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Legislation that allows the Pennsylvania Lottery to reduce its profit margin, resulting in higher payouts for players, is expected to be signed into law by Gov. Josh Shapiro this week.
After approval from the House, the measure passed the Senate last week on a 49-1 vote.
The Lottery expects the higher payouts to generate more interest from players, allowing it to give more money to programs that benefit seniors in the state.
Financial impact of HB 1058
House Bill 1058, sponsored by Rep. Melissa Shusterman, was backed by Shapiro and the Pennsylvania Lottery. It is meant to provide millions of additional dollars that will benefit senior citizens in multiple ways.
The measure reduces the profit margin from the sale of lottery tickets from 20% to 10%. That allows the Lottery to offer games with higher prizes, especially on popular $30 and $50 scratch tickets.
Implementation is phased in over the next two fiscal years. Despite a reduced profit margin, the Pennsylvania Department of Revenue calculated profits to rise dramatically over the next five fiscal years:
- 2025-2026: $35.8 million
- 2026-2027: $4.4 million
- 2027-2028: $62.0 million
- 2028-2029: $101.0 million
- 2029-2030: $139.6 million
The legislation surmises that higher payouts will generate more sales. HB 1058 is also expected to help curb illegal gambling in the state.
Additional funds to benefit senior citizens
While the bill gives more incentive to players, it’s senior citizens who should most benefit. In a February memo, Shusterman said the legislation helps both the Lottery and seniors.
“This change will allow the Pennsylvania Lottery to more effectively compete with other forms of entertainment and put the Lottery on better financial footing to support programs that benefit our seniors, such as property tax rent rebate and transportation services.”
Tax revenue is also going to the following programs for seniors:
- Low-cost prescriptions
- Care services
- Local services
The measure will take effect immediately after Shapiro signs it.
