Pennsylvania Surpasses New York and Nevada in Casino Tax Revenue

According to the American Gaming Association (AGA)’s annual report for 2023, Pennsylvania has claimed the crown for gaming-specific tax revenues, surpassing every other US state. The Keystone State’s gambling sector is showing no signs of slowing down, as July’s results highlighted a robust and diverse industry that can deliver sustained growth despite emerging challenges.

Pennsylvania Beat All Competition

AGA’s data revealed that Pennsylvania’s annual state casino tax revenue was a whopping $2.3 billion, exceeding New York’s by roughly $250 million. This result places Pennsylvania as one of only three states—along with Nevada—to exceed a billion dollars in this category. The AGA’s 2023 data cements Pennsylvania’s status as the leading US gambling jurisdiction.

Industry experts highlight several advantages that propel the Keystone state’s gambling sector above that of other states. An expansive market and comparatively high tax rates on gambling activities complement a broad selection of competitive gaming options like traditional casinos, iGaming, sports wagering, and fantasy sports contests.

Pennsylvania’s diverse gaming landscape has attracted a broad customer base. Meanwhile, the tax revenue generated by the industry has become an essential revenue stream for the state, funding a variety of public services and infrastructure. The sector’s financial success showcases the remarkable momentum of Pennsylvania’s gaming market, which enjoys robust growth.

iGaming Retains Impressive Growth

These impressive financials are also reflected in the state’s monthly reports. The Pennsylvania Gaming Control Board recently reported that it achieved an all-time high for a single month in July 2023, with casino revenue hitting $500.8 million. This 7.22% year-on-year increase showcases the industry’s untapped potential as it sets itself up for a record-breaking 2024.

In July, retail slots remained the clear revenue driver, even as it fell 4.83% to $204.3 million compared to a year ago. On the other hand, iGaming saw exceptional gains. Slot iGaming revenue grew by 32.24% to $125.4 million, making it the state’s second-largest revenue source. Table iGaming revenue increased by 31.74%, sports wagering by 20.18%, fantasy contests by 9.01%, and video gaming terminals by 4.33%.

With neighboring states like New York closely trailing, Pennsylvania must retain momentum by anticipating and adapting to industry trends. Reinvesting back into the state’s gaming infrastructure remains critical to attracting a diverse player base and maximizing the economic benefits of legalized gambling, leading to sustained success for all stakeholders.