HARRISBURG, PA — Governor Josh Shapiro has signed legislation that slashes the Pennsylvania Lottery’s required profit margin, paving the way for more competitive games and bigger payouts — a move aimed squarely at sustaining key programs for older Pennsylvanians.
House Bill 1058, signed into law Monday, reduces the Lottery’s mandated profit margin from 20 percent to 10 percent, giving the agency greater flexibility to offer in-demand games such as high-prize scratch-offs. The change allows the Lottery to stay competitive in what officials described as one of the most aggressive gaming markets in the country.
The measure was originally included in Shapiro’s Fiscal Year 2025-26 budget plan and received bipartisan support in both chambers. It was introduced by Representative Melissa Shusterman and had a companion bill in the Senate led by Senator Maria Collett, who chairs the Senate Democratic Aging & Youth Committee.
Proceeds from the Pennsylvania Lottery fund a variety of senior services including property tax and rent rebates, meal programs, transportation, and prescription assistance. With the change, officials say the Lottery can meet the demand for larger prizes without being restricted by outdated profit targets.
Previously, the 20 percent requirement limited how many high-payout games could be offered. By halving that requirement, the Lottery expects to generate more total revenue from increased play, despite lower margins per game.
HB 1058 is now in effect and will impact all new games going forward.