Governor agrees to moratorium on small games of chance reporting requirements

January 3, 2013

Gov. Tom Corbett has agreed to a one-year moratorium on the state’s Small Games of Chance law reporting requirements that had veterans organizations, fire departments and other nonprofits up in arms.

State Sen. Tim Solobay, D-Canonsburg, said he got word today from the governor’s office. He and about 16 other legislative leaders sent the governor a letter several weeks ago asking for the moratorium to give the Legislature time to make changes to the law, which has drawn criticism from a number of groups concerned that they will be unable to survive if they can’t raise funds due to onerous reporting requirements.

A group of legislators in late November held a press conference and vowed to abolish the current law. Under the present law, organizations can keep 30 percent of games proceeds and must contribute 70 percent of games proceeds for “public interest purposes” but the law does not state what those are. While the new law increased prize limits for daily and weekly drawings and public raffles, the organizations were required to keep records of the winners of more than $100; withhold and remit income taxes on winnings and report the number of W-2G forms issued. Those requirements were to go into effect in February.

Solobay said legislators have been working on a bill to fix the problems in the law, and the moratorium will give them time to bring it up for a vote during the new legislative session.

Read more in tomorrow’s Observer-Reporter



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