Nevada taxes all gambling at a rate of 6. Subchapter F. org or call - 18005224700. GAMING TAX RATE Casinos pay the following: 54-55 percent on the gross revenues collected from slot machines; 16 percent of daily gross table game revenues; 34 percent of daily gross electronic table game revenues; Effective tax rates for online gaming are: 16 percent on peer-to-peer games (i. The proposed tax rate for esports sits at 36%, unless that changes throughout the legislation process. November 2018 marked the beginning of legalized sports betting in the state. They only cover standard income taxes on profits. Don't hesitate to report someone else's. How much tax you’ll need to pay on sports betting wins in New York. The withholding rate under Section 3402(q) applicable to prizes of $5,000. That was a 14% increase month-over-month and 4% higher than the previous record from October 2022. In Pennsylvania, gambling taxes apply to all forms of wagering – lotteries, sports betting, horse racing, slots, and casino games. The gambling tax rate is 3. —roughly 20% of the population—are expected to bet $16 billion on the Super Bowl this Sunday, according to an annual survey. Stat. If you placed bets through betting operators like DraftKings DKNG, +2. Pennsylvania Gambling Tax Rate – 24% (federal) + 3. The tax withholding rates for lottery winnings by players in the New Jersey Lottery vary depending on the payout as follows: No tax on lottery winnings of $10,000 or less. Pennsylvania has a high licensing fee and a high tax rate for slot games. Here are the states that ranked ahead of Pennsylvania for having a larger share of their revenue come from gambling taxes: No. The withholding rate under Section 3402(q) applicable to winnings of $5,000 or more from sweepstakes, wagering pools, certain parimutuel pools, jai alai, and lotteries (formerly 25%) is 24%. The state imposes a 36% tax on PA sports betting revenue, the highest rate of any competitive commercial market in the US. TAX RATE Casinos are taxed at an effective rate of 46. Written on . 75% and only the lowest earners pay less than 5. The marginal tax rate is the bracket your income falls into. File this form to report gambling winnings and any federal income tax withheld on those winnings. “Fifty-seven dollars isn’t going to pay any of my bills. This means if you win Mega Millions, Powerball or a state lottery you will pay the same rate of taxes. When determining how much to report on your income tax return, bettors must add up the total amount of their winnings, which gives you your total gambling winnings. 75% for retail sportsbooks and 14. § 4. Read More. If your winnings are reported on a Form W-2G, federal taxes are withheld at a flat rate of 24%. m. Let’s look at the different types of gamblers:The Pennsylvania gaming industry is booming. Illustration: Jonathan Hurtarte/Bloomberg Law. For taxes on lottery winnings, the state has tax brackets based on the total prize amount. The company has not rolled out its new technology stack to the state either. For Tax Year 2021: 3. because I want to see the impact of a 36% tax rate. Tax requirements for anyone who is paid for work performed in Philadelphia, or for Philadelphia residents receiving unearned income. The trends. The amount of taxes collected in Pennsylvania is fueled by a 55% tax rate on gross slot. § 4. View all posts by Katie Kohler. $3. S. Pennsylvania’s tax system ranks 33rd overall on our 2023 State Business. Sin taxes accounted for nearly $1. The withholding rates for gambling winnings paid by the New Jersey Lottery are as follows: 5% for Lottery payouts between. 75% rate because it's had legalized gambling for decades and knows how much money will be brought in. Up to $1,250 go Caesars Promo Code: PENNFULL. Your federal tax rate is based on your yearly income, which includes gambling winnings, adjusted for deductions. A big reason behind the delayed launch of online gambling in PA was the high tax rates. Nevada has the lowest rate in the country at just 6. The 16% tax rate for table games is lower due to the overhead cost. So the short answer to the question is yes, gambling winnings are taxable in all states, at least with regard to federal taxes. Tax rate on sportsbook operators: The tax rate is 13. Poker tournament winnings are more than $5,000. 07% more in PA Neighboring NJ casinos pay the state just shy of. 25% in taxes. There are various deductions you can make, and exact tax rates will depend on your annual income. Any win you make when gambling, the casino will deduct 25% tax. The Ohio sports betting bill also doesn't allow operators to. The Pennsylvania Race Horse Development and Gaming Act was designed to produce tremendous benefits for Commonwealth citizens through the legalization of casino gaming. By form of gambling, taxation rates vary from 65 per cent on lottery products, 25 per cent on gaming machines, 18 per cent on racing and 12 per cent on. § 13B52. 