Shusterman Lottery Bill Signed Into Law, Poised to Boost Senior Programs by $1.2 Billion

Pennsylvania CapitolCredit: Commonwealth Media Services

HARRISBURG, PA — Governor Josh Shapiro has signed into law a bill sponsored by State Representative Melissa Shusterman (D-Chester) that lowers the mandated profit margin of the Pennsylvania Lottery, a move projected to significantly increase funding for senior citizen programs over the next decade.

The legislation, now Act 37 of 2025, reduces the lottery’s required minimum profit margin from 20% to 10%. The change is designed to give the Pennsylvania Lottery greater flexibility in competing with other entertainment options while aiming to grow total profits, not just margins. The Pennsylvania Lottery estimates this adjustment could add $1.2 billion in new funding for senior programs over the next ten years.

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Since its creation in 1971, the Pennsylvania Lottery has contributed more than $36 billion to programs supporting older adults and individuals with disabilities. These include the Property Tax/Rent Rebate Program, transportation assistance, PACE and PACENET prescription plans, and services through the state’s 52 Area Agencies on Aging.

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

Supporters of the measure point to similar reforms in other states—including Texas, California, and Oklahoma—where removing or lowering profit margin mandates led to record-high lottery revenues and increased funding for public programs. Notably, the seven states that currently outperform Pennsylvania in net lottery profits do not impose a profit margin requirement.

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By shifting focus from percentage-based returns to overall profit growth, state officials believe the lottery can attract more players and generate more revenue—without compromising its longstanding mission to support older Pennsylvanians.

Governor Shapiro signed the bill into law on Monday.

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