Lawmakers in West Virginia have proposed increasing taxes on sports betting from 10% to 25%. 

Del. Adam Burkhammer introduced HB4398, which would see sportsbooks in the state pay the additional revenue. In addition, he filed bill HB4397, which proposes increasing the tax on igaming in the state from 15% to 25%. 

The current 10% sportsbook tax rate in West Virginia is one of the lowest in the country. The only states below this level for online operators are Indiana at 9.5%, Michigan at an effective rate of 8.4%, and Iowa and Nevada, which tie for the lowest at 6.75%.

Although new legislation filed in Mississippi could see the state legalize online sports betting at just 6%. The average rate across states that have legal sports betting is around 20%. 

Taxes From Gambling Increasing In WV

West Virginia has been gradually collecting more tax revenue each year since legalizing sports betting back in 2018. 

It was one of the first states to take advantage of the reversal of the PASPA ruling, which paved the way for sports wagering in the US. 

Since 2020, its market has grown considerably, but the state did see a decline in wagering in 2023. The market rebounded in 2024 and continued on that trend last year. 

Year	Handle	Revenue	Hold %	State Taxes
2020	$279,635,041	$21,065,181	8.10%	$1,790,540
2021	$544,509,147	$45,463,827	8.77%	$3,864,425
2022	$585,819,465	$51,704,386	9.03%	$4,394,873
2023	$372,215,086	$34,268,729	9.46%	$2,928,026
2024	$592,642,728	$65,866,101	11.21%	$5,592,747
*2025	$561,339,044	$68,871,624	12.27%	$6,994,083

*In the above table, 2025’s figures are only up until the end of November, but the state has already exceeded last year’s tax revenue by $1.3 million. 

Sportsbooks Likely To Oppose Plans

West Virginia has nine active sportsbooks. One of the leading operators, FanDuel, expanded its presence in the state last year through a partnership with Delaware North’s Mardi Gras Casino & Resort. 

FanDuel and other leading sportsbooks have been vocal opponents of tax increases across the US. The Sports Betting Alliance (SBA), which consists of five leading sports betting companies, including FanDuel, recently filed a lawsuit against the city of Chicago to prevent it from adding an additional tax on sports betting. 

Illinois has already introduced a per-bet tax, following an increase in its rate in 2024. In response, sportsbooks have raised minimum stakes and introduced fees in the state. BetRivers introduced a minimum bet of $5 earlier this month. 

While West Virginia’s proposal is more modest, gambling companies argue that increased tax rates cost consumers, leading to more users using offshore betting platforms. 

For esports bettors, increased taxes can mean less favorable odds and detract from small-stakes gamblers placing wagers. Illinois has seen a drop in bet volume since its per-bet levy was introduced. 

The state, however, has collected more tax revenue overall, leading other states to see gambling as a viable avenue to raise more funds. The two bills in West Virginia have been referred to the House Local Government Committee.