One of America's Oldest Lotteries
The Pennsylvania Lottery was established in 1971, making it one of the oldest state lotteries in the United States. The first ticket was sold in March 1972, and the lottery has operated continuously for more than 50 years. From the start, Pennsylvania took a unique approach to how lottery profits would be used — one that sets it apart from every other state to this day.
The Only Lottery for Seniors
While most state lotteries direct their profits to education, infrastructure, or general funds, Pennsylvania is the only U.S. lottery that dedicates 100% of its profits to programs benefiting older Pennsylvanians. This commitment has been in place since the lottery's founding and remains its defining characteristic. Every ticket sold in Pennsylvania directly supports services for the state's senior population.
What the Lottery Funds
Since its inception, the Pennsylvania Lottery has contributed more than $37.2 billion to programs for older residents. In fiscal year 2024-25 alone, the lottery generated approximately $1.05 billion in funding. These dollars support a wide range of services:
- Property Tax and Rent Rebates: Annual rebates that help seniors stay in their homes by offsetting local property taxes
- Free and Reduced-Fare Transit: Seniors ride public transit at no cost or reduced fares across the state
- PACE and PACENET: Pharmaceutical assistance programs that help older residents afford prescription medications
- Area Agencies on Aging: Local agencies providing meals, in-home care, caregiver support, and community services
- Long-Term Living Services: Funding for nursing facilities, assisted living, and home-based care programs
A Major Lottery Market
Pennsylvania is the 5th most populous state in the U.S., which translates into one of the largest lottery player bases in the country. The combination of population size, a mature lottery operation, and strong game variety has made the PA Lottery one of the top revenue-generating lotteries nationally. PA regularly ranks among the top 5 states in total lottery sales.
iLottery and Online Play
Pennsylvania launched its iLottery platform in 2018, becoming one of the early adopters of online lottery in the U.S. The platform offers instant-win games, keno-style games, and virtual sports through the PA Lottery website and mobile app. While traditional draw games like Powerball and Cash 5 tickets must still be purchased at retail locations, iLottery has expanded the lottery's reach and brought in a younger player demographic.
Tax-Friendly for Winners
Pennsylvania's flat state income tax rate of 3.07% applies to lottery winnings, making PA one of the most tax-friendly lottery states in the country. Combined with the 24% federal withholding, winners face an effective rate of roughly 27% — significantly lower than states like New York (combined rate over 35%) and comparable to midwestern states. Only tax-free states like Texas and Florida offer a better deal.
Explore PA Games
See the full lineup of Pennsylvania draw games — from Pick 2 to Match 6 Lotto — in the Pennsylvania Lottery Games Overview.