Pennsylvania Reaping the Rewards Online Betting

Pennsylvania Reaping the Rewards of Online Sports Betting

By Blake Roberts Founder & Editor in Chief Updated: 26 May 2021

Blake Roberts Founder & Editor in Chief

Blake Roberts is the founder of Betting.US and is currently heading the creative team as Editor in Chief. Born and raised in Morgantown, West Virginia, Blake is a great sports fan, with football and basketball being his favorite. He’s our trusted voice for all betting-related matters.

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According to a recent report, Pennsylvania is reaping the rewards of online sports betting activity in the state. In fact, figures show that the state has now been enjoying increased tax revenues from sports betting for several years after PASPA was overturned by the Supreme Court in 2018.

The first virtual sportsbook in the state was launched by Rivers Philadelphia in May 2019, and since that time, online betting on sports events has reached close to $6 billion. This is based on data from the Pennsylvania Gaming Control Board. In total, $6.7 billion has been wagered since 2018, and the vast majority has come from online sports betting.

Tens of Millions from Online Sports Wagering

Figures from the gaming board show that Pennsylvania has now made tens of millions of dollars in tax revenues from online sports betting activities. There are now a dozen mobile and online sportsbooks and the tax percentage set by the state is 34 percent.

This means that the state has managed to collect a hugely impressive $92.8 million in taxes according to the gaming board data. Over $5 million more has gone to local communities as a result of share assessment tax, which is set at 2 percent.

As a result, Pennsylvania has become one of the leading sports betting states in the country, with only New Jersey and Nevada ahead of it. Many other states have realized the financial benefits of online sports betting and have legalized these activities over the past couple of years in the hope of seeing similar financial rewards.

Jess Feil, vice president of government relations and gaming policy counsel for the American Gaming Association, said:

It is not necessarily going to be the singular answer to the states’ budget questions, but it certainly can be an important piece of that as we see more and more sports fans get interested in sports betting and are drawn to that form of entertainment.

Many states now allow online sports betting, with Maryland recently joining the ever-growing list of participating states. It is thought that this growth will continue over the course of this year, as more and more states launch mobile and online sports betting.

Response to Demand

States have realized that sports betting could make a big difference to state revenues, just as it has in Pennsylvania. However, it is also rising demand for online and mobile sports betting that is spurring states on to legalize it.

Digital sports betting has become hugely popular and has rocketed over the past 14 months since the start of the global pandemic. With casinos and retail sportsbooks across the country closing for several months last year, and the world of live sports shutting down, many people turned to online sportsbooks.

This popularity has continued even though retail establishments are now open, and many still prefer to go online to place their bets. This has given states such as Pennsylvania the scope to enjoy a huge boost in revenue, which has come as a welcome relief given the financial devastation caused by the pandemic.