Jurisdiction Online Gambling Tax Rates

States typically define the taxable base as operator “gross gaming revenue” / “adjusted gross revenue” (wagers minus winnings paid). Many states allow deductions (often promotional credits, platform fees, or other adjustments), so a headline “tax rate” may not be directly comparable across states.

Last Updated: 2026-03-28

Tax Rates by Jurisdiction

Jurisdiction Sports betting tax rate iCasino tax rate Notes Sources
Rhode Island 51% (revenue share) Slots 61%; tables 15.5% (revenue share)
  • Sports betting: Lottery model revenue share: 51% of sports-wagering revenue and online sports-wagering revenue is allocated to the State (Rhode Island General Laws §42-61.2-5).
  • Sports betting: State-run lottery model; statutory allocation splits revenue among the State, a vendor, and host facilities.
  • Parsed online rate: 51% → tax points 3/4.
  • iCasino: Lottery model revenue shares differ by product: the State receives 61% of online slot gaming revenue and 15.5% of online table gaming revenue (Rhode Island General Laws §§42-61.2-5.1 and 42-61.2-5.2).
  • iCasino: Different allocations for online slots vs online table games (lottery model).
  1. §42-61.2-5. Allocation of sports-wagering and online sports-wagering revenue. (webserver.rilegislature.gov, 2025-11-06). Accessed 2026-03-29.
  2. §42-61.2-5.1. Allocation of online slot gaming revenue. (webserver.rilegislature.gov, 2025-11-06). Accessed 2026-03-29.
  3. §42-61.2-5.2. Allocation of online table gaming revenue. (webserver.rilegislature.gov, 2025-11-06). Accessed 2026-03-29.
Pennsylvania 34% Slots 52%; table/p2p 14%
  • Sports betting: Sports wagering tax: 34% of daily gross sports wagering revenue (Pennsylvania Title 4, §13C62).
  • Sports betting: Additional local share assessment applies (see §13C63).
  • Parsed online rate: 34% → tax points 2/4.
  • iCasino: Interactive gaming tax: 14% on peer-to-peer games, 14% on non-peer-to-peer table-game simulations, and 52% on non-peer-to-peer slot simulations (Pennsylvania Title 4, §13B52).
  • iCasino: Different rates by game type (slots vs table/p2p).
  1. §13C62. Sports wagering tax. (legis.state.pa.us). Accessed 2026-03-29.
  2. §13C63. Local share assessment. (legis.state.pa.us). Accessed 2026-03-29.
  3. §13B52. Interactive gaming tax. (legis.state.pa.us). Accessed 2026-03-29.
New Hampshire 51% N/A
  • Sports betting: Operator tax rate reported as 51% of sportsbook revenues (online sports betting taxes by state table).
  • Sports betting: Tax Foundation notes some states use exclusive contracts/monopoly models; reported as an effective rate.
  • Parsed online rate: 51% → tax points 3/4.
  1. Chapter 287-I SPORTS BETTING (gc.nh.gov, 2025-09-11). Accessed 2026-03-29.
  2. Online Sports Betting Taxes, 2025 | Tax Foundation (Tax Foundation, 2025-09-16). Accessed 2026-03-29.
New York Online 51%; retail 10% N/A
  • Sports betting: Online sportsbook operators have a 51% tax rate, while retail sportsbook operators are at 10%.
  • Sports betting: Different rates for online vs retail channels.
  • Parsed online rate: 51% → tax points 3/4.
  1. FY 2023 Executive Budget Briefing Book (budget.ny.gov, 2022-01-18). Accessed 2026-03-29.
  2. New York Sports Betting Apps: Best NY Sportsbooks & Promos for 2026 (Sports Betting Dime). Accessed 2026-03-29.
Oregon 51% (revenue share) N/A
  • Sports betting: Tax Foundation reports Oregon’s lottery model/monopoly arrangement as an effective ~51% rate (converted to approximate GGR levels for comparability).
  • Sports betting: Lottery/monopoly model; Tax Foundation reports an approximate GGR-equivalent rate for comparability.
  • Parsed online rate: 51% → tax points 3/4.
  1. https://www.oregonlegislature.gov/bills_laws/ors/ors461.html (oregonlegislature.gov, 2026-01-09). Accessed 2026-03-29.
  2. Online Sports Betting Taxes, 2025 | Tax Foundation (Tax Foundation, 2025-09-16). Accessed 2026-03-29.
Delaware Online 50% State-run lottery model (no single %)
  • Sports betting: Sports lottery proceeds (net of winnings and vendor fees) are returned to the State at a rate of 50% of the total win (lottery model).
