Changes Coming To PA Lottery: Bigger Payouts, More Chances To Win

HARRISBURG, PA — A major change is coming to the Pennsylvania Lottery. Gov. Josh Shapiro on Monday signed legislation reducing the lottery profit margin from 20 percent to 10 percent.

The change could lead to larger lottery payouts and more chances to win. It also could lead to more revenue to benefit state senior citizens' programs.

“This change will allow the Pennsylvania Lottery to more effectively compete with other forms of entertainment and put the lottery on better financial footing,” state Rep. Melissa Shusterman , a Chester County Democrat, said in a statement.

“Reducing the profit margin ensures the continued health of the lottery, helping our aging population maintain their independence and quality of life.”

Since it began in 1971, the lottery has contributed more than $36.2 billion to benefit programs that include property tax and rent rebates; free and reduced-fare transportation services; the low-cost prescription programs PACE an

Shusterman said this policy change will enable the lottery to focus on growing gross profits and not simply meet a high margin mandate. Most recently, the elimination of profit margin mandates in states like Texas, California and Oklahoma have led to record high profits and more money flowing into social programs.

The seven states that rank above Pennsylvania in net profits do not have a profit margin mandate, Shusterman said.

Lottery officials estimate the change will increase lottery profits to benefit senior programs by $1.2 billion over the next 10 years. "Removing the profit margin ensures the continued health of the Lottery, helping our aging population maintain their independence and quality of life," Shusterman said.