House Bill 271 by state Representative Jason Ortitay (R-Washington & Allegheny was drastically amended from its original version to include a number of lottery and gaming reforms, including the creation of an online lottery (iLottery) to augment the State Lottery Fund and legalizing up to five (5) Video Game Terminals in truck stops that meet certain requirements.
iLottery Provisions
The creation of an online lottery has been a priority issue for PFMA and members, which would inevitably result in a significant decline in the level of foot traffic to brick-and-mortar lottery retail locations as consumers moved from playing in-store to online lottery games. PFMA worked extensively with our members, state legislators, and other stakeholders to address this issue in the Commonwealth, and was successful at having protections for lottery retailers included in the legislation.
Those protections include the creation of prepaid cards for online lottery play to be sold by lottery retailers in-store in order to encourage online players to continue visiting brick-and-mortar locations.
Retailers would receive no less than a 6% commission on the sale of prepaid cards. This approach was a key segment of Michigan’s successful iLottery program, and preliminary reports from lottery retailers in that state indicate an increase in food traffic since implementation.
Video Gaming Terminals (VGTs)
VGTs may be operated in trucks stops that meet certain requirements, including:
• Must be equipped with diesel islands for fueling commercial vehicles;
• Sell an average of 50,000 gallons of diesel each month in the previous year (or projected to sell that much in the coming year);
• Have at least 20 parking spaces dedicated for commercial vehicles;
• Have a convenience store;
• Be located on a parcel of land of at least 3 acres; and
• Not located on property owned by the Pennsylvania Turnpike.
Additionally, each location may only have up to five VGTs per truck stop, which are taxed at a rate of 42%. Retailers would receive 15% of revenues raised by the VGTs, with 31% going towards terminal operators. Application, initial license, and license renewal fees are also established in the bill, a breakdown of which may be found in the House Gaming Oversight Committee’s Summary of the bill.
Other Lottery Provisions
The legislation no longer includes an increase in the commission rate for lottery sales or a cashing bonus. Instead language was inserted into the bill creating a 0.5% bonus program to be paid to retailers that meet program requirements, and to help support increased lottery sales. Details on that program will be distributed for feedback to members as they become available.
PFMA was also named as a member on the newly created Lottery Retail Advisory Committee, and will use that seat to advocate on behalf of our members.
iLottery Provisions
The creation of an online lottery has been a priority issue for PFMA and members, which would inevitably result in a significant decline in the level of foot traffic to brick-and-mortar lottery retail locations as consumers moved from playing in-store to online lottery games. PFMA worked extensively with our members, state legislators, and other stakeholders to address this issue in the Commonwealth, and was successful at having protections for lottery retailers included in the legislation.
Those protections include the creation of prepaid cards for online lottery play to be sold by lottery retailers in-store in order to encourage online players to continue visiting brick-and-mortar locations.
Retailers would receive no less than a 6% commission on the sale of prepaid cards. This approach was a key segment of Michigan’s successful iLottery program, and preliminary reports from lottery retailers in that state indicate an increase in food traffic since implementation.
Video Gaming Terminals (VGTs)
VGTs may be operated in trucks stops that meet certain requirements, including:
• Must be equipped with diesel islands for fueling commercial vehicles;
• Sell an average of 50,000 gallons of diesel each month in the previous year (or projected to sell that much in the coming year);
• Have at least 20 parking spaces dedicated for commercial vehicles;
• Have a convenience store;
• Be located on a parcel of land of at least 3 acres; and
• Not located on property owned by the Pennsylvania Turnpike.
Additionally, each location may only have up to five VGTs per truck stop, which are taxed at a rate of 42%. Retailers would receive 15% of revenues raised by the VGTs, with 31% going towards terminal operators. Application, initial license, and license renewal fees are also established in the bill, a breakdown of which may be found in the House Gaming Oversight Committee’s Summary of the bill.
Other Lottery Provisions
The legislation no longer includes an increase in the commission rate for lottery sales or a cashing bonus. Instead language was inserted into the bill creating a 0.5% bonus program to be paid to retailers that meet program requirements, and to help support increased lottery sales. Details on that program will be distributed for feedback to members as they become available.
PFMA was also named as a member on the newly created Lottery Retail Advisory Committee, and will use that seat to advocate on behalf of our members.
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