With budget planning approaching and a few painless fiscal options available, lawmakers are focusing on gambling revenue that shows up reliably month after month, rising to $602M in May, above $557M through July and August, dipping to around $530M in September, then climbing back near $600M in October. Each of those months delivered more than $250M in tax revenue for the state.
Online casinos saw the strongest growth, up 33% from last year and now making up over 40% of total gambling revenue, according to the Pennsylvania Gaming Control Board.
Discussion in Harrisburg remains informal, with supporters pointing to those numbers as grounds to reopen the conversation. Opponents, however, argue that any move to revisit rates would come on top of a tax framework that already ranks among the highest in the country. Pennsylvania taxes slot revenue at 54% throughout both brick and mortar casinos and online platforms, while sports betting revenue is taxed at 36%, a structure operators say leaves little room to adjust pricing against nearby markets.
There is also concern about how higher taxes could affect online gambling in parts of the state with fewer options for play. Across much of North Central and rural Pennsylvania, online platforms are the main way residents enjoy legal gambling, as casino properties in eastern and western Pennsylvania often translate into long drives for residents in between.
Poker players, in particular, look beyond Pennsylvania’s regulated system, following patterns seen in unregulated states like Texas, where much of the action has gone offshore to crypto casinos that do not tax on winnings. Tables move much faster outside strict licensing frameworks, and payouts hit wallets in seconds, while blockchain tech records every hand publicly for anyone to check.
But looking from a wider perspective, most reported gambling money in Pennsylvania still moves through a few sports betting platforms. In October, sportsbooks took in hundreds of millions of dollars in wagers, with online bets accounting for most of the activity. FanDuel and DraftKings led the market, though offshore competition has effectively set the pace on odds and bonuses, allowing them to recycle operating savings into pricing and promotions.
The global online gambling market is thought to surpass $54B by 2030, with mobile play continuing to change how betting money is made in Pennsylvania and suggesting further upside, keeping it in the budget conversation even when no formal proposal is on the table.
Regulators know online players react fast to any changes in costs, whether through promotions or fees, which makes the market more sensitive than the revenue might suggest. For now, lawmakers seem content to hold back, using monthly results as a guide while waiting to see how the year closes out.
What started as a pandemic-era boost has turned into a new economic engine, with online platforms way ahead of classic casino floors in some months. Whether that momentum is enough to convince lawmakers to adjust the tax structure or leave the current balance intact will likely become clearer as Pennsylvania’s budget deadline approaches.