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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY PALLONE, BELFANTI, BEYER, BRENNAN, CALTAGIRONE, CARROLL, CAUSER, CONKLIN, GIBBONS, GOODMAN, GROVE, HALUSKA, HENNESSEY, HORNAMAN, KORTZ, KOTIK, KULA, MAHONEY, MELIO, MICOZZIE, MILLARD, MOUL, MYERS, PETRARCA, READSHAW, ROAE, SEIP, SIPTROTH, SOLOBAY, STABACK, J. TAYLOR, WALKO, WHITE, YOUNGBLOOD AND HARKINS, FEBRUARY 26, 2009 |
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| REFERRED TO COMMITTEE ON GAMING OVERSIGHT, FEBRUARY 26, 2009 |
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| AN ACT |
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1 | Amending the act of December 19, 1988 (P.L.1262, No.156), |
2 | entitled, as amended, "An act providing for the licensing of |
3 | eligible organizations to conduct games of chance, for the |
4 | licensing of persons to distribute games of chance, for the |
5 | registration of manufacturers of games of chance, and for |
6 | suspensions and revocations of licenses and permits; |
7 | requiring records; providing for local referendum by |
8 | electorate; and prescribing penalties," further providing for |
9 | legislative intent, for the definition of "license"; |
10 | providing for poker tournaments; further providing for |
11 | licensing of eligible organizations to conduct games of |
12 | chance, for revocation of licenses, for local option, for |
13 | advertising, for certain persons prohibited from having an |
14 | interest in poker tournaments and for penalties; and making |
15 | editorial changes. |
16 | The General Assembly of the Commonwealth of Pennsylvania |
17 | hereby enacts as follows: |
18 | Section 1. The title of the act of December 19, 1988 (P.L. |
19 | 1262, No.156), known as the Local Option Small Games of Chance |
20 | Act, amended December 19, 1990 (P.L.812, No.195), is amended to |
21 | read: |
22 | AN ACT |
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1 | Providing for the licensing of eligible organizations to conduct |
2 | games of chance and poker tournaments, for the licensing of |
3 | persons to distribute games of chance, for the registration |
4 | of manufacturers of games of chance, and for suspensions and |
5 | revocations of licenses and permits; requiring records; |
6 | providing for local referendum by electorate; and prescribing |
7 | penalties. |
8 | Section 2. Sections 1 and 2 of the act are amended to read: |
9 | Section 1. Short title. |
10 | This act shall be known and may be cited as the Local Option |
11 | Small Games of Chance and Poker Tournament Act. |
12 | Section 2. Legislative intent. |
13 | The General Assembly hereby declares that the playing of |
14 | small games of chance and poker tournaments for the purpose of |
15 | raising funds, by certain nonprofit associations, for the |
16 | promotion of charitable or civic purposes, is in the public |
17 | interest. |
18 | It is hereby declared to be the policy of the General |
19 | Assembly that all phases of licensing, operation and regulation |
20 | of small games of chance and poker tournaments be strictly |
21 | controlled, and that all laws and regulations with respect |
22 | thereto as well as all gambling laws should be strictly |
23 | construed and rigidly enforced. |
24 | The General Assembly recognizes the possibility of |
25 | association between commercial gambling and organized crime, and |
26 | wishes to discourage commercialization of small games of chance |
27 | and poker tournaments, prevent participation by organized crime |
28 | and prevent the diversion of funds from the purposes herein |
29 | authorized. |
30 | Section 3. The definition of "license" in section 3 of the |
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1 | act, amended December 19, 1990 (P.L.812, No.195), is amended to |
2 | read: |
3 | Section 3. Definitions. |
4 | The following words and phrases when used in this act shall |
5 | have the meanings given to them in this section unless the |
6 | context clearly indicates otherwise: |
7 | * * * |
8 | "License." A license to conduct games of chance and poker |
9 | tournaments. |
10 | * * * |
11 | Section 4. The act is amended by adding a section to read: |
12 | Section 4.1. Poker tournaments permitted. |
13 | (a) Conduct of tournaments.--Every eligible organization to |
14 | which a license has been issued under this act may conduct poker |
15 | tournaments for the purpose of raising funds for public interest |
16 | purposes. The eligible organization shall advertise the time and |
17 | place of the poker tournament at least one week in advance, and |
18 | all poker tournaments shall conclude on the same day as they |
