Pennsylvania lottery could be the first to take advantage of expanded gambling legislation

Some of the Pennsylvanian municipalities may be concerned at the prospect of mini-casinos as part of the gambling expansion legislation passed by the Legislature last year (see previous reports) but the state lottery appears to be keen to take advantage of the online business opportunities the new gambling laws offer.

A spokesman told the Tribune-Review newspaper Saturday that state players may be able to take a bet on the Pennsylvania Lottery online or by mobile this spring, making the lottery the first state body to claim the fruits of the gambling expansion.

The state Gaming Control Board is already working on regulations, with spokesman Doug Harbach telling the newspaper: “We’re talking with the (casino) companies that would be involved in online gaming and what’s being offered.

“We have to put together regulations that will guide not only the games themselves, but also the licensing.”

Online casino and lottery sales were among several provisions of the law that included provisions permitting satellite casinos, truck stop gambling, fantasy sports and sports betting and airport betting (see previous reports).
The vast majority of new gambling revenue will be funneled to the state’s general fund.

A state Revenue Department spokesman told the Tribune-Review that the provision that permits online lottery sales adds a much-needed market for the 46-year-old state lottery, which has funnelled more than $1 billion a year for the last six years to programs designed to serve older Pennsylvanians.

“Consumer tastes are changing, which is why the Lottery must modernize its 45-year-old business model,” spokesman Jeffrey A. Johnson said. “We are facing growing competition from other forms of entertainment and must act to increase our market share, because older Pennsylvanians are relying on our support for vital benefit programs.”

Records show state lottery sales slipped about 3 percent last year after a 35 percent increase in sales between 2010 and 2016, Johnson revealed, adding that the lottery plans to provide retail outlets with monitor-based games, including keno and virtual sports.

“Over the first five years, we predict these new categories could generate up to $250 million in new profits to support benefits for older adults,” Johnson said. “Traditional games will remain our bread and butter, but it’s simply time to start giving our players new options.”

But he said that officials have yet to decide which games will be for sale online.

In going online, Pennsylvania’s lottery follows Illinois, Michigan, Georgia, Kentucky, North Dakota and North Carolina, which have reported successful outcomes on online initiatives.

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