Costa, the Senate Minority Leader, estimates his reforms — most notably, online gambling and. 75%, and gambling winnings are considered income. “You can’t even go to the grocery store for $57,” Kenny said. To use the calculator, you would select your state, indicate your tax filing status, add the amount of the other taxable income outside of gambling, enter the amount you won, and press calculate. The state considers all other gambling winnings income, so what rate you pay depends on how much income you collected from all sources during a tax year. So, if the winnings are reported through a W-2G Form, federal taxes will be withheld at a rate of 25%. 07%. The winner’s responsibilityPennsylvania has its own income tax rate of 3. In addition to the rate of gambling winnings, the tax rate on nonresident composite and withholding obligations would drop by 50% over three years. The amount withheld for state taxes varies from state to state. org or call - 18005224700. When gambling winnings are combined with your annual. Your federal tax rate is based on your yearly income, which includes gambling winnings, adjusted for deductions. The tax rate will be determined by your income on your federal income tax paperwork. If there are no net winnings, enter a zero here and on Line 8 of the PA-40, Personal Income Tax Return. 25 percent of net take. Stat. Pa Gambling Tax Rate - Top Online Slots Casinos for 2022 #1 guide to playing real money slots online. Plus, federal income tax is applied to gambling wins. S. Whether it’s in the lottery or in a casino, they must pay a percentage of their winnings to the federal government. Pa. Most states have tax rates between 5% to 20%. Pennsylvania’s rates aren’t the highest — New York recently launched online sports betting with a 51% tax rate on operators. See full list on pennstakes. Pennsylvania Gambling Tax Rate – 24% (federal) + 3. 99 percent corporate income tax rate and permits local gross receipts taxes. Pennsylvania charge a flat rate on their gambling winnings state tax of 3. This is much lower than the other states in the US. In Year 3, the cap is 15% and drops to 10% in Years 4 and 5. By law, gambling winners must report all of their winnings on their federal income tax returns. For lottery winnings, the gambling tax for New Jersey is 5% for any win of over $10,000, though it goes up to 8% if you don’t give a valid Tax Identification Number. 6 billion generated in commercial gaming revenue in 2019 - the fifth-straight year of revenue growth. 50%. September 2021 – As the NFL season kicked off, Pennsylvania monthly sports betting handle reached a figure of $578,760,746. 51 billion in gaming revenue for the FY 2022/2023 and reached a tax mark of $2. Machines can operate only at approved diesel fuel truck stops. States such as New York, Rhode Island and Pennsylvania have tax rates as high as 51%. Such high rates might make the legal market non-competitive with the black. 31, 2015, all prizes of the Pennsylvania Lottery were excluded from this class of income. The benefit is even greater when other taxes and additional employment are factored in. 75%. These features are important because sports bettors have different styles, preferences, and needs. What’s the gambling tax rate in Pennsylvania? The Commonwealth of Pennsylvania treats gambling winnings as another form of income. Sports betting taxes are almost always levied as a percentage of the value of the. Ohio State Tax Rates on gambling. October 26, 2017. For a nonresident, the withholding rate is 7. PENNSYLVANIA PERSONAL INCOME TAX GUIDE GAMBLING AND LOTTERY WINNINGS DSM-12 (02-2019) 1 of 4. 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. You should report your Pennsylvania taxable winnings on PA-40 Schedule T (PDF). If you decline a W-9, backup withholding will be withheld at a 28 percent tax rate. Robert Matzie is concerned that’s enough to prove that the exorbitant. 15% higher than June 2021 when revenue was $3,303,745. 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. Pennsylvania recorded $5. m. All gambling income from any source whatsoever is subject to tax and is a component of AGI. $0 – $11,000. The lowest rate is 2%, whereas the highest is just under 6% at 5. § 4. 