Two bills introduced in the West Virginia House of Delegates propose higher gambling tax rates for online casino gaming and sports wagering.

House Bill 4397 and House Bill 4398 from Delegate Chris Burkhammer propose changes to state law on regulated gambling operations. Both bills together mark the largest change to West Virginia gambling tax rules since sports betting legalisation in 2018. House Bill 4397 focuses on interactive wagering, also known as online casino gaming. The bill updates Section 29-22E-16 of the West Virginia Code to raise the privilege tax on adjusted gross interactive wagering receipts. Current law requires licensed operators to pay 15% of adjusted gross revenue to the state. The proposal increases this rate to 25% under the new framework. Tax collection rules remain the same, requiring weekly electronic reports and payment to the state lottery commission by Wednesday.

The bill keeps the rule treating the privilege tax as a replacement for most state and local interactive wagering taxes. It also continues the ban on tax credits tied to gaming equipment or facility investment. House Bill 4398 applies the same tax approach to sports wagering activities. This bill amends Section 29-22D-16 to lift the sportsbook privilege tax from 10% to 25% of adjusted gross receipts. The measure keeps weekly reporting and allows operators to carry forward negative adjusted gross receipts. It also preserves the rule, replacing most state and local sportsbook taxes with the privilege tax.

Operator Impact Grows

Together, the bills move West Virginia from a low-gambling-tax state to a higher-tax market. Current tax rates have supported operator participation across the state. Since sports betting began in 2018, the 10% sportsbook tax generated about $72.5m in total state revenue. State lottery data for November 2025 recorded about $1.2m from sportsbook taxes on $52.7m wagers. If approved, the bills raise the sportsbook tax rate by 150% and the interactive gaming tax by 66%. Operators would face reduced margins in a state with limited population reach. Licensed operators would carry most of the adjustment pressure from the new tax levels. Market effects may also influence promotions, betting odds, and product access.

National Trend Continues

West Virginia proposals follow a national shift toward higher gambling tax rates. Many states have revised tax structures as sports betting and iGaming markets mature. Ohio increased its sportsbook tax from 10% to 20% during 2023. New Jersey set a 19.75% tax for sports betting and online casino gaming from 1 July. Maryland raised its mobile sportsbook tax from 15% to 20%, while Louisiana increased rates to 21.5%. Illinois introduced a tiered sportsbook tax starting at 20% and reaching 40% plus a per-bet fee. Subsequent data shows changes in wagering levels after implementation. Illinois Gaming Board figures show that October 2025 recorded 6.4 million fewer wagers than October 2024. September data already showed a 15% year-on-year drop in total bets. Massachusetts lawmakers have begun discussions on a 51% sportsbook tax for 2026. This level would place the state alongside New Hampshire, New York, and Rhode Island.