West Virginia Online Casinos, Sportsbooks To Be Taxed 25% If New Legislation Passes
By Drew Ellis
Published:
New legislation in the West Virginia House of Delegates calls for online gambling tax rates to rise to 25%.
Del. Adam Burkhammer introduced two new pieces of legislation to the state House. HB 4398 would push online sportsbooks to contribute 25% of adjusted gross revenue back to the state. HB 4397 would see the WV online casinos contribute 25% of their adjusted gross revenue back to the state.
Currently, online sportsbooks contribute just 10% of their AGR, while online casinos provide 15% of their AGR back to the state.
Each of the bills currently reside with the House Local Governments Committee.
West Virginia One of Lowest Tax Rates in US
It’s understandable that West Virginia would look to raise the current online gambling tax rates as both rank among the lowest in the state.
The online sportsbook rate is not last in the US, but only a few states are below 10%. By comparison, some states are as high at 51%.
When it comes to online casinos, West Virginia’s 15% is the lowest in the country. By comparison, the other six state rates are:
- Rhode Island: 62.45% slots, 16.5% table games
- Delaware: 57% slots, 15.5% table games
- Pennsylvania: 54% slots, 16% table games
- Michigan: 20-28% depending on revenue
- New Jersey: 19.75%
- Connecticut: 18%
How Much Money Would New Rate Bring In?
Thus far in Fiscal Year 2026, which started in July, West Virginia online casinos have produced $226.1 million in revenue.
That has led to $33.9 million in tax revenue based on the current rate of 15%. If it were 25%, that number would jump up to $56.5 million.
Of the collected iGaming tax revenue, 15% of it goes to the West Virginia Lottery and their operations fund. The majority of it, 84%, goes to the state to use for various funds.
A remaining 1% goes into a state pension fund for West Virginia racing employees.
Drew Ellis has experience covering the gambling industries in North America and around the world. Decades of media experience provide him with the background to handle the complexities of different gambling laws and policies around the United States and North America. Ellis has primarily focused on online and retail casino news since 2021. Prior to working in the gambling industry, Ellis spent over 20 years in the newspaper industry, covering sports and the gambling. His work for The Mt. Pleasant Morning Sun and The Oakland Press was recognized with awards by the Associated Press and other media organizations. Drew has also contributed to the Detroit Free Press and the Associated Press.
