Pennsylvania Casino Taxes 2026

Pennsylvania imposes a flat 3.07% state income tax on all gambling winnings. Unlike some states that only tax winnings above a threshold, PA taxes every dollar you win, regardless of amount. This applies to:

• Slot machines and video poker
• Table games (blackjack, roulette, craps, etc.)
• Poker tournaments and cash games
• Sports betting (online and retail)
• Lottery and keno
• Bingo and charitable gaming

The tax is withheld by licensed Pennsylvania casinos at the time of payout for certain wins. For offshore casinos, you are responsible for reporting and paying the tax yourself.

In addition to state tax, gambling winnings are subject to federal income tax at your marginal rate. Casinos must report certain winnings to the IRS on Form W-2G and may withhold 24% for:

• Slots or bingo: $1,200+ (not reduced by wager)
• Keno: $1,500+
• Poker tournaments: $5,000+ (after subtracting buy‑in)
• Any winnings at least 300 times the wager (subject to 24% withholding)

Even if no tax is withheld, you must report all gambling income on your tax return. Failure to do so can result in penalties and interest.

Report gambling winnings as "Other Income" on Schedule 1 of Form 1040. If you itemize deductions, you can deduct gambling losses up to the amount of your winnings on Schedule A. Keep a detailed log of your sessions, including:

• Date and type of gambling
• Name and address of casino
• Amounts won and lost
• W‑2G forms received

For online casinos, save screenshots of transaction histories. Use our PA tax calculator to estimate your liability.

You can deduct gambling losses only if you itemize deductions. The total loss deduction cannot exceed your total gambling winnings. You must be able to prove your losses with records. Losses from one form of gambling can offset winnings from another (e.g., slot losses offset poker winnings).

Note: You cannot deduct losses if you take the standard deduction. Keep all receipts, tickets, and statements.

Licensed Pennsylvania casinos (e.g., those regulated by PGCB) automatically withhold state tax (3.07%) on reportable winnings and issue a W‑2G for federal purposes. Offshore casinos (like many on our list) do not withhold any taxes – it is your responsibility to report all winnings to the IRS and PA Department of Revenue.

Always keep records of your offshore casino transactions. Using crypto can make tracking easier.

As of 2026, no major changes to Pennsylvania gambling tax rates have been enacted. However, the IRS has increased standard deduction amounts, which may affect whether you itemize. Always consult a tax professional for your specific situation.