US States Which Pay The Highest Land-Based Casino Taxes

Unlike the consumer tax on gambling winnings, casinos gets taxed differently depending on the state. Some casinos get taxed over 50%, which shows just how much they want to provide gambling in their state.

Land-based Casino Revenues Highest states Tax Rates

Below, we break down: how much tax each casino pays on its revenue, the history of gambling in each state, how much they contributed in taxes during the last tax year, and what each states' taxes contribute towards.

1. Rhode Island

Sitting firmly at the top, with the highest tax rate on casino revenue in the whole of the United States, is Rhode Island. According to the American Gaming Association's reports, Rhode Island taxes casinos 68.85%-74% on slots and 17-19% on table game revenue.

There are only two land-based casinos within Rhode Island but they bring in a fair bit of revenue. Table game revenue at Twin River and Tiverton is taxed at a rate of either 17 or 19 percent depending on each casino’s total net revenue of the previous fiscal year. If a property’s revenue is up from the prior year it pays an additional two percent. In 2022, Rhode Island made $688.2 million in land-based casino revenue, and of that, $345.6m was taxed.

1934: legalized sports wagers on horses and greyhounds
1973: re-introduced the state lottery again, having banned it since 1896
1991: off-track betting was legalized
1992: slots, video lottery terminals and keno was legalized
2012: table games were legalized
2024: iGaming was legalized, making Rhode Island the seventh state to do so

When it comes to allocating the tax, the state’s portion of gaming revenue contributes to the state’s 'General Fund'. The General Fund is distributed annually and is used to pay for various state services, including education, public safety programs and healthcare. State gaming taxes are also allocated to local governments and the Narragansett Indian Tribe.

2. Delaware

Taking the second highest spot on the list is Delaware, and whilst its tax on slot games is lower than Rhode Island, the tax it pays on table games is higher. The three racinos in Delaware get taxed 57% on slots and 20% on table games. The racinos in Delaware provide sports betting, iGaming and slots under the authority of the Delaware Lottery.

1994: racetracks were allowed to install slot machines
2009: table games were legalized
2010: parlay wagers were permitted
2012: iGaming was legalized

In 2022, Delaware grossed $491.8 million in casino gaming revenue, of which $225.1 million was taxed. This was up 1.8% on the previous year, meaning that this is the states’ highest revenue total in more than a decade.

Of the total tax revenue generated by commercial gaming operations in 2022, approximately $177 million was returned to Delaware’s General Fund. This general fund is distributed annually for various purposes, including: public and higher education, health and social services and public safety. An additional $48 million was allocated to Delaware’s racing industry for the purpose of supplementing race purses

3. Pennsylvania

Hanging in at third has to be one of the biggest gaming states in the US, Pennsylvania. Here, slot games are taxed at a rate of 55% and table games are taxed at a rate of 16%. Pennsylvania is home to 10 land-based casinos as well as six racinos, and it is one of the states that generates the most in gaming revenue overall.

Out of the millions and into the billions, Pennsylvania made $3.38 billion in casino gaming revenue in 2022 and $1.58 billion of that was given to the state in taxes.

1972: state lottery was legalized and the first ticket was sold
1981: legalization of bingo
2004: slots authorized at racetracks
2010: table games were approved in the state’s casino law
2017: wide-ranging gaming expansion bill permitted including 10 additional mini casinos, iGaming approved in the state, sports betting and fantasy sports all made legal to wager on

The state’s share of gaming tax revenue in Pennsylvania is primarily used to reduce school taxes paid by Pennsylvania property owners, with allocations for local law enforcement grants and responsible gaming programs.

Additionally, funds are also allocated to Pennsylvania’s horse racing industry, economic development and tourism, county governments and to the municipalities that host casinos and racinos.

4. West Virginia

Despite having a lower tax on slots, than the above casinos (53.5%), West Virginia has the highest tax on table game revenue, of all US casinos, coming in at 35%. West Virginia is home to five commercial casinos and four racinos.

1994: legalized commercial gaming at racetracks
2007: legislation permitted the addition of table games to racinos
2008: approved casino gaming at The Greenbrier hotel
2018: legalized land-based and online sports betting
2019: legalization of iGaming was permitted

Gross casino gaming revenue (from slots and table games) was $592.9 million during 2022, of which $297.3 million was collected in tax.

Taxes collected from sports betting are placed in the West Virginia Lottery Sports Wagering Fund, which distributes the first $15 million to the State Lottery Fund, before remaining taxes are used to help support health-insurance programs for public sector employees.

5. New Mexico

Desert_Landscape_-_New_Mexico_(5989098056)

Standing firmly in fifth position is New Mexico. New Mexico hasn’t permitted table games yet, therefore the only casino revenue it taxes is slot machines; at a rate of 46.25%. Within this state you will come across five state-licensed racinos.

Additionally, you will also find 23 Indian casinos, run by the tribes, that aren’t obliged to pay into the state tax; these casinos are owned by a total of 14 different tribes. This means that the commercial racinos are at great competition with the 23 tribal casinos within the area, whom are also permitted to provide table games, unlike the former.