19 | started. All proceeds of poker tournaments shall be used |
20 | exclusively for public interest purposes as permitted by this |
21 | act. |
22 | (b) Entry fee.--An eligible organization may charge a person |
23 | wishing to participate in a poker tournament an entry fee of no |
24 | more than $100. |
25 | (c) Betting.--A person participating in a poker tournament |
26 | may bet no more than $5 per bet. |
27 | (d) Raising.--The total raises per hand may not exceed five. |
28 | (e) Prizes.--Notwithstanding section 5, eligible |
29 | organizations shall pay out prizes to no more than the top five |
30 | winning persons in a declining share based on the person's final |
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1 | placement in the tournament. The prize pool shall be based on |
2 | the total of the entry fees collected. |
3 | (f) Costs and profit.--The eligible organization may keep up |
4 | to 25% of the entry fees collected. |
5 | (g) Definitions.--As used in this section, the following |
6 | words and phrases shall have the meanings given to them in this |
7 | subsection: |
8 | "Ante." A player's initial wager or predetermined |
9 | contribution to the pot prior to dealing of the first hand. |
10 | "Bet." To make a wager by putting chips into the pot. |
11 | "Hand." One game in a series, one deal in a card game or the |
12 | cards held by a player. |
13 | "Poker." Any game, regardless of the number of cards or how |
14 | it is dealt, which uses the standard poker "winning hand" |
15 | hierarchy, for example, five of a kind beats straight, flush |
16 | beats four of a kind, etc. |
17 | "Poker tournament." An event in which poker players compete |
18 | for all or part of a prize pool. |
19 | "Pot." The total amount anted and wagered by all players |
20 | during a hand. |
21 | "Prize pool." The prize pool shall consist of the entry fees |
22 | collected minus any amount kept by the eligible organization |
23 | under subsection (f). |
24 | "Raise." A wager made in an amount greater than the |
25 | immediately preceding wager. |
26 | Section 5. Section 10 of the act, amended December 19, 1990 |
27 | (P.L.812, No.195) and October 18, 2000 (P.L.602, No.79), is |
28 | amended to read: |
29 | Section 10. Licensing of eligible organizations to conduct |
30 | games of chance and poker tournaments. |
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1 | (a) License required.--No eligible organization shall |
2 | conduct or operate any games of chance and poker tournaments |
3 | unless such eligible organization has obtained and maintains a |
4 | valid license issued pursuant to this section. Auxiliary groups |
5 | within eligible organizations shall be eligible to conduct small |
6 | games of chance and poker tournaments using the license issued |
7 | to the eligible organization provided that the auxiliary group |
8 | or groups are listed on the application and license of the |
9 | eligible organization. No additional licensing fee shall be |
10 | charged for an auxiliary group's eligibility under this act. |
11 | Auxiliary groups shall not include branches, lodges or chapters |
12 | of a Statewide organization. |
13 | (b) Issuance and fees.--The licensing authority shall |
14 | license, upon application, within 30 days any eligible |
15 | organization meeting the requirements for licensure contained in |
16 | this act to conduct and operate games of chance and poker |
17 | tournaments at such locations within the county or in such |
18 | manner as stated on the application as limited by subsection (b. |
19 | 1). The license fee to be charged to each eligible organization |
20 | shall be $100, except for limited occasion licenses which shall |
21 | be $10. Licenses shall be renewable annually upon the |
22 | anniversary of the date of issue. |
23 | (b.1) Location of small games of chance.--Where there exists |
24 | a location or premises which is the normal business or operating |
25 | site of the eligible organization and is owned or leased by that |
26 | eligible organization to conduct its normal business, that site |
27 | shall be the licensed premises for small games of chance and |
28 | poker tournaments conducted by the eligible organization. If |
29 | that location consists of more than one building and the |
30 | eligible organization wishes to conduct its games and poker |
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1 | tournaments in a different building at that location from the |
2 | one that is listed on its application and license, the eligible |
3 | organization must notify, in writing, the district attorney and |
