

• Daily drawings.

• Weekly drawings.

• Fifty-fifty (50/50) drawings.

• Race Night Games.

• Pools.

Tavern Gaming Licensee

Tavern gaming licensees are authorized to conduct the

following types of games, known as “tavern games”:

• Pull-tab games.

• Tavern raffles, which are limited to once a month and

must designate at least half of net revenue to a

designated charity.

• Tavern daily drawings.

Eligible Organization Licenses

There are two types of licenses available to eligible

organizations: A regular license and a monthly license. An

eligible organization may conduct all forms of games of

chance under either license type. See page 1 for the types

of games of chance an eligible organization may conduct.

• Regular License: A regular license is an annual

license, and the term runs for a calendar year from the

date of issuance. The fee for an annual license is $125.

• Monthly License: A monthly license is valid for 30

consecutive days from the date of issuance. There is

no restriction on the number of monthly licenses an

eligible organization may obtain, but the licenses may

not overlap. The fee for a monthly license is $25.

• Special Raffle Permits: Special raffle permits are

available to regular and monthly licensees. The

special raffle permit authorizes a holder to conduct a

DISCLAIMER

INTRODUCTION

TYPES OF GAMES

TYPES OF LICENSES

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raffle that exceeds the normal prize limits applicable

to games of chance. As a general rule, a licensed

eligible organization may obtain up to 10 special raffle

permits. Total prizes awarded under all special raffle

permits may not exceed $150,000. Volunteer fire,

ambulance, rescue or conservation organizations

may obtain up to 12 special raffle permits and award

up to $250,000 in prizes. For a licensed eligible

organization with a regular license, the organization

can receive either 10 or 12 special raffle permits

during the annual license term. Because a licensed

eligible organization that obtains only a monthly

license does not have an annual licensed term, such

organization may receive no more than 10 or 12

special permits in any calendar year.

Tavern Gaming Licenses

There is only one type of license available to a tavern: a

tavern gaming license. Taverns that obtain a tavern gaming

license from the Pennsylvania Liquor Control Board (PLCB)

are authorized to offer pull-tab games, tavern raffles and

tavern daily drawings.

The tavern gaming license is an annual license issued and

renewed by the PLCB. For additional information about the

tavern gaming licensing process, visit www.lcb.pa.gov.

Small games of chance law is administered and enforced

by several different government entities: licensing

authorities, the Department of Revenue, the PLCB, the

Pennsylvania Gaming Control Board (PGCB) and law

enforcement officials.

Licensing Authorities

The licensing authorities for club licensees and eligible

organizations seeking to offer small games of chance are

the county treasurers in each of Pennsylvania’s 67 counties.

Where there is no county treasurer, such as in a home-rule

county or city of the first class, the licensing authority is the

designee of the governing body. The licensing authority is

responsible for licensing eligible organizations to conduct

games of chance in the commonwealth and for issuing

special raffle permits. For tavern gaming, the PLCB is the

licensing authority.

Department of Revenue

The department is charged with several responsibilities

under small games of chance law, as follows:

• Registration of games of chance manufacturers.

• Reviewing and approving pull-tab games and

punchboards for use in the commonwealth.

• Licensing of distributors to sell pull-tabs, punchboards

and race night games for use in the commonwealth.

• Receipt and retention of games of chance reports

from clubs.

• Random audits of 5 percent of club licensees every two

years.

• Administration of the state and host municipality tavern

games taxes.

• Limited regulatory authority related to manufacturer

registration, distributor licensing, games of chance and

games of chance records and reports.

PLCB

The PLCB is responsible for licensing taverns to conduct

tavern games in the commonwealth, and it may also impose

penalties for tavern licensees’ violation of small games of

chance law, including suspension or revocation of tavern

gaming licenses.

PGCB

The PGCB’s Bureau of Investigations and Enforcement is

responsible for conducting background investigations of

each tavern game license applicant.

