Sports Betting Alliance Rallies Pennsylvania Fans Against Online Betting Tax Hikes

Campaign to Protect Legal Betting

The SBA’s initiative calls on Pennsylvanians to contact state lawmakers to “protect legal online betting,” pointing out that the state’s 36% tax rate, surpassed only by New York, New Hampshire, and Rhode Island at 51%, already burdens operators.

“Unfair tax hikes like this, everyone loses—but especially customers!” the SBA stated, signaling that higher taxes could reduce attractive odds and limit product offerings.

The campaign argues that pushing players to unregulated platforms risks the $400 million in annual tax revenue Pennsylvania generates from legal betting. The SBA suggests legalizing online casinos as an alternative revenue source, a strategy gaining traction in states like Maryland.

Broader Tax Hike Trend Threatens Industry

Pennsylvania’s debate is a part of a nationwide push to raise online betting taxes. New Jersey finalized a 19.75% rate in June, down from a proposed 25%, while Louisiana’s House Bill 639 set a 21.5% tax, and Maryland raised its rate to 20%. Illinois’ new budget skyrocketed its effective tax rate to 50–60%.

The SBA warns that these trends, if replicated in Pennsylvania, could “make it harder for operators to offer the products you love,” driving bettors to illegal sites lacking consumer safeguards.

Higher taxes could erode player experiences by reducing promotional offers, as seen in Illinois, where DraftKings added a 50-cent per-bet fee.