Nevada Loses Gambling Tax Crown to Pennsylvania and New York
Move over Nevada, there’s a new gambling tax revenue king in the United States of America, Pennsylvania. The Keystone state is now besting the Battle State by more than $500 million in revenue, according to a recent report from the American Gaming Association (AGA).
Pennsylvania’s popular casinos brought in more then $1.38 billion in tax revenue for the state last year alone. That’s incredibly impressive for a state that’s only offered regulated gambling for barely a decade.
As if losing out to Pennsylvania wasn’t bad enough, the Nevada market is in danger of losing the number two spot to New York State. The Empire State is pulling in around $888 million a year in tax revenue from its legalized establishment. (New York has offered legal gambling since 2001 with the first casino opening in 2006.)
Nevada, by way of comparison, has only offered legal gambling since 1931and brought in just $889 million last year. But remember, higher tax revenues are usually the result of higher taxes.
Pennsylvania casinos pay out around 55% of their revenues to the state and New York state casinos are paying between 31%-41%. Nevada tax rates max out at 6.75% at the state level, according to the Las Vegas Review Journal.
What the tax revenue numbers do point out is the massive demand for gambling in the American East, and Atlantic City’s failure to meet that demand. On the flip side, Atlantic City is now in its ninth consecutive year of declining revenue and there’s little hope for a savior of any kind.
In Pennsylvania, however, the news from the regulated gambling world continues to be all good.