Pennsylvania iGaming Revenue : Figures and Tax

Pennsylvania iGaming revenue reached $2.78 billion in 2025, up more than 27 percent on the prior year, according to the Pennsylvania Gaming Control Board. Online slots and interactive table games produced that total, and the state now leads every US market for online casino revenue. This guide sets out the yearly figures since launch and the split across game types. It also explains how Pennsylvania taxes the win, where the money goes and what the headline number hides.

Pennsylvania iGaming revenue in 2025

In 2025 the state’s licensed operators reported $2.78 billion in iGaming revenue. That figure is up 27.22 percent on the $2.18 billion booked in 2024, so the market grew by more than a quarter in a single year. Online casino play also passed a milestone. For the first time, it out-earned the combined win of the state’s retail slot machines. If you plan to enter the market, start with our guide to the Pennsylvania iGaming licence requirements. Only a fixed group of licensees can earn this revenue.

December 2025 set a monthly record, the third straight month above $300 million, per the PGCB year-end revenue report. Hollywood Casino at Penn National led all operators, with more than $1 billion in iGaming revenue for the year. Pennsylvania also stayed ahead of New Jersey and Michigan, the next two largest US online casino markets.

How Pennsylvania reports iGaming revenue

The PGCB publishes two numbers each month, and they measure different things. Gross revenue is what players lose across all online sessions. Reported revenue then subtracts promotional credits, such as bonus bets and free play.

That gap matters, because Pennsylvania taxes the reported figure rather than the gross one. Across 2025 the reported total came to $2.78 billion. Before promotional credits, the monthly gross totals in the PGCB interactive gaming reports ran higher, at about $3.46 billion for the year. The difference is the promotional spend operators use to win and keep players.

So when a headline quotes Pennsylvania online casino revenue, check which figure it uses. Gross revenue shows market scale. The reported figure shows the taxable base and gives a truer read on what the state records.

Annual growth since the 2019 launch

Pennsylvania launched online casino play in July 2019, one of the first US states to follow New Jersey. Reported revenue has grown every year since, and the pace picked up after 2020 pushed more players online. The table below tracks the annual iGaming revenue reported by the PGCB.

Revenue climbed from $566 million in 2020 to $2.78 billion in 2025, so the market grew nearly fivefold across five years. Growth held above 27 percent in the past year alone. Because the figures count players in Pennsylvania only, that rise came from a single-state market, not from any interstate expansion.

Where the revenue comes from: slots, table games and poker

Interactive slots drive Pennsylvania iGaming revenue. Online slot machine games produce the large majority of the online casino total, well ahead of interactive table games. Interactive poker forms a small share, because poker earns the operator a rake rather than a house margin on each hand.

That mix shapes the tax bill, because Pennsylvania taxes the two product groups at very different rates. It also explains operator strategy. Slots carry a steady hold rate, so they produce reliable win at volume. Many leading brands run slots, table games and poker under a single licence, then cross-sell players across all three.

How Pennsylvania taxes interactive gaming revenue

Pennsylvania taxes interactive gaming revenue by game type, and both rates apply after operators deduct promotional credits. Online slots carry the higher rate. Table games and poker carry a lower one.

The 54 percent slots rate is the highest tax on online slot revenue in any US iGaming state. It splits into a 34 percent state tax and a 20 percent local share assessment. Because interactive slots make up most of the market, Pennsylvania’s blended iGaming tax runs well above the rates in New Jersey or Michigan. Operators build that rate into every margin model before they launch.

Where Pennsylvania’s iGaming tax money goes

The state directs iGaming tax to several named uses set in the Gaming Act. Online casino tax topped $1.2 billion in 2025, a large part of the $2.98 billion the whole gaming industry returned to the Commonwealth. Most reports quote the total but never say where it lands, so this is the part operators and residents ask about most.

The state share of the slots tax supports the Property Tax Relief Fund, which cuts school property tax for homeowners. Further portions fund economic development, community grants and the horse racing industry, while the rest flows to the General Fund. Table game and poker tax goes to the General Fund. The Pennsylvania Independent Fiscal Office reports the annual distribution.

