Here are the 2023 rates for single residents or married residents that file separately: Up to $10,099 | 1% ;The state can regulate, and in some instances prohibit, certain activities known as "games of chance" such as casino gaming, dog racing and slot machines. For federal taxes, you need to fill out a Schedule 1 (Additional Income. Furthermore, online sports betting contributed over $260 million dollars in tax. Borgata Casino PA. 25% on mobile betting. In Year 6, operators can no longer deduct promotional credits and free bets from their sports betting tax obligation. These states view gambling revenue as a potential source of substantial income for public services and initiatives. The second set takes effect Jan. Pennsylvania charge a flat rate on their gambling winnings state tax of 3. a taxpayer may get to deduct more expenses against. com to schedule a consultation with an attorney. PA Online Casino Tax Rates. If, however, you didn’t provide your Social Security number (or your Tax Identification Number), in that case. The change is per ACT 32 guidelines: Out of State Credits for 2012 through 2017 — May only be applied on the ACT 511 tax rate (normally 1%) levied by your municipality/school district. How is the cash value calculated?Pennsylvania casinos are subject to the highest effective tax rate in the country. 07%. 6%. The lowest rate is 2%, whereas the highest is just under 6% at 5. 54% on online casino slots; 16% on online table games; 16%on online poker; What are Pennsylvania skill games? Pennsylvania. 4 Pa. Profits from sports betting are considered “Other Income” for tax purposes. What’s the gambling tax rate in Pennsylvania? The Commonwealth of Pennsylvania treats gambling winnings as another form of income. Ohio’s stiff fines totaling at least $750,000 already are in stark contrast to. Pennsylvania tax on gambling winnings, pa gambling tax rate. The UK chancellor, Philip Hammond, announced in his budget in 2018 that the a higher rate 21% point of consumption tax will now be imposed for online gambling on ‘games of chance’, up from 15%. This is in line with the national trends, where the majority of states have opted for lower rates. The calculator is for informational purposes only. Anyone who receives winnings from lottery games, racetrack betting or gambling must pay income tax on the prize money. 07% against taxable income from gambling and. What are the Gambling Tax Rates in Georgia? In Georgia, state taxes range from 1% to 5. Following testing, the first wave of online casinos went live in July 2019. Pennsylvania’s tax system ranks 33rd overall on our 2023 State Business. 25 percent of the handle (total amount wagered). 5 percent on lottery winnings between $10,001 and $0. These features are important because sports bettors have different styles, preferences, and needs. 5% of Pennsylvania adults engaged in in-person (or offline) gambling. The winner’s responsibility Pennsylvania has its own income tax rate of 3. Pennsylvania residents for PA personal income tax purposes regardless of when the payments are received. 36 billion, down 42. The state applies a flat tax rate of. In 2009, the AGA reported that $1. The effective rate varies according to filing status and total taxable income. The general property tax relief as certified by the budget secretary, has remained consistent at $595 million each year since 2008-09 and is the major distribution from the 34 percent slot machine tax on gross ter-minal revenues. Slot machine taxes go primarily toward property tax relief (in-person or online), Gamrat noted, while table game taxes go into the general fund. Written on . Gambling winnings are fully taxable by the IRS, the State of Ohio, and four cities throughout the state. 161-190; 58. Currently, the lowest California state tax on gambling winnings is 1% but it can reach all the way up to 13. Tax results for gambling in PA are in. The U. A tax-exempt organization conducting gaming activities may be required to withhold income tax and report on Form W-2G. 1 percent for the rest of the nation between 2008 and 2015. Colorado. The Pennsylvania Senate passed a bill which would tax online gambling sites at a 54%. In Pennsylvania, gambling taxes apply to all forms of wagering – lotteries, sports betting, horse racing, slots, and casino games. Latest PA News. T&Cs apply. PA has the lowest rate of all states with a flat tax. 82% at the highest. The current personal income tax rate in PA is 3. 75%. The state levies a gaming tax at a progressive rate based on a gambler’s annual ordinary income. Maryland state tax on gambling winnings ranges from 2% to 5. 8 percent on lottery winnings exceeding $0. All gambling winnings are treated equally. PA Gambling Tax. We will continue to provide current updates on the PA sports betting market and its monthly revenue reports. 8% for Lottery payouts over $10,000, if the claimant does not provide a valid Taxpayer Identification Number. 