Key Moments:
- Legislation proposes raising both sportsbook and iGaming taxes in West Virginia to 25% of gross revenue
- Sports betting tax rate would rise from 10% to 25%, while online casino taxes increase from 15% to 25%
- Proposed changes align West Virginia with a national movement toward higher gambling tax rates
Legislation Moves to Lift Gambling Tax Rates
Two bills newly introduced by Delegate Adam Burkhammer call for a sharp increase in gaming taxes across West Virginia. Filed on January 16 and referred to the House Government Organization Committee, HB 4397 and HB 4398 each target a new 25% rate on operators’ gross revenue. Under these proposals, HB 4397 would escalate the iGaming tax from the current 15% up to 25%, while HB 4398 would increase the sports betting rate from 10% to 25%.
Current Tax Structure and Revenue Impact
At present, West Virginia imposes some of the lowest gambling taxes nationwide, with sportsbooks taxed at 10% and online casinos at 15%. This 10% sportsbook levy has generated approximately $72.5 million since sports betting launched in 2018. For November 2025 alone, state lottery figures report $1.2 million in collections from over $52.7 million in wagers.
If passed, Burkhammer’s legislation would mean a 150% rise for sportsbook operators and a hike of 66% for online casino operators. The bills additionally require operators to submit weekly revenue reports. While sportsbooks would be allowed to carry losses forward, any refunds would be processed at the original 10% tax rate if a license is relinquished. Online casinos would follow the same weekly reporting protocol but would not benefit from loss carry-forward or refund opportunities.
| Operator | Current Tax Rate | Proposed Tax Rate | Percentage Increase |
|---|---|---|---|
| Sportsbooks | 10% | 25% | 150% |
| Online Casinos (iGaming) | 15% | 25% | 66% |
National Developments in Gambling Taxation
West Virginia’s proposed tax changes follow a growing national trend of increasing gambling tax rates over the past year.
States such as Ohio doubled sportsbook tax rates from 10% to 20% in 2023. New Jersey also sought increases, landing at a 19.75% rate for both sports betting and iGaming from July 1, after considering a top rate of 25%. Maryland’s move took mobile sports betting taxes from 15% to 20%. Louisiana raised its rate from 15% to 21.5%.
Illinois introduced a tiered tax structure in 2024, starting at 20% and reaching up to 40% for larger operators, in addition to a per-bet fee structure. This led to a year-over-year decline in wagering volume of more than 15% in September and October.
Massachusetts initiated legislative efforts for a 51% sports betting tax in 2026, which would align its rates with those of New Hampshire, New York, and Rhode Island, currently among the highest in the country.
Conclusion
The proposed tax hikes in West Virginia represent a significant policy shift aimed at increasing state revenue from gambling activities. If enacted, these measures would place the state among others implementing more aggressive tax structures in the rapidly evolving U.S. gambling landscape.
- Author
Daniel Williams
