How the US is using slot sites to raise revenue

It’s now eight years since Delaware became the first state to legalize online gambling in 2012. Back then, most jurisdictions were pessimistic about allowing their citizens to gamble online. In fact, it took the Supreme Court’s decision to struck off PASPA in 2018 for many states to table mobile betting legalization bills.


Now, as the COVID-19 pandemic rages on and budget deficits increase, legislators are turning to slot sites for more revenues. It doesn’t matter that casinos make the most money from betting. A growing number of states are betting on online casinos. Here’s why.

The Best Slot Sites in the USA 

When many people visit online casinos, they are optimistic about winning money. Some people play to double their stakes. Others bet consistently hoping to hit a jackpot that could turn their lives around. In reality, though—casinos win most of them time.

The best slot sites in the USA, a comprehensive list can be found at, provide players with hundreds of games. You can play slots based on your favorite movies and TV shows, sports, ancient mythology or celebrities.

Some casinos also give you bonuses to boost your bankroll and reward your loyalty. But since slots are games of chance, and casinos tend to have an in-built advantage, they win more often than players. These guaranteed profits can build up quickly, helping states earn significant amounts of tax income from them.

As we’ll mention below, some states tax a lot more money from slot sites than others. Surprisingly, states with low tax fees generate more income than those that tax casinos more than half of their profits.

Up to $400 Million in Tax Income

In 2019, New Jersey generated $400 in taxes paid by casinos in the state. In 2020, this amount crossed the half a billion mark. Over 90% of NJ’s tax income comes from revenue generated through mobile betting, more so sports wagering.

However, slot sites also generate significant taxes for the Garden State. The state has 23 online casinos that provide slots and seven more operators that specialize in poker. Among the general online casinos, slots are the biggest money makers, generating up to 90% of each company’s profits.

That said, states aren’t equal. New Jersey has a big advantage in that it has a big population (8.8 million) and a high per capita income. Add the fact that it receives thousands of casino tourists from New York and it makes sense that it generates so much money in iGaming taxes.

To provide some context, Delaware generated $3.6 million from its three online casinos in 2019. It was a 38.5% gain compared to 2018. Still, to be clear, it was much lower than the revenues generated in NJ and Pennsylvania.

Stimulating Local Economies

When you think about it, slot sites create a lot of jobs: developers, designers, marketers, dealers, customer support representatives and managers to name a few. And creating these opportunities, operators help states collect more taxes and expenses related to unemployment claims.

The US is presently dealing with hundreds of thousands of job losses. And according to the Wall Street Journal, these claims will continue to grow until state create enough job opportunities for everyone. Casino sites alone can’t solve the ongoing unemployment problem in the country.

However, they can play a crucial role in helping states create new jobs for their citizens. In New Jersey, online casinos have created 10,000 jobs since 2017, and that does not include seasonal jobs—more people gamble during the summer and the holiday seasons than other times of the year.

With that in mind, online casinos stimulate surrounding economies in a lot more ways than direct jobs. For example, they have partnerships with software providers—the companies that create most games played at casinos. Some sites also hire independent marketers, content producers and designers, people who make a living from online casinos.

Squeezing More Revenues by Permitting Sports Betting

As we mentioned earlier, much of the revenue NJ collects from the online casino industry comes from sports betting. In fact, more than 80% of the $5 billion wagered at NJ’s online betting sites were related to sports. Despite that, these casinos were originally designed to provide casino games.

The bottom line: states are expanding income generating opportunities for slot sites because it also leads to more money for them. New Jersey is the most successful example but not the only one. Pennsylvania, Delaware and West Virginia all began by legalizing online casinos before they welcomed sports betting.

However, many states started online gambling legalization by licensing sportsbooks. After experiencing the goodness of betting money, some jurisdictions like Illinoi now also want sportsbooks to provide slots, blackjack and more games of luck.

According to Forbes, all states combined have a budgetary deficit worth $615 billion. That means no state doesn’t require extra funding in these tough times. Permitting slot sites is an excellent way to increase revenues without overburdening taxpayers.

Supportive Business Environments

One admirable quality of states with legal online casino laws is that they have competitive business environments. Sure, some states are running sports betting through monopolized agencies. But when it comes to casino sites, all states that allow games of chance support competition.

Competition is good because it forces businesses to provide high-quality services to their customers. To expound more, they can give out bonuses with attractive terms and conditions. Also, they can provide advanced games with high payout rates and also offer reliable customer service.

Competition aside, another way through which states support slot sites is through taxation laws. In New Jersey, slot sites pay 15% of their gross profits as taxes. In case you’re wondering, this is a low tax rate, which is why so many operators want to start operations in Garden State.

Unfortunately, not every state has great tax laws. Pennsylvania, for example, charges casinos 54% of their profits from online slots as tax. By comparison, Delaware charges these businesses 62.5% of their profits—the state has only three online slot sites as a result.

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