West Virginia Bill Would Jump Sports Betting Tax To 25%
Mike Goodpaster Published 21/01/2026
- A bill in front of the West Virginia legislature is proposing to increase taxes on sports betting operators.
- If passed into law, the tax rate would be set at 25%.
- West Virginia’s current sports betting tax rate of 10% is the fifth-lowest in the US market.
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.
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