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DEPARTMENT OF REVENUE

Powerball

[45 Pa.B. 5884]
[Saturday, September 26, 2015]

 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. This amendment provides updates to the game description and certain definitions. This amendment provides changes to prize payout probabilities and prize pool allocations. Additionally, this amendment further provides for changes to the power play promotion.

 These changes will affect ticket sales beginning on Sunday, October 4, 2015, for the Powerball drawing on Wednesday, October 7, 2015. The changes to the regulation will be codified as paragraph (8) in 61 Pa. Code § 871.22 (relating to changes to Powerball):

 (8) Changes effective for Powerball tickets sold on or after October 4, 2015:

 (i) Section 871.2(a) (relating to game description and purpose). Powerball is a five out of 69 plus one out of 26 terminal-based lottery game which pays the grand prize on an annuitized, parimutuel basis. Except as provided in this chapter, all other prizes are paid on a set cash, single payment basis.

 (ii) Section 871.2(b) (relating to game description and purpose). The purpose of the Powerball game is to determine winners from ticket holders matching five numbers from 1 through 69, and matching the separately drawn Powerball number, or a designated combination thereof, within a single play, with the five winning numbers and the Powerball number to be randomly drawn. Drawings will be conducted twice a week or as publicly announced by the Secretary.

 (iii) Section 871.3 (relating to definitions).

Advertised Grand Prize—The estimated annuitized Grand Prize amount as determined by the MUSL Central Office by use of the MUSL Annuity Factor and communicated through the Selling Lotteries prior to the Grand Prize drawing. The Advertised Grand Prize is not a guaranteed prize amount and the actual Grand Prize may vary from the advertised amount, except in circumstances where there is a guaranteed Grand Prize amount as described in § 871.10 (relating to funding of guaranteed prizes).

Basic Play—Each set of six numbers consisting of five numbers from 1 through 69 and the Powerball number on a ticket purchased without the selection of any promotion, representing a single entry for a Powerball drawing and designated by a letter from A to E on a Powerball ticket.

First set numbers—The first group of numbers from 1 through 69, appearing in the top grid of a Powerball game panel.

MUSL Annuity Factor—The annuity factor as determined by the MUSL central office through a method approved by the MUSL Finance and Audit Committee and which is used as described in these rules.

Panel or game panel—One of five areas on the Powerball bet slip that contains two number grids. The upper grids (first set numbers) contain 69 squares, each numbered 1 through 69, and the lower grids (second set numbers) contain 26 squares, each numbered 1 through 26. Each panel is lettered either A, B, C, D or E.

Powerball number or second set number—The number selected from the second group of numbers, from 1 through 26, appearing in the lower grid of a Powerball game panel.

Quick Pick—The random selection by the Lottery's computer system of five numbers from 1 through 69 and a Powerball number from 1 through 26 that appear on a ticket in the Powerball game.

Second set numbers—The second group of numbers, from 1 through 26, appearing in the lower grid of a Powerball game panel.

Ticket—A Powerball ticket, produced by an on-line terminal from a licensed on-line retailer in an authorized manner, containing a letter prefix followed by five selected numbers from 1 through 69 and a single selected Powerball number from 1 through 26 for each basic play, ticket validation number data, drawing date, amount bet and any applicable promotion exercised by the player. Each set of five numbers and the Powerball number constitutes a basic play of which there may be one or more, up to ten on a ticket.

Winning numbers—Six numbers, the first five numbers from 1 through 69, and the Powerball number from 1 through 26, selected at a Powerball drawing and subsequently validated by the MUSL, which shall be used to determine the winning Powerball plays.

 (Editor's Note: This is a partial listing of the definitions applicable to Powerball. See § 871.3 (relating to definitions) for additional definitions.)

 (iv) Section 871.7(c) (relating to time, place and manner of conducting drawings). The MUSL will draw at random five numbers from a set of balls numbered 1 through 69 and one Powerball number from a set of balls numbered 1 through 26 with the aid of mechanical drawing equipment. The drawings will be observed by security personnel and independent auditors and the validity of a drawing will be solely determined by the MUSL.

 (v) Section 871.8(a) (relating to expected prize payout percentages). Determination of expected prize payout percentages is as follows:

Tickets Containing The Following,
In One Single Lettered
Game Section
Prize Category Prize Payment Approximate Percentage of
Winnings Pool Allocated
to Prize Category**
Five first set numbers and the
Powerball number
Grand Prize Grand Prize 68.0131%
Five first set numbers Second Prize* $1,000,000    8.5558%
Four first set numbers and the
Powerball number
Third Prize* $50,000    5.4757%
Four first set numbers Fourth Prize* $100    .2738%
Three first set numbers and the
Powerball number
Fifth Prize* $100    .6899%
Three first set numbers Sixth Prize* $7    1.2074%
Two first set numbers and the
Powerball number
Seventh Prize* $7    .9981%
One first set number and the
Powerball number
Eighth Prize* $4    4.3489%
None of the first set and the
Powerball number
Ninth Prize* $4    10.4373%
* Indicates a set prize.
** Fifty percent of Powerball gross sales are allocated to the winnings pool for the payment of prizes.