  • Sports betting: State-run lottery model; statutory distribution is based on net proceeds and includes vendor fees.
  • Parsed online rate: 50% → tax points 3/4.
  • iCasino: Internet video lottery and Internet table games proceeds are distributed by statute (including an initial transfer to the State each fiscal year, then further distribution rules).
  • iCasino: Not a single fixed percentage rate; see statutory distribution rules for internet video lottery/table games.
  1. Delaware Code Online (delcode.delaware.gov, 2026-01-13). Accessed 2026-03-29.
Illinois Up to 40% (progressive) N/A
  • Sports betting: Illinois has a progressive tax rate for sports betting operators that can reach as high as 40%. There is also a per-bet excise tax of $0.25 for the first 20 million wagers, and $0.50 for wagers over 20 million.
  • Sports betting: Structure: progressive/tiered rate.
  • Sports betting: Includes a per-bet excise tax or similar fee.
  • Parsed online rate: 40% → tax points 2/4.
  1. 230 ILCS 45/ Sports Wagering Act (ilga.gov). Accessed 2026-03-29.
  2. Illinois Sports Betting Apps: Best Online Sportsbooks and Promos for 2026 (Sports Betting Dime). Accessed 2026-03-29.
Michigan 8.4% 20–28% (graduated)
  • Sports betting: The Michigan sports betting tax rate is also among the lowest in the nation, set at 8.4% of adjusted gross gaming revenue according to the latest MI revenue figures . The three casinos within Detroit are assessed for an additional 1.25% municipal tax.
  • Parsed online rate: 8.4% → tax points 1/4.
  • iCasino: Michigan’s Lawful Internet Gaming Act imposes a graduated tax on adjusted gross receipts: 20% (<$4M), 22% ($4–8M), 24% ($8–10M), 26% ($10–12M), 28% ($12M+).
  • iCasino: Structure: progressive/tiered rate.
  • iCasino: Taxable base uses adjusted gross receipts; promotional “free play” deductions are limited and phased out over time.
  1. Lawful_Sports_Betting_Act_PA_149_of_2019.pdf (michigan.gov, 2020-03-13). Accessed 2026-03-29.
  2. Michigan Sports Betting Apps: Best MI Sportsbooks & Promos (Sports Betting Dime, 2020-07-07). Accessed 2026-03-29.
  3. 2019-PA-0152.pdf (legislature.mi.gov, 2019-12-27). Accessed 2026-03-29.
Louisiana Online 21.5%; retail 10% N/A
  • Sports betting: R.S. 27:625 sets a 10% retail tax and a 21.5% online tax on net gaming proceeds. Act 298 raised the online rate from 15% to 21.5%.
  • Sports betting: Different rates for online vs retail channels.
  • Parsed online rate: 21.5% → tax points 2/4.
  1. Louisiana Laws - Louisiana State Legislature (legis.la.gov). Accessed 2026-03-29.
  2. ViewDocument.aspx (legis.la.gov). Accessed 2026-03-29.
  3. Louisiana Sports Betting Apps: Best Online Sportsbooks & Promos (Sports Betting Dime, 2020-10-20). Accessed 2026-03-29.
Arkansas 20% N/A
  • Sports betting: Operator tax rate reported as 20% (online sports betting taxes by state table).
  • Parsed online rate: 20% → tax points 1/4.
  1. Casino Gaming & Sports Wagering Tax – Arkansas Department of Finance and Administration (dfa.arkansas.gov, 2026-01-06). Accessed 2026-03-29.
  2. Online Sports Betting Taxes, 2025 | Tax Foundation (Tax Foundation, 2025-09-16). Accessed 2026-03-29.
Connecticut 13.75% 18% (first 5 years); 20% after
  • Sports betting: A master wagering licensee shall pay 13.75% of gross gaming revenue from online or retail sports wagering (Connecticut PA 21-23).
  • Parsed online rate: 13.75% → tax points 1/4.
  • iCasino: A master wagering licensee shall pay 18% of gross gaming revenue from online casino gaming during the first five years after first licensure, then 20% thereafter (Connecticut PA 21-23).
  • iCasino: Rate changes after initial 5-year period.
  1. Connecticut Public Act 21-23 (cga.ct.gov, 2021-05-24). Accessed 2026-03-29.
District of Columbia Online 20% (Class A); Class B 10%; Class C 30% N/A
  • Sports betting: Effective August 1, 2024, Class A operators pay 20% of gross sports wagering revenue, Class B operators 10%, and Class C operators 30%.
