Pennsylvania House Panel Advanced Digital Charity Gaming Bill
Nonprofits could soon accept digital payments for raffles and pull-tabs under legislation moving through the state House.
Updated on Oct. 5, 2026 in Philanthropy
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Should nonprofit groups be allowed to accept electronic payments for raffles and other fundraising games?
The Pennsylvania House Gaming Oversight Committee has unanimously voted to advance Senate Bill 416, which would permit charitable organizations to accept electronic payments for small games of chance. The move seeks to update outdated state regulations that currently limit fundraising for fire companies, churches, and veterans groups to cash or checks.
Why it matters
Current state laws were written before the prevalence of digital payment technology, creating compliance barriers that have already forced local groups to return thousands of dollars in donations. Modernizing these rules aims to help nonprofits stabilize their funding streams in an increasingly cashless economy.
Lancaster Snow Angels was forced to return $20,000 in electronic donations due to state restrictions, while the proposed Senate Bill 416 aims to modernize fundraising for thousands of nonprofits. The legislation seeks to restore a payment flexibility that was temporarily allowed during the pandemic.
The players
Pennsylvania House Gaming Oversight Committee
The legislative body responsible for reviewing and authorizing regulatory changes regarding state-sanctioned games of chance.
Lancaster Snow Angels
A nonprofit organization that was required to return $20,000 in electronic funds due to existing gaming payment restrictions.
Good Intent Hose Company No. 1
A volunteer fire organization that suspended its digital fundraising activities after determining they violated state law.
The details
Under current law, organizations are restricted to cash or check transactions for raffles and pull-tab games. Senate Bill 416 would remove these hurdles by formally legalizing electronic payment processing for small games of chance. The bill follows enforcement actions that led groups like Good Intent Hose Company No. 1 to suspend online raffles earlier this year.
Timeline
Summer 2026: Senate Bill 416 passed the state Senate unanimously.
August 2026: Good Intent Hose Company suspended its online raffle operations.
October 2026: The House Gaming Oversight Committee voted to advance the bill.
Market Landscape
This legislation marks a departure from Pennsylvania's small games of chance statutes by attempting to reconcile legacy cash-only regulations with modern consumer preferences. It follows a pattern of state-level legislative adjustments intended to modernize nonprofit fundraising compliance.
Operators of local nonprofits should track the progress of Senate Bill 416 as it reaches the House floor to determine if their fundraising compliance workflows will soon allow digital payments. Consult with legal counsel before adopting any electronic payment methods for raffle proceeds until the law is formally signed.
The takeaway
Legislative updates are crucial for maintaining compliance as fundraising technology outpaces traditional state regulations. Nonprofit operators should monitor the legislative calendar for the House floor vote to determine when to reintroduce digital payment options for their fundraising events.
Further reading
For broader trends in nonprofit financial operations, visit the Philanthropy section.
Source note: This article includes information reported by The Express.
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Should nonprofit groups be allowed to accept electronic payments for raffles and other fundraising games?