 (vi) Section 871.8(c)(1)(iii) (relating to expected prize payout percentages). Any other amounts as agreed to by the MUSL Powerball Product Group in their sole discretion.

 (vii) Section 871.9(c) (relating to Powerball prize payments). The MUSL Annuity Factor is determined through a process as approved by the MUSL Finance and Audit Committee.

 (viii) Section 871.10 (relating to funding of guaranteed prizes). The MUSL Powerball Product Group may offer guaranteed minimum grand prize amounts or minimum increases in the grand prize amount between drawings or make other changes in the allocation of prize money where the MUSL Powerball Product Group finds that it would be in the best interest of the game. If a minimum grand prize amount or a minimum increase in the grand prize amount between drawings is offered by the Product Group, the grand prize shares shall be determined as follows:

 (1) If there are multiple grand prize winners during a single drawing, each selecting the annuitized option prize, then a winner's share of the guaranteed annuitized grand prize shall be determined by dividing the guaranteed annuitized grand prize by the number of winners.

 (2) If there are multiple grand prize winners during a single drawing and at least one of the grand prize winners has elected the annuitized option prize, the best bid submitted by the MUSL's preapproved qualified brokers shall determine the cash pool needed to fund the guaranteed annuitized grand prize.

 (3) If no winner of the grand prize during a single drawing has elected the annuitized grand prize, the amount of cash in the grand prize pool shall be an amount equal to the guaranteed annuitized amount divided by the MUSL Annuity Factor.

 (4) Section 871.10(4) is deleted in its entirety.

 (5) Changes in the allocation of prize money shall be designed to retain approximately the same prize allocation percentages, over a year's time, as set for in § 871.8 (relating to expected prize payout percentages). Minimum guaranteed prizes or increases may be waived if the alternate funding mechanism as set for in § 871.8 becomes necessary.

 (6) Approval of the MUSL Powerball Product Group is required to change the guaranteed minimum Grand Prize amounts or minimum increases in the Grand Prize amount. Any reduction in the minimum increases to the Grand Prize amount shall not become effective until after a Grand Prize win following the action taken by the MUSL Powerball Product Group.

 (ix) Section 871.14(b) (relating to parimutuel prize pool). An amount equal to up to 5% of a party lottery's sales shall be deducted from a party lottery's grand prize pool and placed in trust in one or more prize pool accounts and prize reserve accounts until the prize pool accounts and party lottery's share of the prize reserve accounts reaches the amounts designated by the MUSL Powerball Product Group. The MUSL Powerball Product Group has established the following prize reserve accounts for the Powerball game: the Prize Reserve Account, which is used to guarantee the payment of valid, but unanticipated, Grand Prize claims that may result from a system error or other reason; and the Set Prize Reserve Account, which is used to fund deficiencies in the low-tier prize payments, subject to the limitations of these rules. The MUSL Powerball Product Group has established the following prize pool accounts for the Powerball game: the Grand Prize pool, which is used to fund the immediate Grand Prize; the Powerball Set Prize Pool, which is used to fund the Powerball Set Prize payments; and the Powerball Set-Aside Account, which is used to guarantee payments of the minimum or starting Grand Prize. The Power Play Prize Pool and Power Play Pool Account are described in § 871.20 (relating to power play promotion) of these rules. The Set Prize Pool Account holds the temporary balances that may result from having fewer than expected winners in the Powerball Set Prize (aka low-tier prize) categories. The source of the Set Prize Pool is the Party Lottery's weekly prize contributions less actual Powerball Set Prize liability. Once the prize pool accounts and the party lottery's share of the prize reserve accounts exceeds the designated amounts, the excess shall become part of the grand prize pool. The MUSL Powerball Product Group, with the approval of the Finance and Audit Committee, may establish a maximum balance for the prize pool accounts and prize reserve accounts. The MUSL Powerball Product Group may determine to expend all or a portion of the funds in the prize pool accounts, except the Grand Prize pool account, and the prize reserve accounts for the purpose of indemnifying the Party Lotteries and Licensee Lotteries in the payment of prizes to be made by the Selling Lotteries, subject to the approval of the MUSL Board and for the payment of prizes or special prizes in the game, subject to the approval of the MUSL Finance and Audit Committee. The prize reserve shares of a party lottery may be adjusted with refunds to the party lottery from the prize reserve accounts as may be needed to maintain the approved maximum balance and shares of the party lotteries. A Party Lottery may contribute to its share of prize reserve accounts over time, but in the event of a draw down from the reserve account, a Party Lottery is responsible for its full percentage share of the account, whether or not it has been paid in full. Any amount remaining in the prize pool accounts or prize reserve accounts at the end of this game shall be carried forward to a replacement prize reserve account or expended in a manner as directed by the members of the MUSL Powerball Product Group in accordance with State law.

