West Virginia Gambling Tax Increase Could Reshape Industry

West Virginia neon sign

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.

Mountaineers Want March Madness Glory

March Madness basketball

March Madness is almost upon us. The most storied tournament in college basketball, March Madness is what makes the sport what it is. It’s only a matter of time before, “How’s your bracket?” becomes one of the most commonly asked questions. For West Virginia residents, the Mountaineers are the hometown heroes. They’re also ranked 12th in the country.

The Mountaineers are currently 21-6 and average 84.5 points a game. They are second in the Big 12 Conference to Kansas, who are ranked #3 overall. Their 11-5 conference record has established them as a force to be reckoned with going into the tournament. Jevon Carter leads the stat charts and is averaging 12.7 points per game. Nathan Adrian’s 10.4 points per game and 6.2 rebounds per game have also attributed to their success.

The team has been playing well overall, coming off three straight victories over Texas Tech (double-overtime victory), Texas and TCU. Their last two games of the season are against #8 Baylor and #37 Iowa State, the Mountaineers could benefit themselves in regards to the tournament with victories over these two teams. The team hasn’t lost by more than seven points in a single game this season, making them tough for any opponent.

March Madness is set to kick off on March 14, and if there is anything the tournament has taught us, it’s to expect the unexpected. While West Virginia will surely be at the top of West Virginia residents’ brackets, they’ll also be in the brackets of any avid college basketball fan. From a sports gambling perspective, West Virginia will make for a solid bet going into the later stages of the tournament. Obviously, the draw of the tournament’s first round will have an effect on the betting odds, but based on their regular season play, the Mountaineers are a strong contender.

West Virginia sports gambling utilizes offshore sportsbooks. These sportsbooks are all legally sanctioned and operate outside the jurisdiction of any US laws pertaining to sports betting. Even better, West Virginia residents are able to place bets on the Mountaineers, or any other NCAA team in the tournament, if they’d like to. You can place a bet on the Mountaineers to win the tournament outright, if you happen to be so confident, or you can bet on them on a game-to-game basis. Either way, these offshore sportsbooks are the best option for placing bets throughout the March Madness tournament.

If it’s your first time betting with these offshore sportsbooks, then you’ll have some bonuses waiting for you. When you successfully make your first deposit into your sportsbook account, a percentage of that deposit will be tacked on as an introductory bonus, courtesy of the sportsbook. This additional money can be used to add to your bet or even place a new one, spreading your money across the odds.

The nation is about to be swept up in March Madness fandom, and whether you’re a casual fan or an invested bettor, the Mountaineers will be a team to watch. Make an account with one of the offshore sportsbooks available to West Virginia residents and start browsing the odds to see what is available. You may end up picking a correct bracket and making some money along the way.