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PA Bulletin, Doc. No. 02-1199

RULES AND REGULATIONS

Title 61--REVENUE

DEPARTMENT OF REVENUE

[61 PA. CODE CH. 871]

Powerball

[32 Pa.B. 3396]

   In accordance with 61 Pa. Code § 871.21 (relating to future changes to Powerball), the Secretary of Revenue (Secretary) announces the following changes to the Powerball regulations.

   The Secretary, having determined that it is impractical and contrary to the public interest to defer the effective date of this document until deposit of the issue of the Pennsylvania Bulletin containing the document in the United States mail, has given actual knowledge of the document to the persons to whom the document is primarily directed in accordance with 1 Pa. Code § 13.74 (relating to effectiveness prior to publication) by press release dated July 5, 2002, of the following changes to the Powerball regulations.

   These changes will affect ticket sales beginning on Sunday, October 6, 2002, for the Powerball drawing on Wednesday, October 9, 2002. The changes to the regulation will be codified as paragraph (1) in § 871.22 (relating to changes to Powerball):

   (1)  Changes effective for Powerball tickets sold on or after October 6, 2002:

   (i)  Section 871.2 (relating to game description and purpose). Powerball is a five out of 53 plus one out of 42 on-line lottery game.

   (ii)  Section 871.9(e) (relating to Powerball prize payments). All annuitized prizes shall be paid in 30 annual payments with the initial payment being made in cash, to be followed by 29 equal annual payments funded by the annuity. The initial payment of an annuitized prize may be made by the Lottery upon validation of the winning ticket.

   (iii)  Section 871.15 (relating to unclaimed prize money). Unclaimed grand prize and new bonus prize funds will be distributed among all MUSL Lotteries in proportion to each lottery's sales for the grand prize drawing.

   (iv)  Section 871.19 (relating to probability of winning). The probability of winning is a follows:


Tickets Containing The Following, Probability of
In One Single Lettered Game Section Prize Category Winning per Play
Five first set numbers and the Powerball number Grand Prize 1:120,526,770
Five first set numbers Second Prize 1:2,939,677.317073
Four first set numbers and the Powerball number Third Prize 1:502,194.875000
Four first set numbers Fourth Prize 1:12,248.655488
Three first set numbers and the Powerball number Fifth Prize 1:10,684.997340
Three first set numbers Sixth Prize 1:260.609691
Two first set numbers and the Powerball number Seventh Prize 1:696.847653
One first set number and the Powerball number Eighth Prize 1:123.884027
The Powerball number Ninth Prize 1:70.388652

   (v)  Section 871.20(c) and (j) (relating to power play promotion). A player may purchase the power play option for the chance to multiply set prizes won as a result of the Powerball drawing by a number ranging from 2 to 5. The power play number will be selected from among the following series of numbers: 2, 2, 2, 3, 3, 3, 4, 4, 4, 5, 5, 5, 5, 5 and 5. Except as otherwise provided, all power play set prizes shall be paid in single, lump-sum payments determined by multiplying the Powerball set prize by the number selected in the power play drawing as follows:

Powerball SetPower Play Multiplier and Set Prize Amount
Prize Level Prize Amount 5 4 3 2
Second Prize $100,000 $500,000 $400,000 $300,000 $200,000
Third Prize $5,000 $25,000 $20,000 $15,000 $10,000
Fourth Prize $100 $500 $400 $300 $200
Fifth Prize $100 $500 $400 $300 $200
Sixth Prize $7 $35 $28 $21 $14
Seventh Prize $7 $35 $28 $21 $14
Eighth Prize $4 $20 $16 $12 $8
Ninth Prize $3 $15 $12 $9 $6

   (vi)  New bonus prize.

   (A)  When the Powerball jackpot is projected to reach a new high annuitized level, the amount of the jackpot prize will be limited, by rule, to increases for each draw of no more than $25 million (annuitized). The prize money collected in excess of the advertised jackpot amount, if any, will be placed into a bonus prize pool and will accumulate until there is a grand prize winner. When there is a grand prize winner, the bonus prize pool will be divided equally among all winners of the second prize. This bonus prize will be paid in one cash lump sum. If there are no second prize winners, the prize pool shall be divided equally among the winners in the next lower prize tier with winners.

   (B)  There may be times when the second prize will be increased from its current set amount of $100,000 to a higher amount. In those cases, the second prize may be increased to $1 million or more. The actual amount of the prize will depend upon the cash available in the new bonus prize pool and the number of prize winners as set forth in clause (A). The trigger jackpot level will naturally increase over time as the new high annuitized jackpot amount continues to climb.

   (C)  The new bonus prize is in addition to any power play prizes that may be won. The new bonus prize is awarded independent of the power play option, and is not multiplied by the power play multiplier. A bonus prize winner who also played the power play option will win the original set prize amounts; the amount paid under the power play multiplier option; and the new bonus prize (if effective).

LARRY P. WILLIAMS,   
Secretary

[Pa.B. Doc. No. 02-1199. Filed for public inspection July 12, 2002, 9:00 a.m.]


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