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Interesting Math: PA Sports Betting Tax Rate Came From Doubling Table Games Rate

Pandas But as the bill was merged with other gaming legislation into an omnibus gambling measure now known as Act 42, the sports-wagering tax was doubled to 36 percent. (State Rep. Rob) Matzie, the sponsor of the sports-betting law, said he initially set the sports-betting tax rate at the same rate as casino table games because they are comparable labor-intensive gaming forms. But as lawmakers examined the business more closely, the Republican leadership believed that the potential for online sports betting more closely resembled automated slot machines, which are taxed at a higher rate. Simply doubling the table games rate — and comparing sports betting to slots as a form of gaming — shows a shockingly low knowledge of the sports betting industry and how it works. It also indicates how little thought the state put into its sports betting law. The 18 percent rate would have already placed Pennsylvania at the high end of sports betting taxes. The 36 percent rate and putting wagering in a mental bucket with slot machines is even worse. (There are comparably higher rates in some jurisdictions outside of the US.

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