Sports betting is now the leading type of gambling worldwide, so it’s not surprising that many US states have made the move to legalize the pastime. And Pennsylvania is ahead of the curve.
The Keystone State is one of the premier states for those looking to bet on upcoming sports events. Read on to learn everything you need to know about sports betting in Pennsylvania.
Legality of Sports Betting
In 2018, the Supreme Court passed down a ruling that the Professional and Amateur Sports Protection Act (PASPA) was unconstitutional. It opened sports betting to states—but Pennsylvania had already begun the process of legalizing sports betting in 2017.
Seeking to expand online gambling in the state, Governor Tom Wolf signed a comprehensive gambling expansion bill into law in October 2017. The bill included some provisions for sports betting despite it being illegal on a national level at the time.
After the PASPA ruling in 2018, Pennsylvania operators moved quickly to launch sports betting opportunities thanks to the existing regulations in the state. By November 2018, retail sports betting locations began opening across the state, and online sports betting followed in May 2019.
Sports to Bet On
There are a few restrictions on the type of bets that can be placed on sports. The first restriction is that no wagers may be placed on eSports (videogame competitions). These are not considered to be legal sports and are exempt from betting. The second restriction forbids betting on high school sports.
On the other hand, it is possible to wager on collegiate sports in the first division. The only limitation applied to these is that no bets can be placed on an individual player (e.g., you can’t wager on Penn State Nittany Lions kicker Alex Felkins scoring two field goals in a particular game).
All other forms of sport can be legally wagered on, including international games.
Where to Bet
Despite droves of sports betters making the move to placing wagers online, Pennsylvania still has several retail sports betting outlets. These can be found inside local casinos and in select licensed sports bars.
If you’re looking for even more accessible betting, the state is home to 13 legal online sportsbooks. These allow you to place wagers whenever you wish from any location. These online providers also offer added benefits and bonuses, such as a Hollywood Casino promo code.
Another thing to note is that all wagers made using legal sportsbooks must be placed within Pennsylvania state lines. Any bet placed while out of state will be considered an illegal bet and will be nullified. Illegal betting could also result in legal recourse.
Market Size
Even though sports betting has only been legal for a few years in Pennsylvania, it already generated a revenue of $19.3 million in 2022, while retail bets accounted for a further $2.7 million. Sports betting has generated a total revenue of $22.48 billion since its legalization.
Sports betting in Pennsylvania is only expected to keep growing. In 2023, ESPN signed a 10-year contract with PENN Entertainment, owner of Penn Barstool Sportsbook. With this deal, sports fans can expect to see even more betting promos and opportunities advertised during their favorite ESPN broadcasts moving forward.
Tax Obligations
Sadly, there is one damper on your sports bet winnings: taxes. In particular, Pennsylvania has the highest tax rate of any commercial competitive market in the country.
All income an operator receives from sports betting in the state is taxed at a flat rate of 36%. Tax on an income of $200,000 will equate to $72,000, leaving the operator with just $128,000 in profit.
The tax situation is not much better for those placing the bets. Firstly, all winnings received from sports betting are subject to a 3.07% tax. While this is relatively small and won’t significantly influence your winnings, this is just the beginning.
State and federal taxes are levied on any win over $600 or more than 300 times the initial wager. Federal taxes on sports betting in the state are set at 24%. Together with state tax, this results in a total tax of 37.07% for any winnings over $600.
For example, if a player wins $525,000, they can only take home around $330,382.50 of their total winnings. The remaining $194,617.50 would be deducted by their chosen bookmaker to pay the taxes.
Additional Information
There are a few additional notes for those planning on placing sports bets in Pennsylvania:
- Age Limit: Only state residents over the age of 21 can legally place bets with providers.
- Location: All bets made online or via mobile devices are traced using geolocation to ensure they are placed from within state lines.
- Regulatory Body: All forms of gambling (including sports betting) are regulated by the Pennsylvania Gaming Control Board (PGCB).
Conclusion
Sports betting is a much-loved form of gambling around the world. In recent years, many states have made significant strides toward allowing gamblers to partake in this thrilling pastime.
Thanks to early regulation paving the way, Pennsylvania now has a dynamic sports betting market supplied by some of the top providers in the country. Overall, the state is home to a booming gambling industry that is one to watch. However, would-be betters should take special care to calculate possible tax implications and consider other restrictions before placing a bet in Pennsylvania.