75% on adjusted gaming revenue, with operators permitted to set aside 20% of gross revenue as promotional. These 19 sites were operated by 10 different In the case of sports betting, the Kentucky sports betting tax rate is 9. Arizona Gambling Tax Faqs. A breakdown of tax rates for. However, retail slots at Pennsylvania casinos are the state’s bread and butter,. There is an effective rate of 36%, in addition to a $10 million one-time licensing fee. Total adjusted revenue for June 2022 for video gaming terminals (VGTs) was $3,506,902 or 6. The tax rate will be determined by your income on your federal income tax paperwork. Pennsylvania’s combined state/local sports wagering tax is 36% for both formats. Taxable Gambling Income. For brick-and-mortar sports betting at New Jersey’s casinos and racetracks — which account for only about one-tenth of sports wagering — the tax is just 8. The second set takes effect Jan. Does Pennsylvania Tax Gambling Winnings Gambling Form PA-40 T. 4. But every time sportsbooks lose a $1,100 bet, they only lose $1,000. By comparison, Nevada takes 8 percent from its 260 casinos. Double taxation. Chapter 1 - Gaming’s Impact on Tax-Exempt Status 3 Gaming’s Impact on Tax-Exempt Status This chapter explores the impact of gaming on an organization’s tax-exempt status according to the section of the Internal Revenue Code (IRC) under which it is exempt. PA Online Casino Tax Rates. The withholding rate under Section 3402(q) applicable to prizes of $5,000 or more from sweepstakes, wagering pools, some parimutuel pools, jai alai, and lotteries (previously 25%) is now 24% for taxable years beginning after December 31, 2017. 6 billion generated in commercial gaming revenue in 2019 - the fifth-straight year of revenue growth. The tax rates on online gambling in Pennsylvania vary based on the product. The general property tax relief as certified by the budget secretary, has remained consistent at $595 million each year since 2008-09 and is the major distribution from the 34 percent slot machine tax on gross ter-minal revenues. In Iowa, there's an automatic 5 percent withholding for state income tax purposes whenever federal taxes are withheld. The House approved a wide-ranging gaming expansion that also regulates daily fantasy sports and allows for online poker and gambling. It is four times the rate of neighboring New Jersey as well as the highest tax rate in the nation. How is the cash value calculated?Pennsylvania casinos are subject to the highest effective tax rate in the country. Contrast this situation to the state’s 12 land-based casinos. How we rate Pennsylvania online gambling sites. You are responsible for reporting and paying taxes due on gambling winnings. For example, if you win $620 from a horse race but it cost you $20 to bet, your taxable winnings are $620, not $600 after subtracting your $20 wager. That’s the reason for the cannibalization concerns. If you have problems with gambling addiction, PLEASE contact here - Ncpgambling. Fact checked for. This includes Nevada, where the revenues are higher – though tax rate is significantly lower. Gambling winnings are fully taxable by the Commonwealth of Pennsylvania. Pennsylvania’s rates aren’t the highest — New York recently launched online sports betting with a 51% tax rate on operators. Box 1393 Philadelphia, PA 19105-1393. Check out the all-time Pennsylvania sports betting revenue stats below. This is different from the tax rate for operators, who pay 10% on net profits from mobile gambling and 8% on net profits for retail gambling. Box 1660 Philadelphia, PA 19105-1660Strictly speaking, of course, all gambling winnings, no matter how small, are considered income in the US. • You’re required to report all of your gambling winnings as income on your tax return, even if you end up losing money overall. $11,701 to $13,900: 5. See Pub. 25 % of the amount wagered, and an annual occupational tax. RTP. If you fail to provide your book with a Social Security number, that number jumps to 28%. 5% for retail sportsbooks and 13% for online sportsbooks. The New Rate of Regular Withholding. S. Online slots, for example, are taxed at a rate of 54%, which leaves little margin for operators. The out-of-state resident employee will still be subject to and owe the “Work Location Non-Resident EIT Rate,” as well as the Local Services Tax (LST), based on the PA worksite municipality. Maryland’s state rate ranges from 2% to 5. Pennsylvania is close to having a sports betting law on the books after Thursday. Depending on your win amount, casinos may withhold 24% of your winnings or 27% i f you fail to provide your SSN. 75% for retail sportsbooks and 14. Taxes and Fees § 13B51. #6. However, cryptocurrency is not currently accepted as a form of payment for gambling transactions. 