Because of a sky-high tax rate on gambling revenue, the state of New York actually made more in gambling taxes than the state of Nevada! In fact, New York’s $620 million jackpot tax through the first half of 2012 eclipsed Nevada and New Jersey combined!
Why the big payday for the state? A stratospheric tax rate of 68% on gambling revenue at the state’s slot parlors means that the state is the biggest winner on the games. While that sounds like a good thing for the education budget in New York, it is such a high tax rate that it likely leads to far lower paying games being offered to the gambling public. That kind of tax bill doesn’t leave much for the players, nor for investing in the properties as noted in this recent article in the New York Post.
New York is not the only jurisdiction in the Northeast to have extremely high tax rates on casinos. Philadelphia comes in at 55%, while Rhode Island is above 70%.