4 percent tax rate on adjusted gross sports betting receipts. We will continue to provide current updates on the PA sports betting market and its monthly revenue reports. 37 billion. states make substantial tax revenue from online gambling. Sportsbooks are in the business of accepting sports wagers; therefore, your revenue from amounts wagered is subject to federal excise taxes and Ohio’s sports gaming receipts tax. In the case of sports betting, the Kentucky sports betting tax rate is 9. 4. Online Casino Tax Rates in Pennsylvania. These vary from 0% at the lowest to 8. 75% for retail sportsbooks and 14. The higher your taxable income, the higher your state tax rate. Is the tax rate different for different lotteries? No. 07%. Maryland’s state rate ranges from 2% to 5. By test11145181 August 15, 2022. 59% in 2021, you may have to pay taxes. 75%. 5% (for wagering on animal sports tournaments) to 50%. New Withholding RateGambling Revenue ; Since Pennsylvania has legalized sports betting, the state has handled $13,746,491,797, with $1,013,751,455 in revenue for sportsbook operators. Withholding. Not all gambling is equal for tax purposes, however. In Year 3, the cap is 15% and drops to 10% in Years 4 and 5. com What’s the gambling tax rate in Pennsylvania? The Commonwealth of Pennsylvania treats gambling winnings as another form of income. Pennsylvania currently has a gambling tax rate of 3. The tax rate is 8. But, these are still counted toward your total taxable income. Fact checked for. The higher your taxable income, the higher your state tax rate. Video Gaming Terminals. The way gambling winnings are reported varies depending on the type of gambler. The lowest rate is 2%, whereas the highest is just under 6% at 5. Commonly, sports betting operators have revenue, known as hold, of 5 percent of the handle, which means that for every $100 you wager, the operator takes $5, of which they must pay taxes and. In addition to cash, taxable gambling and winnings may include the value of non-cash prizes (vacations, automobiles, etc. For these players, gambling winnings are considered regular income for tax purposes, meaning that they are taxed at the normal income tax rate, rather than the gambling tax rate. 1 Operated by Parx Casino. Pennsylvania’s online gambling tax rates are almost the highest in the world. 51 billion in gaming revenue for the FY 2022/2023 and reached a tax mark of $2. You can see the Pennsylvania Department of Revenue's guide to gambling and lottery winnings for a full rundown. In The Empire State, all gambling winnings are taxable and subject to a 24% federal tax rate on top of an NY state gambling tax rate, which can range from: 4% for up to $8,500. 1, 2024, while the third would go into effect exactly one year later. In Maryland, there is a gambling winnings tax rate of 8. A gaming facility is required to report your winnings on a W-2G when: Horse race winnings of $600 or more (if the win pays at least 300 times the wager amount) Bingo or slot machine winnings are $1,200 or more. July 2020 August 2020 September 2020 November 2020 December 2020 January 2021 February 2021 March 2021 May 2021 June 2021 FYTD Grand TotalThe breakthrough was , which was passed on Dec. If you placed bets through betting operators like DraftKings DKNG, +2. The IRS collects a minimum 24% resident tax rate on all lottery prizes with a value of $600 or more. GAMING REVENUE - FISCAL YTD BY MONTH. In New Jersey, taxes are just 8. S. There are various deductions you can make, and exact tax rates will depend on your annual income. Arizona allows operators to deduct promotional credits and free bets up to 20% of sports betting handle during the first two years of Arizona sports betting. Gambling and lottery winnings is a separate class of income under Pennsylvania personal income tax law. the high tax rate of 36% and. Where do taxes collected from Pennsylvania casinos go? For every dollar produced as revenue from slots, 54 cents is returned to Pennsylvanians. 07% (state) All gambling winnings in the United States are taxed at a flat rate of 24%, and gamblers are liable to pay taxes on these winnings as failing to do so is a federal crime. 5 million in taxes from $1. Federal tax is levied on cash, and non-cash winnings profited from playing bingo, lottery, gambling on sports, raffles, keno, sweepstakes, slots, and all gambling games. 75% and only the lowest earners pay less than 5. 