  • Sports betting: Rate depends on license class.
  • Sports betting: Class A and Class C licenses may offer mobile or online wagering.
  • Parsed online rate: 20% → tax points 1/4.
  1. Government of the District of Columbia. Sports Wagering Tax (Office of Tax and Revenue). Accessed 2026-03-29.
  2. Council of the District of Columbia. D.C. Law 25-217. Fiscal Year 2025 Budget Support Act of 2024. (D.C. Law Library, 2024-07-15). Accessed 2026-03-29.
Massachusetts Online 20%; retail 15% N/A
  • Sports betting: Excise: 20% of adjusted gross sports wagering receipts from mobile applications/digital platforms; 15% from in-person sports wagering.
  • Sports betting: Different rates for online vs retail channels.
  • Parsed online rate: 20% → tax points 1/4.
  1. General Law - Part I, Title II, Chapter 23N, Section 14 (malegislature.gov). Accessed 2026-03-29.
Ohio 20% N/A
  • Sports betting: The tax rate on Ohio sports betting is now 20% , up from the original 10%. DeWine proposed to double it again in 2025, which would put the rate at 40%, among the highest in the nation. This has not been taken up by the legislature.
  • Parsed online rate: 20% → tax points 1/4.
  1. Senate Bill 176 - 134th General Assembly (legislature.ohio.gov, 2021-12-22). Accessed 2026-03-29.
  2. Ohio Sports Betting Apps: Best Sportsbook Apps & Promos 2026 (Sports Betting Dime, 2020-10-26). Accessed 2026-03-29.
Tennessee 20% N/A
  • Sports betting: On top of these licensing fees, Tennessee has one of the highest sports betting tax rates in the nation. Operators must pay a 20% tax on all gross gaming revenue . By comparison, Nevada charges a tax rate of just 6.75%.
  • Parsed online rate: 20% → tax points 1/4.
  1. Tennessee General Assembly Legislation (wapp.capitol.tn.gov). Accessed 2026-03-29.
  2. TN Sports Betting Apps: Best Sportsbooks & Promos in Tennessee (Sports Betting Dime, 2020-07-07). Accessed 2026-03-29.
Vermont ≥20% (revenue share) N/A
  • Sports betting: Revenue share (set via competitive bidding) must be not less than 20 percent of adjusted gross sports wagering revenue.
  • Sports betting: Rate set via contract; statute specifies a 20% minimum.
  • Parsed online rate: 20% → tax points 1/4.
  1. ACT063 As Enacted.pdf (legislature.vermont.gov, 2023-06-23). Accessed 2026-03-29.
New Jersey 19.7% 19.75%
  • Sports betting: New Jersey now taxes sports betting operators at 19.7%, up from the original rate of 13%. This is a new rate as of 2025.
  • Parsed online rate: 19.7% → tax points 1/4.
  • iCasino: Effective July 1, 2025, New Jersey taxes online casino (Internet gaming) operators at 19.75%, up from the original rate of 15% via the FY 2026 state budget.
  • iCasino: Some state/local add-ons may apply in practice; this entry captures the headline statutory rate referenced in the source.
  1. SportsWageringLawPL2018c33.pdf (nj.gov, 2018-07-27). Accessed 2026-03-29.
  2. NJ Sports Betting Apps: Best Sportsbooks & Promos in New Jersey (Sports Betting Dime, 2020-07-07). Accessed 2026-03-29.
  3. Wikpedia. Gambling in New Jersey (Wikipedia). Accessed 2026-03-29.
  4. Internet Gaming Site Approvals (NJ Division of Gaming Enforcement). Accessed 2026-03-29.
North Carolina 18% N/A
  • Sports betting: Online sports betting licenses cost $1 million for a five-year period, with an 18% sports betting tax rate.
  • Parsed online rate: 18% → tax points 1/4.
  1. H347v7.pdf (ncleg.gov, 2023-06-08). Accessed 2026-03-29.
  2. Best NC Sports Betting Apps & Promos in 2026 (Sports Betting Dime, 2020-10-26). Accessed 2026-03-29.
Maryland 15% N/A
  • Sports betting: Retail sportsbooks are still taxed at 15%.
  • Parsed online rate: 15% → tax points 1/4.
  1. 9-1E-12.pdf (mgaleg.maryland.gov, 2023-12-15). Accessed 2026-03-29.
