New law could make the Pennsylvania Lottery more rewarding for players

With a signature from Governor Josh Shapiro, Pennsylvania has officially changed the game. A newly signed law is rewriting the rules for the state lottery, slashing its required profit margin and paving the way for more big-money games and, potentially, bigger payouts.

Supporters say it's a win-win for players and seniors alike, but not everyone's sold on the shift. So what exactly does this law mean for your next scratch-off ticket and the programs it helps fund?

House Bill 1058

The bill was introduced by State Rep. Melissa Shusterman, a Democrat from Chester. It was touted as a bill that would allow the Pennsylvania Lottery to use more of its earnings on player payouts by boosting the number of games it sells with big-ticket prizes across the state.

This bill would also be able to bring in millions of additional dollars for programs benefitting senior citizens, like low-cost prescriptions and rent rebates. In general, the bill would help improve the quality of life of older Pennsylvanians.

How does it work? The state lottery would offer more of the higher payout traditional games, like the $30 and $50 scratch-off games. This would attract more customers and bring in more profit. At the same time, the likelihood of winning any given ticket would remain the same.

Lowering the profit margin

If the Pennsylvania Lottery sells more tickets, then that requires more money for payouts. Previously, the lottery was required to make at least a 20% profit on traditional games for senior programs.

Under this new bill, the lottery will only be required to make a 10% profit on traditional games. This means the lottery needs to be conservative about how much revenue it devotes to payouts, which is the biggest expense for the state lottery.

In a statement, Diana Dietz, deputy communications director for the lottery, stated:

Reducing the profit margin requirement will allow us to modernize our games responsibly, stay competitive in today's gaming market, and continue generating vital funding for programs that benefit older Pennsylvanians.

Shusterman said this new law would enable the lottery to focus on growing gross profits and not simply meet a high margin mandate:

This change will allow the Pennsylvania Lottery to more effectively compete with other forms of entertainment and put the lottery on a better financial footing. Reducing the profit margin ensures the continued health of the lottery, helping our aging population maintain their independence and quality of life.

The bill was signed into law

On Monday, July 21, 2025, Gov. Josh Shapiro signed House Bill 1058 into law. Dietz said it would take about six months to begin implementing changes to games and around two fiscal years to fully implement the changes. Taking a step back, Texas, California, and Oklahoma all recently eliminated their profit margin mandates. These changes have led to record-high profits and more money flowing into social programs.

Seven states rank higher than Pennsylvania in net profits. All seven of those states do not have a profit margin mandate. This change in Pennsylvania is estimated to increase lottery profits to benefit senior programs by $1.2 billion over the next 10 years.

Enjoy playing the Pennsylvania Lottery, and please remember to play responsibly.