Gambling generates big bucks in Pennsylvania, and Gov. Josh Shapiro’s budget proposal counts on it generating even more.
Gamblers spent a record $6.1 billion in Pennsylvania last year, creating $2.7 billion in state revenue.
Another thing easy access to gaming creates? Addiction.
Pennsylvania has the fourth-highest gambling addiction problem, according to a new study from WalletHub. As might be expected, Nevada, home of gambling Mecca Las Vegas, takes first place, followed by South Dakota and Montana. Mississippi ranks fifth.
Gambling disorder or compulsive gambling affects between 1-3 percent of all U.S. adults. “Gambling can stimulate the brain’s reward system much like drugs such as alcohol can, leading to addiction,” according to the Mayo Clinic.
In 2024, Americans lost approximately $172 billion through legal gambling, according to industry estimates. That figure includes losses from casinos, sports betting, online gaming, and lotteries. America’s commercial gambling industry generated $71.92 billion in revenue,
Philadelphia psychologist Julian Katz sees a lot of people who are addicted to gambling. He believes the ease of online gambling drives his patients’ addiction.
“What causes it is the accessibility,” he said. “You can take your phone and access it 24/7. It’s a growing problem.”
Katz added, “It can destroy lives, not just the life of the gambler but everyone in their circle,” including spouses, children and friends.” He’s seen gamblers who write bad checks or sell their family heirlooms to get money to continue. Gambling addiction can lead to divorce, or losing a house and car. The effect on the gambler’s family is “heinous,” he said.
The good news is that talk therapy can help, along with groups like Gamblers Anonymous, he said.
Pennsylvania’s Compulsive and Problem Gambling Treatment Fund receives .002 percent from the combined revenue of casino, iGaming, sports wagering and fantasy sports, or $2 million, whichever is greater, according to Doug Harbach, communications director for the state Gaming Control Board. Another $3 million goes to the Department of Drug and Alcohol Programs, which helps with compulsive gambling, along with drug and alcohol addiction.
His department does not oversee the state lottery, a separate agency. The lottery saw $1.22 billion in profits for fiscal year 23-24, the 13th consecutive year that profits exceeded $1 billion. Proceeds from the lottery go to programs to help senior citizens. Looking for more revenue, Shapiro and the state legislature are eying taxes on games of skill, which have been installed in bars, restaurants, and gas stations.
Debra Cohen, a spokesperson for the American Gaming Association (AGA), declined to comment on WalletHub’s findings.
A 2024 Connecticut study found problem gambling for adults remained at 1.4 to 1.8 percent even after the state launched legal sports betting and iGaming. A 2022 Indiana study found 1.3 percent to 2.3 percent of that state’s residents met the clinical threshold for gambling disorder.
Chip Lupo, a WalletHub analyst, said, “Gambling addictions can destroy lives the same way that alcohol and drug addictions can. While some people may be able to enjoy casual gambling from time to time, others need to avoid temptation altogether. People with a gambling addiction may find it helpful to live in states where places to gamble are less prevalent and laws against betting are stricter.”
Katz believes the problem is only getting worse.
“I don’t think we’re anywhere near where this is cured or fixed,” Katz said. A problem gambler’s best chance of recovery is “self-exclusion” to make sure they can’t go to their favorite gambling apps or casinos, he said.
The Problem Gambling Helpline is: 1 (800) GAMBLER or (1(800) 426-2537.