 (x) Section 871.19 (relating to probability of winning). The probability of winning is as follows:


Tickets Containing The Following,
In One Single Lettered Game Section
Prize Category Probability of
Winning per Play
Five first set numbers and the
Powerball number
Grand Prize 1:292,201,338
Five first set numbers Second Prize 1:11,688,053.52
Four first set numbers and the
Powerball number
Third Prize 1:913,129.1813
Four first set numbers Fourth Prize 1:36,525.1673
Three first set numbers and the
Powerball number
Fifth Prize 1:14,494.1140
Three first set numbers Sixth Prize 1:579.7646
Two first set numbers and the
Powerball number
Seventh Prize 1:701.3281
One first set number and the
Powerball number
Eighth Prize 1:91.9775
None of the first set and the
Powerball number
Ninth Prize 1:38.3239

 (xi) Section 871.20(c) (relating to power play promotion). The MUSL shall conduct a power play drawing and will announce results during each of the regular Powerball drawings held during the power play promotion. During each power play drawing a single number (2, 3, 4, 5 or 10) shall be randomly drawn. The 10X multiplier will be available for drawings in which the initially advertised annuitized Grand Prize amount is $150,000,000 or less. The MUSL Powerball Product Group may elect to run limited promotions that modify the multiplier features.

 (xii) Section 871.20(e) (relating to power play promotion). In drawings where the 10X multiplier is available, the expected power play prize pool for power play set prizes shall consist of up to 49.969% of each drawing period's power play sales. In drawings where the 10X multiplier is not available, the expected power play prize pool for power play set prizes shall consist of up to 45.934% of each drawing period's sales. The prize payout percentage per draw may vary. The power play prize pool shall be carried forward to subsequent power play drawings if all or a portion of the percentage is not required to pay the power play prizes for the current power play drawing and held in the Power Play Pool Account.

 (xiii) Section 871.20(f) (relating to power play promotion). In drawings where the 10X multiplier is available, an additional 0.31% of power play sales may be collected and placed in the Power Play Pool Account, for the purposes of paying power play prizes. In drawings where the 10X multiplier is not available 4.066% of power play sales may be collected and placed in the Power Play Pool Account, for the purposes of paying power play prizes. Any amount remaining in the Power Play Pool Account at the end of the power play promotion shall be returned to all lotteries participating in the account after the end of all claim periods of all selling lotteries, carried forward to a replacement game, or expended in a manner as directed by the MUSL Powerball Product Group in accordance with State law.

 (xiv) Section 871.20(g)(3) (relating to power play promotion). Other amounts as agreed to by the MUSL Powerball Product Group in their sole discretion.

 (xv) Section 871.20(j) (relating to power play promotion). 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:

Prize Level Powerball Set Prize Amount Regardless of Power Play Number Selected
Second Prize $1,000,000 $2,000,000
10X 5X 4X 3X 2X
Third Prize $50,000 $500,000 $250,000 $200,000 $150,000 $100,000
Fourth Prize $100 $1,000 $500 $400 $300 $200
Fifth Prize $100 $1,000 $500 $400 $300 $200
Sixth Prize $7 $70 $35 $28 $21 $14
Seventh Prize $7 $70 $35 $28 $21 $14
Eighth Prize $4 $40 $20 $16 $12 $8
Ninth Prize $4 $40 $20 $16 $12 $8

 (xvi) Section 871.20(l) (relating to power play promotion). The probability of the various power play numbers being selected in a power play drawing.

 (1) The probability of the various power play numbers being selected in a power play drawing when the 10X multiplier is available is:

Power Play
Multiplier
Probability of
Prize Increase
2 1:1.791666
3 1:3.30769
4 1:14.33333
5 1:21.5
10 1:43

 (2) The probability of the various power play numbers being selected in a power play drawing when the 10X multiplier is not available is:

Power Play
Multiplier
Probability of
Prize Increase
2 1:1.75
3 1:3.23076
4 1:14
5 1:21
10 1:0

EILEEN H. McNULTY, 
Secretary

[Pa.B. Doc. No. 15-1734. Filed for public inspection September 25, 2015, 9:00 a.m.]



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