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What Did Pennsylvania Gain From Casino Legalization?

Under the federal law in the US, gambling activity is illegal, however, each state has the autonomy to create its own laws, and that’s why this activity is legal in certain states. When it comes to online gambling, it’s not difficult to find sports betting options, but online casino games are only legal in a few states. In 2017 Pennsylvania expanded its gambling act to include the following online games:

  • Slots
  • Poker
  • Banked table games

This was a big deal for a lot of gambling enthusiasts, as they could finally enjoy their favorite form of entertainment on the internet. It also means that pennsylvania online casinos are all licensed and regulated by the Pennsylvania Gaming Control Board. By having access to regulated entities players are safer and have guaranteed access to fair games. So, let’s see what PA gained from legalizing this form of entertainment.

Taxes on Online Gambling

One of the main concerns people have regarding PA online casinos is that they won’t generate too many job opportunities. Everything is automated here so there is no need for dealers or other staff that would otherwise be present. This also means that operators have lower overheads and simply take the majority of the revenue. However, taxes for Pennsylvania online casino operators are pretty high.

Tax for revenue from online slots is 54%, it is 14% for poker and other table games, and 15% for fantasy sports. This is really similar to how land-based gambling institutions are taxed. Slots are the most consumed content on online casino PA sites, and they are extremely profitable for the operators. Since the government is getting the majority of those funds, money can use them for the betterment of the state.

Record Earnings

PA online casino operators are breaking records when it comes to earnings. They did have a few downward trends during certain months, but on an annual basis, the industry is seeing significant growth. According to the data from regulators the industry generated over $462.7 million in March 2022. This is more than 30 million compared to November last year. Of course, it doesn’t indicate that each online casino in PA is doing exceptionally well, but it does indicate that this is a fertile market.

Out of those $462 million, online casino Pennsylvania platforms have generated more than $110 million. This also means the earnings might exceed those of 2021 when the industry collectively earned over  $4.7 billion. Once again the great majority of earnings come from slots, which means most of the money will go to the state.

It’s Difficult to Be Competitive Here

Being able to offer online gaming options is definitely useful for a lot of companies in PA. It was a saving grace during the pandemic when people were in lockdown, and land-based establishments could not operate. However, does this mean that gamblers are getting the best deals or the best content possible?

Most of the smaller operators rely on slots in order to generate revenue and run a sustainable operation from BOT. Given the high tax rate, it’s difficult for them to compete in this market. Those who offer table games and fantasy sports have better means of generating income as that content is only taxed at 15%. An operator who relies mostly on slots needs to provide better bonuses and incentives in order to acquire more users. With a higher tax rate, it’s difficult to come up with a profitable strategy.

Currently, there are trends like low wagering bonuses or even no wagering promotions. Yet, such incentives are nearly impossible for any casino online PA operator. So, you could say that gamblers are denied some of the better deals that are available with off-shore providers.


Online casinos sites in PA are doing really well, and they do offer some of the best content available on the market. They have top-notch software and multiple gaming options that cater to all user types. The state definitely made the right move here, as they created a situation where land-based companies aren’t exactly competing with those that solely operate on the internet. These are mostly land-based casinos that also have a gaming website. Additionally, the PA economy is more stable and continues to improve.


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