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Pennsylvania Top Casino Gambling Earner

The July 27, 2023, By Takato Sugihara

Eyebrows were raised as Pennsylvania topped the nation’s grossing casino profits, with about $1.1 billion. Indeed, the state topped Nevada’s earnings of $832 million, staggering critics and investors alike.

Pennsylvania has become the United States’ most profitable state for casinos and gambling, earning over $1.1 billion in 2009, earning more than Nevada, who grossed a mere $832 million. Pennsylvania licenses only nine casinos, compared with Nevada’s 260. However, there is a great difference in the taxes that the Keystone state gains from the casinos. While other states, including Nevada levies taxes of about 8%, Pennsylvania levies a surprising 55% tax rate on slots, almost seven times higher than Nevada and comparable states. Not that it seems to stem the casino tide, Pennsylvania’s gambling market is booming.

The tax dollars in Pennsylvania help fund property tax relief, benefit the horse racing industry and help with municipal budgets. However, some experts believe that the inflated tax rate could deter future investors from opening new casinos in Pennsylvania.

David G. Schwartz, director of the Center for Gaming Research at the University of Nevada, Las Vegas, said the 55 percent tax rate "might be an influencing factor" for casino operators scouting locations in years to come. Casinos might also scale back extra development, Mr. Schwartz said, pointing out the Sands Casino Resort in Bethlehem has already faced such decisions.

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