75%. The Pennsylvania Senate passed a bill which would tax online gambling sites at a 54%. Is the tax rate different for different lotteries? No. 75%, but Pennsylvania’s is 36% and New York sports betting apps pay a 51% tax on sports betting revenues. In New York, state tax ranges from a low of 4% to a high of 8. However, starting in 2018, the withholding rate for federal taxes is now a uniform 24%. Nov. So if a bettor makes 10 wagers of $1,100 each and goes 5-5 on those. {/HIDESEARCH} HARRISBURG, PA:The Pennsylvania Gaming Control Board reported today that the combined total revenue generated from all forms of gaming along with fantasy contests during November 2022 was $452,357,922, an increase of 4. The gambling winnings state taxes anywhere from 1% to 13. 4 percent tax rate on adjusted gross sports betting receipts. However, starting in 2018, the withholding rate for federal taxes is now a uniform 24%. 37 billion. ’s 36 percent. gambling tax income outpaces Nevada. 5% for income between $25,000 and $40,000. 20, 2023 — PA sports betting handle hit a new record high in October with $829 million in total bets. 07% on top of the federal rate of 24%, which applies to all gambling activities. The winner must pay 24% of the fair market value of the prize to the payer as tax withholding. Сalculating the PA professional gamblers’ tax rate depends on factors like: marital status, tax deduction (one of two types), type of games, etc. HARRISBURG, PA: The Pennsylvania. 25% federal tax on total amounts wagered. MOBILE/ONLINE Allowed statewide. Instructions for PA-41 Schedule A Interest Income and Gambling and Lottery Winnings PA-41 A IN 09-20 PA-41 A 1 The instruction for Line 14, Gambling and lottery winnings were revised for an estate and trust electing to file a combined tax return for federal income tax purposes basedWhat is the Federal Gambling Tax Rate? Standard federal tax withholding applies to winnings of $5,000 or more from: Wagering pools (this does not include poker tournaments). “Any online casino will offer bettors real money gambling options on a range of games including casino table games, slots, sports betting sites and poker rooms. 07%. The PA gambling tax rate is 3. Thus, the IRS prepared a substitute for return for him and issued a notice of deficiency. As the sports calendar is winding down, Pennsylvania online casino revenue has not. - 2021 tax revenue: $654. Currently the rate is 3. Pennsylvania online casinos once again had a great performance in October, coming up just short of another US record with $186. Second to New York in tax revenue was Pennsylvania, which also has a high tax rate of 36%. 07 percent against taxable income of resident and nonresident individuals, estates, trusts, partnerships, S corporations, business trusts and limited liability companies not federally taxed as corporations. INITIAL. All gambling winnings in PA are considered to be taxable income. 6% for income between $40,000 and $60,000. Video Gaming Terminals. 4 Pa. 4. The amount withheld for state taxes varies from state to state. Enter the total amount of PA tax withheld from federal Forms W-2G. 07% withholding rate. 6. For Tax Year 2022: 3. dollars of tax. They also have a flat excise rate of 10%. Pennsylvania has just nine casinos operating, but its 55 percent tax rate on slot machine gambling more than makes up for it. Any wins that trigger a W-2G are withheld at a rate of 24%. 50% Arizona gambling tax, federal taxes will be owed to the government as well. The gambling winnings are also considered part of your income, with a flat tax of 3. But it has one of the lowest tax rates in the country at 6. These high breakeven win rates seem likely to discourage many potential gamblers from taking up sports betting. The tax is required to be withheld at the Pennsylvania personal income tax rate in effect at the time the prize payment is made. Email: jcontini@Beginning January 1, 2023, the state of Ohio has legalized sports gambling. ️ Online gambling launch : July 2019 : 💸 Tax rate : 25% (federal) + 3. 