(The Center Square) HARRISBURG PA – The Pennsylvania Lottery may soon see a new infusion of life. Gov. Josh Shapiro has signed into law legislation that lowers the Lottery’s mandatory profit margin. Here’s its bonus: the left-over revenue could be used to increase the amounts its players can win.
“Reducing the profit margin ensures the continued health of the Lottery,” according to state House 157th District Rep. Melissa Shusterman of Chester County. She introduced the bill, which reflects similar changes in other states. The reform “will allow the Pennsylvania Lottery to more effectively compete with other forms of entertainment” and put it on a better financial footing, she adds.
Proponents say the revision permits the Lottery to offer games with higher payouts, increasing its popularity and financial stability.
The state says the previous total 20% margin limited the number of games it could offer with high payouts and lower profits. The law changes the margin to 10%. That should result in a higher volume of sales of popular scratch-off tickets, which in turn are are likely to lead to overall Lottery gains. States like Texas, California, and Oklahoma eliminated profit margin mandates, and sales have climbed.
Proceeds from its games go toward older Pennsylvanians, and are a major funding source for the state Department of Aging. “It is important that our Commonwealth continue to robustly support programs that benefit our seniors,” Shusterman agrees.
‘It Was Time to Take Action’
“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,” says Secretary of Revenue Pat Browne. He oversees the Department of Revenue and the Pennsylvania Lottery, in what he describes as “one of the most competitive gaming states in the nation.”
Within the PA gambling landscape are 17 casinos and the widely unregulated new market of skills games. Taxation of skills games has been a contentious issue as the General Assembly continues to grapple with passing the commonwealth’s 2025-2026 budget.
Seniors A Growing, Under-Resourced Demographic
Unlike other gaming industries the Pennsylvania Lottery provides revenue toward the state’s fastest growing, and one of its most under-resourced, demographics. About two thirds of Lottery proceeds go back into providing prizes. Nearly a quarter funds benefits programs for older people.
Among the initiatives it funds are the state’s Area Agencies on Aging.
These organizations not only provide meals and activities through senior centers for older residents, but also are 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.
This article was written by Christina Lengyel of The Center Square
and republished by Travels With The Post
Photo provided by the Pennsylvania Lottery Media Center
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