Pennsylvania Online Casino Laws
The Keystone State established the Pennsylvania State Lottery through Act 91 in 1971. In 2004, it passed Act 71, which pushed to legalize gambling through the Pennsylvania Racehorse Development and Gaming Act. This legalized casinos and racetracks, as established by the Pennsylvania Gaming Control Board.
In 2017, this was expanded, allowing Pennsylvania online gambling for slots and table games. Governor Tom Wolf signed the Pennsylvania Expanded Gaming Act to allow both online sports betting and casino gaming.
To offer internet gaming in the state of Pennsylvania, casino websites have to be partnered with a land-based casino in the state. Today, the state's gambling revenue is nearly $560 million thanks to the growing popularity of iGaming.
Timeline of Significant Pennsylvania Laws for Gaming
2017 – Act 42 legalizes online casinos and sports betting
2019 – First online casinos launch in PA
2020 – Live dealer games were introduced to the PA market
2021 – Expanded payment and registration flexibility for users
2023 – Enhanced responsible gaming measures implemented
2024 – Pennsylvania joins multi-state poker compact (MSIGA)
Licensed operators can offer Pennsylvania online betting, and all gaming activities must comply with state laws. The Pennsylvania Gaming Control Board (PGCB) oversees all licensing and compliance for internet gambling operators.
Tax Implications
Gambling companies must pay a 36% state tax on their revenue. For players, all gambling winnings are considered taxable income and must be reported on both federal and state returns. Gambling and lottery winnings are a separate class of income under Pennsylvania's personal income tax law with a flat rate percentage of 3.07%.
How to Report Gambling Winnings in Pennsylvania
Report all gambling winnings on your federal tax return (Form 1040)
Report the same amount on your Pennsylvania state tax return (PA-40)
Keep detailed records of all gambling activities, including wins and losses
For winnings over $600, expect to receive a W-2G form from the casino
Gambling Age Requirements
To play at a real money online casino in PA, players must be 21 years or older. The best online casinos in PA use age verification and geolocation software. This technology confirms that players are of age and are also physically located within the state when playing online.
Tribal Casino Partnerships
The Mohegan Tribe of Connecticut owns and operates Mohegan Pennsylvania. Wind Creek Bethlehem is managed and operated by Wind Creek Hospitality, the casino and entertainment operation of the Poarch Creek Indian Tribe. However, this is a state-licensed commercial casino, as opposed to a federally regulated Indian casino.