According to the American Gaming Association’s annual report, Pennsylvania surpasses all other U.S. states in gambling-specific tax revenues from casinos. This is due to the state’s relatively large market and high tax rates on gambling.

According to AGA data for 2023, Pennsylvania generates $2.3 billion in casino tax revenue, about $250 million more than New York and one of only three states – along with Nevada – to exceed $1 billion.

Data from the Pennsylvania Gaming Control Board show comparable revenues for the 2023-24 fiscal year ending last June of $2.5 billion in casino-specific taxes.

These figures only include revenue from taxes specific to licensed casinos, such as special taxes on table games, slot machines, sports betting and other forms of gambling. They do not include general taxes that casinos also pay, such as sales tax and corporate income tax.

While it may seem odd that Pennsylvania and New York generate more revenue than Nevada, the Keystone and Empire states’ casinos are taxed much more heavily. Pennsylvania’s top state in terms of tax revenue was just under $5.9 billion in casino revenue, which equates to an average effective tax rate of about 40 percent.

Nevada, on the other hand, collects far fewer gambling-specific taxes, according to AGA figures, relying on its sheer volume of business: In 2023, gambling-specific taxes of $1.2 billion will be collected on over $15.5 billion in total revenue from the state’s casinos.

The Las Vegas market alone is worth over $8.3 billion, about three times the size of its nearest competitor, Atlantic City. Pennsylvania’s largest market, Philadelphia, is way down the list at less than $1.4 billion.

The AGA’s 2023 data also shows that the share of Americans who gamble at casinos has recovered from a sharp decline during the COVID-19 pandemic. Survey numbers show that 41% of Americans visited a casino in 2023, the first year since 2019 that the rate exceeded the 40 percent mark.

The average age of casino visitors has also declined during this period, from 50 in 2019 to 42 in 2023, according to AGA survey results. Nationwide gambling revenues have increased by about 50% compared to 2019 as many states have continued to expand their casino systems.