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Williamsport’s school board raised the district’s property-tax rate in June and approved gaming-funded relief for eligible homeowners at the same meeting. The two decisions now sit together on school-tax bills: one sets the rate, the other reduces the taxable value of qualifying homes.
Pennsylvania’s online casinos supplied $1.337 billion in tax revenue during the fiscal year ending June 30, 2026. Not all of it went to property-tax relief. The amount collected, and where the state sends it, depend on whether the games involved are online slots, blackjack or poker.
Different Games, Different Taxes
Online slots face a 52% tax on gaming revenue in Pennsylvania. Online table games and poker are taxed at 14%, with a separate 2% local share assessment applying to licensed operators. Revenue means money retained after paying winnings, not the full amount wagered.
Pennsylvania’s figures cover licensed real-money operators rather than every website offering casino-style games. Casino comparison publisher Covers examines licensing, game libraries and payment methods, giving readers more information about the platforms offering regulated casino games.
The Pennsylvania Gaming Control Board’s July 2026 report recorded $2.933 billion in online casino revenue for fiscal 2025-26, up 18.42% on the previous year. Taxes on that activity amounted to $1.337 billion. Online casino revenue also exceeded the $2.441 billion generated by slot machines on physical casino floors during the same fiscal year. The figures describe receipts, not player numbers or the number of bets placed. Across all regulated gaming categories, including physical casinos and sports betting, the board reported $3.098 billion in taxes and fees.
Pennsylvania accounts for sports wagering separately from online casino gaming. The distinction also applies to the state’s betting regulations, discussed in a recent guide to Pennsylvania’s NFL betting rules. Sportsbook revenue carries a 34% state tax and a separate 2% assessment, neither of which forms part of the $1.337 billion online casino tax figure.
Where the Online Slots Tax Goes
Under Section 13B52 of Pennsylvania’s gaming law, the state divides the tax on online slots among three accounts:
- 65% goes to the Property Tax Relief Fund, which helps reduce school property-tax bills for eligible homeowners.
- 10% goes to a restricted state account for specified payments to qualifying counties that host casinos.
- 25% goes to a Commonwealth Financing Authority account for grants supporting eligible public-interest projects.
The percentages are instructions for allocating the online slots tax, not a breakdown of every dollar in the $1.337 billion collected from internet casinos. The 14% tax on online table games and poker is deposited into Pennsylvania’s General Fund.
The county allocation isn’t shared equally among Pennsylvania’s 67 counties. The restricted account is used to make up certain shortfalls for qualifying casino-hosting counties compared with past local-share payments. Any money not distributed remains in the account. The Commonwealth Financing Authority portion has a different purpose: project grants go through an application and approval process rather than appearing as direct transfers to local taxpayers.
Homeowners are more likely to encounter the property-tax portion. State gaming funds contribute to homestead and farmstead exclusions, which lower the assessed value subject to school property tax for approved primary homes and farms. The reduction is applied through the district’s tax calculation. It isn’t a rebate based on how much anyone gambled.
For the 2026-27 school year, the Pennsylvania Department of Education reports $1.025 billion in state-funded local property-tax relief. The figure covers the broader program; it should not be confused with the online casino tax total. The fiscal-year casino receipts and the following school year’s relief budget also cover different accounting periods. Each district determines its own exclusion after setting its property-tax rate, using allocations and approved homestead and farmstead counts.
A school district’s relief amount also depends on the number of approved properties recorded as of May 1. Owning a home doesn’t automatically confer the exclusion, and neighbors in different school districts may see different reductions.
What Williamsport Homeowners Will See
The Williamsport Area School Board approved an increase from 17.24 to 18.01 mills for the 2026-27 year. Local radio station WILQ reported the decision on June 11, along with the approval of gaming-funded homestead and farmstead relief. District officials cited higher health insurance costs among the reasons for the tax increase.
One mill represents $1 in tax for every $1,000 of assessed property value. Williamsport’s rate therefore increased by 0.77 mill, before any property-specific adjustments or relief. What an individual household owes depends on the property’s assessment and whether its homestead or farmstead application has been approved.
Relief does not prevent a school board from raising its tax rate. The district makes its budget decisions locally; the state-funded exclusion is calculated against the taxable assessed value of eligible properties. Pennsylvania sends property-tax relief installments to school districts in August and October. Under state rules, school-tax bills must include a "Notice of Property Tax Relief" showing the reduction. For eligible Williamsport homeowners, the figure appears on the same bill as the district’s newly approved 18.01-mill rate.