Law enforcement officials

Commonwealth law enforcement officials – including local

police, state police, the Bureau of Liquor Control

Enforcement, local district attorneys and the Attorney

General – are responsible for overseeing the operation of

games of chance and for bringing civil and criminal charges

against organizations and individuals for violations of the law.

Information Sharing: The government entities responsible

for administering and enforcing small games of chance law

are allowed to share information and documentation for

purposes of administering and enforcing the law.

Pull-tab games, punchboards and race night games for use

in the commonwealth may only be produced by

manufacturers registered with the Department of Revenue.

Distributors may only purchase small games of chance from

registered manufacturers, and taverns and eligible

organizations licensed to sell small games of chance must

purchase them from distributors licensed by the Department

of Revenue. Listings of small games of chance

manufacturers and distributors are available at

www.revenue.pa.gov/SGOC.

Tickets and other products used to play other types of games

of chance do not have to be purchased from a registered

manufacturer or licensed distributor. Only licensed eligible

organizations, including club licensees, and tavern gaming

licensees may purchase and operate games of chance in

the commonwealth.

An eligible organization is one of the following types of

entities: a charitable, religious, fraternal or veterans’

organization; a club, civic and service association; or an

affiliated non-profit organization of a major league sports

team. An eligible organization must be in existence and

ADMINISTRATION AND ENFORCEMENT

SALE/PURCHASE OF GAMES OF CHANCE

ELIGIBLE ORGANIZATIONS

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fulfilling its purpose for one year in order to be eligible for a

games of chance license.

An auxiliary group of an eligible organization is not an

eligible organization and is not eligible for its own small

games of chance license. However, an auxiliary group may

conduct games of chance using the license of its parent

eligible organization so long as the auxiliary group is listed

on the eligible organization’s license application. All games

of chance conducted by the auxiliary group are considered

as if they were conducted by the eligible organization.

A club licensee is a specific type of eligible organization.

Any organization that is an ‘exempt organization’ under the

Internal Revenue Code Section 501(c) or 527, which is

licensed to sell liquor under Section 404 of the Pennsylvania

Liquor Code, is a ‘club’. If it obtains a games of chance

license from the county treasurer, it is a ‘club licensee’ for

small games of chance purposes. Club licensees, unlike

other licensed eligible organizations that can only use games

of chance proceeds for public interest purposes, can use

some games of chance proceeds for operating expenses.

Annual reporting requirements apply for club licensees.

A tavern eligible for a tavern gaming license is defined as a

hotel, restaurant, privately owned public golf course, brew

pub or microbrewery with a valid license to sell alcohol under

the Liquor Code and which is located in a municipality that

allows small games of chance.

The following are not eligible for tavern gaming licenses:

eating place retail dispenser (“E”) licensees; limited wineries

(“LK”); limited distilleries (“AL”); any tavern located in a

municipality that has not authorized small games of chance;

a grocery store, including a restaurant with an interior

connection to a grocery store; a restaurant where the sale

of liquid fuels or oil is conducted; a hotel or restaurant

located in a casino; a business on the grounds of a public

venue facility where a major league sports team or racing

facility conducts games or races; any liquor license held in

safekeeping; any liquor license declared to be a nuisance

under Section 611 of the Liquor Code; and any liquor license

under objection by the PLCB as a nuisance bar.

The PLCB issues tavern gaming licenses. For additional

information about the tavern gaming licensing process, visit

www.lcb.pa.gov.

Eligible Organizations/Club Licensees

The following prize limits apply:

• A prize for a single chance in any game may not

exceed $2,000.

• An eligible organization is limited to awarding $35,000

in prizes during an operating week (seven consecutive,

reoccurring operating or non-operating days).

• No more than $15,000 may be awarded in raffles

during a calendar month.

Limited exceptions to the prize limits exist:

• Raffles conducted under a special permit: Licensed

eligible organizations can apply to the county treasurer

for special permits. Raffles conducted under a special

permit are not subject to the general prize limitations

above. Licensed eligible organizations are eligible to

receive up to 10 special permits and may award up to

$150,000 from all special permit raffles. Volunteer fire,

ambulance, rescue or conservation organizations that

are not club licensees are eligible for up to 12 special

permits and may award up to $250,000 from all special

permit raffles.