8398% for Philadelphia residents. Sports betting is now among the many forms of gambling winnings that are subject to the New Jersey Gross Income Tax, including legalized gambling (sports betting, casino, racetrack, etc. This means if you win Mega Millions, Powerball or a state lottery you will pay the same rate of taxes. For taxes on lottery winnings, the state has tax brackets based on the total prize amount. Pennsylvania Betting Sites; Rhode Island Betting Sites; South Carolina Betting;. Pennsylvania tax on gambling winnings, pa gambling tax rate. Slot machine taxes go primarily toward property tax relief (in-person or online), Gamrat noted, while table game taxes go into the general fund. PA Sales, Use and Hotel Occupancy Tax: 6 percent: Local Sales Tax: 1 percent for Allegheny County 2 percent for Philadelphia: Cigarette Tax: $2. 07%. 5 million in taxes from $1. 1. State Tax (14%) $100,388. 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. You'll also pay federal tax in addition to Pennsylvania online gambling taxes. 75 percent in Nevada and Iowa, to 51 percent in Rhode Island (See table below). If you have problems with gambling addiction, PLEASE contact here - Ncpgambling. TAX PROMOTIONAL CREDITS Varies; see regulatory fact sheet. The additional amount is because the amount the payer covers in taxes is also taxable income to the winner. That is the tax rate regardless of whether you live in New Jersey or not as long as the reportable winning took place in New Jersey. Tax requirements for anyone who is paid for work performed in Philadelphia, or for Philadelphia residents receiving unearned income. The gaming tax was first levied in 1991 when casino gambling became legal in the municipalities of Black Hawk, Central City, and Cripple Creek. A big reason behind the delayed launch of online gambling in PA was the high tax rates. Pennsylvania charges 36 percent taxes on sports betting and 54 percent on online slots. 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. People in the lowest tax brackets pay 10%. gambling industry, including casinos, lotteries,. Federal 24%. New Jersey Sports Betting Tax Revenue. Borgata Casino PA. 75% for retail sportsbooks and 14. Starting with the tax year 2017, the IRS has a withholding rate of 24% applicable to gambling income of at least $5,000 during a tax year. 07% income tax rate. 3% Revenue Increase In October. Call the PA Gambling Addiction 24-hour hotline at 1-800-GAMBLER. Corey is a 4-for-4 Philly sports fan and previously worked as. Maryland state tax on gambling winnings ranges from 2% to 5. 07 percent (0. Yes, online casinos in PA withhold taxes on winnings. 07% for State tax. Here’s a breakdown of the federal income tax for 2023, which you’ll file in 2024: Federal Income Tax Brackets for 2023. Pennsylvania tax rate: Pennsylvania charges an additional 3. gov to file your return. You. Past Efforts to Legalize Online Gambling in Pennsylvania Pennsylvania has a very straightforward method of calculating income tax on lottery payouts. Check out the all-time Pennsylvania sports betting revenue stats below. There is a unique tax rate set for each category (16% for poker, 16% for table games, and 54% for slots), creating a blended tax rate that is easilyCasinos in Pennsylvania pay a tax rate of 55 percent on slots, video poker, and electronic table games. 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. How is the cash value calculated? Pennsylvania casinos are subject to the highest effective tax rate in the country. 36%, Penn National Gaming PENN, +1. National Problem Gambling Helpline – (800) 522-4700. The state includes winnings made from gambling as income and thus applies this income tax to earnings made from sports and casino gambling. In addition to cash, taxable gambling and winnings may include the value of non-cash prizes (vacations, automobiles, etc. 54% on online casino slots; 16% on online table games; 16%on online poker; What are Pennsylvania skill. Illustration: Jonathan Hurtarte/Bloomberg Law. The 16% tax rate for table games is lower due to the overhead cost. 3% Revenue Increase In October. In most cases, your PA gambling tax is going to be standardized. The withholding rates for gambling winnings paid by the New Jersey Lottery are as follows: 5% for Lottery payouts between. C. It took a while before the Pennsylvania Gaming Control Board (PGCB) received any sports betting license applications, but Hollywood Casino and Parx Casino have committed the $10 million fee and are the first casinos to submit their applications. In New York, state tax ranges from a low of 4% to a high of 8. Any other bet if the proceeds are equal to or greater than 300 times the wager amount. It took a while for the framework and licensing process to be put into place. 