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PA Online Casino Operators Prepare For A Very High Tax Rate On Slot Machine Revenue

Home / US Online Poker / Pennsylvania / PA Online Casino Operators Prepare For A Very High Tax Rate On Slot Machine Revenue PA Online Casino Operators Prepare For A Very High Tax Rate On Slot Machine Revenue What has Pennsylvania gotten itself into with an extremely high tax rate for online casino games? We’re close to finding out. In October 2017, PA Gov.  Tom Wolf signed massive gaming bill into law , effectively authorizing real money online poker and casino games which will form part of a large-scale statewide gambling expansion. As regulated US iGaming interests prepare to launch their offerings to the Keystone State market —  perhaps as early as this year  — here is a look at the 54 percent effective slot revenue tax rate that internet casino operators will be responsible for paying to various statewide interests. What do you get when you burden online slot machine revenues with a tax rate in excess of 54 percent? That remains to be seen. Moments after Pennsylvania House Bill No. 271 was signed by the governor, Online Poker Report regulated iGaming analyst Steve Ruddock posted a  detailed explanation  of how the state’s effective 54 percent online slot revenue tax rate might affect the industry. Pennsylvania iGaming operators’ reliance upon slot revenue is expected to be less than that of neighboring New Jersey’s historical figures (thanks to a newly-formed  multistate poker coalition between the Garden State, Nevada and Delaware along with an increased focus on more moderately-taxed table games in PA). But that still “doesn’t change the fact that the hefty upfront fee and the tax rate of 54 percent on slots makes it virtually impossible for any operator offering all three verticals (slots, table games, and poker) to realize a profit in its first five years,” according to Ruddock.

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