1947: pari-mutuel horseracing betting was legalized
1988: tribes were permitted to offer gambling on tribal lands
1995: state lottery was legalized
1996: state lottery went into action and legalized the sale of scratchcards
1997: slot machines in racinos was legalized
2018: sports betting was legalized

In 2022, New Mexico made $262 million in casino gaming revenue, of which $121.2 million was taxable. Additionally, this amount had risen 21.2% on the previous year.

Of the tax taken, roughly $68.1 million was distributed to the General Fund of the state, which is allocated each year to state budgetary expenditures; while the additional $52.4 million was distributed to the states’ horseracing industry, via subsidizing race purses, as well as contributing a slice of the pie to problem gambling.

6. Maryland

Maryland comes in on the bottom second-half of the list, with a tax rate of 40-61% on slots and 20% on table game revenue. These tax rates vary per casino. In Maryland you will come across six commercial casinos, which brought in $2 million in casino revenue during 2022, and therefore made $832.3 million in tax contributions to the state. In addition to taxes on revenue, casinos must pay an annual assessment of $425 per electronic gaming device and $500 per table.

1973: the state lottery was launched
2008: the state permitted slot games
2012: the state permitted table games
2021: first sportsbooks were launched
2022: mobile sports betting was launched

Taxes earnt off slot machines contribute to: horse racing purses, education, local impact grants, lottery, small businesses and racetrack facilities. Meanwhile tax from table games gets distributed, 15% to the Maryland’s Education Trust Fund and 5% goes towards local grants.

7. Maine

The tax rates are broken up a little differently for Maine; if a casino has a racetrack, then net slot income will be taxed at 39%, however if a casino does not have a racetrack, then net slot income will get taxed at 46%. Meanwhile table game income is taxed at a rate of 16%. Additionally 1% of gross slot revenue is distributed to the General Fund for the expenses of the board. In 2022, gross casino gaming revenue totaled $165.1 million and of that, $68.2 million was given in tax.

1974: the state agreed to allow Tribes to offer high-stakes bingo
1991: off-track sports betting was permitted
1993: first off-track betting parlor was opened
2003: slot machines at race tracks were approved
2011: table games were permitted at Maine’s two casinos
2022: online sports betting was authorized

Earnings from tax in Maine get distributed to higher education through the funding of scholarships and community colleges. Gaming tax revenue is also distributed to: agriculture, healthcare, the states’ horse racing industry and the local governments.

8. New York

New York has 13 commercial casinos and 21 tribal casinos. The commercial casinos pay 30-45% on slots and 10% tax on table games. In 2022, New York generated $2.86 billion in gaming revenue from racinos and casinos, bringing in a hefty $1.14 billion of tax.

1833: lottery was banned
1967: lottery was re-introduced
1970: off-track betting was legalized
1993: tribal casinos were legalized
2001: permitted video lottery terminals at racetracks
2013: commercial casinos and sports betting were legalized
2022: online sportsbooks launched

Under state law, 80% of gaming tax revenue generated by casino-resorts is used to fund: statewide education programs or provide property tax relief to New York citizens. The remainder is distributed to local governments that either host, or are located near commercial casino-resorts.

9. Oklahoma

Oklahoma taxes its gaming revenue a little differently to other states; casinos get taxed 35% up to $10m, and once revenue surpasses $70 million, the tax goes up to 50%. In 2022, Oklahoma made $150.9 million in commercial casino gaming revenue and therefore gave $68.7 million in taxes.

But the two commercial casinos are outshined by the wealth of tribal casinos in the area. There are also 35 tribes in Oklahoma, who run 143 Indian casinos. The Indian casinos only pay a small tax of 4-6% on their casino revenue; which goes into the states’ general fund. Tribal casino revenue came in at $3.2 billion in 2022 and the state picked up $191 million in taxes.

1982: pari-mutual horseracing wagering was legalized
2004: racinos and tribal casinos were permitted
2005: state lottery was approved

Tax is split into a share to state, and a share to horseracing. The share to the state goes 12% into the general revenue fund and 88% into the education reform revolving fund. Meanwhile the horseracing fund gets split up to subsidize purses, help breeding programs and other industry expenses.

10. Ohio

Ohio gambling revenue is fully controlled by the state, as there are no tribal casinos. Therefore all casinos in Ohio are taxed at a fixed rate of 33%; across all games. Ohio made $3.32 billion in gaming revenue during 2022 and was taxed $1.44 billion. In Ohio there are four casino resorts and seven racinos.

1933: pari-mutuel horseracing betting was legalized
1974 : first lottery game goes on sale
2009: four land-based casinos were permitted to offer slots and casino games
2021: online and retail sports betting was legalized
2023: online sports betting was launched

Under Ohio law, all tax revenue gained from racinos must be used to fund state education programs. Roughly half of the tax revenue (from casinos) will be distributed to all of Ohio’s county governments, to support: local budgets, law enforcement, infrastructure and problem gambling.