1 Operated by Parx Casino. The slot rate is a hefty 52%, also with an added 2% reserved for the local share. 5%. All gambling winnings are taxable income. 07% which they will add. The gambling winnings are also considered part of your income, with a flat tax of 3. 75% on adjusted gaming revenue, with operators permitted to set aside 20% of gross revenue as promotional. Jay Costa formally announced his plans to introduce a gaming reform bill in the near future. Any win you make when gambling, the casino will deduct 25% tax. 1 Operated by Parx Casino. Interactive Gaming Revenue FY 2022/2023. 54% on slot revenue; 16% on table game revenue; 34% on electronic table games; Pennsylvania iGaming tax rate. Colorado. Other states like Arizona, North Dakota, Indiana, and Pennsylvania have relatively low tax rates between 2-4% on casino, sports betting, and other gambling winnings. 3. It’s the second-best online casino revenue total in the state’s history. Tax revenue generated from sports wagering during June 2022 was $4,597,039*. 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. Total adjusted revenue for June 2022 for video gaming terminals (VGTs) was $3,506,902 or 6. The state imposes a 36% tax on PA sports betting revenue, the highest rate of any competitive commercial market in the US. 161-190; 58. You must report all gambling winnings on Form 1040 or Form 1040-SR (use Schedule 1 (Form 1040) PDF ), including winnings that aren't reported on. What are the Gambling Tax Rates in Florida? As previously stated, Florida has no state income tax so, you will owe the state nothing. The tax rate on slots is one of the highest in the nation. S. New Jersey Sports Betting Tax Revenue. The gambling winnings are also considered part of your income, with a flat tax of 3. Jessica Welman . Online sports betting companies, like FanDuel and DraftKings, have excluded more than $336 million tied to free-play bets from their taxes. Video gambling terminals (VGTs) are opening monthly throughout Pennsylvania, though the average gambler may never notice them. That’s good for an effective tax rate of 12. We will continue to provide current. See 72 PA C. The gambling winnings are also considered part of your income, with a flat tax of 3. Between July 21, 1983 and Dec. High taxes and fees pennsylvania Has some of tHe HigHest taxes on land-based casinos in the world, and policymakers have elected to take a similar approach with online gambling. In Pennsylvania, operators must pay a one-time license fee of $10 million. In addition to the state taxes, the federal government levies an excise tax at a rate of 0. 82% at the highest. dollars of tax. But every time sportsbooks lose a $1,100 bet, they only lose $1,000. 16 percent on non-peer-to-peer table games. 6%. 07%. The Ohio sports betting bill also doesn't allow operators to. [toc]Pennsylvania legislators continue to complicate what should be an uncomplicated path toward legalizing online gambling. 2 Closed July 3-9, 2020 due to Covid-19 restrictions. Some states, such as California. 5%, which matches the state’s bifurcated tax rates of 8. 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. 58% for certainGambling winnings, however, are exempt from FICA taxes but are subject to Maryland and federal taxes. For sports betting in the Keystone State, operators have to pay a $10 million licensing fee, a 34 percent tax on gross revenue, a 2 percent local share assessment tax, and a 0. So, for instance, if you make $42,000 annually and file as single, your federal tax rate is 22%. 6% for income between $40,000 and $60,000. Montana. Senator Gene Yaw introduced legislation in Nov. O. Pennsylvania tax on gambling winnings, pa gambling tax rate. Furthermore, online sports betting contributed over $260 million dollars in tax. This includes payments in 2016 from annuities or other cash prizes claimed before 2016. Depending on the number of your winnings, your federal tax rate could be as high as 37% as per the lottery tax calculation. However, starting in 2018, the withholding rate for federal taxes is now a uniform 24%. Whether it's $5 or $5,000, from the track, an office pool, a casino or a gambling website, all gambling winnings must be reported on your tax return as "other income" on Schedule 1 (Form 1040). – 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. Table games and poker are taxed at 14% + 2% and sports betting at 34% + 2%. S. On the other end of the spectrum, some states have earned a reputation for imposing higher gambling tax rates. It was the second year that Pennsylvania has led nationwide in the amount of tax revenue generated from casino gambling. All content herein is intended for audiences aged 21 years and older. The Property Tax/Rent Rebate Program is one of five programs supported by the Pennsylvania Lottery. The current personal income tax rate in PA is 3. Licenses were first granted in Pennsylvania to conduct interactive gaming in 2018. 