• Daily and weekly drawing carryovers: Amounts paid

out in a carryover daily drawing or a weekly drawing

are not subject to the general prize limits. A carryover

occurs when there is no winner in the prior daily or

weekly drawing and the prize from such drawing is

carried over to be included as a prize in the next daily

or weekly drawing.

• 100 percent payout drawings: When a daily or

weekly drawing is conducted to award 100 percent of

the gross revenue from the game, then the prize does

not count against the $35,000 weekly prize limit.

Tavern Gaming Licensees

All tavern games are subject to the following prize limits:

• A prize for a single chance in any tavern game may not

exceed $2,000.

• A tavern gaming licensee may not award more than

$35,000 in prizes during an operating week (seven

consecutive, reoccurring operating or non-operating

days).

There are no exceptions to the prize limits for tavern games.

Eligible Organizations’/Club Licensees’ Use of Proceeds

Generally, all games of chance proceeds, except for

proceeds from major league sports drawings, are to be used

for public interest purposes. An eligible organization that has

as its primary purpose the promotion of a public interest

purpose may use small games of chance proceeds to carry

out that purpose. “Public interest purpose” is defined as one

or more of the following:

• The activities and operations of a nonprofit benevolent,

religious, educational, philanthropic, humane,

scientific, patriotic, social welfare, social advocacy,

public health, public safety, emergency response,

environmental or civic objective [sic].

• Initiating, performing or fostering worthy public works

or enabling or furthering the erection or maintenance

of public structures.

TAVERNS

PRIZE LIMITS

USE OF PROCEEDS OR NET REVENUE

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• Lessening the burdens borne by government or

voluntarily supporting, augmenting or supplementing

services which government would normally render to

the people.

• Improving, expanding, maintaining or repairing real

property owned or leased by an eligible organization

and relating operational expenses used for purposes

specified in bullet points (1), (2) and (3).

• Nonprofit youth sports activities.

• Activities relating to the provision of volunteer fire,

ambulance or rescue services.

• Activities conducted by a veterans organization,

whether or not the veterans organization holds a club

license. Activities under this paragraph may include:

Scholarships.

Services to economically or socially support

veterans.

Activities to honor veterans.

Other activities that qualify under bullet points (1),

(2), (3), (4), (5) and (6).

The term does not include the erection or acquisition of any

real property, unless the property will be used exclusively for

one or more of the purposes specified in this definition.

Games of chance proceeds may also be used to purchase

games of chance and to pay for eligible organization license

fees related to game of chance license applications.

In addition to public interest purposes, a club licensee may

use up to 40 percent of its games of chance proceeds per

calendar year for expenses of the club licensee. Any

proceeds not used for expenses must be used for public

interest purposes. So a club licensee must use, at a

minimum, 60 percent of its proceeds for public interest

purposes. If, however, a club licensee has games of chance

proceeds of $40,000 or less during a calendar, then in the

following calendar year the club licensee may use the first

$20,000 of its proceeds for expenses of the club licensee in

addition to the 40 percent. The $20,000 is deducted before

calculating the 60/40 split.

All games of chance proceeds obtained by a club licensee

must be expended within a year after the calendar year they

were obtained,

with one exception. A club licensee may set

aside some or all of its allotted proceeds that are allocated

to pay for expenses, if such proceeds are to be used for a

substantial public interest purchase or project. A club

licensee is required to notify the department that it is

retaining the proceeds for the project. See “Non-Tax

Reporting Requirements” for additional information.

An eligible organization with proceeds in excess of $40,000

is required to keep all small games of chance proceeds in a

bank account separate from all other organization funds

or accounts.

