Many industries were hit hard by the pandemic last year, including the US casino industry. However, thanks to online casinos, states like Pennsylvania were not hit as hard as they could have been.
Many states rely on their gaming industry to bring in reliable tax revenue to help fund various programs ranging from education to transportation to mental health programs. When states began reporting a revenue deficit last year, education programs were the first on many lists to be slashed.
These programs are essential to the well-being of many across PA, especially in our most vulnerable communities.
Luckily, thanks to the state’s thriving iGaming and online sports betting sites, Governor Wolf was not put in the position many other states were when it came to cutting such programs.
Let’s not understate reality. Total revenue from the casino gaming industry was down 31% compared to 2019.
This is because land-based casinos were ordered to close for 33% of their total working days of fiscal year 2020.
It is also important to note the point elaborated on these figures by AGA President and CEO Bill Miller, “They don’t include lost revenue from live entertainment, dining, hotel bookings and meetings and conventions that are so crucial to gaming properties. More importantly, they don’t capture the difficult personal decisions and sacrifices that have impacted every single member of our industry.”
Pennsylvania collected more taxes than any other state from its gaming industry in 2020. This is, in part due to the state having one of the highest tax rates in the country on casino games.
For online casinos, here are the current tax rats:
Thanks to these rates, PA was the only state to generate more than $1 billion in gaming tax revenue last year.
This is excellent news for Pennsylvanians who rely on essential state programs, as noted above.
Pennsylvania has already seen record growth in its iGaming industry. Each month continues to generate record profits and revenue for the state.
Penn National Gaming continues to reign supreme with its SugarHouse and BetRivers online casinos. However, recently, PA has seen BetMGM and Borgata Online go live and have so far been doing very well. More online casinos have been announced to join PA’s iGaming community this year, including Golden Nugget.
Market analysts predict that the recovery from the pandemic will be challenging for many industries in Pennsylvania. However, the iGaming industry is not one of them. Predictions continue to hold that online casinos can expect to continue to see another banner year for 2021, and so far, the numbers have proved these predictions correct.