6% for income between $40,000 and $60,000. 4, 8. 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. Where to bet on sports in PA. Like many states in the US, Pennsylvania operates a self-exclusion policy allowing players to opt out of all promotional gambling material and preventing them from registering with online casinos. Both categories are a record over any 12-month. Does Pennsylvania Tax Gambling Winnings Gambling Form PA-40 T. 8 million U. What’s happening in PA sports betting right now. GAMING TAX RATE Casinos pay the following: 54-55 percent on the gross revenues collected from slot machines; 16 percent of daily gross table game revenues; 34 percent of daily gross electronic table game revenues; Effective tax rates for online gaming are: 16 percent on peer-to-peer games (i. The competitive PA iGaming market, which includes online slots, table games and poker, has been fruitful for state and local entities. 79% for Philadelphia residents. You’ll also have to pay New Jersey income tax on your winnings, which is set at 3%. MONTHLY INTERACTIVE GAMING REPORT 1 WIND CREEK Interactive SlotsSlot machines and internet gaming comprise about 70% of gaming revenue, followed by table games. Depending on your win amount, casinos may withhold 24% of your winnings or 27% if you fail to provide your SSN. INCOME TAX – TREATMENT OF GAMBLING GAINS, LOSSES, AND EXPENSES (Replaces Revenue Administrative Bulletin 2016-3) Approved: December 5, 2022 . 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. The highest rates are on Rhode Island at 51 percent, whereas in DC and Colorado it falls to 10 percent. GAMING TAX RATE 53. These vary from 0% at the lowest to 8. Pixel-Shot // Shutterstock. Any profit accumulated through gambling is subject to a federal tax rate of 25%, withheld by the casino. Pennsylvania law mandates that a percentage of gaming revenue be earmarked for the state’s Compulsive and Problem Gambling Treatment Fund. 54% on slot revenue; 16% on table game revenue; 34% on electronic table games; Pennsylvania iGaming tax rate. According to Eric Ramsey, market analyst for PlayPennsylvania, PA iGaming is tracking more than 33% higher than 2021 through April, putting revenue on pace for $1. Type/Code Summary; State Code Section(s) 58. It took a while for the framework and licensing process to be put into place. Nov. Pennsylvania taxes slots at more than 50 percent and is considering a tax rate of 15 to 20 percent on online gambling. Up to $1,250 go Caesars Promo Code: PENNFULL. The company has not rolled out its new technology stack to the state either. Gaming Tax Background. This is in line with the national trends, where the majority of states have opted for lower rates. TAX RATE 10 percent. 5 billion pa from gambling taxation in 1996–97. The state's operator licensing fees and renewals are among the lowest in the country. 4 percent tax rate on adjusted gross sports betting receipts. By comparison, Nevada takes 8 percent from its 260 casinos. By test11145181 August 15, 2022. This week in PA gaming, we talk onling gambling taxes across the US, the latest on the Wire Act court case, and a sports betting partner for Wind Creek. Winnings in the following amounts must be reported to the IRS by the payer: $600 or more at a horse track (if that is 300 times your bet) $1,200 or more at a slot machine or bingo game. 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. The gaming establishement. If your winnings are reported on a Form W-2G, federal taxes are withheld at a flat rate of 24%. The Pennsylvania Race Horse Development and Gaming Act was designed to produce tremendous benefits for Commonwealth citizens through the legalization of casino gaming. File this form to report gambling winnings and any federal income tax withheld on those winnings. Tax Withholding. 