Tavern Gaming Licensees’ Use of Net Revenue

The revenue from tavern games is considered business

income of the tavern gaming licensee and may be used by

the tavern licensee for any legal purpose subject to the

following:

• Tavern raffles: At least 50 percent of net revenue from

tavern raffles must be donated to a designated charity

within seven days of the tavern raffle. The remaining

50 percent of net revenue is then subject to the state

and host municipality tavern games taxes.

• State tavern games tax: 60 percent of net revenue from

tavern games must be transmitted to the Department

of Revenue as a state tax.

• Host municipality tax: 5 percent of net revenue from

tavern games must be transmitted to the Department

of Revenue as a local tax for the host municipality

where the tavern gaming licensee is located.

See “Tavern Games Taxes” for additional information.

A tavern gaming licensee is required to keep all net revenue

from tavern games in a bank account separate from all

other organization funds or accounts.

A state tavern games tax and a local host municipality tavern

games tax are imposed on the net revenue of all tavern

games. The state tax is 60 percent, and the host municipality

tax is 5 percent of net revenue from tavern games.

Tax on Pull-Tab Games

Pull-tab games must be purchased from licensed

distributors. Taverns pay state and local tavern games taxes

at the time the pull-tab game is purchased from the

distributor. The distributor is responsible for collecting the

taxes and remitting them to the department.

For purposes of calculating the tax due, net revenue is the

net/ideal profit from the pull-tab game as indicated by the

manufacturer on the pull-tab game flare.

TAVERN GAMES TAXES

Prior to the passage of Act 90 of 2013, the split for use of proceeds was 70/30 and there was not a $20,000 deduction. Act 90 of 2013

was signed into law in November 2013, effective Jan. 27, 2014. It is the department’s interpretation that the General Assembly intended

the 70/30 split and the rules prior to the passage of Act 90 to apply to the entire 2013 calendar year. The new 60/40 split and $20,000

deduction applies to the 2014 calendar year and calendar years thereafter. In order to determine if the $20,000 deduction applies, the

club looks to its proceeds from the prior calendar year. Therefore, to determine if a club gets the $20,000 deduction for the 2014

calendar year, the club must look to determine if it had proceeds of $40,000 or less in the 2013 calendar year. If so, the club gets the

$20,000 deduction in the 2014 calendar year.

This applies to proceeds received during the 2014 calendar year and calendar years thereafter. For calendar years 2013 and prior,

proceeds had to be expended within the calendar year of receipt.

5REV-1750www.revenue.pa.gov

Example: A pull-tab game with a 1,000 pulls at $1 per pull

and a 70 percent payout has a net/ideal profit of $300:

(1,000 x $1) - $700 in prizes = $300. The 60 percent state

tavern games tax collectable at the time the pull-tab game

is purchased from the distributor is $180 ($300 x 0.6). The

5 percent host municipality tavern games tax collectable at

the time the pull-tab game is purchased from the distributor

is $15 ($300 x 0.05).

Pull-tab games purchased by for-profit taverns are also

subject to sales tax, which is 6 percent of the cost of the

pull-tabs before tavern games tax is imposed (additional

1 percent local sales tax in Allegheny County and 2

percent local sales tax in Philadelphia). Sales tax is also

collected from the tavern and remitted to the department

by the distributor.

Tax on Other Tavern Games

Tavern raffles and tavern daily drawings do not have to be

purchased from licensed distributors. Therefore, the state

and local taxes on these games are paid by the tavern

gaming licensee.

For purposes of calculating tax due, net revenue is the

difference between the gross revenue collected from the sale

of chances in the game less the cost of prizes awarded in

the game and the cost to purchase the game.

Example 1: A tavern sells 500 daily drawing tickets for $1

each for a prize of 50 percent of ticket sales. Cost of the

game is $5 for a roll of tickets. Net revenue is $245: $500 -

$250 prize - $5. Tavern tax is imposed on $245: state tax of

$147 (60 percent of $245) and municipality tax of $12.25 (5

percent of $245).

Example 2: A tavern sells $1 tickets for a daily drawing prize

equaling 100 percent of ticket sales. In such case, there is

no net revenue and therefore no tavern tax due.

