Pennsylvania Stood at the Top in Terms of 2023 Casino Taxes

While Pennsylvania isn’t the first state that people would associate with gambling, the Commonwealth’s industry is not only on par with other major gambling states but also takes the top spot in terms of casino taxes.

However, the increased participation in games of chance has also sparked calls for enhanced safer gambling measures.

Pennsylvania Reported Strong Tax Metrics

In 2023, Pennsylvania surpassed gambling Meccas, such as Nevada and New Jersey in terms of casino taxes collected. According to official data, the casino industry paid $2.3 billion in taxes for 2023, up 10.6% year-on-year.

For context, New York came in second at $2 billion thanks to its high tax rates. Nevada occupied the prestigious third spot, reporting $1.2 billion in taxes for 2023.

A part of the reason why Pennsylvania fared so well in terms of taxes collected is the Commonwealth’s high tax rates. Slot games, for example, are taxed at 52% in the Keystone State. For comparison, other states take far lower cuts.

In the meantime, Pennsylvania was second in terms of sports betting taxes and collected $615 million in 2023, second only to New York. The favorable performance was praised and partially attributed to the state’s flourishing online betting.

Doug Harbach, the communications director of the Pennsylvania Gaming Control Board noted that iGaming is another major contributor and is the fastest-growing segment for sure.

The Growing Industry Carries Certain Risks

The increased participation in online bets, however, also sparked concerns about problem gambling in the Commonwealth.  

Josh Ercole, a member of the Council on Compulsive Gambling of Pennsylvania said that the opportunity to make bets from the comfort of one’s home can be really enticing. He concluded that betting is becoming increasingly easy and, by extension, carrying significant addiction risks.  

It’s kind of representing that dangling carrot that I’m just one click or one decision or one guess away from that big win. And unfortunately for a lot of folks, that big win never happens.

Josh Ercole

Ercole added that Pennsylvanians wagered some $7.68 billion on sports in 2023 and he does not see this spending slowing down.

These sentiments also apply to online gaming, which has been growing steadily.

In the meantime, skill game companies continue to seek their place under the sun. Despite the vertical’s controversial status in the US, the Commonwealth just succeeded in overturning a ban on such games.