(The Center Square) – The Pennsylvania Lottery may soon be seeing a new infusion of life after Gov. Josh Shapiro signed into law legislation that lowers its mandatory profit margin.
Proponents say the change will allow the Lottery to offer games with higher payouts, increasing its popularity and thereby its financial stability. Lottery proceeds go toward older Pennsylvanians as a major funding source for the Department of Aging.
“It is important that our Commonwealth continue to robustly support programs that benefit our seniors,” said Rep. Melissa Shusterman, D-Paoli, who introduced the bill in the House. “Reducing the profit margin ensures the continued health of the Lottery, helping our aging population maintain their independence and quality of life.”
The state says that the previous total 20% threshold limited the number of games it could offer with high payouts and low profit margins. The change to 10% anticipates a higher volume of sales in popular scratch-off tickets that will lead to overall gains for the Lottery.
“We are grateful to members of the General Assembly for recognizing that it was time to take action to put the Pennsylvania Lottery in a better position to compete in one of the most competitive gaming states in the nation,” said Secretary of Revenue Pat Browne, who oversees the Department of Revenue and the Pennsylvania Lottery.
Within the competitive gaming landscape in the state are 17 casinos and the widely unregulated new market of skills games. The taxation of skills games has been a contentious issue as the General Assembly continues to grapple with passing the commonwealth’s 2025-2026 budget.
Unlike other gaming industries, however, the Pennsylvania Lottery provides revenue toward the state’s fastest growing and one of its most under-resourced demographics. About two thirds of the Lottery’s proceeds go back into providing prizes, while nearly a quarter funds benefits programs for older people.
Among the initiatives funded by the Lottery are the state’s Area Agencies on Aging. These organizations not only provide meals and activities through senior centers for older residents but are also responsible for following up on cases of neglect and abuse. The agencies provide local residents with guidance on services they can access and aim to keep people living independently in their communities.
“State Lottery proceeds are a lifeline for the assistance programs older Pennsylvanians rely on to afford medications, transportation, meals, and more,” said Senator Maria Collett, D-Fort Washington.
