- House Bills 4397 and 4398 propose raising tax rates to 25% for both sports betting and online casino operations in West Virginia.
- Operators may respond by cutting bonuses, adjusting lines, or leaving the market entirely.
- The bills follow Attorney General JB McCuskey’s crackdown on unlicensed gambling operators across the state.
CHARLESTON, W. Va. – State legislators have put forward new bills targeting online gambling tax rates in West Virginia. Delegate Adam Burkhammer submitted two measures on January 16th calling for a uniform 25% tax rate on both sports wagering and internet casino operations.
The current tax system would be drastically altered by the modifications. House Bill 4398 seeks to increase the sports betting fee from 10% to 25%, while House Bill 4397 suggests increasing the fee for online gambling platforms from 15% to 25%. Both suggestions are currently being examined by the House Government Organization Committee.
The current tax rates in West Virginia are among the best for businesses in the country. Since the state allowed legal sports betting in late 2018, taxes from sports betting have totaled about $72.5 million. In November 2025 alone, the West Virginia Lottery received $1.2 million in tax revenue from bets totaling over $52.7 million.
Although prices vary greatly between jurisdictions, the majority of states with established markets charge about 15%. Pennsylvania has a 36% operator revenue tax, while New York levies a 51% tax.
Potential Market Changes
Sportsbooks in West Virginia could change how they operate as a result of the proposed tax structure. Operators may change their offerings in reaction to growing costs by limiting platform improvements, changing odds pricing, or cutting promotional bonuses. Smaller betting companies might think twice about operating in areas with higher tax requirements.
Of the seven states that allow commercial internet gaming, West Virginia currently has the lowest rate of 15% on online casino gaming. This rate was maintained in New Jersey until 2025, when legislative action raised it to 19.75%. Major operators and industry lobbying groups strongly opposed Governor Phil Murphy’s initial proposal for a 25% charge.
Attorney General JB McCuskey’s enforcement operations against unlicensed gaming platforms are the reason behind these laws. This year, his staff served about fifty subpoenas to unlicensed operators, causing several sweepstakes suppliers to cease operations in West Virginia.
Although current tax collections support state programs including tourism development, educational efforts, and environmental projects, neither law specifies how the additional tax income will be used. Similar to the opposition New Jersey encountered when raising its rates last year, industry representatives are likely to oppose the measures during the legislative process.
Before the legislation can become law, it must pass several legislative obstacles.
