- New York taxes online sports betting at 51% of revenue, the highest headline rate; Michigan's 8.4% is among the lowest.
- Pennsylvania taxes online slots at 54%; Rhode Island and Delaware keep about 62% and 57% of slot revenue under lottery-run models.
- 2025 increases: New Jersey (1 July), Illinois per-wager tax (1 July), Maryland mobile betting to 20% (1 June) and Louisiana online betting to 21.5% (1 August, per trade press).
- Connecticut's online casino rate rose from 18% to 20% in October 2026.
US states tax online sports betting at rates from 8.4% of revenue in Michigan to 51% in New York, and online casino from 15% in West Virginia to over 50% for online slots in Pennsylvania. Several states also tax on a different base: Tennessee charges 1.85% of the amount wagered, and Illinois added a flat charge per online bet in July 2025. The tables below give the headline rate in each major state as of October 2026 and the date of any recent change.
In 2025, US commercial operators paid $3.71 billion in sports betting taxes and $2.59 billion in online casino taxes, according to the American Gaming Association.
Online sports betting tax rates
| State | Online rate | Base | Recent change |
|---|---|---|---|
| New York | 51% | Gross gaming revenue | None |
| Pennsylvania | 36% | Revenue | None |
| Illinois | graduated, plus per-wager tax | Adjusted gross receipts; plus $0.25 per online wager for a licensee's first 20 million wagers in a fiscal year and $0.50 after | Per-wager tax from 1 July 2025; raised $62.2m in July to December 2025 |
| Louisiana | 21.5% | Net revenue | Up from 15% on 1 August 2025 (trade press; not confirmed with the regulator) |
| New Jersey | 21% | Gross revenue (19.75% plus a 1.25% casino/racetrack additional tax) | Up from 13% plus 1.25% on 1 July 2025 |
| Maryland | 20% | Taxable win after promotional wagers | Mobile up from 15% on 1 June 2025 |
| Massachusetts | 20% | Adjusted gross receipts (15% retail) | None |
| Ohio | 20% | Taxable revenue, no promotional deduction | None in 2025 or 2026 |
| North Carolina | 18% | Revenue | None found |
| Virginia | 15% | Revenue | None found |
| Connecticut | 13.75% | Revenue | None found |
| Arizona | 10% | Adjusted gross receipts (8% retail); free-bet deduction for the first five years | None |
| Colorado | 10% | Net proceeds | None found |
| West Virginia | 10% | Adjusted gross receipts | None |
| Michigan | 8.4% | Adjusted gross receipts | None |
| Tennessee | 1.85% of handle | Amount wagered | None |
Online casino tax rates
| State | Online slots | Tables and poker | Notes |
|---|---|---|---|
| Rhode Island | 62.45% (state share) | 16.5% | Lottery-run revenue share |
| Delaware | about 57% (state share) | 20% | Lottery-run revenue share |
| Pennsylvania | 54% | 16% | Statutory rates; reproduce the board's reported tax |
| Michigan | 20% to 28%, graduated | Bands set on each operator's adjusted gross receipts for the calendar year: 20% below $4m, rising to 28% at $12m and above; paid monthly | |
| New Jersey | 22.25% | 19.75% plus 2.5% investment alternative tax; base rate was 15% before 1 July 2025 | |
| Connecticut | 20% | 18% until September 2026, 20% from October 2026 | |
| West Virginia | 15% | On adjusted gross interactive gaming receipts | |
The 2025 and 2026 increases
New Jersey's budget law (P.L.2025, c.66), approved on 30 June 2025, raised the gross revenue tax on both online casino and online sports betting to 19.75% from 1 July 2025. Illinois took a different route: from 1 July 2025 it charges each operator a flat amount per online wager on top of its revenue tax, which the Illinois Gaming Board reported raised $62,197,887 in the first six months. Maryland raised its mobile sports betting rate from 15% to 20% from 1 June 2025, with the extra 5% going to the state's general fund. Louisiana raised its online rate to 21.5% from 1 August 2025, according to trade press. Connecticut's online casino rate moved from 18% to 20% in October 2026.
Other increases have been proposed, including in West Virginia, but we list only rates that are in force.
Comparing rates fairly
A headline rate means little without its base. New York's 51% applies to gross gaming revenue, while Maryland's 20% applies after promotional wagers are deducted, and Ohio allows no promotional deduction at all. Tennessee's 1.85% of handle is roughly equivalent to 18% to 19% of revenue at a 10% hold, on our arithmetic. Illinois's per-wager tax weighs most on small bets, since it is the same amount whatever the stake. Our sports betting revenue table gives each state's revenue measure, and the UK duty page sets out how British rates compare.
Questions about state gambling taxes
Which state has the highest sports betting tax?
New York, at 51% of online sports betting gross gaming revenue. Illinois's graduated rates plus per-wager tax can also produce a high effective rate for large operators.
What is the online casino tax rate in Pennsylvania?
54% on online slots and 16% on online table games and poker.
Which states raised online gambling taxes in 2025?
New Jersey and Illinois from 1 July 2025, Maryland from 1 June 2025 and Louisiana from 1 August 2025 (the last per trade press). Connecticut raised its online casino rate in October 2026.
Sources
- American Gaming Association: State of the States 2026 (May 2026); 2025 revenue and tax release
- NJ DGE: September 2026 release with tax table; NJ Assembly Budget Committee statement on A5803 (26 June 2025)
- Illinois Gaming Board: FAQs on the per-wager tax (17 June 2025); 2025 annual report
- Maryland Lottery and Gaming: mobile sports wagering tax change (10 July 2025)
- Massachusetts Gaming Commission: release 26-003 (20 January 2026)
- Arizona Department of Gaming: event wagering report
- Michigan Lawful Internet Gaming Act (Act 152 of 2019)
- Connecticut Open Data: online casino gaming payments to the state
- West Virginia Lottery: financial report (20 July 2026)
- New York State Comptroller: Sports Wagering in New York (September 2026)
