HARRISBURG— Governor Josh Shapiro has signed HB 1058 into law, giving the Pennsylvania Lottery the flexibility to offer new and more competitive games with higher payouts. This new law will provide a boost to the Lottery and the programs for older Pennsylvanians that the Lottery funds on an annual basis.
“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. “We especially appreciate the efforts of Representative Shusterman and Senator Collett, as well as other members who met with our team to discuss this important issue.”
“I’m proud to have introduced this bill in support of the Governor’s budget proposal,” said Representative Melissa Shusterman. “It is important that our Commonwealth continue to robustly support programs that benefit our seniors. Reducing the profit margin ensures the continued health of the Lottery, helping our aging population maintain their independence and quality of life.”
“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. “As the Senate Democratic Chair of Aging & Youth, I was proud to support the Governor’s proposal to ensure the Lottery can generate more profit and, most importantly, put money back into PA seniors’ pockets.”
Governor Shapiro made the Pennsylvania Lottery — and older Pennsylvanians — a priority in his budget proposal for Fiscal Year 2025-26. The Governor’s proposal included a provision to lower the profit margin requirement that required Lottery games to provide at least a 20 percent profit.
In reality, that requirement constrained the Lottery’s efforts to generate funding for programs that benefit older Pennsylvanians. That’s because many of the Lottery’s most popular games, especially Scratch-Off tickets, offer players bigger prizes and payouts, meaning there is a lower profit margin for these games. Had the profit margin requirement remained at 20 percent, the Lottery would have been limited in how many of those popular, higher payout games it could offer.
Under the new law that Governor Shapiro signed, the Lottery’s profit margin requirement will be permanently reduced to 10 percent — down from the prior 20 percent. This change will give the Lottery the flexibility to better respond to player demand for games with larger payouts and more chances to win.
Offering these games will help the Lottery continue to fulfill its mission of responsibly generating funding for programs that benefit older Pennsylvanians. That means funding will continue to be available to help seniors receive property tax and rent rebates, transportation, care services, prescription assistance, and local services including senior centers and meals.
HB 1058 was originally introduced in the House by Rep. Shusterman. A companion piece of legislation was introduced in the Senate by Sen. Collett.
The Pennsylvania Lottery remains the only state lottery to direct all proceeds to programs that benefit older residents. Since ticket sales began in 1972, it has contributed more than $36.2 billion for programs that benefit older Pennsylvanians. The Pennsylvania Lottery operates as a bureau within the Pennsylvania Department of Revenue.
