Consultants have told Pennsylvania's Legislature that allowing the state's residents to gamble online would lead to another $300 million a year in revenue.
A legislative committee released the report by Econsult Solutions of Philadelphia on Wednesday.
Senators commissioned the report in December to assess Pennsylvania's existing gambling landscape of 12 casinos and analyze the potential impact of online gambling at the casinos.
With the state facing a dire budget picture, the report is expected to spark serious discussion about legalizing and taxing online gambling.
Senate Majority Leader Dominic Pileggi said he hasn't taken a position on whether to legalize online gambling, but he says members of the Legislature are interested in it and it deserves a serious look.
New Jersey, Delaware and Nevada allow online gambling.