SB900's Online Gaming Tax Rate, Why it Just Wont Work


Proposed Tax Rate in Pennsylvania for Online Gaming Predicted as Record High

SB900's Online Gaming Tax Rate, Why it Just Wont WorkIt doesn’t matter what part of gambling, or any business it is, really, tax rates are always an important factor. Tax regimes are a way for states to generate extra income from activities that occur no matter where you reside. However, Pennsylvania’s SB 900 bill proposes a 54% tax rate for online gambling in the state. This tax, if approved, will be the highest tax rate in the world for regulated online gambling.

Gaming profits in the state are already at an all-time low therefore, the substantial or ridiculous proposed rate would cause several issues within the industry, and make operating very challenging, to say the least!

The return on video poker and slots in Pennsylvania is already far below of what you would expect, and compared to Atlantic City and Nevada. The 54% mirrors video poker and slots in the state. There is only one more state that has a lower return and that is West Virginia, but the house edge was 51% higher than Nevada.

According to gaming expert, Joe Weinert, senior vice president of Spectrum Gaming Group, “that rate will just not work,” as the current State Senate bill proposes a tax that is the highest in the nation far exceeding competing states.

Generating online tax revenues is normal, but it isn’t a solution when you propose a high tax rate on online activity to try and create a new market, it just simply won’t work!



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