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:

a.) Those gambling activities conducted pursuant to the Race Horse Industry Reform Act.
b.) Those gambling activities conducted pursuant to the Pennsylvania Race Horse Development and Gaming Act.
c.) Pennsylvania Lottery.
d.) Bingo conducted pursuant to the Bingo Law.
e.) Those gambling activities conducted pursuant to the Local Option Small Games of Chance Act.
f.) Those gambling activities conducted pursuant to the Sport Raffle Charities 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.

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 fulfilling its purpose for one year in order to be eligible for a games of chance license. (Please refer to the Law for a complete definition of eligible organizations.)

How to apply for a Small Games of Chance License: 

1.) Provide a completed Small Games of Chance Application
2.) Provide proof of 501 (c3) status 
3.) Provide a copy of By-Laws or Articles of Incorporation 
4.) Provide proof of existence for at least 1 year
5.) Include a completed Use of Residence Permission Letter if location of organization is a residence 
6.) Include a copy of lease agreement if licensed premise, where event will be held, is not owned. Use Licensed Premised Lease Agreement if needed. 
7.) Provide proper payment.

Renewals:

1.) Provide a completed Small Games of Chance Application 
2.) Include a completed Use of Residence Permission Letter if location of organization is a residence 
3.) Include a copy of lease agreement if licensed premise, where event will be held, is not owned. Use Licensed Premised Lease Agreement if needed. 
4.) Provide proper payment.