Pennsylvania's lottery kept its $1 billion streak alive for programs, Mega Millions sales dropped while Powerball sales nearly rose 2x
The Pennsylvania Lottery generated more than $1 billion for programs benefiting older residents for the 15th consecutive year, the state said earlier this week. The comparative statement published alongside the announcement shows how close that streak came to ending.
Total net revenue for the year that ended June 30, 2026 was $1,006,923,869. That is $6.9 million over the line, and $45.1 million less than the $1.052 billion the Lottery produced the year before, a 4.3% drop.
"Behind every Lottery ticket is a contribution to programs that help older Pennsylvanians live healthier, more independent lives," Secretary of Revenue Pat Browne said. Since 1972 the Lottery has contributed more than $38.2 billion to those programs, including free and reduced-fare transit and prescription assistance.
Sales went up, but profit went down
The decline did not come from players buying less. Traditional sales actually rose $129.9 million to $4.44 billion. The money went out by paying back players more.
| Fiscal year | 2024-25 | 2025-26 | Change |
|---|---|---|---|
| Traditional game sales | $4,310.7M | $4,440.6M | +$129.9M |
| Prizes | $2,914.9M (67.62%) | $3,035.6M (68.36%) | +$120.7M |
| Retailer commission | $216.2M (5.02%) | $245.9M (5.54%) | +$29.7M |
| Administrative costs | $96.3M (2.23%) | $112.7M (2.54%) | +$16.5M |
| Net traditional revenue | $1,005.4M (23.32%) | $953.8M (21.48%) | -$51.6M |
| Online net gaming revenue | $70.5M | $74.7M | +$4.1M |
| Total net revenue | $1,052.0M | $1,006.9M | -$45.1M |
Prizes absorbed almost the entire sales gain on their own. Retailer commissions climbed 13.7%, and administrative spending rose 17.1%, most of it an $11.6 million fixed-asset line that was $19,008 the year before. Interest income also fell by $6.4 million. The Lottery kept 21.07 cents of each traditional dollar as operating revenue, down from 22.75 cents of each dollar.
A 2025 law let it pay more, and the games show it
The higher prize payout was a choice the legislature made possible. Act 37 of 2025 relaxed the profit margin the Lottery is required to hit, and the Lottery says it used that room to offer games with higher payouts. Our tracker holds the payout percentage for Pennsylvania scratch-offs by launch date, which makes it possible to see when that started.
| Pennsylvania games launched in | Games | Average payout |
|---|---|---|
| 2024, April to June | 9 | 71.71% |
| 2024, July to September | 10 | 71.17% |
| 2024, October to December | 8 | 71.55% |
| 2025, January to March | 11 | 70.40% |
| 2025, April to June | 12 | 71.36% |
| 2025, July to September | 9 | 71.16% |
| 2025, October to December | 13 | 74.18% |
| 2026, January to March | 12 | 73.77% |
| 2026, April to June | 10 | 74.69% |
| 2026, July to September | 17 | 73.75% |
For six straight quarters new games launched between 70.4% and 71.7%. Then the number stepped up by about three points and stayed there. The law took effect in July 2025, and games launching that summer had already been designed and printed, so a jump one quarter later is about what a production cycle would produce.
The shift holds price by price, and it did not happen anywhere else. Splitting games at the July 2025 effective date, Pennsylvania's new games pay more at all eight price points, while scratch-offs in the rest of the country slipped slightly over the same stretch.
| Price | PA before | PA after | PA change | Other states change |
|---|---|---|---|---|
| $1 | 65.27% | 65.60% | +0.33 | -1.33 |
| $2 | 65.98% | 69.49% | +3.51 | -0.92 |
| $3 | 66.20% | 68.77% | +2.57 | -0.45 |
| $5 | 71.41% | 74.07% | +2.66 | -0.41 |
| $10 | 73.48% | 76.53% | +3.05 | -0.50 |
| $20 | 75.47% | 78.42% | +2.95 | -0.57 |
| $30 | 77.87% | 79.50% | +1.63 | -0.50 |
| $50 | 80.05% | 80.73% | +0.68 | -1.26 |
The samples at each price are small, from two to 15 games, so no single row settles it. The consistency across prices and the flat line everywhere else are what make the pattern hard to explain any other way. Pennsylvania already ranked near the top of our state payout rankings, and its shelf now averages 74.1%.
