A gap in Pennsylvania law has put fire companies and county treasurers at odds over online raffles. They’re asking lawmakers for an update.

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BELLEFONTE — Centre County’s chief financial officer has warned fire companies that host online raffles that their gaming licenses could be revoked, a serious issue that could force them to choose between forgoing needed revenue and risking fines.

The recent notices from Treasurer Colleen Kennedy to at least two departments — Howard and Centre Hall Volunteer Fire Companies — stem from a gap in Pennsylvania’s law covering small games of chance, which doesn’t explicitly address online raffles.

Fire companies say the virtual events build on traditional fundraising like donation drives, carnivals, pancake breakfasts, and chicken dinners, which help pay for essential gear, fuel, and trucks. That support often makes the difference between staying open and shutting down.

But the technology has evolved faster than updates to the state law that regulates raffles, pull-tab games, fifty-fifty drawings, and more. Lawmakers in Harrisburg have failed to modernize the law, so Kennedy says she must enforce the rules as written.

Howard Fire Company President Bill Nearhoof hopes to reach a compromise with the county treasurer, who told the department she is withholding special raffle permits for drawings scheduled in late April until it shuts down its online shop.

In May, the department held a two-hour meeting with members and decided to continue online raffles, he told Spotlight PA. They hope to find a “middle ground,” Nearhoof added.

“Can we be far enough into compliance so we can continue with this, or do we have to shut down?” he said. “That’s still to be determined.”

Aided by a fire tax collected by three of the four municipalities in its coverage area, the department is in a good financial spot, he said. Online raffle revenue just gives them an extra boost, Nearhoof added.

Centre Hall Volunteer Fire Company didn’t respond to an interview request.

The issue was brought to Kennedy’s attention by another license holder from an organization that doesn’t use online raffles to fundraise and was frustrated that other local companies had adopted the practice, she said. Kennedy told Spotlight PA she doesn’t want “to be in a position of penalizing people who are just trying to do fundraising.”

“But at the same time, it needs to be a level playing field,” she said. “We can’t have some people just flouting the law while other people are trying to abide by the law.”

Existing state law — the Local Option Small Games of Chance Act — requires that players of small games of chance be 18 or older and pay with cash, a check, or a money order. Rules also mandate that whoever conducts raffles must do so “openly and in plain view of players present,” as well as make the drawn ticket stubs available for inspection.

“The law doesn’t specifically say you can’t do an online raffle because it wasn’t even conceived of when the law was written,” Kennedy said.

Some uncertainty with these online events dates back to the COVID-19 pandemic, when in-person events were paused.

Many fire companies shifted their efforts online and had success.

But some counties warned organizations that the practice could violate their licenses and potentially lead to fines or loss of permits. And while state House lawmakers approved temporary measures in 2021 to let nonprofits accept payments via Venmo, PayPal, and Cash App during the health emergency, those never passed the state Senate.

Some fire departments continue to hold online raffles across the state. Others fear the risks.

Violations can carry civil and criminal penalties. A county treasurer can opt not to renew a small games of chance license. Fines vary depending on the organization and whether it’s a first or repeat offense, ranging from a few hundred dollars to $1,500.

Kennedy is reluctant to pursue any of those options “because no one wants to penalize the local fire company for trying to raise money.” But without legal change, she said her hands are tied.

“The fix is not immediate, and I don’t know if there is a way to enact some kind of quick fix to allow this, but I hope to get to a solution,” she said.

In emails sent to the departments, which Spotlight PA obtained through a records request, Kennedy reiterated that unwillingness but said, “It’s unfair to licensed organizations in our county that are conducting their raffles lawfully.” A lack of response only encourages the practice, she wrote.

Centre County District Attorney Bernie Cantorna said his office has no plans to prosecute fire companies for holding online raffles, which would be a summary offense.

Fire companies are “always in financial strain to raise funds and keep their operations running,” and they need as much support as possible, Cantorna told Spotlight PA. Passing legislation to modernize the law is a “no-brainer,” he added.

“Even our elected officials in Harrisburg should be able to figure it out,” Cantorna said.

In rural Sullivan County, the commissioners and treasurer recently sent letters to their state legislators urging authorization of online raffles, some cashless payment methods, and electronic ticketing systems, as well as establishment of security measures for these practices and “uniform statewide guidance” to help county oversight.

“The current framework was constructed around a traditional, in-person fundraising model involving paper raffle tickets, physical ticket stubs, cash transactions, and in-person drawings,” they wrote. “While these safeguards have historically provided a reliable compliance structure, they were drafted before the emergence of modern electronic commerce, electronic banking systems, and online fundraising platforms now routinely utilized by charitable organizations and volunteer fire companies.”

The request “is not intended to expand gambling opportunities” in Pennsylvania, they wrote, but to encourage a modern framework “while continuing to operate within a regulated, transparent, and accountable system.”

Updating the state’s small games of chance law isn’t a new topic among lawmakers.

Policymakers have introduced a range of bills to modernize the language over the years — including proposals to allow cashless payments, create an online raffle pilot program, and authorize them entirely — but the efforts stalled in the divided legislature.

Traditional fundraisers can fall short of the rising costs of trucks, gear, fuel, and training, said state Rep. Kerry Benninghoff (R., Centre). And online raffles can only cover so much, he added.

“I don’t think the firefighters and the fire companies are getting rich off this thing,” Benninghoff told Spotlight PA. “It’s about trying to sustain themselves with an activity that has a better rate of return than carnivals.”

Benninghoff said fire companies should be given the option to legally hold these online fundraisers, adding that this should include parameters to ensure proper bookkeeping and accounting.

Multiple pieces of legislation to allow online raffles and accommodate cashless payment methods are sitting in the state House Gaming Oversight Committee, which is chaired by Rep. Patrick Harkins (D., Erie). His office declined to comment and directed Spotlight PA to a spokesperson for the caucus.

Elizabeth Rementer, a spokesperson for state House Majority Leader Matt Bradford (D., Montgomery) told Spotlight PA in an email that they’re “reviewing the bills.”

Rementer told Spotlight PA in late 2024 — when a bill allowing for cashless payments stalled in the House — that leadership hadn’t heard “from nonprofits that this is an issue, but we would be happy to revisit this issue next session.”

That two-year session ends in November, so any bill that hasn’t passed both chambers and been signed by Gov. Josh Shapiro by then essentially dies and must be reintroduced in 2027 to start the legislative process over again.

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