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. High tax rates (particularly on slot and casino gaming), meant that more tax revenue came from gambling in PA than in any other state in 2018. Tax revenue generated from sports wagering during April 2021 was $9,466,734*. 1 Operated by Parx Casino. Currently, the lowest California state tax on gambling winnings is 1% but it can reach all the way up to 13. New Philadelphia, Ohio 44663. • You may receive a Form W-2G, Certain Gambling Winnings and have federal income taxes withheld from your prize by the gambling establishment if you have qualifying winnings. However, remember that federal taxes apply to gambling winnings earned in Nevada. PA Online Casino Tax Rates. For the highest-income taxpayers, it is 63. $72,523 Local Share Assessment (2%) $14,341. 75%. Non-residents must complete and file IRS Form. 5% for income between $25,000 and $40,000. It again imposed multi-million-dollar licensing fees and the same 54 percent rate on online slots. Written on . Pennsylvania has one of the highest tax rates in the country for these online gambling verticals, with online slots at 54% and table games and poker at 16%. Phone: (330) 364-3472. 2. 25 % of the amount wagered, and an annual occupational tax. In figures released by the Pennsylvania Gaming Control Board (PGCB), online casino operators recorded $170. 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. The Council on Compulsive Gambling of PA – (800) 426-2537. WILL THE PENNSYLVANIA LOTTERY WITHHOLD INCOME TAX ON THE TAXABLE WINNINGS? Yes. Bingo games may have no prize larger than $250 for a single game except for the jackpot. For example, the industry employs nearly 17,000 persons and has generated more than $16. 25 percent tax for problem gambling. In the case of state taxes, all casinos must withhold 4 percent of your winnings. Сalculating the PA professional gamblers’ tax rate depends on factors like: marital status, tax deduction (one of two types), type of games, etc. 6% against 2019, while revenue from table games was $504. is to provide property tax relief to the elderly for property taxes paid in 1971 and thereafter to persons 65 years of age or older. Gross revenue from gaming and gambling in. Furthermore, some online casino payouts are subject to federal income tax withholding. The bill is amending the sports betting law that solidified PA sportsbooks at the same rate. • You’re required to report all of your gambling winnings as income on your tax return, even if you end up losing money overall. 3% for the highest earners. decade, state governments collected $3. The IRS, and your state or municipality if they assess taxes on your income, consider gambling winnings. You are not permitted to "net" your winnings and losses. PA casinos will have to pay a 36% tax on winnings to the state Sports bettors are generally subject to a flat 24% tax but tack on 3. If you receive multiple W-2G. Withholding Tax on Raffle Prizes Regular Gambling Withholding: An organization that pays raffle prizes must withhold 25% from the winnings and report this amount to the IRS on Form W -2G. As a nonresident, you may apportion income earned within and. $8,501 to $11,700: 4. S. At least half these revenues result from state governments acting as ‘gambling entrepreneurs’, by legalising new, and more. The winner is expected to pay those taxes when they file their yearly taxes. The relatively modest 14. Taxes can be even more complicated buy is. Among the questions asked:In Maryland, for example, you must report winnings between $500 and $5,000 within 60 days and pay state income taxes within that time frame; you report winnings under $500 on your annual state tax. The House approved a wide-ranging gaming expansion that also regulates daily fantasy sports and allows for online poker and gambling. reports record gambling revenue of nearly $4 million How ample? An unfinalized draft we saw of the plan suggests a tax rate of 16% similar to table games but much less than the 54% tax on slots. 