Pennsylvania rakes in $1.1 billion in gambling taxes, outdrawing Nevada

Pennsylvania collected more in taxes from commercial casino gambling than any other state, including gambling heavyweight Nevada. The state's tax revenue from commercial casinos approached $1.1 billion in the fiscal year that ended June 30, The Morning Call of Allentown reported Monday. Indiana was second with $878 million and Nevada third with $831 million.

Pennsylvania has just nine casinos operating, but its 55 percent tax rate on slot machine gambling more than makes up for it. By comparison, Nevada takes 8 percent from its 260 casinos.

Pennsylvania's casinos began offering table games this month. Those games are being taxed at a rate of 16 percent and are projected to bring the state $320 million more per year.

Gaming Control Board spokesman Richard McGarvey said Pennsylvania's high revenue isn't surprising.

"Our tax is so high because the intention of the gaming law was to bring in tax money," he said.

Slot machine revenue has helped lower real estate taxes and helped prop up the state's horse racing industry. Its also helping pay for large civic projects like the expansion of the Pennsylvania Convention Center in Philadelphia.

Associated Press