  2. Maryland Online Sports Betting: Top MD Sportsbook Apps for 2026 (Sports Betting Dime, 2020-10-20). Accessed 2026-03-29.
Virginia 15% N/A
  • Sports betting: Licensed operators are charged 15 percent on all sports betting revenue in Virginia. Most states fall in the six percent to 20 percent range, so this is considered a reasonable tax rate. Virginia’s tax rate is slightly higher than New Jersey’s (13.5 percent) but far lower than Pennsylvania’s (36 percent).
  • Parsed online rate: 15% → tax points 1/4.
  1. Code of Virginia Code - Chapter 40. Virginia Lottery Law; Sports Betting (law.lis.virginia.gov). Accessed 2026-03-29.
  2. Virginia Sports Betting Apps – Top VA Sportsbooks & Betting Promos 2026 (Sports Betting Dime, 2020-10-30). Accessed 2026-03-29.
West Virginia Online 10%; retail 10% 15%
  • Sports betting: Both online and retail sports betting revenue is taxed at 10% in West Virginia. There are no additional fees or taxes for operators, making the Mountaineer State the most affordable market in the US for new sportsbook offerings.
  • Sports betting: Different rates for online vs retail channels.
  • Parsed online rate: 10% → tax points 1/4.
  • iCasino: Privilege tax: 15 percent of the licensee’s adjusted gross interactive wagering receipts (iCasino/interactive wagering).
  1. SB 415 Text (wvlegislature.gov). Accessed 2026-03-29.
  2. WV Sports Betting Apps – Best Sportsbooks & Apps in West Virginia (Sports Betting Dime, 2020-07-07). Accessed 2026-03-29.
  3. West Virginia Code Section 29-22E-16 (West Virginia Code). Accessed 2026-03-29.
Kentucky Online 14.25%; retail 9.75% N/A
  • Sports betting: Kentucky sports betting bill HB 551 legalizes retail sports betting at local horse racing tracks like Churchill Downs, and online wagering across the state. The bill sets a retail sports betting tax rate at 9.75% and an online sports betting tax rate at 14.25% on adjusted gross sports betting revenue.
  • Sports betting: Different rates for online vs retail channels.
  • Parsed online rate: 14.25% → tax points 1/4.
  1. Kentucky Sports Wagering - Age and Tax Information (revenue.ky.gov). Accessed 2026-03-29.
  2. Kentucky Sports Betting: Best KY Sportsbooks & Top Promos (Sports Betting Dime, 2020-10-26). Accessed 2026-03-29.
Florida Online 13.75% (revenue share; can increase to 15.75%) N/A
  • Sports betting: Tribal compact-style revenue share for sports betting based on “Net Win”: 13.75% on sports betting Net Win from marketing by the Seminole Tribe; 10% on sports betting Net Win from marketing by qualified pari-mutuel permitholders. If the Tribe does not have valid written contracts with at least three qualified pari-mutuel permitholders after commencement, the state’s sports betting Net Win revenue share increases by 2 percentage points (13.75% → 15.75%) until it does.
  • Sports betting: Not a standard sportsbook excise tax; structured as tribal compact revenue share on Net Win.
  • Sports betting: Includes multiple rates depending on marketing channel (Tribe vs contracted pari-mutuel permitholders).
  • Sports betting: “Net Win” is defined as total receipts less prize payouts and free play or promotional credits (per cited bill analysis referencing the 2021 Gaming Compact).
  • Parsed online rate: 13.75% → tax points 1/4.
  1. 2021s00002A.ap.PDF (flsenate.gov). Accessed 2026-03-29.
Puerto Rico Online 12%; retail 7% N/A
  • Sports betting: Puerto Rico imposes a 7% tax on in-person sports betting and eSports betting and a 12% tax on internet sports betting and eSports betting.
  • Sports betting: Different rates for online vs retail channels.
  • Parsed online rate: 12% → tax points 1/4.
  1. Gobierno de Puerto Rico. Ley de la Comisión de Juegos del Gobierno de Puerto Rico (Ley 81-2019) (Oficina de Gerencia y Presupuesto, 2019-07-29). Accessed 2026-03-29.
Arizona Online 10%; retail 8% N/A
  • Sports betting: Arizona Sports Betting Tax Rate : 8% of retail revenue, 10% of online revenue
  • Sports betting: Different rates for online vs retail channels.
  • Parsed online rate: 10% → tax points 1/4.
