West Virginia Bill Would Jump Sports Betting Tax To 25%

West Virginia is the latest state set to go after a bigger slice of the sports betting pie. Currently, legal and regulated sports betting operators in the state are paying a 10% tax on adjusted gross revenue. That’s the revenue remaining after the sports betting site has paid out all of the winnings to users.

Two separate bills introduced this month – House Bill 4397 and House Bill 4398 – are seeking to increase that taxation rate on sports betting operators to 25%. Delegate Andrew Burkhammer introduced both of the bills. HB 4397 deals with online casino gambling, while HB 4398 is specifically related to online sports betting.

The bills have been referred to the House Government Organization Committee. Burkhammer is the Chair of that committee.

HB 4938 reads, “For the privilege of holding a license to operate sports wagering under this article, the state shall impose and collect 25 percent of the licensee’s adjusted gross sports wagering receipts from the operation of West Virginia Lottery sports wagering. The accrual method of accounting shall be used for purposes of calculating the amount of the tax owed by the licensee.”

Since launching legal and regulated sports betting in 2018, West Virginia has collected over $72 million in tax revenue from sports betting. In November 2025, the most recent monthly data available for public viewing, the West Virginia government earned $12.5 million in tax revenue.

Opponents of the bill insist that it will turn West Virginia into one of the least profitable sports betting markets in the US, which could cause the major online sports betting sites to reconsider whether it’s worthwhile for them to operate in the state.

Several states are opting to increase taxation on sports betting

In reality, West Virginia is merely following a growing trend across the US sports betting market. Several other states have either raised the tax rate on sports betting or, like West Virginia, are considering doing so.

In her recently released 2026 state budget, Arizona Governor Cheryl Hobbs is proposing to increase the tax rate on sports betting in the state to a whopping 45%. She insists the revenue is necessary to offset funding cuts from the federal government.

Illinois has increased its tax rate on sports betting revenue twice in the past year. Chicago is also imposing a municipal sports betting tax levy. However, that measure is being disputed in court.

Last year, New Jersey increased the state tax rate on sports betting from 15% to 19.5%. Governor Phil Murphy had originally sought to jump the tax rate all the way to 25%.

In August 2025, Louisiana increased its online sports betting tax rate from 15% to 21.5%. Last year, Ohio doubled its sports betting taxation rate from 10% to 20%.

Ohio Governor Mike DeWine is pushing for another increase up to 40%. Ohio State Senator Louis Blessing III put forth Senate Bill 199. The bill proposes that the state add a further 2% tax that would be imposed on sports betting handle, the total amount wagered by bettors, rather than on sports betting adjusted gross revenue.

Award

BetMGM Promo

Up To $1500 in Bonus Bets Paid Back if your First Bet Does Not Win

Get bonus now

Gambling problem? Call 1-800-GAMBLER (Available in the US) Call 877-8-HOPENY or text HOPENY (467369) (NY) Call 1-800-327-5050 (MA) 21+ only. Please Gamble Responsibly. Call 1-800-NEXT-STEP (AZ), 1-800-BETS-OFF (IA), 1-800-981-0023 (PR). Rewards are non-withdrawable bonus bets that expire in 7 days. In partnership with Kansas Crossing Casino and Hotel. See BetMGM.com for Terms. US promotional offers not available in DC, Mississippi, New York, Nevada, Ontario, or Puerto Rico.

Award

Fanatics Promo

Bet $50, Get $300 in FanCash

Get bonus now

Must be 21+. GAMBLING PROBLEM? CALL 1-800-GAMBLER or 1-800-522-4700, Home (MD), (800)-327-5050 or MA Gambling Helpline (MA), Call (877)8-HOPENY or text HOPENY (467369) (NY), or Call 1-800-NEXT-STEP or text NEXTSTEP to 53342 (AZ), (888) 789-7777 or CONNECTICUT COUNCIL – ON PROBLEM GAMBLING (CT), or 1-800-9-WITH-IT (IN), If gambling is more than a game, free help is available . . . – NCDHHS Problem Gambling (NC). New customers in AZ, CO, CT, DC, IA, IL, IN, KS, KY, LA, MA, MD, MI, MO, NC, NJ, NY, OH, PA, TN, VA, VT, WV, or WY. Must opt-in and wager $10+ cash on any market with odds of -500 or longer to receive $100 in FanCash each day for your first 3 days (issued when qualifying wager settles). Your 3 days begin the day you establish your account. FanCash rewards expire at 11:59 p.m. ET 7 days from issuance. Terms, including FanCash terms, apply – see Fanatics Sportsbook app.

Award

Bet365 Promo

Bet $5 & Get $150 in Bonus Bets Win or Lose

Get bonus now

Whatever the moment. It’s Never Ordinary at bet365. That’s why if you sign up now you will receive $150 in Bonus Bets Win or Lose when you bet $5! Minimum $10 deposit required. Minimum odds -500 or greater. Bonus Bets wager excluded from returns. New customers only. T&CS, time limits and exclusions apply.GAMBLING PROBLEM? CALL OR TEXT 1-800-GAMBLER (AZ/CO/IL/IN/KS/KY/LA/MD/NC/NJ/OH/PA/TN/VA) or 1-800-BETS OFF (IA). 21+ (18+ KY). Must be present in AZ/CO/IA/IL/IN/KS/KY/LA (select parishes)/MD/NC/NJ/OH/PA/TN/VA.

Award

FanDuel Promo

Bet & Get up to $1,000 in Bonus Bets!

Get bonus now

Gambling Problem? Call 1-800-GAMBLER or visit RG-help.com. Call 1-888-789-7777 or visit ccpg.org/chat (CT). Hope is here. Visit www.helpmygamblingproblem.org (MA). Play it Safe. Call 1-800-547-6133 or visit mdgamblinghelp.org (MD). Call 1-855-860-2942 or visit gamblinghelplineonline.org (WV). 21+ (18+ DC, KY, MD and restricted states for KS). An affiliation with Kansas Star Casino. First online real money wager only. $5 free deposit credited. Bonus credited upon wager of $5 or more within 72 days after receipt. Restrictions apply. See terms at sportsbook.fanduel.com.