Pennsylvania casino closures cost state $424.4m

The Covid-19 pandemic cost land-based casinos in the state around $968.8 million in lost revenue.

US.- A report by the Allegheny Institute has found that the state of Pennsylvania lost out on $424.4 million in tax revenues due to the closure of casinos during the pandemic.

Pennsylvania is the state that receives the largest amount of tax income from casinos.

Although gaming revenue from online casinos rose to record highs in the first half of the year, reaching $206.6 million, that’s still less than a quarter of the estimated lost revenue from land-based casinos.

It’s estimated that land-based casinos would have earned $143.5 million in the second half of March, $415 million in April and May and $140.3 million in June, in slot machine revenue alone.

Slot machine revenue is taxed at a higher rate than table games with 52 per cent of gross revenue going to the state. Table games are taxed at 16 per cent.

According to a Pittsburgh Post-Gazette report, the study estimated casinos would have earned $143.5 million during the second half of March, $415 million in April and May and another $140.3 million in June, just in slot machine revenue.

Slot machine revenue is taxed at a higher rate than typical table games with the state taking 52 per cent of the gross revenue. Table games are taxed at a 16 per cent clip. No other state collects as much tax revenue from the gambling industry as the Keystone State. In the 2018-2019 fiscal year, the state took in more than $1.2 billion in taxes from slot machine revenue alone.

Pennsylvania is now looking to expand its gambling industry through newly proposed legislation.