2 Operated by Mohegan Sun Pocono. You are responsible for reporting and paying taxes due on gambling winnings. online casino brands: 18:. If you have problems with gambling addiction, PLEASE contact here - Ncpgambling. “Fifty-seven dollars isn’t going to pay any of my bills. Gambling in Pennsylvania includes casino gambling, the Pennsylvania Lottery,. The gambling winnings are also considered part of your income, with a flat tax of 3. Gambling. Pennsylvania’s high tax rates on casinos, and now on sports betting,. However, for the activities listed below, winnings over $5,000 will be subject to income tax withholding: Any lottery, sweepstakes, or betting pool. Sin taxes accounted for nearly $1. $82,502 $73,122. Cons. Up To $250. #6. However the New York State tax rate for gambling varies according to your income. The winner must pay 24% of the fair market value of the prize to the payer as tax withholding. $726 million total bets in September, up around 13% from a. For noncash gambling, there are two options. ) and illegal gambling. 75% for Philadelphia residents. Both residents and nonresidents of Maryland are subject to Maryland income tax. This means it is possible to play college sports betting, MLB sports betting, and NBA sports betting in the state. 07% tax on gambling income. The size of the jackpot, city of residence, and city of purchase determine. The first went into service in August 2019. Computing and paying taxes on your gamble income be not, and here's ampere tiny help!. Total tax revenue generated collectively through all forms of gaming and fantasy contests was $169,135,316 during September 2021. Senate Bill: 54% Tax Rate on Online Poker. Under Pennsylvania personal income tax law, online gambling winnings are taxed at a rate of 3. This does not explicitly state sports betting, but it does cover. . But the bills set a tax rate at 10% on the amount of money a gambling operator gets from people’s losses. The requirements for reporting and withholding depend on: the type of gambling, the amount of the gambling winnings, and. For federal taxes, you need to fill out a Schedule 1 (Additional Income. A tax-exempt organization conducting gaming activities may be required to withhold income tax and report on Form W-2G. This is in line with the national trends, where the majority of states have opted for lower rates. 7], North West :Some have high tax rates between 36 percent and 51 percent, but most are between 10 percent and 15 percent. 75% income tax. Pennsylvania personal income tax is levied at the rate of 3. Depending on your win amount, casinos may withhold 24% of your winnings or 27% if you fail to provide your SSN. org or call - 18005224700. Is the tax rate different for different lotteries? No. Elsewhere, Pennsylvania cleared $12. 25% on mobile betting. The way gambling winnings are reported varies depending on the type of gambler. The best PA online sportsbooks are legal sports betting providers that have a wide range of betting markets, top-of-the-line sports betting apps, and outstanding bonuses like risk-free bets and deposit matches. 25% gambling tax, or Pennsylvania’s relatively high 36%, New York will claim a full 51% of all gross gambling revenues. Tax revenue generated from sports wagering during September 2022 was $18,078,109*. 75%. Commercial gaming operators paid an estimated $3. Have gambling winnings from Indiana (rate is 3. Alaska has no gambling-winning state taxes on gambling winnings; You are liable to pay the federal tax of 24%;. 07%; Based on if your tax is above $5,000, you may have to pay up to 35% in. 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%. 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 have problems with gambling addiction, PLEASE contact here - Ncpgambling. 07%, PA bettors enjoy the lowest rate of all states with flat gambling tax. Total adjusted revenue for September 2022 for video gaming terminals (VGTs) was $3,496,670 or 2. “The tax is prohibitive to the casino, and those costs are going to get carried over to the consumer,” said Smiley. July 1, 2021, 1:46 AM. 31, 2015, all prizes of the Pennsylvania Lottery were excluded from this class of income. If the total LST rate enacted is $10 or less, the tax is to be collected in a lump sum. 59% in 2021, you may have to pay taxes. $372 million in direct gaming taxes (Pennsylvania Gaming Control Board, 2021). PA casinos will have to pay a 36% tax on winnings to the state; Sports. HARRISBURG, PA: The Pennsylvania Gaming Control Board today reported that tax revenue generated during the combined Fiscal Year 2022/2023 reached a record level of $2,369,249,258. In Year 6, operators can no longer deduct promotional credits and free bets from their sports betting tax obligation. Latest PA News. License applicants are required to pay a one-time fee of $10 million for sports betting in Pennsylvania. In Year 3, the cap is 15% and drops to 10% in Years 4 and 5.