35 billion in sports betting revenues. Both categories are a record over any 12-month. The rate of participation in online PA casino apps remained steady from the first year of the study, according to the latest report. If there are no net winnings, enter a zero here and on Line 8 of the PA-40, Personal Income Tax Return. The proposed law would require $750,000 annually in state gambling tax. There’s a 24% federal tax. 07% However, gambling wins could place you in a higher bracket, which can result in higher. Discover the best slot machine games, types, jackpots, FREE gamesBut none have a tax rate anywhere close to Pa. More than $5,000 in winnings (reduced by the wager or buy-in) from a poker tournament Any winnings. timely content about casinos and sports betting for readers. How is the cash value calculated? Pennsylvania casinos are subject to the highest effective tax rate in the country. Sports Betting 36% Fantasy Sports 15% Visit mypath. online casino brands: 18:. Key Takeaways. You must report all gambling winnings on Form 1040 or Form 1040-SR (use Schedule 1 (Form 1040) PDF ), including winnings that aren't reported on. AUTHORIZED OPERATORS Commercial casinos, racinos & online operators. So, if you lost $5,000 on sports betting last year but took home $7,000 in the end, you’d be able to deduct all of those losses. 25%. These states view gambling revenue as a potential source of substantial income for public services and initiatives. WHAT IF I SELL MY ANNUITY PAYMENT TO A THIRD PARTY?High taxes drive customers to offshore sites. Different tax rates apply to various games, ranging from 2. Any profit accumulated through gambling is subject to a federal tax rate of 25%, withheld by the casino. Latest PA News. In Year 3, the cap is 15% and drops to 10% in Years 4 and 5. S. 5%. Stat. For non-cash winnings like vehicles, a. Slot revenue at Pennsylvania land-based casinos in 2020 was $1. However, remember that federal taxes apply to gambling winnings earned in Nevada. The 10% tax on sports wagering revenue in the Kansas bill was paltry compared to tax rates on casino sports book betting in New York at 51%, Pennsylvania at 36%, Tennessee and Arkansas at 20% and Maryland at 15%, said Rep. Under Pennsylvania personal income tax law, online gambling winnings are taxed at a rate of 3. gambling industry, including casinos, lotteries,. 75%. You’ll also have to pay New Jersey income tax on your winnings, which is set at 3%. Contact us today at (973) 470-0800 or law@kridel. Slot play accounts for around three-quarters of total online gambling revenue in existing markets. Any wins that trigger a W-2G are withheld at a rate of 24%. Where do taxes collected from Pennsylvania casinos go? For every dollar produced as revenue from slots, 54 cents is returned to Pennsylvanians. Gambling winnings are subject to a 24% federal tax rate. New Jersey Sports Betting Tax Revenue. the high tax rate of 36% and. 4% for income between $10,000 and $25,000. August 2021 – Pennsylvania reached a total of $348,520,369 in total sports bets through August 2021 as the wagering handle started to increase before the start of. Phone: (330) 364-3472. MONTHLY INTERACTIVE GAMING REPORT 1 WIND CREEK Interactive SlotsSlot machines and internet gaming comprise about 70% of gaming revenue, followed by table games. Tax Rate; Personal Income Tax: 3. Here are the 2023 rates for single residents or married residents that file separately: Up to $10,099 | 1% ;The state can regulate, and in some instances prohibit, certain activities known as "games of chance" such as casino gaming, dog racing and slot machines. 34 percent. 5 percent of gross revenue for in-person and mobile betting and 13 percent for online wagers. 2023-2024 Tax Brackets and Federal Income Tax Rates Federal Income Tax Calculator: Tax Return and Refund Estimator (2023-2024) 1099 Form: Definition, Who Gets One, How It WorksOur tax calculator can be used in popular gambling states such as CO, IN, KS, LA, MI, NJ, NV, NY, PA, TN, and VA. Cons. 1, 2024, while the third would go into effect exactly one year later. 07% (state) ⭐ Regulatory body : PA Gaming Control Board :Part-year residents are not subject to PA tax on ordinary interest, dividends, gains, intangible property or gambling and lottery winnings from PA sources while a nonresident. Earned Income Tax Credit (EITC) resources. 4. ” The law authorized the. If you win more than $600 on the state. Estates and trusts are entitled to. 82% at the highest. West Virginia state tax on gambling winnings also depends on how much you earn annually. The Council on Compulsive Gambling of PA – (800) 426-2537. 3 million, down 44. 1001: Definition of Interactive of Game: A gambling game offered through the use of communications technology that allows a person utilizing money, checks, electronic checks, electronic transfers of money, credit cards or any other instrumentality to. Slot revenue at Pennsylvania land-based casinos in 2020 was $1. State and local tax rates vary by location. How Pennsylvania casinos fared versus the rest of the country. Gambling Taxes: You Have to Report All Your Winnings. These cost $100 and are active for one year. September 2021 – As the NFL season kicked off, Pennsylvania monthly sports betting handle reached a figure of $578,760,746. Your federal tax rate is based on your yearly income, which includes gambling winnings, adjusted for deductions. The state gambling tax in Pennsylvania is 3. The Keystone State set a fiscal year record for revenue and taxes in 2022/2023. Here’s a breakdown of the federal income tax for 2023, which you’ll file in 2024: Federal Income Tax Brackets for 2023. Total adjusted revenue for April 2021 for video gaming terminals (VGTs) was $3,851,012. 