Eighth Ward Beneficial Association, 842 St. Joseph St., was cited Oct. 9 for violating the Pennsylvania Local Options Small Games of Chance Act.
The act allows veterans and fraternal clubs to operate small lotteries and bingo games to fund charitable work.
Qualified clubs may operate such games with conditions: payouts must not exceed $5,000 in any seven-day period, profits must not exceed 20 percent of sales minus the cost to operate the games, and all profits must be distributed as charity to the community.
Strict record-keeping must also be maintained.
The citation issued by State Police Liquor Control Enforcement charges Eighth Ward Beneficial Association with "failure to maintain complete and truthful records ..."
"In the club's defense, it really wasn't a major violation," said Sgt. Troy S. Lokhaiser, district office commander of State Police Liquor Control Enforcement. "They did have some records, but they were not complete."
Groups are usually investigated when a complaint is made to the State Police.
Also, Lokhaiser said, the bureau routinely investigates clubs it hasn't visited in a long time. This was the case with the Eighth Ward club, he said.
The club cooperated with the investigation and an enforcement officer "sat down with the club officers and explained how they should do it, and even gave them some forms they could use to help them out," Lokhaiser said.
"We don't have any comment about that," said a man who answered the phone at the club Friday.
At least 14 organizations in Lancaster County have been cited for violations of the small games of chance act since January 2007.
The most common charges are for incomplete, missing or inaccurate records; exceeding payout limits; and using profits for operating expenses.
Charges are brought before an administrative law judge, who may impose penalties ranging from $50 to $1,000 for minor offenses and up to $5,000 for serious offenses. Offenders may also have their liquor license suspended or revoked.
House Bill 169, which passed 123-27 in the state House of Representatives in June and has been stalled in the Senate Appropriations Committee since October, would raise the $5,000 payout limit to $20,000.
Sen. Gib Armstrong, who chairs the committee, said earlier this year that more good would come out of increased direct giving to charities rather than filtering money through gambling.
Jeannette Scott is a Sunday News staff writer. Contact her at jscott@lnpnews.com or at 291-8689. 