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Lawmakers and Revenue clash over falling lottery sales, push to tax and regulate skill games
Summary
Department of Revenue witnesses told the House Appropriations Committee that lottery sales—especially scratch-offs—have declined for several years. The governor's budget would tax and regulate games of skill (proposed 52% rate), eliminate a lottery profit-margin mandate and channel some skill-game tax proceeds to the lottery fund to shore up property tax/rent rebate and senior programs.
The House Appropriations Committee heard on-the-record testimony from Department of Revenue and Pennsylvania Lottery officials about a multiyear decline in lottery ticket sales and a package of budget proposals the administration says would shore up the lottery fund.
"Scratch-off sales are rather soft in the lottery industry right now across the U.S.," Stephanie, executive deputy of the lottery, told lawmakers. She said Pennsylvania has seen four straight years of declining scratch-off sales and this fiscal year lacked the multi-state jackpot windfalls that historically boosted draw-game revenue.
That shortfall has prompted administration proposals in the governor's budget designed to increase lottery receipts and…
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