Example 3: A tavern gaming licensee runs a tavern raffle

with 50 percent of the revenue to benefit the local food

bank. 1,000 tickets are sold for $1 each over a course of

the month for total gross revenue of $1,000. One winner

receives a prize of $400. The raffle ticket printing costs

total $10. Therefore, the remaining revenue is $590:

$1,000 – $400 – $10. $295 (50 percent of the remaining

$590) is given to the food bank as a charitable donation.

The state and local tax is imposed on the other $295: state

tax of $177 (60 percent of $295) and host municipality tax

of $14.75 (5 percent of $295).

Tax Payment and Reporting Requirements

Licensed distributors must file tavern games tax returns

and remit tax on a monthly basis. Returns and tax for each

month are due on the 20

of the following month.

Tavern gaming licensees must file tavern gaming tax

returns and remit tax on a quarterly basis. Returns and tax

for each calendar quarter are due on the 20th of the month

following the close of each calendar quarter: April 20, July

20, October 20 and January 20.

Tavern tax returns must be filed electronically at

www.revenue.pa.gov/SGOC.

Under federal law, games of chance winnings payments

must be reported via W-2G when the amount paid is $600

or more and at least 300 times the amount of the wager. The

original W-2G is to be presented to the winner, a copy of

each W-2G must be provided to the Department of Revenue

and the IRS, and the tavern should keep a copy of each W-

2G for its records (see “Record-Keeping Requirements).

Additional information and W-2G forms are available at

http://www.irs.gov/uac/Form-W-2G,-Certain-Gambling-

Winnings.

Club Licensees

All club licensees with proceeds in excess of $20,000 in a

calendar year are required to submit annual reports to the

Department of Revenue by Feb. 1, for the preceding

calendar year.

Annual report filing information will be accessible at

www.revenue.pa.gov/SGOC when available.

Club licensees’ annual reports will require the following

information:

• Proceeds received by the club licensee from each

game of chance conducted, itemized by week.

• Amount of prizes paid from all games of chance,

itemized by week.

• Other costs incurred related to the conduct of games

of chance.

• Verification and itemization of amounts distributed for

public interest.

A club licensee that retains games of chance proceeds for a

substantial public interest purchase or project is required to

give notice of the retention to the department via the club

licensee’s annual report.

Tavern Gaming Licensees

All tavern gaming licensees must submit an annual report to

the PLCB and the Department of Revenue by Jan. 20, for

the previous calendar year.

Annual report filing information will be accessible at

www.revenue.pa.gov/SGOC when available, and the

department will provide a spreadsheet to facilitate proper

record-keeping for taverns.

Tavern gaming licensees’ annual reports will require the

following information:

• For pull-tab games: number of W-2Gs, gross

winnings reported from W2-Gs, total gross revenue,

total payable prizes, total net revenue,

state/municipality tavern tax.

• For tavern daily drawings & tavern raffles: type of

game, number of W-2Gs, gross winnings reported from

OTHER REPORTING REQUIREMENTS

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W2-Gs, total gross revenue, total prizes paid, total net

revenue, total amount donated (raffles) and

state/municipality tavern gaming tax.

Licensed Eligible Organizations and Club Licensees:

A licensed eligible organization is required to keep records

related to games of chance activity sufficient to demonstrate

the organization’s compliance with the law upon inspection

or audit. A licensed eligible organization must retain its

records for at least two years. A club licensee must maintain

its records for at least five years.

Records must include the following:

• All sales invoices.

• Gross receipts from the conduct of each game of

chance.

• The cost of each game of chance and other expenses

related to the conduct of each game of chance.

• The total of prizes paid out for each game of chance

and each prize’s cost or fair market value.

• The proceeds from the conduct of each game of

chance.

• Totals for items enumerated in items 2 through 5 above

for each operating day, operating week, calendar

month, calendar year and licensed term.

• Details as to how proceeds from games of chance

were used or disbursed by the eligible organization.

• A record of any prize for which the licensed eligible

organization is required to make a W-2G report to the

IRS.

