Pennsylvania Liquor License Opportunity: PLCB Opens Bidding for 20 Expired Restaurant Licenses

Hospitality businesses looking to obtain a Pennsylvania “R” liquor license have another opportunity to secure one through the Pennsylvania Liquor Control Board’s latest restaurant license auction.

On August 6, 2026, the Pennsylvania Liquor Control Board (“PLCB”) announced that it is accepting sealed bids for 20 expired restaurant liquor licenses as part of its 16th auction of expired restaurant licenses authorized under Act 39 of 2016. For restaurant owners, hospitality entrepreneurs, developers, and others planning to open or acquire a business with a retail liquor license, this auction may provide an attractive alternative to purchasing an existing license on the private market.

The deadline to submit a bid is noon on Monday, October 5, 2026.

For businesses considering purchasing a license through the auction process, it is important not only to understand the licensing and transfer requirements related to the auction, but also the application and transfer requirements that follow a successful bid.

What Is the PLCB Restaurant License Auction?

Pennsylvania’s liquor license quota system generally limits the number of retail liquor licenses available in a particular municipality and county. As a result, obtaining a liquor license can be a challenging and expensive part of opening or acquiring a hospitality business.

Act 39 of 2016 created a mechanism allowing the PLCB to auction certain expired restaurant liquor licenses. These licenses are sometimes referred to as “dead” or “zombie” licenses because they previously existed but were revoked or ceased to be active.  The auction process has created an additional source of restaurant liquor licenses for businesses that otherwise might have difficulty obtaining one because of the quota system.

The PLCB’s latest auction offers one license in each of 20 Pennsylvania counties:

For businesses already planning a location in one of these counties the auction may present a significant opportunity.

Key Dates for the 16th PLCB Restaurant License Auction

Potential bidders should begin preparing well before the October deadline.

Event  Date

PLCB issued Invitation for Bids:                                                     August 6, 2026

Deadline for questions:                                                                      Noon, August 27, 2026

PLCB posts answers to questions:                                               September 3, 2026

Sealed bid deadline:                                                                          Noon, October 5, 2026

Bids opened:                                                                                            October 8, 2026

Payment deadline for successful bidder:                                  Within 30 days after award

Deadline to submit license application:                                    Within six months after award

The auction will be conducted through a sealed bid process, meaning potential purchasers should approach the bidding strategy carefully. The minimum bid is $25,000, and each bid must be accompanied by a bid surety of $5,000 or 5% of the bid amount, whichever is greater.

Winning the Auction Is Only the Beginning

Importantly, a successful bidder does not simply receive an immediately usable liquor license. Instead, the winning bidder obtains the right to file an application  with the PLCB application process for the auctioned license. Under the PLCB’s current auction procedures, the highest responsive bidder will have up to 30 days following notification of the award to pay the bid amount to the PLCB. The successful bidder then has up to six months to submit the required license application.

The application and transfer process for a Pennsylvania liquor license can involve substantially more than simply submitting paperwork. Depending upon the proposed transaction and location, counsel and the applicant may need to address:

• Person-to-person transfer requirements;
• Place-to-place transfer requirements;
• Municipal approval requirements;
• Ownership and entity structure;
• Lease or property ownership issues;
• Zoning and municipal requirements;
• Financial disclosures;
• Criminal history and background information;
• PLCB licensing requirements;
• Conditional licensing issues;
• Objections or hearings before the PLCB; and
• Coordination of the liquor license with the acquisition or development of the underlying hospitality business.

As a result of the formality attached to the Pennsylvania liquor license application process, the right time to involve counsel is before submitting the bid – not after winning the auction.

The County Restriction Is Particularly Important

Potential bidders should pay close attention to the geographic limitations applicable to this auction. These “R” licenses are subject to geographic restrictions that potential bidders should understand before submitting a bid. Unlike the PLCB’s first “excess auction” earlier this year, the licenses offered in this auction generally cannot be transferred across county lines. The 20 licenses being offered in the 16th regular auction must remain within the county in which the license is located. A successful bidder may seek to transfer the license to another municipality within that same county, subject to the applicable requirements.

