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Recent moves by the online gaming and sports betting advocacy group Sports Betting Alliance (SBA) have launched a campaign against potential gaming-revenue tax hikes in Pennsylvania
While lawmakers have remained silent about possible increases, the SBA’s anti-tax push suggests the group may know something the public doesn’t.
The SBA’s members are bet365, BetMGM, DraftKings, Fanatics and FanDuel.
Inside the SBA’s push against a possible PA tax hike
The SBA’s website includes a page devoted to Pennsylvania’s gaming market that reveals the group’s stance on state taxes. One side of the page features a statement about the situation, while the other provides a form email visitors can send to lawmakers to voice opposition to any tax increases.
“Right now, state lawmakers are considering a tax hike on online betting, including sports wagering and casino games,” the page reads. “With unfair tax hikes like this, everyone loses — but especially customers!”
The SBA argues that a tax hike would created three major drawbacks:
- Worse betting experience: Higher taxes may lead operators to offer slightly worse odds, hurting the bettor’s experience.
- Stifled innovation: Operators would have fewer dollars to put toward research, development, and implementation of new user features, bet types, and casino game titles.
- Push players to the illegal market: If bettors notice that Pennsylvania sportsbooks are offering worse odds than before, they may be tempted to deposit with illegal offshore sites that provide more favorable odds.
The page also mentions that Pennsylvania already has some of the highest gaming revenue tax rates in the country.
The state’s 36% tax rate on sports betting revenue is the seventh-highest in the US, while its iGaming tax rate is 54% for online slots, which make up nearly all iGaming revenue in states with real-money online casinos. That rate is the third-highest in the country:
- Delaware: 57% (online slots)
- Pennsylvania: 54% (online slots)
- Rhode Island: 50%
- Michigan: Up to 28%
- New Jersey: 19.75%
- West Virginia: 15%
- Connecticut: 18%
Any potential tax increase would likely push Pennsylvania into the dubious top spot for the highest online gambling taxes in the country.