• A list of winners' names and addresses for prizes in

excess of $600.

• For merchandise prizes, the licensed eligible

organization is required to obtain a sales invoice

showing the purchase price of the prize, or if the prize

was donated to the licensed eligible organization, a

written statement from the donor indicating the fair

market value of the prize.

A licensed eligible organization must also maintain

records relating to the printing or purchase of materials

to be used for raffles and daily and weekly drawings.

Records should include an invoice or receipt from the

place of purchase that shows the cost and number or

amount of the materials purchased.

The Pennsylvania State Police Bureau of Liquor Control

Enforcement makes available various record-keeping tools

on its website to facilitate proper record-keeping.

Tavern Gaming Licensees

Record-keeping requirements for tavern gaming licensees

have yet to be formally established. In the meantime, taverns

are advised to keep records similar to those identified above

in order to facilitate tax filing and other reporting

requirements, as well as to demonstrate compliance with

small games of chance law. Additionally, the department will

provide a spreadsheet to facilitate proper record-keeping for

taverns at www.revenue.pa.gov/SGOC.

The department regulates pull-tab games and punchboards

sold for use in the commonwealth. All pull-tab games and

punchboards must be pre-approved by the department

before being offered for sale and use in the commonwealth.

Although manufacturers and distributors of race night games

must be registered and/or licensed with the department, race

night games do not have to be pre-approved before being

offered for sale or use in the commonwealth.

Pull-tab Game and Punchboard Definitions and

Requirements

• A pull-tab game is a deal of pull-tabs and its

corresponding flare.

• A pull-tab is a game piece in a pull-tab game made

completely of paper or paper products with concealed

numbers or symbols that must be exposed by the

player to reveal pre-determined winning numbers or

symbols.

• A punchboard is a board, placard or other device

comprised of receptacles, usually laid out in a grid or

column pattern, containing a deal of hidden punches

and its corresponding flare.

• A punch is a crimped strip of paper that is enclosed in

a punchboard receptacle that contains pre–determined

winning or losing numbers or symbols.

• A deal is a set of pull-tabs or punches.

• A flare is a card, graphic, illustration or other document

that identifies the rules for the game, the prize

structure, payout percentages and winning and losing

numbers or symbols.

A pull-tab game must comply with the following:

• At least 65 percent of the maximum potential gross

receipts from the sale of pull-tabs must be payable as

prizes.

• A prize on an individual pull-tab may not exceed

$2,000.

• An individual pull-tab deal may not contain more than

4,000 individual pull-tabs.

• The flare advertising prizes available from the pull-tab

deal must be made by the manufacturer and may only

be altered by the eligible organization to indicate that

merchandise of equivalent value will substitute for a

cash prize.

• Only one flare may be displayed for each deal and

must be placed on the face or on the top of the

dispenser used to dispense pull-tabs.

GAMES REGULATED

BY THE DEPARTMENT

RECORD-KEEPING REQUIREMENTS

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• The flare must display the winning numbers or symbols

for all prizes in the amount of $5 or more, the

manufacturer’s name or logo and the cost per play.

• The pull-tab game must be manufactured by a

registered manufacturer, approved by the Department

of Revenue for use in the commonwealth and

purchased from a licensed distributor.

A punchboard must comply with the following:

• At least 60 percent of the maximum potential gross

receipts from the sale of punches in a punchboard

must be payable as prizes.

• A prize on an individual punch may not exceed $2,000.

• The flare advertising prizes available from the

operation of the punch board must be made by the

manufacturer and may only be altered by the eligible

organization to indicate that merchandise of equivalent

value will substitute for a cash prize.

• Only one flare may be displayed and must be on the

face or on top of the punchboard.

• The flare must display the winning numbers or symbols

for all prizes in the amount of $5 or more, the

manufacturer’s name or logo and the cost per play.

• The punchboard must be manufactured by a registered

manufacturer, approved by the Department of

Revenue for use in the commonwealth and purchased

from a licensed distributor.