SCRATCH-off players will soon rake in record jackpot prizes under a major law change affecting lottery operations.
The recently passed bill permits more Lottery earnings to be spent on player payouts, bumping up the number of games with big-ticket prizes.
Lottery players will rake in even bigger prizes under an impending law[/caption]
Once the law is officially passed, more lottery funds will be spent on player prizes[/caption]
Each state establishes its own lottery rules that govern various aspects of the lottery, including the distribution of earnings.
For example, states have regulations on how much money must be profit and how much can be spent on lottery payouts.
In Pennsylvania, the state Senate and House passed a bill permitting the Lottery to allocate a greater portion of its revenue on player payouts.
The bill was introduced by state representative Melissa Shusterman and backed by Lottery officials and Pennsylvania Governor Josh Shapiro.
The Lottery will offer more higher payout traditional games, such as the popular $30 and $50 scratch-offs.
By offering a higher number of big-ticket prizes, the Pennsylvania Lottery hopes to lure in more players and make a bigger profit, which officials argue will benefit the state’s seniors.
Profits from the gaming system are used to fund programs benefiting older residents, such as low-cost prescriptions, rent rebates, and free bus passes.
The change would rake in millions of additional dollars for these crucial programs and help improve Pennsylvania seniors’ quality of life, according to Shusterman.
“This change will allow the Pennsylvania Lottery to more effectively compete with other forms of entertainment, and put the Lottery on better financial footing,” she told Spotlight PA.
A WHOLE LOTTO CHANGE
The Pennsylvania Lottery is plotting to reserve a bigger percentage of its profits for player winnings by selling more games with big-ticket prizes, particularly scratch-offs.
While the likelihood of winning on any given ticket will remain the same, the jackpots will be more tempting than ever.
In order to have sufficient funding for the hefty jackpots, the Lottery will keep a smaller percentage of profit.
The Lottery is required to make a minimum profit of 20% on traditional games, spending that cash on programs for senior residents.
This means that the gaming system must be conservative about how much of its earnings it allocates on payouts, which are the Lottery’s greatest expense.
Top lottery winners in the US
Millions dream of winning the lottery and finding fame and fortune. These are the biggest winners in US lottery history.
- Edwin Castro – $2.04 billion, Powerball, Nov. 8, 2022, in California.
- Theodorus Struyck – $1.765 billion, Powerball, Oct. 11, 2023, in California.
- Unknown winner – $1.602 billion, Mega Millions, Aug. 8, 2023, in Florida.
- Marvin and Mae Acosta from Los Angeles, California, John and Lisa Robinson from Munford, Tennessee, and Maureen Smith and David Kaltschmidt from Melbourne Beach, Florida – $1.586 billion, Powerball, Jan. 13, 2016.
- Unknown winner – $1.537 billion, Mega Millions, Oct. 23, 2018, from South Carolina.
- Unknown winner – he sued the mother of his child to keep his identity hidden – $1.348 billion, Mega Millions, Jan. 13, 2023, from Maine.
- Unknown winner – $1.337 billion, Mega Millions, July 29, 2022, from Illinois.
- Cheng and Duanpen Saephan, and Laiza Liem Chao – $1.326 billion, Powerball, April 7, 2024, from Oregon.
- Rosemary Casarotti – $1.22 billion, Mega Millions, December 27 2024, from California
- Unknown winner – $1.13 billion, Mega Millions, March 26, from New Jersey
Should the proposed bill in Pennsylvania be signed into law, the Lottery would only have to make a 10% profit on traditional games.
The bill was originally going to eliminate the profit requirement completely, but the Senate Aging & Youth Committee amended it.
Reducing the profit requirement will provide the state’s gambling system more flexibility in terms of payouts, said Diana Dietz, deputy communications director for the Lottery.
“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,” she said.
Dropping the profit requirement to 10% would pull in roughly $102 million through the end of fiscal year 2028, according to a state House fiscal note.
Removing the profit requirement entirely entirely would result in an increase of $1.24 billion over the next decade, per the latest Lottery profit report.
“We will continue to evaluate whether fully eliminating the profit margin requirement could help modernize our products and keep the Pennsylvania Lottery competitive in today’s saturated gaming market,” said Dietz.
The bill passed the state Senate and is now awaiting signature into law by Shapiro.
Once signed, the legislation would take roughly six months to begin taking effect and around two fiscal years to fully implement, according to Dietz.
Check out these other lottery laws in the works.
Under one new law, the lottery is at risk of disappearing for good as a player was “blocked” from taking home a $83.5 million prize.
Pennsylvania lottery players will see more higher payout traditional games like the $30 and $50 scratch-offs once the bill is signed into law[/caption]
