The Covid-19 pandemic dealt blows to casino revenue and gaming tax in both Pennsylvania and New Jersey for 2020, but thanks to online gaming revenues, the impact on gaming revenue taxes in New Jersey was nullified.
According to a report in the Philadelphia Inquirer, gaming revenues in Pennsylvania dropped from $6.1 billion in 2019 to just $2.7 billion in 2020. In New Jersey, revenues were $2.9 billion last year, down from $3.5 billion the previous year. However, the tax impact on the two states was vastly different, owing mainly to the contributions of online gaming in New Jersey.
Pennsylvania’s state and local revenue tax collected was $317 million last year, down 22 percent, whereas New Jersey, gaming tax revenue actually increased slightly over 2019—$302.7 million an increase of $2.3 million over 2019. The difference was online gaming revenue, with internet wagers taxed at a higher rate than casino revenue.
“Without the increase in online revenue, there is no telling how much weaker a position the entire industry would be in right now,” Dustin Gouker, lead analyst for PlayPennsylvania.com, said in a statement.