What Should a Hospitality Business Do Before Bidding?

The October 5 deadline may seem far away, but prospective bidders should begin the process now.

1. Identify the license and proposed location

The first step is determining which of the 20 available licenses is potentially useful for the business.

If the intended restaurant or hospitality project is already identified, counsel can evaluate whether the auctioned license can be transferred to the proposed municipality and whether any intermunicipal approvals will be required.

2. Understand the economics

The $25,000 minimum bid should not be viewed as the total cost of obtaining the license.

A bidder should consider:

• The anticipated winning bid;
• The required bid surety;
• PLCB application and licensing fees;
• Legal and professional fees;
• Municipal costs;

Potential construction or permitting requirements; andCosts associated with obtaining and maintaining the underlying business location.

In addition, bidders should review prior auction results to gain a better understanding of how competitive the auction may be. The PLCB has conducted numerous auctions since Act 39 was enacted, and winning bids have varied considerably depending upon the license and location.

3. Confirm the proposed business can qualify

The liquor license is only one component of opening a successful hospitality business.

Before committing substantial funds to a bid, prospective licensees should evaluate the ownership structure, proposed premises, lease or purchase agreement, zoning, financing, and other regulatory considerations that could affect the ability to obtain PLCB approval.

4. Develop a bidding strategy

Because the auction is conducted by sealed bid, there is no opportunity to increase a bid after seeing what competitors have offered.

A prospective bidder therefore should determine in advance:

• Which license it wants;
• The maximum amount it is willing to bid;
• Whether it has a backup strategy;
• How the bid surety will be funded; andWhat the business will do if it wins.

Legal counsel can help structure this process and identify potential problems before the bid is submitted.

Tucker Arensberg Can Help You Navigate the Entire Process

Obtaining a Pennsylvania liquor license is rarely just a matter of filling out an application. The process can involve the PLCB, local municipalities, landlords, buyers, sellers, lenders, architects, zoning officials, and other professionals.

At Tucker Arensberg, P.C., our attorneys regularly assist businesses with Pennsylvania liquor licensing matters and the purchase, sale, transfer, and regulatory approval of liquor licenses.  For a business considering participation in the PLCB’s October 2026 auction, we can assist with the process from the initial evaluation of an available license through final PLCB approval, including:

• Evaluating auction opportunities and identifying licenses that may work for your proposed business;
• Reviewing the PLCB auction requirements and helping prepare the bid;
• Advising on bidding strategy and transaction structure;
• Evaluating whether a license can be transferred to the proposed location;
• Coordinating person-to-person, place-to-place, and double-transfer applications;
• Working with municipalities on required approvals;
• Preparing and submitting PLCB applications and supporting documentation;
• Addressing PLCB questions, objections, and licensing issues;
• Coordinating liquor licensing with a business acquisition, real estate transaction, or restaurant opening; and
• Helping clients navigate the process through final approval and issuance of the license.

Our goal is not simply to help a client “get a liquor license.” We help hospitality businesses integrate the liquor license into the larger transaction and business plan so that licensing issues do not become an unexpected obstacle to closing or opening.

 Preparing for the October 5 Deadline

For entrepreneurs and hospitality operators looking to open or expand in Pennsylvania, this auction represents an opportunity that should not be overlooked. With 20 restaurant licenses available and a $25,000 minimum bid, the auction may provide an alternative to purchasing a license from a private license holder.

But because the auction is competitive, geographically restricted, and followed by a separate PLCB application and approval process, pre-bid planning is essential.

Tucker Arensberg’s liquor licensing and hospitality attorneys can help you determine whether an auction license is right for your business, navigate the bidding process, and handle the PLCB transfer and approval process from start to finish.

Contact Tucker Arensberg to discuss your liquor license needs and learn how we can assist with your Pennsylvania hospitality project.