07%, which is extremely low. Thankfully, Pennsylvania makes up for it, with an overall population size of 12 million residents. Tax on Online Casino Winnings in Pennsylvania. Where are enough of queries surrounding Pennsylvania taxes and gambling winnings. Pennsylvania has the lowest flat tax rate of any state. However, cryptocurrency is not currently accepted as a form of payment for gambling transactions. Paul Waggoner, R-Hutchinson. Nevada, which has had legal wagering for decades, saw $8. (compared to a median tax rate of 11%. In addition to federal taxes payable to the IRS, Pennsylvania levies a 3. October 26, 2017. Pennsylvania law mandates that a percentage of gaming revenue be earmarked for the state’s Compulsive and Problem Gambling Treatment Fund. Let’s look at the different types of gamblers:The Pennsylvania gaming industry is booming. High tax rates are crimping online casino expansion, but PA online sportsbooks remain a hot ticket. Additionally, the cost of the retailer was changed from 6 percent to 7 percent. S. 5 percent, producing around $87 million in gambling tax revenues for the state. The federal tax rate for all kinds of gambling winnings is 24%. Pennsylvania has a flat tax system and charges a 3. $726 million total bets in September, up around 13% from a. New Jersey is home to many popular gambling attractions and, of course, Atlantic City. §7303 (a) (7). On December 29, 2021, Public Act 168 (PA 168) was signed into law amending the Michigan Income Tax Act (MITA) to create a new individual income tax deduction for wagering losses sustained by casual gamblers. 58% for certainGambling winnings, however, are exempt from FICA taxes but are subject to Maryland and federal taxes. 2 Operated by Mohegan Sun Pocono. § 13C01(1)(iii), tangible promotional items related to sports wagering may be deductible under the criteria set forth within Bulletin 2015-01. The 16% tax rate for table games is lower due to the overhead cost. The Pennsylvania Lottery will automatically withhold PA personal income tax on prizes greater than $5,000 paid after July 12, 2016. Does Pennsylvania Tax Gambling Winnings Gambling Form PA-40 T. Maryland taxes will be withheld at a rate of 8. Although not the highest in the US, Pennsylvania has varying tax rates depending on the vertical. By law, gambling winners must report all of their winnings on their federal income tax returns. Tax revenue generated from sports wagering during September 2022 was $18,078,109*. It was the second year that Pennsylvania has led nationwide in the amount of tax revenue generated from casino gambling. Unlike sportsbooks, PA online casinos are allowed to partner with unlimited “skins” (online gambling brands), and since all but one casino has purchased a license to offer some form of iGaming (along with outsiders Golden Nugget and MGM), you have plenty. However, it’s important to remember that the federal government taxes gambling income at 24% in every state, so you can never fully avoid taxes on those big wins! The tax rate on slots is one of the highest in the nation. {/HIDESEARCH} HARRISBURG, PA:The Pennsylvania Gaming Control Board reported today that the combined total revenue generated from all forms of gaming along with fantasy contests during November 2022 was $452,357,922, an increase of 4. 59% compared to revenue generated in November 2021. It took a while for the framework and licensing process to be put into place. Check out the all-time Pennsylvania sports betting revenue stats below. State taxes are due in the state you won the income and different rules may apply to players from out of state. However, remember that federal taxes apply to gambling winnings earned in Nevada. How we rate Pennsylvania online gambling sites. All gambling winnings are taxable income. It’s a much higher rate than New Jersey that taxes at a rate of 8% for both. When determining how much to report on your income tax return, bettors must add up the total amount of their winnings, which gives you your total gambling winnings. If there are no net winnings, enter a zero here and on Line 8 of the PA-40, Personal Income Tax Return. Yes, non-US residents must pay taxes on gambling winnings. Tax Rate on PA Casinos and Sports Betting. So, if you lost $5,000 on sports betting last year but took home $7,000 in the end, you’d be able to deduct all of those losses. “However, I’m cautious. Yes. A 16% tax rate is levied on table games and poker. A high bar to entry for casinos tooThe first set of graduated income tax rates is retroactive to Jan. If the total LST rate enacted is $10 or less, the tax is to be collected in a lump sum. 07%. 25 percent of net take. License applicants are required to pay a one-time fee of $10 million for sports betting in Pennsylvania. For the 22% tax rate paid by typical middle-income households, the breakeven win percentage rises to 58. In addition to the rate of gambling winnings, the tax rate on nonresident composite and withholding obligations would drop by 50% over three years. 75%. But the bills set a tax rate at 10% on the amount of money a gambling operator gets from people’s losses. 35 billion in sports betting revenues. Video gambling terminals (VGTs) are opening monthly throughout Pennsylvania, though the average gambler may never notice them. However, you may get reimbursed some or have to pay more depending on which tax bracket you are in. This does not explicitly state sports betting, but it does cover. 