Pennsylvania Leads the Nation in Casino Tax Revenue

In terms of casino tax revenue for 2023, Pennsylvania led all U.S. states, according to a recent report by Doc’s Sports Service. Nevada’s $1.2 billion and New York’s $2 billion were surpassed by the state’s remarkable $2.3 billion.

Doug Harbach, Communications Director for the Pennsylvania Gaming Control Board, highlighted the state’s unique tax structure as a key factor. “Slots is taxed here at about 52% for the casinos,” Harbach noted in an interview with ABC27. “When you move to some other states like Vegas that are there somewhere around 6 or 8%.”

Online Gaming and Sports Betting Drive Growth

While traditional casinos play a significant role, the growth of online gaming and sports betting has also contributed to Pennsylvania’s tax revenue. According to Raphael Esparza, a handicapper for Doc’s Sports Service, “Pennsylvania does really, really well for sportsbooks. I worked at MGM Mirage, New York, New York.”

The rise of mobile betting has transformed the gaming landscape, offering convenience to players. However, it has also raised concerns about gambling addiction. Josh Ercole, Executive Director of the PA Council of Compulsive Gambling, pointed out the ease of access as a potential risk. “You can just do it on your couch,” Ercole explained. “You can do it while you’re at your kid’s soccer game. It’s pretty much really easy. 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.”

The surge in internet-based casino games like slots and blackjack has also boosted tax revenues. Harbach acknowledged this trend, stating, “That’s the fastest-growing segment. Most recently were national records for iGaming for revenue.”

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With sports betting generating $7.68 million in wagers last year, Pennsylvania’s gaming industry shows no signs of slowing down. As mobile gaming continues to grow, the state remains at the forefront of tax revenue collection, balancing economic benefits with addressing gambling-related challenges.

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