Pennsylvania Tax On Gambling Winnings

• Pennsylvania State Tax On Gambling Winnings
• Pennsylvania Tax On Gambling Winnings
• Massachusetts Tax On Gambling Winnings
• Pa Tax Rate On Gambling Winnings
• Pa Local Tax Gambling Winnings

(7) Net gambling and lottery winnings (other than noncash Pennsylvania Lottery winnings); and (8) Net gains or income derived through estates or trusts. Except for a few narrowly defined reductions to compensation, the tax is applicable to gross income (e.g., gross compensation, gross interest income and gross dividends). In addition to interest, dividends, business and rental income, gambling and lottery winnings and income reported on Form 1099-Misc taxable to Pennsylvania, below are additional items of taxable income that must be added. Employer provided fringe benefits, unless excludable.

PHILADELPHIA (CBS) — The advent of casino gambling in Pennsylvania was supposed to help homeowners in the form of lower property tax bills. Years later, however, some homeowners say they’ve seen little tax reduction as the casino revenue is actually going elsewhere — specifically, horse racing.

Pennsylvania lawmakers legalized casinos more than a decade ago, making a few promises along the way. First, legislators said slot machines would generate so much in tax revenue, people would see an average savings of $300 a year off their property tax bill.

But that promise has fallen short. This year, the average savings is just $182, according to the state Education Department.

It was even less for property owners in the Great Valley School District in Chester County: $126. In East Penn, Lehigh County, the average savings was $177.

In Cheltenham, Montgomery County, where Larry Angert lives, his property tax savings amounted to $55.

“It’s a joke! It’s a typical politician’s promise and it’s a joke,” he said.

But there was another promise Pennsylvania lawmakers made. They said taxes from casinos would help prop up horse racing. That was a promise kept.

CBS3 discovered $174 million in tax dollars, generated by the state’s slot machines, went to horse races. That cash is used to fund nearly all of the races’ prize money, called purses.

“The purses here are very attractive,” said Paul Trapani of Maryland.

Trapani won $35,000 at a recent race at Parx with his horse, Lord of Misrule. He says most of that will be spent out of state — either in Wilmington, Delaware, where the horse is trained, or Maryland, where he lives.

A 2017 state audit shows almost half of all horse race winnings in Pennsylvania — some $73.6 million — flowed to non-residents.

While out of state horse owners are attracted to Pennsylvania’s tracks, the tax money has not been not enough to attract big crowds.

A benchmark report shows a drop in horse racing attendance statewide for the last three years.

“I’m just frustrated with the lack of results,” said Republican state Rep. Todd Stephens of Montgomery County.

Stephens would rather reform the program or use the $174 million that went to purses last year to help plug the state’s deficit. He calls the money that goes to horse racing a hand out.

“There’s no question, this is corporate welfare,” he said.

“It employs 20,000 people,” countered Pete Peterson of the Pennsylvania Equine Coalition. “It helps reserve 100,000 acres of open space, so it’s a very good return on investment in my opinion.”

Peterson also believes the horse racing industry may soon be on the rebound, but he says it takes time.

“We have seen a very significant impact,” Peterson said. “We’re proud of the jobs it’s created throughout the Commonwealth.”

• Year Pennsylvania Regulated Gambling: Horse racing (1963), Lottery (1972), Bingo (1981), Slot Casinos (2004), Table Games (2010)
• Estimated Tax Revenue from Gambling: $2.8 billion
• Estimated Gambling Revenue: $6.8 billion
• Pennsylvania Gambling Age: 18 for lottery, bingo, and racing, 21 for casinos
• Smoking ban: Pennsylvania permits casinos to set aside a percentage of the floor for smoking areas
• Online gambling status: Horse racing is the only form of legal online gambling

Pennsylvania is the second largest casino state in terms of gambling revenue. Most of the state’s casinos are racetracks with attached casinos. There are three resort-style Pennsylvania casinos. Those offer fewer slots than the main gaming establishments in the state. This is unusual compared to most other states where casinos offer amenities. Most Pennsylvania casinos offer little more than gambling on slots, video poker, and table games.

