Pennsylvania’s Volunteer Fire Companies Face Fundraising Limitations Due to Cashless Payment Restrictions
Several volunteer fire companies in Pennsylvania are considering breaking state law by accepting cashless payments for small games of chance. These companies heavily rely on raffles and bingo to raise funds for operation costs, but state legislation prohibits them from accepting credit and debit card payments for these games. Lawmakers have proposed new legislation to update the law, arguing that the provision is outdated and limits the ability of these volunteer groups to generate revenue.
Confusion Over Online Fundraising Measures During the COVID-19 Pandemic
During the COVID-19 pandemic, many fire companies shifted their fundraisers online and started accepting cashless payments. However, some companies were warned by their county treasurer that they could be violating their small games of chance license and face fines or lose their permits. This confusion may have stemmed from temporary allowances passed by the state House that permitted these groups to accept payments through payment platforms like Venmo, PayPal, and Cash App. Unfortunately, these allowances were never approved by the state Senate.
Nonprofits Still Accept Cashless Payments for Small Games of Chance Despite Legal Restrictions
Despite the prohibition on credit and debit card payments for small games of chance, some nonprofits, including fire companies, continue to accept cashless payments. Some fire companies have been found selling tickets on their websites and accepting credit and debit cards. The Pennsylvania Fire & Emergency Services Institute has identified Facebook groups promoting fire company raffles that accept cashless payments. The president of the Smithfield Volunteer Fire Company wants to start accepting credit and debit card payments for their bingo games but fears the potential consequences of violating the law.
Risks and Potential Benefits of Allowing Cashless Payments
Fire companies that accept cashless payments for small games of chance risk fines, suspension, or even losing their licenses altogether. The president of the Smithfield Volunteer Fire Company recognizes the potential benefits of accepting credit and debit card payments, as it could significantly boost donations. State lawmakers have reintroduced legislation to update the law, including bills that would allow eligible groups to accept cashless payments for raffle tickets and conduct them online through platforms like Facebook Live. The bills would still enforce the permitting process and require age verification for ticket purchasers.
Outdated Laws Fail to Address Online Streaming of Raffles
The current law in Pennsylvania does not explicitly address whether raffles can be streamed online, but it does require them to take place live and in-person. It also stipulates that players must have the option to attend in person. Lawmakers argue that the state’s current laws are outdated, considering the shift towards a cashless world. They believe that allowing cashless payments for small games of chance would better align with modern consumer behavior and lead to increased fundraising efforts for fire companies.
Concerns Over Gambling Addictions and Financial Stress
The Pennsylvania District Attorneys Association has not taken a firm position on the proposed legislation, with some concerns that the use of credit cards for small games of chance could harm individuals with gambling addictions. Debit cards, on the other hand, may be deemed acceptable since they are tied to a bank account. Fire companies, however, continue to stress the need for financial relief, as they face financial stress and a volunteer crisis due to shrinking and aging populations in rural communities. The inability to generate sufficient funds through small games of chance puts a strain on their operations and ability to respond to emergencies.
Analyst comment
Positive news:
– Pennsylvania lawmakers have proposed new legislation to update outdated laws and allow volunteer fire companies to accept cashless payments for small games of chance, which could significantly boost their fundraising efforts.
Negative news:
– Several volunteer fire companies in Pennsylvania are considering breaking state law by accepting cashless payments for small games of chance, risking fines, suspension, or license revocation.
– Confusion over online fundraising measures during the pandemic has led to warnings from county treasurers that some fire companies may be violating their licenses and facing penalties.
Neutral news:
– Some nonprofits, including fire companies, continue to accept cashless payments for small games of chance despite legal restrictions.
– There are concerns over gambling addictions and financial stress associated with allowing credit card payments for small games of chance. Debit cards may be deemed acceptable since they are tied to a bank account.
