Pennsylvania Leads Nation in Gaming Tax Revenue, Surpassing Nevada

Pennsylvania Leads Nation in Gaming Tax Revenue, Surpassing Nevada

By Michael Thompson

December 10, 2024 at 10:07 PM

Pennsylvania leads all US states in gaming tax revenue, collecting $2.32 billion in 2023 despite generating less gross gaming revenue (GGR) than Nevada. This record-breaking amount represented a 10.6% increase from the previous year.

The state's high tax rates on various gaming activities include:

  • 52% on retail slot machines
  • 16% on table games (both in-person and mobile)
  • 54% on online slots
  • 36% on sports betting (online and retail)
  • 52% on truck stop video gaming terminals

Gamblers at Hollywood Casino slot machines

Gamblers at Hollywood Casino slot machines

By comparison, Nevada collects just 6.75% on all gaming revenue, resulting in $1.2 billion in tax revenue despite $15.52 billion in GGR. New York ranked second in gaming tax revenue with $1.83 billion, while New Jersey collected $691.8 million.

Pennsylvania's gaming tax revenue supports:

  • Property tax relief for homeowners
  • Agricultural investments
  • Horse racing industry
  • Economic development initiatives

The state's gaming industry employs nearly 16,000 people, with 85% being state residents. The workforce is notably diverse, with over 25% of management positions held by racial minorities and almost 40% by women. Since 2006, Pennsylvania casinos have contributed more than $213 million to charitable causes and responsible gaming programs.

Casino operators argue that revenues could be even higher if the state addressed unregulated gaming, particularly skill gaming machines, which they claim are reducing regulated casino slot revenue by hundreds of millions annually.

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