AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO THE STATE LOTTERY.

153rd General Assembly (2025-2026) Introduced by Darius Brown and 7 co-sponsors

The bill would restrict iLottery deposits to prepaid cards only, potentially reducing participation and General Fund revenue by up to several million dollars over the next years.

Reported Out of Committee (Appropriations) in House with 4 On Its Merits

Summary of HB 335 (Session 153, Delaware)

Purpose and intent

HB 335 seeks to amend Title 29 of the Delaware Code relating to the State Lottery.

The core policy focus is to change how online (iLottery) deposits are loaded by players, with potential implications for revenue from online lottery activities.

Key provisions and changes

Effective Date: The act would take effect 30 days after the Governor signs it.

iLottery operations context:

Delaware has operated an internet-based Lottery (iLottery) through the Lottery Office since fall 2025.
iLottery allows online account holders to purchase tickets via online funding or through Web Cash at physical lottery agents.
iLottery draw games (e.g., Play 3, Play 4, Play 5, Powerball, MegaMillions) are planned to begin in fall 2026.
By April 2026, 9,103 online accounts had wagered over $8.0 million, with $7.1 million in winnings and gross gaming revenue (GGR) of about $821,000. Of the $8.0 million wagered, roughly $30,000 was funded via Web Cash.

Deposit loading restriction:

The bill would restrict loading of iLottery accounts to only the use of pre-paid cards obtained from a physical lottery agent.
This means other funding methods (e.g., credit/debit, ACH, or other online payment methods) would be restricted or removed for online deposits, pending further detail in the bill text.

Revenue considerations:

DEFAC has not included iLottery revenue in General Fund projections.
The Lottery previously estimated potential General Fund revenues up to $5.4 million per fiscal year upon full implementation.
The fiscal note warns that restricting deposits to pre-paid cards could reduce participation and future revenue realization.
A rough estimate provided: potential future General Fund revenue loss could be 50–75% of the expected revenues.

Fiscal impact expectations:

2027: Revenue impact range of -$850,000 to -$1,275,000
2028: -$1,900,000 to -$2,850,000
2029: -$2,700,000 to -$4,050,000
These figures reflect net General Fund losses relative to baseline projections, contingent on the new restriction.

Who would be affected

iLottery players in Delaware who currently fund their online accounts via non-prepaid methods (e.g., credit/debit, ACH, Web Cash) would be affected, as those methods would be restricted under the act.

The Delaware State Lottery and the Department of Finance's Lottery Office would implement and enforce the new funding restriction.

State General Fund revenue projections would be impacted by the potential decline in iLottery participation and deposits.

Procedural and timeline aspects

Introduction and committee:

Introduced March 26, 2026.
Assigned to the Gaming & Parimutuel Committee in the House.

Implementation timeline:

If enacted, the act would become effective 30 days after gubernatorial signature.
iLottery draw games are anticipated to commence in fall 2026, contingent on regulatory/operational readiness.

Additional context

The bill’s fiscal note provides a cautious outlook: while early-stage iLottery revenues are modest, restricting funding sources could materially dampen future revenue, with sizable potential losses over the next few fiscal years.

The bill has multiple sponsors and co-sponsors, indicating broad legislative interest in adjusting iLottery funding mechanics.

If you’d like, I can compare HB 335 to current Delaware iLottery regulations or summarize potential policy trade-offs (access vs. revenue) in more detail.