Casinos are not the only forms of Pennsylvania gambling within the state. There is a state lottery that sells instant games and holds lotto drawings. There are live horse racing and off-track betting. Charities may hold limit games of chance to raise funds.

Paying Gambling Taxes in Pennsylvania

Do you have to pay taxes on your gambling winnings? OnlineUnitedStatesCasinos has gathered everything you need to know about paying taxes on your gambling winnings straight from a Certified Public Accountant. For more information please visit our exclusive Gambling Taxes article.

Pennsylvania Casinos Map & Guide

• Harrah’s
• Parx Casino
• Rivers Casino
• Sands Bethlehem
• Sugarhouse Casino

• Number of B&M Casinos: 12
• Number of Poker Rooms: 10
• Number of Indian Casinos: 0

• • Huge Welcome Bonus Package
  • Visa and MasterCard Payment Options Available for US Players
  • Over 150 Real Money Online Slot Games

  Compatible with:

  • windows
  • apple
  • android
  • mobile
• • Safe and Reputable Casino, Mobile Friendly
  • Easy Credit Card Deposits for US Players
  • Impressive Welcome Bonuses up to 260% match

  Compatible with:

  • windows
  • apple
  • android
  • mobile
• • Quick USA Payouts, Credit Cards Accepted
  • Great Selection of Slots & Table Games
  • Legit & Reputable Mobile Friendly Casino

  Compatible with:

  • windows
  • apple
  • android
  • mobile
• • Uses the Microgaming Software
  • Fast Cashouts in Just 1-7 Days
  • Online, Mobile, Instant & Live Play

  Deposit Options include:

  • visa
  • mastercard
  • paypal
  • neteller

  100% up to €1,000
• • Big Jackpots and Massive Deposit Bonuses
  • Over 400 Online Casino Games
  • Play Live Dealer Games

  Deposit Options include:

  • visa
  • mastercard
  • paypal
  • bitcoin

  100% up to €1,600
• • Large Australian Bitcoin-Friendly Casino
  • Mobile, Flash, and Download Play Options
  • Fastest Payouts

  Deposit Options include:

  • visa
  • mastercard
  • paypal
  • neteller
• • Safe and Trustworthy Australian Casino
  • Multiple Daily Deposit Deals
  • 100s of Pokies, Slots, and Table Games

  Compatible with:

  • windows
  • apple
  • android
  • mobile

Types of Pennsylvania Online Gambling Allowed

There is only one form of legalized online Pennsylvania gambling. That is off-track betting on horses. Sites like TVG, TwinSpires, and XpressBet partnered with Pennsylvania tracks to offer this service over the Internet and on mobile apps.

Daily fantasy sports sites claim to be legal in Pennsylvania. There is no law on the books that expressly states that. The companies claim to be skill gaming sites. There are bills under consideration by the Pennsylvania Legislature that would make daily fantasy sports a regulated and legal activity. DraftKings, FanDuel, CBS Sports, and Yahoo! are among the sites that accept Pennsylvania players.

Types of Live Pennsylvania Gambling

• Slots: Yes
• Blackjack: Yes
• Poker: Yes
• Craps/Roulette: Yes
• Horses: Yes
• Lottery: Yes

Pennsylvania gambling offers nearly every form of betting they want in the state. Pennsylvania casinos started out only offering slots, video poker, and electronic table games. That expanded to live poker, blackjack, craps, roulette, and nearly any house-banked card game one can imagine. There are 12 Pennsylvania casinos with one more in the planning stage.

There are seven racetracks in Pennsylvania. These offer live racing and race books. These tracks moved into the casino business. That helped keep the racing industry above water.

The Pennsylvania Lottery sells scratch-off tickets and lotto drawings. These are available at thousands of convenience stores across the state. There are Pennsylvania-only lotto drawings that include Pick 2, Pick 3, Pick 4, Pick 5, Cash4 Life, Cash5, and Match 6. The Pennsylvania Lottery also participates in multi-state lottery drawings. These are Powerball and Mega Millions.

Bingo is permissible if spread by a charity. There are more than a dozen licensed bingo halls in the state.

Pennsylvania Gambling Laws

The Pennsylvania Gaming Control Board is permitted to issue 14 casino licenses. Seven were guaranteed to the state’s racetracks. There were five standalone Pennsylvania casino licenses awarded. Two resorts receive licensure. A third resort will receive a license in 2017 to bring the total to 15 Pennsylvania casinos within its borders.