  1. HB2772P.pdf (azleg.gov, 2021-02-01). Accessed 2026-03-29.
  2. Arizona Sports Betting Apps - Best Sportsbooks & Promos (Sports Betting Dime, 2025-10-20). Accessed 2026-03-29.
Colorado 10% N/A
  • Sports betting: The Colorado sports betting tax rate is 10%.
  • Parsed online rate: 10% → tax points 1/4.
  1. HB20-1233 Basic Life Functions In Public Spaces (leg.colorado.gov). Accessed 2026-03-29.
  2. Colorado Sports Betting Apps – Best CO Sportsbooks & Promos (Sports Betting Dime, 2020-07-07). Accessed 2026-03-29.
Kansas 10% N/A
  • Sports betting: 10% sports betting tax rate
  • Parsed online rate: 10% → tax points 1/4.
  1. https://krgc.kansas.gov/racing-gaming-law/regulations/ (krgc.kansas.gov). Accessed 2026-03-29.
  2. Kansas Sports Betting Apps: Best KS Sportsbooks and Promos (Sports Betting Dime, 2020-10-19). Accessed 2026-03-29.
Maine 10% N/A
  • Sports betting: An operator shall collect and distribute 10% of adjusted gross sports wagering receipts to the director for forwarding to the Treasurer of State (allocation specified in statute).
  • Parsed online rate: 10% → tax points 1/4.
  1. Maine 130 - HP 428 item 2.pdf (mainelegislature.org). Accessed 2026-03-29.
Missouri 10% N/A
  • Sports betting: A tax rate of 10% has been set for sports betting operators in Missouri, making it one of the more operator-friendly markets in the US. You will have to pay taxes on your sports betting winnings in Missouri, but the 10% tax rate only applies to operators, not bettors.
  • Parsed online rate: 10% → tax points 1/4.
  1. Best Missouri Sports Betting Apps & Promos for 2026 (Sports Betting Dime, 2025-11-26). Accessed 2026-03-29.
  2. Missouri Amendment 2, Sports Betting Initiative (2024) (Ballotpedia). Accessed 2026-03-29.
Wyoming 10% N/A
  • Sports betting: Sports wagering operator shall remit ten percent (10%) of online sports wagering revenue to the commission (monthly).
  • Parsed online rate: 10% → tax points 1/4.
  1. Wyoming HB0133 - Online sports wagering (wyoleg.gov, 2021-04-05). Accessed 2026-03-29.
Indiana 9.5% N/A
  • Sports betting: The Indiana sports wagering tax rate is 9.5% of adjusted gross gaming receipts, among the lowest in the country.
  • Parsed online rate: 9.5% → tax points 1/4.
  1. Indiana General Assembly (iga.in.gov, 2026-01-16). Accessed 2026-03-29.
  2. Indiana Sports Betting Apps - Best Promos & Sportsbooks for IN (Sports Betting Dime, 2020-07-07). Accessed 2026-03-29.
Iowa 6.75% N/A
  • Sports betting: Licensing fees and taxes for sports betting in Iowa are both very affordable for operators. New sports wagering licenses cost just $45,000. The tax rate on sports betting is 6.75% of gross gaming receipts – or the amount of remaining revenue after winning bets have been paid out.
  • Parsed online rate: 6.75% → tax points 1/4.
  1. 491.13.pdf (legis.iowa.gov). Accessed 2026-03-29.
  2. Iowa Sports Betting Apps – Compare Top IA Promos & Sportsbooks (Sports Betting Dime, 2020-07-07). Accessed 2026-03-29.
Nevada 6.75% N/A
  • Sports betting: Nevada imposes a 6.75% excise tax on gross gaming revenue (including sports pools).
  • Parsed online rate: 6.75% → tax points 1/4.
  1. NRS: CHAPTER 463 - LICENSING AND CONTROL OF GAMING (leg.state.nv.us, 2024-07-09). Accessed 2026-03-29.
Alabama N/A N/A
Alaska N/A N/A
California N/A N/A
Georgia N/A N/A
Hawaii N/A N/A
Idaho N/A N/A
Minnesota N/A N/A
Mississippi N/A N/A
Montana N/A N/A
Nebraska N/A N/A
New Mexico N/A N/A
North Dakota N/A N/A
Oklahoma N/A N/A
South Carolina N/A N/A
South Dakota N/A N/A
Texas N/A N/A
Utah N/A N/A
Washington N/A N/A
Wisconsin N/A N/A
Updated March 2, 2026 · Scoring Version 1.0 (3/2026) · CASPR.org