How casinos and online operators share the revenue

The PGCB reports iGaming revenue as earned by the licensed casinos, and that phrasing hides the market structure. In Pennsylvania the licence sits with a land-based casino. Many of the online brands players recognise run under a market access deal with that casino, so a single line of Pennsylvania iGaming revenue can cover several businesses.

Two or more parties usually share one operator’s win. The casino licence holder takes a contractual cut for providing market access. Then the online operator that runs the platform and brand takes the larger share. The PGCB reports each licensee’s total, but it does not publish the commercial split. For how the regulator licenses these parties, see our guide to how the Pennsylvania Gaming Control Board licenses operators.

What the revenue figure does not show operators

A $2.78 billion headline looks large, but it is not what operators keep. Several costs sit between Pennsylvania iGaming revenue and net profit. Anyone modelling a Pennsylvania entry needs the full stack, not the top line.

First, promotional credits come off gross revenue to reach the taxable base. Then the 54 percent slots tax takes more than half of slot win, before the casino’s market access share, platform fees, game-content licensing, payment processing and marketing. Our revenue reporting and audit support team models these lines before an application goes in. Operators weighing a wider US footprint often assess the New Jersey iGaming market and the Michigan iGaming market alongside Pennsylvania, because each state taxes the win on its own terms.

Who earns Pennsylvania’s online casino revenue

Pennsylvania reserves online casino play for its licensed casinos and a small number of qualified operators. Each casino may offer interactive slots, table games and poker, and each can partner with online operators to run branded sites. That structure caps who can earn Pennsylvania iGaming revenue, and it explains why a group of national brands leads the tables.

The scope stops at the state border. A Pennsylvania licence covers players physically located in Pennsylvania, and geolocation checks enforce that limit. So an operator that wants to serve another state needs a separate licence there. Our gaming licensing compliance team manages the monthly reporting and testing duties that come with holding a licence, while our gaming licence acquisition service handles the casino partnership and application for a first Pennsylvania entry. To scope a market entry against these figures, book a consultation with our advisory team.

Frequently asked questions

How much revenue does Pennsylvania iGaming generate?

Pennsylvania iGaming revenue reached $2.78 billion in 2025, the highest online casino total of any US state. Interactive slots produced most of it, with table games and poker adding the rest. The figure comes from the Pennsylvania Gaming Control Board.

How did the market grow from 2024 to 2025?

Reported revenue rose 27.22 percent, from $2.18 billion in 2024 to $2.78 billion in 2025. December 2025 set a monthly record above $300 million. Online casino play also out-earned the state’s retail slot machines for the first time.

How are online casino earnings taxed?

The state taxes interactive slots at 54 percent and interactive table games and poker at 16 percent. Both rates apply to gross revenue after operators deduct promotional credits. The 54 percent slots rate is the highest tax on online slot revenue in the United States.

Why is Pennsylvania’s iGaming tax so high?

Interactive slots carry a 54 percent rate, split into a 34 percent state tax and a 20 percent local share assessment. Because slots make up most of the online casino market, the blended tax runs well above New Jersey or Michigan. Operators factor this into every Pennsylvania margin model.

Has Pennsylvania online casino revenue passed retail slot machines?

Yes. In 2025 iGaming revenue passed the win of the state’s retail slot machines for the first time. Online casino play reached $2.78 billion, while retail slots produced $2.43 billion.

Who earns iGaming revenue in Pennsylvania?

Licensed Pennsylvania casinos earn iGaming revenue, and online operators run branded sites under market access deals with them. The PGCB reports each licensee’s total. A commercial brand must partner with a licensed casino to reach players.

Where does Pennsylvania’s iGaming tax money go?

The state share of the slots tax supports the Property Tax Relief Fund for homeowners. Further portions fund economic development, community grants and horse racing, and the rest goes to the General Fund. Table game and poker tax flows to the General Fund.

Does a Pennsylvania iGaming licence let an operator serve other states?

No. A Pennsylvania licence covers players physically located in Pennsylvania only, enforced by geolocation. Each US state runs its own regulator, so an operator needs a separate licence in every market it wants to serve.