Pennsylvania’s legislature just passed a bill reducing the required profit margin on traditional lottery games.
This move allows the commonwealth's Lottery to increase player payouts and offer its customers more high-prize games.
Key takeaways
- A bill Rep. Melissa Shusterman introduced passed both the House and Senate.
- The measure would increase player payouts to help generate more revenue for senior programs.
- The proposal now waits for Gov. Josh Shapiro to sign it into law.
The bill, which Gov. Josh Shapiro backed and State Rep. Melissa Shusterman introduced, reduces the required profit margin on traditional lottery games from 20% to 10%. This enables the Pennsylvania Lottery to subsequently offer more high-prize games, like $30 and $50 scratch-offs.
The aim is to attract more customers, resulting in additional revenue the Lottery can use to fund senior programs. These include much-needed prescription assistance and rent rebates for senior citizens.
Furthermore, reducing the profit margin requirement lets Lottery leadership modernize the games responsibly and stay competitive in today’s gaming market, which is constantly bombarded with new forms of entertainment.
This bill isn’t really a novelty, and it's been cooking in Pennsylvania’s kitchen for some time now, given that Lottery officials suggested profit reduction more than a decade ago.
Yet, it's now passed with strong support, sailing through the Senate with a 49-1 vote. It now awaits Gov. Shapiro's signature.
I'm proud to announce my bill to increase Lottery profits that benefit senior programs has passed the General Assembly. Reducing the profit margin is a positive step toward ensuring the Lottery's financial stability and continued support for our seniors. pic.twitter.com/YilpB46Ux5
— Rep. Melissa Shusterman (@RepShusterman) July 2, 2025
Pennsylvania reintroduces esports betting bill
As lawmakers continue to look for new ways to modernize Pennsylvania’s gaming industry, state Rep. Ed Neilson introduced a bill to legalize esports betting.
Esports are defined as organized competitions where video game players compete against each other, either individually or as teams.
House Bill 1636 would allow betting on competitive video game tournaments and grant the Pennsylvania Gaming Control Board more authority to approve new betting markets.
However, this isn’t Neilson's first attempt to legalize esports betting. His previous try in 2023 stalled shortly after introduction.
PA lawmakers discuss skill games tax
In another move to modernize the state’s gaming scene, lawmakers are also considering Senate Bill 626, which would legalize and regulate skill games with a 16% tax on gross revenue.
Unlike slot machines, which mostly rely on luck and random number generation, skill games require player interaction to win and are currently operating in the legal gray area across Pennsylvania.
The bill, supported by Sen. Gene Yaw and Sen. Elder Vogel, aims to create a structured licensing and taxation scheme for the skill games market and cap the number of terminals per location. Among the lobbying and discussions surrounding SB626, Gov. Shapiro called for a steeper 52% tax, citing concerns over lost revenue from the state Lottery and casino sectors.
Pennsylvania courts now have to make an important decision on the subject, with choices ranging from steep taxes to boost state coffers, or the status quo, where skill-based game machines continue to operate in a legal gray zone.
