- The sports betting tax rate in Pennsylvania will remain at 36% despite discussions to raise it up to 54%.
HARRISBURG, Pa. – After much consideration on whether the state was going to increase gambling taxes, the newly signed 2025-26 Pennsylvania budget will not include any changes to the tax rates for any types of gambling in the state.
Governor Josh Shapiro signed the 25-26 budget that did not raise the sports betting tax rate.
We’re building on our progress to cut costs, expand our workforce, invest in our schools, grow our economy – and get stuff done for the good people of Pennsylvania.
As I sign this budget into law today, I’m more confident than ever that our Commonwealth is on the rise. pic.twitter.com/jTYeK9Wxbi
— Governor Josh Shapiro (@GovernorShapiro) November 12, 2025
The total current tax rate that legal sports betting sites in Pennsylvania must pay is 36%. Betting sites in the state must pay a 34% tax rate to the state and a 2% tax locally.
Speculation had grown in previous weeks that the sports betting tax rate in Pennsylvania would be raised to 54%, but due to differences in how the extra tax revenue would be used between Democrats and Republicans, the tax rate will stay at 36%.
Pennsylvania’s current 36% tax rate on sports betting is the seventh highest in the country. If the state had raised the tax rate to the proposed 54%, Pennsylvania would have had the highest sports betting tax rate in the nation.
36% Tax Rate a Win for Bettors and Betting Sites
The failure to raise the tax rate on legal sports betting sites is a win for both the providers and bettors in Pennsylvania.
Higher tax rates would mean that sports betting providers would have their revenue reduced, which in turn would mean that bettors would pay one way or another.
There are a few ways that bettors pay when a state raises its sports betting tax rate:
- Worse Odds: The simplest way that sportsbooks would make up for lost revenue is to offer worse odds to players. In betting terms, that means the sportsbooks would often make their standard odds -115 or even -120 instead of their normal -100 odds. While this is not a drastic difference for bettors, it would hurt bettors in the long run.
- Fewer Bonuses: When sportsbooks make less revenue, they are also likely to make cuts to the sports betting bonuses and promotions that they offer to new and returning users.
- Fewer Sportsbooks: Some sportsbooks leave markets when the tax rate is too high for their liking. When sportsbooks leave a market, that reduces competition. Competition for new players among sportsbooks ensures that all betting platforms offer fair odds, good bonuses, and a high-quality user experience. Less competition often means lower quality sportsbooks.
