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 tax collection represented a 10.6% increase from the previous year.

The state's high tax rates are key to its revenue leadership:

• Slot machines: 52% tax rate
• Table games (in-person and mobile): 16%
• Online slots: 54%
• Sports betting (online and retail): 36%
• Video gaming terminals at truck stops: 52%

By 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 ranked second with $1.83 billion in tax revenue from $4.22 billion in GGR, while New Jersey collected $691.8 million.

Pennsylvania's gaming industry benefits the state through:

• Property tax relief for homeowners
• Agricultural investments
• Horse racing industry support
• Economic development initiatives
• Employment of nearly 16,000 people (85% state residents)
• Over $213 million in charitable and responsible gaming contributions since 2006

The industry faces challenges from unregulated gaming, particularly skill gaming machines, which casinos claim cost them significant slot revenue. These machines, often branded as Pennsylvania Skill, require players to identify winning paylines manually, distinguishing them from traditional slots.

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