Contributions of Online Gambling to United States Tax Revenue
Gambling can cause illicit activities, but countries still allow this industry to roam free. This is because the gambling industry is one of the industries that contributes the most to the nation’s tax revenue.
Here we look at the tax revenue contributions of the online gambling industry here in the United States.
In Pennsylvania, their gambling revenue is around $6.8 billion on average. Their tax rate made it possible for the government to procure $2.8 billion of the total revenue of the gambling industry.
However, this may increase due to bills getting put forward that expands the freedom of online gambling facilities.
Nevada is one of the places in the world that have the lowest tax rate for their gambling revenue. In fact, this is where you can find the most popular casinos in the world, and it’s only natural they have the highest gambling revenue, reaching $11.1 billion.
Of this revenue, they bring an estimated tax revenue of $745 million to the US.
Since the opening of online casino and poker sites in November 2013, casino revenues have increased slowly. Their total gambling revenue is $5.8 billion, while $1.8 billion of this is from online gambling revenue.
This is enough to make up for their tax rate as they were required to bring $1.2 billion for their tax.
Lottery facilities have a tax rate of 100% on the first $3 million revenue they generate each year. This is why racinos aren’t getting any money from online gambling. This ended as leaving facilities with no motivation to promote the games.
As for the side of online poker gaming, they were only able to generate $30,000 each month.
These are the reasons why the gambling industry of the state only generated $635 million which only comes from casinos, with $253 as the tax revenue from gambling.
While some of these states aren’t exactly in the best situation, we expect that their circumstances will at least become better for the next few months, as many legislations will be put forward by that time.