5%, which matches the state’s bifurcated tax rates of 8. Posted on: November 17, 2023 | News | Corey Sharp. There is zero business opportunity if the online gambling tax rate goes above 20 percent. If the total LST rate enacted is $10 or less, the tax is to be collected in a lump sum. While some states subject sports betting and fantasy contests to the same general gaming tax, many have taken the opportunity to impose excise taxes in addition to the 0. § 13B54. Online Casino Tax Rates in Pennsylvania. Sports betting taxes are almost always levied as a percentage of the value of the adjusted. Gaming Tax Bulletin 2015-01 -- Department of Revenue Policy Concerning the Deductibility of Promotional Items for Purposes of Calculating Gaming Taxes. It was the second year that Pennsylvania has led nationwide in the amount of tax revenue generated from casino gambling. This means that all. In Maryland, there is a gambling winnings tax rate of 8. In addition to paying taxes, casinos must pay into a problem gambling trust fund to help people with gambling addiction or compulsion. 8 percent on lottery winnings exceeding $0. The rates are as follows: 3% for income up to $10,000. What Are Virginia Gambling Tax Rates? Gambling winnings are subject to 24% federal tax, which is automatically withheld on winnings that exceed a specific threshold (see next section for exact amounts). In addition to online gambling, HB 271 legalizes the following: Video gaming terminals (VGTs) at truck stops;. 07% which applies to all taxable income, including gambling and lottery winnings. The bill is amending the sports betting law that solidified PA sportsbooks at the same rate. Elsewhere, Pennsylvania cleared $12. Federal tax rate: The federal government taxes 24% of all winnings off the top. If your winnings are reported on a Form W-2G, federal taxes are withheld at a flat rate of 24%. subject to the 3. Single wins worth $1,200 or more (slots) or $5,000 (poker) are. For the highest-income taxpayers, it is 63. What’s the gambling tax rate in Pennsylvania? The Commonwealth of Pennsylvania treats gambling winnings as another form of income. This resulted in a net revenue of $48,113,670. Thirty-six states charge a tax on lottery winnings, with an average lottery tax rate of 5. 75%, while Delaware and New York tax fantasy contests at a rate of as much as 15. 4 million adults in the U. PA casinos will have to pay a 36% tax on winnings to the state Sports bettors are generally subject to a flat 24% tax but tack on 3. 8712% for Philadelphia residents. 5 billion through licensing fees and tax revenue since its launch 12 years ago. 99 percent corporate income tax rate and permits local gross receipts taxes. Gambling in Pennsylvania includes casino gambling, the Pennsylvania Lottery,. Pa Gambling Tax Rate - Top Online Slots Casinos for 2022 #1 guide to playing real money slots online. Total tax revenue generated collectively through all forms of gaming and fantasy contests was $169,135,316 during September 2021. July 2020 August 2020 September 2020 November 2020 December 2020 January 2021 February 2021 March 2021 May 2021 June 2021 FYTD Grand Total The breakthrough was , which was passed on Dec. The state has one of the highest tax rates for gambling activities in the United States. The Borgata brand is one of the most trusted and well-recognized names in the gambling industry, and that’s no different with the Pennsylvania online casino app. PA Casino Gambling Taxes. 24 The tax treatment of remote gambling. Live and file in Illinois (rate is 4. No promotional rates found. Total Sportsbook Revenue: $1,387,039,943. Arizona Gambling Tax Rates. 25% tax in. Illinois, which saw the third highest amount, taxes. 5% on retail betting and 14. PA lawmakers ultimately settled on the very same tax rates brick and mortar casinos in the state are already paying. $10,159 $9,767. 15% higher than June 2021 when revenue was $3,303,745. Local share assessment. Plus, federal income tax is applied to gambling wins. Other states like Arizona, North Dakota, Indiana, and Pennsylvania have relatively low tax rates between 2-4% on casino, sports betting, and other gambling winnings. Pennsylvania tax on gambling winnings, pa gambling tax rate. Since the inception of legal sports betting in 2018, the Garden State has collected $169. 