4 billion, about a 28% increase from last year. You should report your Pennsylvania taxable winnings on PA-40 Schedule T (PDF). So, for instance, if you make $42,000 annually and file as single, your federal tax rate is 22%. Where to bet on sports in PA. In Pennsylvania, the state gets more than a third of all revenues and a few of the states with lottery-run operations take half of the total profit or more. 00 percent, and an average combined state and local sales tax rate of 6. It doesn’t take much – an annual. A game’s profit is more than $600 and is 300 times your bet amount or more. PAGaming Control Board Reports 7. 5 percent on gaming machine revenue 35 percent on table game revenue. Pennsylvania tax on gambling winningsGaming Tax Bulletin 2019-01 -- Department of Revenue Policy Concerning Implementation of New Gaming Initiatives Under Act 42 of 2017. 25% for online sportsbooks. Pennsylvania also prohibits pool selling and bookmaking; punch boards, drawing cards; private wire for. 2% Needed to gamble with larger amounts of money to get the same feeling of. 43 billion in gaming taxes generated for state and local governments State and local governments in gaming states saw an influx of direct gaming taxes in the third quarter. Posted on: November 17, 2023 | News | Corey Sharp. $726 million total bets in September, up around 13%. They are under the radar. § 4. Pennsylvania currently has a gambling tax rate of 3. 31, 2015,. However, starting in 2018, the withholding rate for federal taxes is now a uniform 24%. You would have to have an individual income above $100,525, including your winnings, to move into the 24% tax bracket. 5% on retail betting and 14. 82%. 2%. The gaming law restricted the possibility of hosting sports gambling to Pennsylvania’s 12 casinos, any of whom could apply for a “sports wagering certificate” with Pennsylvania’s Gaming Control Board (GCB). Pennsylvania has a high licensing fee and a high tax rate for slot games. Pennsylvania's 55 percent tax rate on slot-machine proceeds is among the highest in the nation, below New York's 65 percent and West Virginia's 57. What’s happening in PA sports betting right now. of the PA-40, Personal Income Tax Return. So, here are a few general laws and rules from Pimlico surrounding gambling tax rates in Maryland: Yes, the Internal Revenue Service (IRS) considers money won on sports gambling to be taxable income, meaning the sports bettor must report the market value of the amount he wins. 6 billion in 2019, up 3. 75 percent on a resident's winnings. Michigan ranks in the top 10 for all-time dollars bet. For slot machine gaming online, the tax rate increases even more and sits at 54% for online casinos in Pennsylvania. As a comparison, riverboat and land-based casinos in Indiana have a graduated tax rate of 15% to 40% of all gross gaming revenue and 25% to 35% at racinos. Chapter 2 explores when an organization’s gaming might give rise to income tax. In addition to the state taxes, the federal government levies an excise tax at a rate of 0. RTP. Interactive gaming authorization fee. 5 million. 2 billion paid in gaming taxes to state and local governments, with billions more. – 5:00 p. At this juncture, it seems nearly inevitable that the next piece of legislation will call for an oppressive 54 percent tax rate on online slots, coupled with a 16 percent rate on table games and poker. Second to New York in tax revenue was Pennsylvania, which also has a high tax rate of 36%. Tom Wolf signed H 271 into law, enabling Pennsylvanians to enjoy online casino gambling. Virginia has an income tax for its residents that is a hybrid of a flat and graduated tax. 2. All earnings are subject to sports betting taxes. The state law that legalized table games at casinos in 2010 required the tax revenue from those gambling proceeds to be put in the Property Tax Relief Fund if the state’s finances became so. Total Betting Handle: $18,892,157,142. 75%, while Delaware and New York tax fantasy contests at a rate of as much as 15. Local share assessment. Nov 21, 2023IMPORTANT: For both PA residents and non-PA residents, noncash prizes from playing games of the Pennsylvania Lottery are not taxable, but you must include your noncash. Licensing and regulation are under the jurisdiction of the Pennsylvania Gambling Control Board . In Maryland, there is a gambling winnings tax rate of 8. A comprehensive gambling expansion bill in late 2017 included a provision for sports. The 10% tax on sports wagering revenue in the Kansas bill was paltry compared to tax rates on casino sports book betting in New York at 51%, Pennsylvania at 36%, Tennessee and Arkansas at 20% and Maryland at 15%, said Rep. These cost $100 and are active for one year. A $36 tax would be collected at 69 cents a week