CHARLESTON, W.Va. (AP) — West Virginia lawmakers are considering a significant increase in gambling taxes, a change that could substantially impact the state’s sports betting and online casino markets as other states seek new revenue from this growing industry.
Two bills introduced in the West Virginia House of Delegates propose raising the tax rate on regulated sports wagering from 10% to 25% and increasing the interactive gaming tax on online casino platforms from 15% to 25%, according to recent legislation.
House Bills 4397 and 4398 represent the most significant proposed changes to West Virginia’s gambling tax structure since the state legalized sports betting in 2018, following the U.S. Supreme Court’s decision to overturn the federal ban.
Supporters argue that West Virginia’s current rates are among the lowest nationally and that higher taxes could generate additional revenue for public services, particularly as neighboring states expand their gambling industries.
Sports gambling in West Virginia is currently taxed at 10%, a rate considered “operator-friendly” compared to the national average of approximately 20%, according to industry analysts.
If enacted, the tax increase would represent a 150% rise for sportsbooks and a significant increase for online casino operators, aligning West Virginia with states such as Illinois and New York that have adopted higher gambling tax rates.
The bills have been referred to the House Government Organization Committee, where lawmakers will consider whether higher rates could increase state revenue without discouraging operators from remaining in West Virginia.
Trends in Other States
West Virginia’s proposal comes as legislatures nationwide increasingly consider sports betting as a potential funding source in response to budget pressures.
As legalization has expanded, lawmakers have shifted from launching regulated markets to maximizing their revenue. In several states, sports betting taxes have increased steadily after initial implementation.
Industry observers note that West Virginia’s low-tax model initially attracted operators, leading to a competitive market with 9 active sportsbooks. With wagering and revenue increasing annually, lawmakers now see an opportunity to capture a larger share.
Since launching sports betting, West Virginia has generated approximately $72.5 million in sports wagering tax revenue. In November 2025 alone, the state collected $1.2 million in tax receipts from over $52 million in bets.
Some analysts caution that higher costs may be passed on to bettors through reduced bonuses or less competitive odds, potentially driving some players to offshore alternatives.
Offshore Sports Wagering Considerations
This debate arises as West Virginia officials continue to address the presence of online sports betting sites operating outside U.S. regulation. Unlike licensed operators, offshore sportsbooks do not pay state taxes and are not overseen by the West Virginia Lottery Commission.
Regulators and lawmakers nationwide have expressed concern that higher tax rates could make regulated sportsbooks less attractive than offshore platforms, which can offer better odds or larger incentives by avoiding state taxes.
The outcome of this tax initiative could influence the future of sports wagering in West Virginia and guide how other smaller markets approach legalized gambling.