4 | the licensing authority of the change in building site and the |
5 | dates and times that will be affected. When an eligible |
6 | organization does not own or lease a specific location to |
7 | conduct its normal business, that eligible organization may use |
8 | another eligible organization's premises to conduct its games |
9 | and poker tournaments or may make such other arrangements that |
10 | are consistent with this act, including, but not limited to, |
11 | leasing a premise under a written agreement for a rental which |
12 | is not determined by either the amount of receipts realized from |
13 | the playing of games of chance and poker tournaments nor the |
14 | number of people attending except that an eligible organization |
15 | may lease a facility for a banquet where a per head charge is |
16 | applied in connection with the serving of a meal. When such |
17 | eligible organization changes the site of its games and poker |
18 | tournaments from that which is listed on its application and |
19 | license, the eligible organization must notify, in writing, the |
20 | district attorney and licensing authority of the change in their |
21 | games' and poker tournaments' site and dates and times that will |
22 | be affected. |
23 | (b.2) Off-premises games of chance and poker tournaments.-- |
24 | Notwithstanding any other provisions of this section, an |
25 | eligible organization may conduct small games of chance and |
26 | poker tournaments at a location off its premises when such games |
27 | and poker tournaments are part of an annual carnival, fair, |
28 | picnic or banquet held or participated in by that eligible |
29 | organization on a historical basis. The eligible organization |
30 | must notify, in writing, the district attorney and licensing |
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1 | authority of the location, date and times of such events where |
2 | it will be conducting small games of chance and poker |
3 | tournaments. |
4 | (b.3) Limited occasion licenses.--Eligible organizations |
5 | which do not own their own premises or which do not lease a |
6 | specific location to conduct their normal business may apply for |
7 | a limited occasion license to conduct small games of chance and |
8 | poker tournaments on not more than three occasions covering a |
9 | total of seven days during a licensed year. A limited occasion |
10 | license entitles eligible organizations holding such a license |
11 | to conduct no more than two raffles during a licensed year where |
12 | prizes may not exceed the established limits for regular monthly |
13 | raffles. Holders of limited occasion licenses may not apply or |
14 | be granted any other license or special permit under this act. |
15 | No holder of a regular license or special permit under this act |
16 | shall apply or be granted a limited occasion license. |
17 | (b.4) Gambling facility prohibited.--It shall be unlawful |
18 | for a person, corporation, association, partnership or other |
19 | business entity to offer for rent or offer for use a building or |
20 | facility to be used exclusively for the conducting of small |
21 | games of chance and poker tournaments. It shall also be unlawful |
22 | for any eligible organization to lease under any terms a |
23 | facility or building which is used exclusively for the |
24 | conducting of small games of chance and poker tournaments. |
25 | (c) Display.--Licenses issued pursuant to this section shall |
26 | be publicly displayed at the site of the small games of chance |
27 | and poker tournaments. |
28 | (d) Operation.--Each licensed eligible organization shall |
29 | comply with the following restrictions and rules governing the |
30 | operation of games of chance and poker tournaments: |
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1 | (1) No person under 18 years of age shall be permitted |
2 | to operate or play games of chance and poker tournaments. |
3 | (2) No eligible organization shall permit any person who |
4 | has been convicted of a felony in a Federal or State court |
5 | within the past five years or has been convicted in a Federal |
6 | or State court within the past ten years of a violation of |
7 | the act of July 10, 1981 (P.L.214, No.67), known as the Bingo |
8 | Law, or of this act to manage, set up, supervise or |
9 | participate in the operation of games of chance and poker |
10 | tournaments. |
11 | (3) No eligible organization shall pay any compensation |
12 | to any person for conducting any games of chance and poker |
13 | tournaments. Games of chance and poker tournaments may only |
14 | be conducted by managers, officers, directors, bar personnel |