for employees paid weekly, or at $3 a month for employees that are paid monthly. In Pennsylvania, operators must pay a one-time license fee of $10 million. ️ Online gambling launch : July 2019 : 💸 Tax rate : 25% (federal) + 3. The rates are as follows: 3% for income up to $10,000. Some states don’t impose an income tax while others withhold over 15%. But every time sportsbooks lose a $1,100 bet, they only lose $1,000. org or call - 18005224700. Nov. 5% if gambling losses are not itemized. Sports Betting 36% Fantasy Sports 15%Visit mypath. In Year 6, operators can no longer deduct promotional credits and free bets from their sports betting tax obligation. Thirty-six states charge a tax on lottery winnings, with an average lottery tax rate of 5. All gambling winnings must be reported as they are all considered taxable income. Gambling Taxes: You Have to Report All Your Winnings. The additional amount is because the amount the payer covers in taxes is also taxable income to the winner. This means if you win Mega Millions, Powerball or a state lottery you will pay the same rate of taxes. Newest Updated Feb 22, 2023. 07 percent against taxable income of resident and nonresident individuals, estates, trusts, partnerships, S corporations, business trusts and limited liability companies not federally taxed as corporations. Gambling in Pennsylvania includes casino gambling, the Pennsylvania Lottery,. Illinois does not allow a deduction for tax paid to another state for gambling (until 2020) So, I paid BOTH state’s tax on the same income. 07% income tax on their gambling winnings. 75% on adjusted gaming revenue, with operators permitted to set aside 20% of gross revenue as promotional. The amount of taxes collected in Pennsylvania is fueled by a 55% tax rate on gross slot machine revenue and 16% on gross table games revenue. S. This does not explicitly state sports betting, but it does cover. (91168), PA , CO (94449040), IN (SWR-000133), WV (SWS070 &. $10,360. 2014 PA Schedule T - Gambling and Lottery Winnings (PA-40 T)How we rate and review Pennsylvania online casinos. Pa. On the state level, a flat tax has gone into effect in Arizona in 2023, and the rate is 2. Similarly, “gross interactive gaming revenue” and “gross interactive airport gaming revenue” are defined to allow for the deduction of tangible promotional items. Each Pennsylvania sportsbook can be. 75% income tax. 25%. 5 billion in revenue in Pennsylvania last fiscal year. Read More. Since the classification of losses as business or non-business affects. Other states like Illinois, Pennsylvania and Tennessee are new to the business and could drop tax rates in the future. Josh Shapiro, Governor Pat Browne, Secretary. 1 Operated by Parx Casino. The PA gambling tax rate is 3. The company has not rolled out its new technology stack to the state either. Taxes are: Online table games and poker: 14% + 2% local share = 16%; Online slots: 52% + 2% local share = 54%; Sports betting: 34% + 2% local share = 36%; Daily fantasy sports: 15%; Taxes on online poker. 60 per pack of 20 cigarettes/little cigars ($0. 1 Closed July 1-16, 2020 due to Covid-19 restrictions. Gambling winnings are subject to a 24% federal tax rate. PA casinos will have to pay a 36% tax on winnings to the state; Sports. A: Regardless of whether you win $1 or $1,000, all gambling winnings are considered taxable income. In figures released by the Pennsylvania Gaming Control Board (PGCB), online casino operators recorded $170. Now there are 34 locations, each with just five machines, the maximum allowed in an. 25% tax in. 07% on top of the federal rate of 24%, which applies to all gambling activities. They are required to report and pay tax on the income (from PA’s eight taxable classes of income) that they receive during their taxable year. There are seven tax brackets as of 2024. West Virginia state tax on gambling winnings also depends on how much you earn annually. The addition of 7 new interactive gaming sites in Fiscal Year 2020/2021 brought the Pennsylvania total to 19. PA applies a standard income tax to all residents’ earnings. Simply include the amount you won on your state income tax return. $11,701 to $13,900: 5. To find the state income tax rate for the current tax year, refer to that year's tax return for the rate in effect. States with higher sports gambling tax revenues allow online. Pennsylvania recorded $5. Chapter 1 - Gaming’s Impact on Tax-Exempt Status 3 Gaming’s Impact on Tax-Exempt Status This chapter explores the impact of gaming on an organization’s tax-exempt status according to the section of the Internal Revenue Code (IRC) under which it is exempt. When did online gambling become legal in Pennsylvania? Legal online gambling in PA has existed since 2017, when the Pennsylvania Gambling Expansion Act was signed into law by Governor Tom Wolf. S. Double taxation. Players are obligated to report them on both