Pennsylvania Outpaces New York and Nevada in Casino Tax Revenue
Date: 2024-08-28 Author: Robert Beloved Categories: CASINO
According to the American Gaming Association’s (AGA) 2023 annual report, Pennsylvania has become the leader among all U.S. states in terms of gambling tax revenue. The state’s gaming sector continues to show strong growth, as shown by the July results, indicating a resilient and diverse industry that can thrive even in the face of new challenges.
Pennsylvania Takes the Lead
According to the AGA, Pennsylvania’s annual casino tax revenue was a whopping $2.3 billion, $250 million more than its closest competitor, New York. That makes Pennsylvania one of only three states, along with Nevada, to exceed the billion-dollar revenue threshold in this category. 2023 data cements Pennsylvania as the leading gaming jurisdiction in the United States.
Experts point to several factors that contribute to the success of Pennsylvania’s gaming industry. A large market and relatively high tax rates on gambling are complemented by a variety of offerings, including traditional casinos, online gaming (iGaming), sports betting, and fantasy sports.
The diversity of gaming offerings attracts a wide range of customers to Pennsylvania. Tax revenues from this sector have become an important source of income for the state, helping to fund various public services and infrastructure projects. The financial successes highlight the impressive growth of Pennsylvania’s gaming industry, which promises to continue in the future.
Online Gaming Maintains Strong Growth Rates
These impressive financial results are also reflected in the state’s monthly reports. According to the Pennsylvania Gaming Commission, casino revenues reached a record high in July 2023 — $500.8 million in one month. This 7.22% year-over-year increase shows significant potential for the industry to set new records in 2024.
While traditional slot machine revenues were down slightly by 4.83% to $204.3 million year-over-year, online gaming saw impressive growth. Online slots revenues grew by 32.24% to $125.4 million, making them the state’s second-largest revenue source. Online table games (up 31.74%), sports betting (up 20.18%), fantasy sports (up 9.01%), and video games (up 4.33%) also saw increases.
With states like New York quickly catching up to Pennsylvania, the state needs to maintain its growth momentum by anticipating and adapting to new industry trends. Investment in gambling infrastructure remains key to attracting a diverse clientele and maximising the economic benefits of legalised gambling, which will ensure sustainable success for all market participants.
