Lawmakers weigh repeal of Pennsylvania lottery profit‑margin mandate; state estimate shows $1.24 billion over 10 years

Representative Melissa Schusterman told the House Finance Committee that House Bill 1058 would eliminate the lottery profit‑margin mandate so the Pennsylvania Lottery could set competitive prize odds and pricing.

Schusterman, the bill sponsor, said the mandate prevents the Lottery from matching pricing practices used by the seven highest grossing state lotteries and that changing the statutory requirement would allow more competitive products. “My legislation accomplishes this by eliminating the profit margin mandate,” she said.

Mark Foreman, the committee’s senior executive director standing in for the Lottery, directed members to materials in the committee packet showing Pennsylvania ranks eighth among high‑revenue state lotteries and that the top seven do not have a comparable profit‑margin mandate. He told the committee that allowing the Lottery to vary prize payouts could increase ticket sales and overall net proceeds.

A revenue estimate provided to the committee and highlighted in the packet said eliminating the profit‑margin mandate and allowing higher payouts could generate an incremental $1,240,000,000 in additional revenue over the next 10 years. Committee members asked for more granular modeling; staff said the Department of Revenue would supply additional numbers before the scheduled voting meeting.

Several members framed the change as a tool to protect funding that supports senior programs funded by Lottery proceeds. A committee member said they would file an amendment restating that the Lottery’s mission includes sustaining or increasing funding for programs that benefit Commonwealth seniors each fiscal year.

No formal action was taken at the hearing. Committee members were given an opportunity to ask questions; the chair scheduled the bills for the committee’s forthcoming voting meeting and said members could submit amendments before the posted deadline.

Ending: Supporters argued the repeal would help the Lottery compete with private gaming and other states while preserving senior program funding; members asked the Department of Revenue for more detailed fiscal analysis before a vote.