Pennsylvania generates more tax revenue from gambling than any other US state, collecting nearly $2.32 billion in 2023 despite having lower gross gaming revenue (GGR) than Nevada.

The state's success stems from its high tax rates:

• 52% tax on slot machine revenue
• 16% tax on table games (both in-person and mobile)
• 54% tax on online slot revenue
• 52% tax on video gaming terminals at truck stops
• 36% tax on sports betting (online and in-person)

For comparison, Nevada only taxes gaming revenue at 6.75%, resulting in $1.2 billion in tax revenue despite $15.52 billion in GGR. New York ranks second with $1.83 billion in gaming tax revenue, 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 diverse, with over 25% of management positions held by racial minorities and 40% by women. Since 2006, Pennsylvania casinos have contributed more than $213 million to charities and responsible gaming initiatives.

Casino operators argue that revenue could be even higher if the state addressed unregulated gaming, particularly "skill gaming" machines that compete with licensed slot machines.

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