Pennsylvania is living proof that a successfully implemented and regulated legal online gambling system can lead to concrete financial benefits for other key programs and areas.
Last week, Gov. Josh Shapiro announced there was a record $1.025 billion available for statewide property tax relief through the Pennsylvania Department of Education and local school districts — up from last year’s $900 million. It’s also a surplus compared to what Shapiro projected in his 2025-26 budget ($1.020 billion).
As a result, Pennsylvania homeowners will get a $386 property tax credit.
And where did this budget windfall come from?
“Attention PA homeowners…” the Pennsylvania Gaming Control Board Wrote in a LinkedIn post. “Yesterday, Gov. Shapiro announced that a record amount of casino and online slot machine tax revenue totaling $1.025 billion — a 14% increase from last year — would be distributed to 500 school districts to provide you with your annual property tax reduction.”
The PGCB reported $6.14 billion in combined gambling revenue in 2024 (including retail casinos, online casinos, sports betting, VGTs, and fantasy contests). Online casinos generated $2.18 billion of that, and they’re taxed at 54%. That’s $1.18 billion in tax revenue from iGaming alone.
Music to the iGaming lobby’s ears
Let’s review: Pennsylvania’s online casino ecosystem was so successful this past year that it helped homeowners in the state secure nearly $400 in tax savings.
Cause and effect.
Make money here, save money there.
That’s a formula lots of states are trying to follow right now.
A growing number of states are facing budget deficits and looming financial crises, whether it’s coming up short on funding for key statewide programs or the entire government running low on funds. Lawmakers are trying to get creative to cut spending here or find extra revenue sources there, and iGaming lobbyists have long suggested online casinos as an answer.
Now, those lobbyists can point to the iGaming poster child, Pennsylvania, as proof.
Here are some states facing budgetary concerns — and a look at how much they’ve considered/if they’ve at all considered legalizing online casinos.
Arizona
Arizona faced a deficit of $676 million for the current fiscal year, ending in June. And the Arizona Center for Economic Progress reported the state’s General Fund appropriations in fiscal year 2025 came up $1.6 billion short.
So far, lawmakers have tried remedies such as fund transfers, delaying costs, and cuts to slash or eliminate various programs and agencies.
Current state of online gambling: Arizona has had online sports betting since late 2021. Its sports betting revenue in 2024 was $428,288,431.
Has it ever considered online casinos? Arizona has not yet considered a bill legalizing iGaming. Like California, the state’s gambling industry is significantly influenced by tribes, so they would need a major say in what happens with iGaming.
New York
New York’s budget shortfall is expected to reach $14.3 billion by 2028.
Potential plans to help include extending the millionaire’s tax through 2032, creating a new higher tax bracket for those making more than $10 million or $100 million annually, and limiting new spending initiatives.
Current state of online gambling: New York has had online sports betting since early 2022. Its 2024 sports betting revenue was $2,049,143,425.
Has it ever considered online casinos? Yes. Sen. Joseph Addabbo has introduced iGaming bills each year since 2022, but none have gained any real momentum. In an interview with Comped, Addabbo said iGaming revenue would help alleviate state budgetary concerns — and help keep Gov. Kathy Hochul from needing to implement congestion pricing on commuters.
“We don’t even have to talk about congestion pricing if we can figure out a way to do iGaming,” he said. “And then that money goes toward healthcare or goes toward transportation. This is what it could be used for, and it’s significant revenue.”
Maryland
Maryland currently faces a $3 billion budget gap, which Gov. Wes Moore called “the result of both increased state spending and slow economic growth over the course of eight years before I took office” in his FY26 budget highlights.
Moore highlighted “responsible reductions to spending for programs that are underutilized, underperforming, or growing at unsustainable rates” as a way to cut spending. Moore also proposed doubling the current sports betting tax rate from 15% to 30%, but that failed to gain any traction.
Current state of online gambling: Maryland has had online sports betting since late 2022. Its 2024 revenue was $635,714,970.
Has it ever considered online casinos? Yes. In the past two legislative sessions, online casino bills from Del. Vanessa Atterbeary and Sen. Ron Watson have gone as far as the committee stage but haven’t advanced beyond that. One of Watson’s main arguments has been that iGaming revenue would help ease current budgetary concerns.
Minnesota
By 2028-29, Minnesota is projected to face a budget shortfall of nearly $6 billion. Per Axios, both Democrat and Republican lawmakers agree that “cuts and changes to curb projected growth in spending will be needed.”
Current state of online gambling: There is no online gambling in Minnesota. At least one lawmaker has filed a sports betting bill in the past five legislative sessions, but none have made much progress beyond the committee stage. Opposition from tribes, which operate the state’s casinos, has been the main impediment.
Has it ever considered online casinos? No iGaming legalization bills have ever been filed.
Massachusetts
The Massachusetts Bay Transportation Authority projects a $700 million deficit in FY2026. Gov. Maura Healey has proposed using Fair Share funds — a 4% income surtax on individuals making more than $1 million annually — to help offset that shortfall.
Current state of online gambling: Massachusetts has had online sports betting since March 2023. Its 2024 sports betting revenue was $671,433,440. It also expects to launch an online lottery in spring 2026.
Has it ever considered online casinos? Yes. Companion iGaming bills were filed in the Massachusetts House and Senate this year but they’ve been stalled since February at the pre-committee stage.
Indiana
With Indiana expecting a $2 billion budget shortfall over the next two years, lawmakers suggesting ideas including levying a $2 tax on cigarettes, which is projected to produce $800 million for the state, and capping the school choice voucher program at its current level.
Current state of online gambling: Indiana has had online sports betting since late 2019. Its 2024 sports betting revenue was $484,972,000.
Has it ever considered online casinos? Yes. Online casino bills have been introduced in 2023 and 2025 but have failed both times. And yes, discussion on how iGaming revenue could help budget woes is already happening.
Iowa
Iowa is projected to spend $400 million more this year than it will make in FY2026 — $8.9 billion vs. $8.5 billion. Gov. Kim Reynolds’ budget proposes covering the shortfall with funds from the state reserves.
Current state of online gambling: Iowa has had online sports betting since August 2019. Its 2024 sports betting revenue was $218,482,781.
Has it ever considered online casinos? Yes. A bill was filed but never advanced out of committee in 2023. No bills were filed in the current legislative session.