66% higher than September 2021 when revenue was $3,406,058. Profits are often subjected to a 24 percent federal gambling tax rate liability, instantly taken on earnings exceeding a certain level. Pennsylvania Gambling Tax Rate. This does not explicitly state sports betting, but it does cover. 07% applies to all winnings from land-based establishments and PA online gambling sites. Gambling winnings are typically subject to a flat 24% tax. Gross revenue from gaming and gambling in. Non-residents must complete and file IRS Form. PA will tax online slot revenue at 54 percent, more than twice the rate at which operators say they feel comfortable. PA Online Casinos Top $185 Million In Revenue For Second Straight Month. 2 Operated by Mohegan Sun Pocono. Yes. But the legislation’s sports betting provisions, in some ways, are the most intriguing part of the puzzle. But, these are still counted toward your total taxable income. Nov. Licensing and regulation are under the jurisdiction of the Pennsylvania Gambling Control Board . 25 percent of the handle (total amount wagered). 1 Operated by Parx Casino. The actual amount will depend on your state’s particular tax rate. Pennsylvania tax rate: Pennsylvania charges an additional 3. This 54% rate makes Pennsylvania one of the toughest markets for earning casino gaming profits. The state of Pennsylvania also taxes your gambling winnings. It also added the 36 percent rate on PA sports betting operators. Despite tax rates of 54% for online slots and 16% for online table games and poker, PA became the first state to cross $1 billion in tax revenue. Pennsylvania Gambling Tax Rate. (CCGP) is a non-profit group that operates a 24/7, free, live, and confidential helpline (1-800-GAMBLER) for gamblers, as well as. In Illinois, the initial in-person license is $10 million and the online license is $20 million. The relatively modest 14. Yes, non-US residents must pay taxes on gambling winnings. The AGA’s State of the States report shows U. In the year leading up to the 2022 study, 67. Tax Rate on PA Casinos and Sports Betting. 75%, and gambling winnings are considered income. Pennsylvania taxes eight classes of. These gambling winnings are subject to federal income tax withholding, typically at a fixed rate of 24%. Anyone who receives winnings from lottery games, racetrack betting or gambling must pay income tax on the prize money. 6% against 2019, while revenue from table games was $504. There is no timeline in place or meetings. The remainder of the money is also taxable. 4. They are under the radar. com) Jul 26, 2010 Jul 26, 2010 Updated Apr 15, 2020;. In the case of state taxes, all casinos must withhold 4 percent of your winnings. The tax withholding rates for states can vary by location and game. As a result of this legalization, a number of sports betting apps have been. If you make less than $22,150 per year, you won’t owe any taxes. 31, 2015, all prizes of the Pennsylvania Lottery were excluded from this class of income. During that time, Yass paid an average federal income tax rate of just 19%, far below that of comparable Wall Street traders. PA gambling tax is 24% on all gambling and an additional 3. com to schedule a consultation with an attorney. A comprehensive gambling expansion bill in late 2017 included a provision for sports betting that has put Pennsylvania among the first 10 states with sports betting. The gambling tax rate is 23 per cent of the tax base, with the exception of technical games and, since 1 January 2020, also lotteries that are both subject to a 35 per cent tax rate. 3079, Tax-Exempt Organizations and Gaming. 25% tax in. – 5:00 p. The flat rate for taxes on gambling winnings is set at 24% initially. Feb 05, 2014 Pennsylvania’s bottom line: PA residents with NJ online gambling winnings may claim a partial or full credit against PA tax of the tax paid on those gambling winnings to New Jersey. C. 3. You. PA Sales, Use and Hotel Occupancy Tax: 6 percent: Local Sales Tax: 1 percent for Allegheny County 2 percent for Philadelphia: Cigarette Tax: $2. By Andrew Staub (Staff Writer astaub@citizensvoice. 2%. In 2017, Gov. Total Betting Handle: $18,892,157,142. Commercial gaming operators paid an estimated $3. The tax rate for gambling winnings, if reported on Form W2-G, is 24%. 66% higher than September 2021 when revenue was. When Pennsylvania legalized casino gambling (slot machines) in 2004 it was told in no uncertain terms the 52% tax rate it imposed on slot machines was a self-inflicted wound. Gambling and lottery winnings is a separate class of income under Pennsylvania personal income tax law. The withholding rates for gambling winnings paid by the New Jersey Lottery are as follows: 5% for Lottery payouts between $10,001 and $500,000; 8% for Lottery payouts over $500,000; and. States relying on gambling revenue more than Pa. 8, 2021, and legalized both retail and mobile sports betting with a tax rate of 10%.