Pennsylvania Liquor License Auctions Are Changing: What Buyers Need to Know
Pennsylvania’s liquor license auction system is getting an update, and some of the changes could create new opportunities for buyers across the state.
The auction program was created under Act 39 of 2016, allowing the Pennsylvania Liquor Control Board to resell licenses that had expired or been revoked. Licenses have traditionally been auctioned by county, with a minimum bid of $25,000.
Act 56 of 2025 introduces several important changes to that process.
More Time to Pay
Previously, a successful bidder had 14 days to pay the full purchase price after being awarded a license. That deadline has now been extended to 30 days.
The new law also eliminates the requirement that the PLCB hold the bid amount in escrow until the license is approved. Exactly how the payment and escrow process will work in practice remains unclear, but additional guidance is expected before the next auction.
Unsold Licenses May Become Available Statewide
The biggest change involves licenses that do not sell during the regular county auctions.
Previously, those licenses could remain unavailable or be offered again in a future auction. Under the new system, the PLCB may hold an annual excess license auction.
These excess licenses would not initially be assigned to a specific county or location. A winning bidder could request to place the license in another Pennsylvania county by submitting a written request and paying an additional fee.
The transfer fee would be:
- $50,000 for counties classified as Class 1 through Class 4
- $25,000 for counties classified as Class 5 through Class 8
There is also a limitation. A county may receive no more than two excess auction licenses in a single year.
A Potential Opportunity in Expensive Counties
The excess auction process could have a significant impact in counties where liquor licenses regularly sell for hundreds of thousands of dollars.
In theory, a buyer could win an excess license at auction and request to move it into a higher-value county. However, competition is expected to be significant, particularly from grocery stores, convenience stores, gas stations, restaurant groups, and national chains.
The auctions are also expected to remain blind, meaning bidders will not know what others are offering. Winning may come down to research, strategy, and making the right bid.
There are still unanswered questions, including how county requests will be prioritized when multiple winners select the same county. The PLCB typically releases a fact sheet before each auction, which should provide additional guidance.
Specialty Group has successfully helped clients participate in previous PLCB auctions and can assist with evaluating licenses, preparing bids, and navigating the application process.
For assistance, call Specialty Group at 412-369-1555, option 2, or visit Specialty Group online.