Scratch-off sales slightly slipped, Mega Millions went down a lot, Powerball went up a lot
Scratch-off sales fell $30.9 million to $2.88 billion, and their share of traditional sales dropped slightly from 67.5% to 64.9%. Draw games had growth, up $148.8 million, and nearly all of it came from one game.
| Game | 2024-25 | 2025-26 | Change |
|---|---|---|---|
| Scratch-offs | $2,911.0M | $2,880.1M | -1.1% |
| Powerball | $164.0M | $322.5M | +96.6% |
| Mega Millions | $157.8M | $123.7M | -21.6% |
| Cash4Life and Millionaire for Life | $22.3M | $28.5M | +28.0% |
| Cash Pop (new) | none | $24.6M | new |
| Cash 5 | $102.7M | $92.1M | -10.3% |
Powerball nearly doubled in sales from $164 million to $322.5 million while Mega Millions lost nearly 22% of its sales, dropping down to $123.7 from $157.8 million, the same split we measured in how the two jackpots have grown since Mega Millions went to $5. Cash4Life ended in February and Millionaire for Life replaced it, and the two together sold 28% more than Cash4Life did alone the year before, with the new game on sale for barely four months.
"We'll continue working to grow sales responsibly, introduce new and exciting games, and deliver on our promise to benefit older Pennsylvanians every day," Executive Director Drew Svitko said.
Online play is big in dollars and small in profit
Pennsylvania's online eInstant games took in $849.1 million in play and paid $757.0 million back, an 89.2% payout. After promotions and costs, online games produced $74.7 million in net revenue, 8.8 cents per dollar played, against 21.5 cents on traditional games.
That is why online figures look small next to scratch-off sales in most lottery reports. Online revenue is usually counted after prizes, and retail sales before, a gap we walked through in what share of lottery revenue comes from each game type. The Lottery paid 84 prizes of $1 million or more during the year, and roughly 10,000 retailers earned $267.4 million in commissions and bonuses.
The release notes that September is Responsible Gaming Education Month.
How we did this. Revenue, sales, prize, commission, and cost figures are from the Pennsylvania Lottery's comparative statements of income and expenditures for the fiscal years ended June 30, 2026 and 2025, published with its annual report. Launch-quarter payout averages are ours, from Pennsylvania Lottery published game data for games with a recorded launch date and payout percentage, read September 13, 2026. The before-and-after split uses the July 1, 2025 effective date of Act 37 and covers games launched from July 2023 onward; the other-states column applies the same split to every other US state we track. Online revenue per dollar played is online net gaming revenue divided by online plays.
Sources
Pennsylvania Lottery: Annual report and comparative statement of income, fiscal 2025-26
Frequently Asked Questions
How much money did the Pennsylvania Lottery make in fiscal 2026?
Total net revenue for programs benefiting older Pennsylvanians was $1,006,923,869 for the year ended June 30, 2026. That cleared $1 billion for a 15th straight year, but it was down $45.1 million, or 4.3%, from $1.052 billion the year before.
Why did Pennsylvania Lottery profit fall when sales went up?
Mostly because it paid out more in prizes. Traditional sales rose $129.9 million, but prize liability rose $120.7 million, from 67.6% of sales to 68.4%. Act 37 of 2025 relaxed the profit margin the Lottery must hit, which let it print games with higher payouts. Retailer commissions and administrative costs also rose.
Do new Pennsylvania scratch-offs pay out more than before?
Yes. Games launched from October 2025 onward average about 74% payout, against roughly 71% for games launched in the 18 months before. The gain shows up at nearly every price, and scratch-offs in other states did not rise over the same period, which points to the Pennsylvania law.
Jessie Jurado is a news writer who covers new scratch-off launches, state lottery guides, taxes on winnings, news, and much more. She joined ScratchCheck in 2026 and writes the site's state-by-state coverage.
