OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sSB-1463
AN ACT CONCERNING DISCLOSURES, PAYMENTS AND
REVENUE TRANSFERS BY THE CONNECTICUT LOTTERY
CORPORATION.
Primary Analyst: CW 4/8/25
Contributing Analyst(s): LD, ME, LG
Reviewer: MM
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 26 $ FY 27 $
Connecticut Lottery Corporation GF - Revenue
Loss
23.4 million 28.9 million
Connecticut Lottery Corporation ECCEF - Revenue
Gain
16.4 million 21.9 million
Connecticut Lottery Corporation Lottery
Enterprise Fund -
Cost
7 million 7 million
Resources of the Youth Sports
Grant Account
YSGR - See
Below
See Below See Below
Note: GF=General Fund; ECCEF=Early Childhood Care and Education Fund; YSGR=Youth Sports Grant
Account
Municipal Impact: None
Explanation
The bill, which establishes certain transfers of lottery revenues and
makes various changes to the Connecticut Lottery Corporation's (CLC)
policies and procedures, results in (1) a General Fund revenue loss of
$23.4 million in FY 26 and $28.9 million in FY 27, (2) an Early Childhood
Care and Education Fund (ECCEF) revenue gain of $16.4 million in FY
26 and $21.9 million in FY 27, (3) a cost to the Lottery Enterprise Fund
of $7 million annually beginning in FY 26, and (4) an uncertain impact
to the Youth Sports Grant Account beginning in FY 26. Details of these
impacts are outlined below. 2025SB-01463-R000612-FN.docx Page 2 of 2
Sections 1-4 divert CLC's online lottery ticket revenue from the
General Fund to the ECCEF. This results in an estimated General Fund
(GF) revenue loss, and a commensurate ECCEF revenue gain, of $3.9
million in FY 26 and $8.8 million in FY 27.
Section 3 increases the average commission of lottery sales agents
from 4% to 5.5% resulting in (1) an annual cost to the Connecticut
Lottery Corporation of $7 million and (2) a commensurate revenue loss
to the General Fund.
1
Sections 5 & 6 transfer all CLC online sports wagering gross gaming
revenue from the GF to the ECCECF.
2
This results in an estimated GF
revenue loss, and a commensurate ECCEF revenue gain, of $12.5 million
in FY 26 and $13.1 million in FY 27. This also results in an uncertain
impact to the Youth Sports Grant Account beginning in FY 26.
3
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to fluctuation in CLC gaming activity in
the state.
1
It is anticipated that the additional cost to the CLC would be borne by the agency in
the form of reduced revenue transfers to the GF.
2
To the extent that the transfer of the full amount of gross gaming revenue associated
with online sports betting causes CLC to be unable to cover its online sports betting
costs, it is assumed that other CLC revenues (draw tickets, keno, retail sports betting,
etc.) would be used to make up any deficit (and therefore be unavailable for transfer
to the GF).
3
Under current law, two percent of sports betting revenue is to be transferred to a
Youth Sports Grant Account beginning in FY 26. It is unclear how the bill's provisions
interact with this requirement.