15 | and bona fide members of the eligible organization. |
16 | (4) Games and poker tournaments shall be conducted only |
17 | on the licensed premises or as otherwise provided by this |
18 | act. |
19 | (5) The eligible organization shall not lease such |
20 | premises under either an oral or a written agreement for a |
21 | rental which is determined by either the amount of receipts |
22 | realized from the playing of games of chance and poker |
23 | tournaments or the number of people attending, except that an |
24 | eligible organization may lease a facility for a banquet |
25 | where a per head charge is applied in connection with the |
26 | serving of a meal. An eligible organization shall not lease |
27 | such premises from any person who has been convicted of a |
28 | violation of this act within the past ten years. |
29 | (6) Games, other than raffles, daily drawings and weekly |
30 | drawings, shall be purchased only from manufacturers and |
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1 | distributors approved by the department. |
2 | (7) No licensed eligible organization shall permit its |
3 | premises to be used for small games of chance and poker |
4 | tournaments by another licensed eligible organization at the |
5 | same time that it is conducting small games of chance and |
6 | poker tournaments on the premises. When a licensed eligible |
7 | organization is permitting another licensed eligible |
8 | organization to use its premises for purposes of small games |
9 | of chance and poker tournaments, it must cease the operation |
10 | of its own small games of chance and poker tournaments during |
11 | the period that the other licensed eligible organization is |
12 | conducting its games and poker tournaments on the premises. |
13 | (8) Raffle tickets may be sold off the licensed premise |
14 | in any municipality in this Commonwealth which has adopted |
15 | the provisions of this act by an affirmative vote in a |
16 | municipal referendum. A licensed eligible organization which |
17 | plans to sell raffle tickets in a municipality located in a |
18 | county other than the county in which the eligible |
19 | organization is licensed must notify that county's district |
20 | attorney and licensing authority as to the location and the |
21 | dates that the eligible organization plans to sell raffle |
22 | tickets. |
23 | (e) Application for license.--Each eligible organization |
24 | shall apply to the licensing authority for a license on a form |
25 | to be prescribed by the Secretary of Revenue. The form shall |
26 | contain an affidavit to be affirmed by the executive officer or |
27 | secretary of the eligible organization stating that: |
28 | (1) No person under 18 years of age will be permitted by |
29 | the eligible organization to operate or play games of chance |
30 | and poker tournaments. |
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1 | (2) The facility in which the games of chance and poker |
2 | tournaments are to be played has adequate means of ingress |
3 | and egress and adequate sanitary facilities available in the |
4 | area. |
5 | (3) The eligible organization is not leasing such |
6 | premises from the owner thereof under an oral agreement, nor |
7 | is it leasing such premises from the owner thereof under a |
8 | written agreement at a rental which is determined by the |
9 | amount of receipts realized from the playing of games of |
10 | chance and poker tournaments or by the number of people |
11 | attending, except that an eligible organization may lease a |
12 | facility for a banquet where a per head charge is applied in |
13 | connection with the serving of a meal. |
14 | (f) List of licensees.--The licensing authority, on a |
15 | semiannual basis, shall send a copy of all licensees to the |
16 | Department of Revenue. |
17 | (g) List of municipalities.--The licensing authority shall |
18 | include with any license or renewal issued to an eligible |
19 | organization, an up-to-date listing of those municipalities |
20 | within the licensing county which have approved the referendum |
21 | question on small games of chance and poker tournaments. |
22 | Section 6. Section 12 of the act, amended December 19, 1990 |
23 | (P.L.812, No.195), is amended to read: |
24 | Section 12. Revocation of licenses. |
25 | (a) Grounds.--The licensing authority shall revoke or refuse |
26 | to renew the license of any eligible organization whenever the |
27 | district attorney finds upon complaint and investigation that: |
28 | (1) Any of the funds derived from the operation of games |
29 | of chance and poker tournaments are used for any purpose |
