A casino is an entertainment business, and slots players are customers who visit to be entertained. Slots and card players know full well that the odds are against them leaving a casino with more dollars than they brought to play with. A slot player's entertainment is in the time spent playing, and that time is directly related to a casino's slot payout percentage.
Casino state taxes are an expense that directly impacts operations and customer charges. Casinos in Nevada offer the longest playing slot times by providing customers with a 95 percent slot payout made possible by a 7.75 percent casino tax rate. New Jersey comes in second with a casino tax rate at 8 percent, permitting a 93 percent slot payout.
State taxes on casinos in Pennsylvania are 34 percent, Delaware 42 percent, West Virginia 54 percent and Maryland the highest in the U.S. at 67 percent. While a slot parlor with a hot dog stand is less expensive to run than a casino, Maryland's over the top state tax rates will limit the number of returning players at Maryland locations.