According to figures from the American Gaming Association, Pennsylvania generated the most tax revenue from casinos among all states in 2023 and the second-highest from sports betting.
The report analyzed data to figure out how much money commercial casinos made and the tax revenue they generated.
Last year, Pennsylvania collected $2.3 billion in tax revenue from casinos, an increase of nearly 11% from 2022. New York was the next closest, bringing in about $2 billion, while Nevada ranked third with a little more than $1 billion in casino tax revenue.
Doug Harbach, Communications Director of the PA Gaming Control Board, told WHTM News that one advantage The Keystone State has on gaming taxes is the percentage on slot machines. “Slots are taxed here at about 52% for the casinos,” he said. “When you move to some other states, like Las Vegas, they are somewhere around 6 or 8%.”
AGA's Commercial Gaming Revenue Tracker offers insight into the financial performance of the U.S. commercial gaming industry at national and state levels by analyzing state regulatory reports.
2024 Gaming Tax Revenue Already Improved
AGA numbers also show that state and local governments (in areas with gaming) collected nearly $3.8 billion in gaming taxes from commercial gaming operators during the third quarter of 2024 alone. This represents an increase of almost 9% compared to last year.
These figures only include specific state and local taxes directly related to gaming revenue and reported monthly or quarterly. They do not include annual fees, sports betting taxes paid to the federal government, or additional taxes the industry pays on income, sales, payroll or other corporate taxes.
Nevertheless, sports betting significantly boosted tax revenue, with New York collecting over $2 billion, followed by Pennsylvania and New Jersey.
Revenue from land-based casinos, sports betting and online gaming rose 8% compared to last year, totaling $18 billion for the quarter. This marks the 15th consecutive quarter of growth and the highest third-quarter revenue in the industry's history.
Online Casinos Growing in Popularity
Since online gambling is so accessible —you can even do it from your couch—, it's boosting the industry's growth. Online gaming is the fastest-growing segment and has recently set national revenue records. Popular games like slots, poker and blackjack are fueling the growing trend.
This chart shows the figures for 2024, so far. But last year, people wagered almost $8 billion in online gaming.
Gaming Industry’s Impact is Widespread
According to the AGA, commercial gaming made a record $66.66 billion in 2023, a 10.3% increase from 2022.
AGA researchers also say that more than 700,000 people work directly in America's gaming industry.
This sector employs more people than the air transportation, postal service or motion picture and video industries. For every 33 jobs in the leisure and hospitality fields, one is in a casino.
“The U.S. gaming industry delivers long-term growth and impact to communities, generating significant tax revenue, creating strong jobs, supporting local small businesses and funding critical community priorities,” said AGA President and CEO Bill Miller.
And it doesn’t appear to be slowing down.