30 | other than for public interest purposes or for the purchase |
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1 | of games of chance as permitted by this act. |
2 | (2) Any person under 18 years of age is operating or |
3 | playing games of chance and poker tournaments as defined in |
4 | this act. |
5 | (3) The eligible organization has permitted any person |
6 | who has been convicted of a felony in a Federal or State |
7 | court within the past five years or has been convicted in a |
8 | Federal or State court within the past ten years of a |
9 | violation of the act of July 10, 1981 (P.L.214, No.67), known |
10 | as the Bingo Law, or of this act, to manage, set up, |
11 | supervise or participate in the operation of games of chance |
12 | and poker tournaments. |
13 | (4) The facility in which the games of chance and poker |
14 | tournaments are played does not have adequate means of |
15 | ingress and egress and does not have adequate sanitary |
16 | facilities available in the area. |
17 | (5) Any person or persons other than a manager, officer, |
18 | director, bar personnel or a bona fide member of an eligible |
19 | organization have been involved in managing, setting up, |
20 | operating or running games of chance and poker tournaments. |
21 | (6) Any person has received compensation for conducting |
22 | games of chance and poker tournaments. |
23 | (7) Any prize has been awarded in excess of the limits |
24 | permitted under this act. |
25 | (8) The eligible organization has violated any condition |
26 | of a special permit issued pursuant to section 11. |
27 | (9) The eligible organization conducts the games of |
28 | chance and poker tournaments under a lease which calls for: |
29 | (i) leasing such premises from the owner thereof |
30 | under an oral agreement; or |
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1 | (ii) leasing such premises from the owner thereof |
2 | under a written agreement at a rental which is determined |
3 | by the amount of receipts realized from the playing of |
4 | games of chance and poker tournaments. |
5 | (10) False or erroneous information was provided in the |
6 | original application. |
7 | (11) An eligible organization has been convicted of a |
8 | violation of this act as evidenced by a certified record of |
9 | the conviction. |
10 | (12) The eligible organization has permitted another |
11 | eligible organization to conduct small games of chance and |
12 | poker tournaments on its licensed premises without suspending |
13 | its own operation of small games of chance and poker |
14 | tournaments during the period that the other licensed |
15 | eligible organization is conducting its games and poker |
16 | tournaments on the premises. |
17 | (b) Production of records.--The district attorney may |
18 | require licensees to produce their books, accounts and records |
19 | relating to the conduct of games of chance and poker tournaments |
20 | in order to determine whether a license should be revoked or |
21 | renewal thereof denied. Licensees shall also be required to |
22 | produce their license, books, accounts and records relating to |
23 | the conduct of games of chance and poker tournaments to other |
24 | law enforcement officials upon proper request. |
25 | Section 7. Section 14(a) of the act is amended to read: |
26 | Section 14. Local option. |
27 | (a) Election to be held.--In any municipality, an election |
28 | may be held on the date of the primary election immediately |
29 | preceding any municipal election, but not more than once in four |
30 | years, to determine the will of the electors with respect to the |
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1 | issuance of licenses within the limits of such municipality |
2 | under the provisions of this act. Where an election shall have |
3 | been held at the primary election preceding a municipal election |
4 | in any year, another election may be held under the provisions |
5 | of this act at the primary election occurring the fourth year |
6 | after such prior election. Whenever electors equal to at least |
7 | 25% of the highest vote cast for any office in the municipality |
8 | at the last preceding general election shall file a petition |
9 | with the county board of elections of the county, or the |
10 | governing body of the municipality adopts, by a majority vote, a |
11 | resolution to place such a question on the ballot and a copy of |
12 | the resolution is filed with the board of elections of the |
13 | county, for a referendum on the question of issuing licenses, |
14 | the county board of elections shall cause a question to be |