their federal income tax returns and state tax return. PA Gaming Control Board Reports 7. The effective tax rate is 17. State and local tax rates vary by location. § 13B53. States that have authorized sports wagering tend to hover in the 10% to 15% range, with outliers such as Pennsylvania at a 36% tax rate contrasting with Nevada’s 6. The first PA gambling sites, all online casinos, open in July, generating $97,200,855 in tax by the end of the 2020 fiscal. That was a 14% increase month-over-month and 4% higher than the previous record from October 2022. Thankfully, Pennsylvania makes up for it, with an overall population size of 12 million residents. Feb 05, 2014 Pennsylvania’s bottom line: PA residents with NJ online gambling winnings may claim a partial or full credit against PA tax of the tax paid on those gambling winnings to New Jersey. 4 million in May revenue. Please consult the PA-40IN booklet. Caesars has said PA sports betting is not a priority given the state’s 36% effective tax rate. Pennsylvania tax on gambling winnings Gaming Tax Bulletin 2019-01 -- Department of Revenue Policy Concerning Implementation of New Gaming Initiatives Under Act 42 of 2017. —roughly 20% of the population—are expected to bet $16 billion on the Super Bowl this Sunday, according to an annual survey. Pennsylvania taxes nonresident beneficiaries on income from an estate or trust only to the extent the PA-source income to the beneficiaries is taxable to nonresidents. Total tax revenue generated collectively through all forms of gaming and fantasy contests was $161,165,506 during June 2022. With restaurants and shows, there is plenty to do here as well as wager – and when you get to the. Gambling. Consumer protection is stronger at online casinosThe national tax revenue from commercial casinos in the United States was highest in Pennsylvania, New York, and Nevada in 2022. Pa. There is an effective rate of 36%, in addition to a $10 million one-time licensing fee. In 2017, Gov. Tax revenue generated from sports wagering during April 2021 was $9,466,734*. California residents should be wary because these taxes are much higher than what other states charge their residents. The tax rates states have imposed on sports betting vary widely (see table 2 below). 3. The EITC is not a City program. New Jersey Income Tax withholding is based on the. “Fifty-seven dollars isn’t going to pay any of my bills. 901; 61. As for mobile sports betting, where most of the “action” is, the rate is 13%. Pa Tax On Gambling Winnings. Any wins that trigger a W-2G are withheld at a rate of 24%. Colorado. Both online and offline gambling games, except promotional lotteries, are subject to a gambling tax. Pennsylvania launched online gambling in 2019. 6% for income between $40,000 and $60,000. New York – State tax on gambling winnings. This notice describes the new deduction, which applies to tax years 2021 and after. Subchapter G. For Tax Year 2020: 3. INITIAL. You should pay the same amount in taxes to both the Pennsylvania Department of Revenue and the online casino if you win $10,000 total (say, on football betting and $10,000 total on slots). 25% for online sportsbooks. The House approved a wide-ranging gaming expansion that also regulates daily fantasy sports and allows for online poker and gambling. 5%. This includes payments in 2016 from annuities or other cash prizes claimed before 2016. Tennessee is one of just 10 states that makes at least 4. 62 percent of the tax. The Ohio sports betting bill also doesn't allow operators to. This means if you win Mega Millions, Powerball or a state lottery you will pay the same rate of taxes. When your winnings reach a substantial amount, the entity paying out the winnings, such as a casino, may withhold a portion for taxes before providing you with your winnings. Despite tax rates of 54% for online slots and 16% for online table games and poker, PA became the first state to cross $1 billion in tax revenue. The five-year projections show that, if things go well in Pennsylvania, after five years the industry will generate around $300 million annually. See 72 PA C. Poker tournament winnings are more than $5,000. In fact, the tax rates average out to be over twice the rate New Jersey currently uses. These gambling winnings are subject to federal income tax withholding, typically at a fixed rate of 24%. personal income tax on Pennsylvania Lottery cash prize winnings. 6% for income between $40,000 and $60,000. gambling industry, including casinos, lotteries,. Gaming Tax Rate: For Category 1, 2, and 3 casinos, the tax rate is as follows: • State tax: 34 percent ( Pa. 2 Closed July 3-9, 2020 due to Covid-19 restrictions. 54% on slot revenue; 16% on table game revenue; 34% on electronic table games; Pennsylvania iGaming tax rate. 1 Operated by Parx Casino. 5. 8, 2021, and legalized both retail and mobile sports betting with a tax rate of 10%.