Pennsylvania Tops Nevada In U.S. Gambling Tax RevenueState Leads Because Of Higher Tax Rates |
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Of the 22 states that currently collect casino tax revenue, Pennsylvania, not Nevada, is leading the way, taking in $1.456 billion in 2011. Though Nevada remains the largest gaming market in the U.S., it ranked second for tax revenue thanks to a much lower tax rate, generating $865.25 million for the Silver State. Indiana ranked third.
Pennsylvania taxes at a rate of 55 percent for gross slot machine revenue and 16 percent for table games revenue. Nevada’s rate tops out at just 6.75 percent, though an additional 1 percent may be imposed by various counties and municipalities.
Indiana, which will soon take a hit from brand new casinos opening in neighboring Ohio, took in a total of $846.37 million for the state, which taxes at a graduated rate of 15 to 40 percent of gross gaming revenue and takes an additional $3 per patron as an admissions tax for their riverboat and land-based casinos. Racinos, or race books with slot machines, take a graduated rate of 25 to 35 percent.
In 2011, commercial casinos contributed a total of $7.93 billion in gaming taxes to 22 states, which represented an overall increase of 4.5 percent over 2010. The growth was largely attributed to new casinos in Maryland, Kansas and New York.
Here is a look at the numbers, which show total gaming tax rates and revenue for each state.
State | Tax Rate | Tax Revenue |
Pennsylvania | 55% table games, 16% slot machines | $1.456 B |
Nevada | Graduated up to 7.75% | $865.25 M |
Indiana | Graduated up to 40% | $846.37 M |
New York | 47% | $593.4 M |
Louisiana | 21.5% or $60 M, whichever is greater | $573.19 M |
Illinois | Graduated up to 50% | $489.42 M |
Missouri | 21% | $484.83 M |
West Virginia | 42% | $406.46 M |
Iowa | Graduated up to 24% | $321.53 M |
Michigan | 19% | $320.67 M |
Rhode Island | 27.53% | $308.71 M |
New Jersey | 8% | $277.6 M |
Mississippi | Graduated up to 12% | $274.42 M |
Delaware | 42% | $230.16 M |
Florida | 35% | $143.6 M |
Colorado | Graduated up to 20% | $102.17 M |
Maryland | 57% | $89.53 M |
New Mexico | 26% | $64.72 M |
Maine | 43% | $29.06 M |
Oklahoma | Graduated up to 30% | $18.3 M |
South Dakota | 9% | $16.36 M |
Kansas | 27% | $13.08 M |