15 | placed on the ballot or on the voting machine board and |
16 | submitted at the primary election immediately preceding the |
17 | municipal election. The question shall be in the following form: |
18 | Do you favor the issuance of licenses |
19 | to conduct small games of chance and poker |
20 | tournaments in the of ? |
21 | * * * |
22 | Section 8. Section 15 of the act, amended December 19, 1990 |
23 | (P.L.812, No.195), is amended to read: |
24 | Section 15. Advertising. |
25 | It shall be unlawful for any eligible organization or person |
26 | to advertise the prizes or their dollar value to be awarded in |
27 | games of chance and poker tournaments, provided that prizes may |
28 | be identified on raffle tickets. Notwithstanding the prohibition |
29 | of advertising contained within this section, an eligible |
30 | organization may advertise prizes and values thereof in periodic |
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1 | publications which are limited in their circulation to members |
2 | of the eligible organization. |
3 | Section 9. Section 16 of the act is amended to read: |
4 | Section 16. Certain persons prohibited. |
5 | No distributor nor any person who has been convicted of a |
6 | felony or of a violation of the act of July 10, 1981 (P.L.214, |
7 | No.67), known as the Bingo Law, or of this act or of any |
8 | comparable State or Federal law shall have a pecuniary interest |
9 | in the operation or proceeds of games of chance and poker |
10 | tournaments. |
11 | Section 10. Section 17 of the act, amended December 19, 1990 |
12 | (P.L.812, No.195), is amended to read: |
13 | Section 17. Penalties. |
14 | (a) Eligible organizations.--Any eligible organization |
15 | violating the provisions of this act shall be guilty of a |
16 | summary offense and, upon conviction thereof, shall be sentenced |
17 | to pay a fine not exceeding $1,000 and shall for a first |
18 | offense, forfeit the license to conduct games of chance and |
19 | poker tournaments issued to the eligible organization for the |
20 | remainder of the licensing period or six months, whichever is |
21 | longer, for a second offense, forfeit the license issued to the |
22 | eligible organization for the remainder of the current licensing |
23 | period and be ineligible to be licensed for the following |
24 | licensing period, for a third or subsequent offense, forfeit the |
25 | license issued to the eligible organization and be ineligible |
26 | for a license renewal for 30 months thereafter. |
27 | (b) Individuals.--Any person who conducts or assists in the |
28 | conducting of games of chance and poker tournaments in violation |
29 | of the provisions of this act is guilty of a summary offense for |
30 | a first violation. A second violation of this act shall be |
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1 | punishable as a misdemeanor of the third degree. A third or |
2 | subsequent violation shall be punishable as a misdemeanor of the |
3 | first degree. |
4 | (c) Distributors and manufacturers.--Any person who |
5 | distributes games of chance without a license or in violation of |
6 | any provision of this act or applicable regulations, and any |
7 | manufacturer of games of chance who delivers games of chance for |
8 | sale or distribution in this Commonwealth who fails to obtain a |
9 | permit therefor is guilty of a misdemeanor of the first degree, |
10 | provided that no license or permit shall be required for the |
11 | manufacture or distribution of raffle tickets. |
12 | (d) Rigging.--A person commits a misdemeanor of the first |
13 | degree if, with intent to prevent a game of chance and poker |
14 | tournaments from being conducted in accordance with the |
15 | requirements of this act or the rules and usages governing the |
16 | game and poker tournaments, he: |
17 | (1) confers or offers or agrees to confer any benefit |
18 | upon or threatens any injury to a participant or other person |
19 | associated with the game and poker tournaments; |
20 | (2) tampers with any person or games and poker |
21 | tournaments; or |
22 | (3) solicits, accepts or agrees to accept any benefit. |
23 | (e) Contingent fees.--Any person who distributes, |
24 | manufactures or operates a small game of chance and poker |
25 | tournaments and who requires, for equipment furnished or to play |
26 | a game and poker tournaments, payment equal to a percentage of |
27 | the total winnings of any game and poker tournaments commits a |
28 | misdemeanor of the first degree. |
29 | Section 11. This act shall take effect in 60 days. |
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