Casino Tax Rates by State Ranked by Colorado Budget Office
- Nevada has the lowest estimated rate at 7.7% and Oklahoma the highest at 45.6%, a spread of 37.9 percentage points.
- Colorado’s 16.1% is seventh lowest, and the proposed 23.0% would place it mid-table with 13 states above and 13 below.
- Pennsylvania’s 37.0% rate collected $2.85 billion on $7.7 billion, while Nevada’s 7.7% collected $1.22 billion on $15.8 billion.
- The appendix cautions that some states’ revenue includes iGaming and sports betting, so the figures may not reflect casino-only rates.
DENVER – Colorado’s Office of State Planning and Budgeting estimates effective casino tax rates by state at 7.7% in Nevada, the lowest among 27 states, and 45.6% in Oklahoma, the highest.
Colorado’s own 16.1% ranks seventh lowest, according to Appendix A of Gov. Jared Polis’s Nov. 1 Statewide R-13 request. The appendix draws on the American Gaming Association’s 2026 industry report to estimate 2025 rates.
Nevada Is Lowest At 7.7%, Oklahoma Highest At 45.6%
The appendix, titled “Effective Gaming Tax Rates, by State (Low to High),” lists each state’s 2025 casino tax revenue and casino gross gaming revenue, or GGR, beside its effective rate. Nevada’s $1.22 billion in tax on $15.8 billion in GGR gives it the lowest rate, followed by South Dakota at 8.5% and Mississippi at 11.8%.
At the top, Oklahoma is at 45.6%, New York at 45.3%, New Mexico at 45.1% and Delaware at 44.4%. Pennsylvania at 37.0%, Florida at 35.0% and Maryland at 34.9% complete the seven highest. Oklahoma’s rate is 5.9 times Nevada’s.
Oklahoma’s row shows $164.6 million in GGR, $75.1 million in tax and two casinos, against New York’s $5.72 billion in GGR across 13 casinos. The appendix gives no breakdown of what the Oklahoma row covers.
| State | Effective Rate | 2025 GGR | 2025 Tax Revenue |
|---|---|---|---|
| Oklahoma | 45.6% | $164.6 million | $75.1 million |
| New York | 45.3% | $5.72 billion | $2.59 billion |
| New Mexico | 45.1% | $269.5 million | $121.6 million |
| Delaware | 44.4% | $632.9 million | $280.9 million |
| Pennsylvania | 37.0% | $7.7 billion | $2.85 billion |
| Florida | 35.0% | $708.1 million | $247.8 million |
| Maryland | 34.9% | $2.74 billion | $955.2 million |
Pennsylvania And New York Collect $5.44 Billion Between Them
Pennsylvania’s estimated 37.0% rate produced $2.85 billion in tax on $7.7 billion in GGR. New York’s 45.3% produced $2.59 billion on $5.72 billion, for a combined $5.44 billion.
Nevada’s 7.7% produced $1.22 billion on $15.8 billion. Nevada reports more than twice Pennsylvania’s revenue but collects less than half its tax.
Colorado’s 16.1% Is Seventh Lowest, With Six States Below It
Colorado’s row is labeled FY26, the fiscal year that ended June 30, while the other rows carry 2025 figures. It shows $1,152.3 million in GGR, $185.2 million in tax and 34 casinos. Monthly results for the fiscal year now under way appear in the Division of Gaming’s reports, the latest covered in Colorado casino revenue for September.
The six lower rates belong to Nevada, South Dakota, Mississippi, Connecticut at 14.3%, New Jersey at 14.5% and Arkansas at 15.6%.
| State | Effective Rate | 2025 GGR | 2025 Tax Revenue |
|---|---|---|---|
| Nevada | 7.7% | $15.8 billion | $1.22 billion |
| South Dakota | 8.5% | $158.2 million | $13.5 million |
| Mississippi | 11.8% | $2.43 billion | $287.9 million |
| Connecticut | 14.3% | $973.4 million | $139.1 million |
| New Jersey | 14.5% | $6.98 billion | $1.01 billion |
| Arkansas | 15.6% | $742.6 million | $116.0 million |
| Colorado (FY26) | 16.1% | $1,152.3 million | $185.2 million |
Colorado Trails The 26.5% Average By 10.4 Points
The appendix lists an average of 26.5% and a weighted average of 23.1%, which puts Colorado 10.4 points below the first and 7.0 points below the second. The appendix does not say how the weighted figure is weighted or which rows the averages include.
The governor’s office proposes raising Colorado’s effective rate to 23.0%, which would produce $265.4 million in tax on the same FY26 base, up from $185.2 million. At that rate Colorado would sit above Missouri and Indiana, both at 22.6%, and below Michigan’s 23.4%. It would be 0.1 point under the weighted average and 3.5 points under the simple average.
The Rates Are 2025 Proxies, Not Statutory Rates
The appendix says it uses Key State Information from the American Gaming Association’s 2026 industry report to estimate 2025 effective rates. In some states, it says, revenue includes iGaming and sports betting, two forms of legal online gambling, so the rates may not reflect casino-only taxation but serve as a close proxy. It does not identify which states those are.
The percentages are tax revenue as a share of GGR, not the statutory rates written into each state’s law. They also predate later changes, such as Connecticut’s online casino tax, which rose to 20% from 18% on Oct. 1.
The request calls for two referred ballot measures in November 2027, one of them on casino taxes, and assumes the new casino rates would apply from fiscal year 2028-29.