How Much Tax Will Skill Games Generate for Pennsylvania?
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As it continues to look more likely that skill games will go the same way as PA online casinos and start being taxed, the question on everyone’s mind is: how much money is the Keystone State looking to generate from this tax? Predictions have varied, according to whether you believe whether Gene Yaw’s 16% model or Governor Josh Shapiro’s 42% model will be followed. But now, we appear to have an official calculation from the government’s Independent Fiscal Office itself (IFO).
Skill Games Tax Revenue Can Reach $421 Million in 5 Years
Government Shapiro’s predictions regarding the tax generated by Pennsylvania from skill games start out strong, hitting the $150 million from the very first year and eventually climbing up to $317.9 million in 2028/29.
The IFO’s predictions, on the other hand, start off with a much more modest of $103 for the first year. However, in five years’ time the government’s predictions are exceedingly even those of Shapiro, hitting $421 million.
This is how the IFO broke down its calculations in this way: ““The estimate assumes that: (1) 15,000 machines are regulated and operating in FY 2024-25 and that number increases to 29,000 by FY 2028-29, (2) the average gross gaming revenue per machine is $30,000 in FY 2024-25 and that average grows by 2.5% per annum, and (3) 25 wholesalers are licensed.”
The predictions are based on the 42% tax model, rather than the lower one that has currently reached the Gambling Oversight Committee. However, there are yet no concrete indications as to which model will make it through.
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