The Numbers Game May Hinder Online Gambling Success In Pennsylvania

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The Numbers Game May Hinder Online Gambling Success In PennsylvaniaOne of the driving forces behind legalizing online gambling in any state is the revenue it can generate in taxes for the state as a whole. While gambling tax is expected to be higher than most other taxes, Pennsylvania’s gambling proposals are taking gambling tax to a whole new level.

There are currently a multitude of proposals to be considered, with proposed taxes at 14 percent, 28 percent, and a seemingly unreasonable 54 percent. For some contrast, New Jersey’s gambling tax is at 15 percent.

According to a report from TribLive,  experts agree that the tax may leave casinos investing little to nothing in marketing their online gambling, which will of course hinder the growth of the (if approved) new industry. In other words, excessively high taxes could instead generate less in year-to-date tax revenue, because online gambling may not be very high on casino’s list of priorities

“If the tax rate is exceedingly high, the operator is going to take that out on the consumer,” says John Pappas, executive director of the Poker Players Alliance, which bills itself as a voice for gamblers.

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