The Pennsylvania Lottery will no longer be required to turn over as much of its profit to the state — funding that goes to support senior programs. Advocates of the move say it will allow the Lottery to generate even more profit. The Lottery had been required to generate 20% profit. Act 37 reduces the required profit to 10%.

The Department of Revenue has estimated that the move will allow the Lottery to generate an extra $35 million this fiscal year. Dropping the profit margin requirement will translate into another $139 million in revenue in 2029-2030.

Eliminating the profit requirement will allow the Lottery to offer more scratch-off ticket games. Scratch-offs with larger payouts have a lower profit margin than other games, so with the 20% mandate, Lottery officials would have been unable to offer as many of these games.

Act 37, formerly House Bill 1058, took effect immediately. The legislation passed both chambers with near-unanimous approval. Ewa Swope, a Lottery spokeswoman, said officials expect to roll out new big-prize games in time for the holiday season. In 2023-24, gamblers bought more than $3 billion in scratch-off tickets, accounting for two-thirds of Lottery sales.

Lottery officials say players are increasingly turning to the more expensive scratch-offs. Ten years ago, $5 tickets accounted for more than 30% of the scratch-offs sold in Pennsylvania. The $5 tickets generated less than 20% of sales in 2023-24. Meanwhile, tickets worth $10 or more have become more popular. In 2023-24, 11% of scratch tickets sold in Pennsylvania were for $50 games.

“We are grateful to members of the General Assembly for recognizing that it was time to take action to put the Pennsylvania Lottery in a better position to compete in one of the most competitive gaming states in the nation,” said Secretary of Revenue Secretary Pat Browne.

For much of its history, the Lottery was required to generate a 30% profit. Since 2019, the required profit margin has been set at 20%. The Lottery reported a 24.3% profit in 2023-24.

Pennsylvania had been one of only seven states to have a profit percentage requirement, along with Delaware, Louisiana, New Jersey, New Mexico, Rhode Island and Tennessee.

Lottery officials noted that 10 other states get more income from their lotteries than Pennsylvania. New Jersey is the only one of those 10 that has a profit mandate.

Lottery proceeds for senior programs in 2023-24:

— $275 million for the county Area Agencies on Aging

— $128 million for prescription drug assistance

— $164 million for shared ride programs

— $350 million for property and rent rebates

— $349 million to support programs to fund long-term living programs.