Casinos in Pennsylvania pay a tax rate of 55 percent on slots, video poker, and electronic table games. Live poker and table games have a tax rate of 16 percent.

Charities may apply for a bingo license. These cost $100 and are active for one year. Bingo games may have no prize larger than $250 for a single game except for the jackpot drawing. That bingo game may have a $2,000 prize pool. The largest amount of money that may be awarded in one day by a bingo charity is $4,000. Bingo halls may not spread more than two nights of action a week. Exceptions are made for charities that only hold annual celebrations. These nonprofit groups can hold 10 consecutive days of bingo games.

The Pennsylvania Lottery may only spread two types of games. One is instant games, sometimes referred to as scratch-off tickets. The other is lotto drawings. The Pennsylvania Lottery holds its own drawings as well as joins multi-state pools.

Horse racing is active in Pennsylvania. Seven tracks are licensed to offer live races. Each has a race book. Horse racing tracks may partner with online betting apps for remote wagering. Players may make deposits and withdrawals at the partner tracks.

The minimum Pennsylvania gambling age is 18 years of age, except for casinos, where the minimum gambling age is 21. Bingo participants may be under 18 if accompanied by an adult.

List of Pennsylvania Casinos

There are 12 Pennsylvania casinos open and currently operating. Seven are at racetracks that also offer live and simulcast betting, and the rest are casino resorts.

History of Pennsylvania Gambling

Horse racing was the first form of legalized gambling in Pennsylvania. Its regulation started in 1964. The racing industry dated back more than 200 years before that. Dozens of tracks operated off the book races where the betting was handled through underground networks. It took until 1964 for the state to determine it was better off regulating and taxing the racing industry than to let it operate without any oversight.

The Pennsylvania Lottery was created by Act 91 on August 26, 1971. The first lottery ticket was sold on March 7, 1972. It was a half-dollar drawing with a $1 million grand prize. The Pennsylvania Lottery joined interstate drawings on June 27, 2002.

The Racehorse Development and Gaming Act was signed into law by Governor Ed Rendell on July 5, 2004. This permitted racetracks to add slots, video poker and electronic table games. It was created to help save the state’s racing industry. Table games and live poker were added in January 2010.

The new table games helped Pennsylvania’s gambling industry explode. The state surpassed New Jersey as the second highest state in terms of gaming revenue in 2012. Pennsylvania has retained that title ever since. Nevada is the only state with more gaming revenue than Pennsylvania.

Pennsylvania looked again to expand gambling in 2013. This time, it was over the Internet. Multiple attempts have included online poker and casino games. None has reached the assembly or senate floor for a vote.

The Pennsylvania Legislature is also looked to expand gambling to daily fantasy sports in 2016. Those talks have also failed to produce a new law regulating and taxing the contests.

Pennsylvania Casinos & Gambling FAQ

Pennsylvania State Tax On Gambling Winnings

The minimum Pennsylvania gambling age is determined by the types of gambling they want to use. Lottery and racing players must be at least 18. Pennsylvania casino players must be 21 years of age or older. Bingo players must be at least 18 unless accompanied by a parent or guardian.

Pennsylvania Tax On Gambling Winnings

Slots, video poker, electronic table games, live poker, blackjack, baccarat, Pai Gow, Three Card Poker, Four Card Poker, Ultimate Texas Hold’em, Let it Ride, Mississippi Stud Poker, Texas Hold’em Bonus and Caribbean Stud Poker are among the approved games at Pennsylvania casinos.

Yes. All seven horse racing tracks in Pennsylvania offer race books.

Massachusetts Tax On Gambling Winnings

The only form of online gambling legal in Pennsylvania is off-track betting on horses.

State law does not cover daily fantasy sports. Sites like DraftKings, FanDuel, CBS Sports and Yahoo! claim that the contests are skilled games.

Pennsylvania generates more gaming revenue than any other state except Nevada.

Pa Tax Rate On Gambling Winnings

Pa Local Tax Gambling Winnings

The Pennsylvania Lottery sells scratch-off and lotto tickets.