West Virginia becomes latest US state to seek gambling tax increases

Summary

Two bills introduced in the West Virginia House of Delegates — House Bill 4397 and House Bill 4398 — would sharply raise privilege taxes on interactive (online casino) wagering and sports betting. HB 4397 would increase the interactive wagering tax from 15% to 25%, while HB 4398 would raise the sportsbook tax from 10% to 25%. The bills keep weekly reporting and the existing privilege-tax framework (which replaces most other state and local taxes) and preserve the ability to carry forward negative adjusted gross receipts. If passed, these changes would be the most significant overhaul of West Virginia gambling tax policy since sports betting was legalised in 2018.

Key Points

HB 4397 proposes raising the interactive (online casino) privilege tax from 15% to 25%.
HB 4398 proposes raising the sportsbook privilege tax from 10% to 25%.
Weekly reporting and payment schedules remain unchanged; taxes continue to substitute for most other state/local taxes tied to operations.
The proposed increases equal a 66% rise for interactive gaming and a 150% rise for sportsbooks, squeezing operators’ post-tax margins in a small-market state.
West Virginia’s move follows a wider US trend of higher gambling taxes (examples: Ohio, New Jersey, Maryland, Louisiana, Illinois), where higher rates have been linked to reduced wagering activity in some markets.

Context and Relevance

These bills would shift West Virginia from a relatively operator-friendly, low-tax jurisdiction to one with far more aggressive rates. Since 2018 the state’s 10% sportsbook tax has generated around $72.5m in cumulative revenue; November 2025 collections were roughly $1.2m from $52.7m in wagers. The proposals reflect broader fiscal reappraisals as regulated sports betting and iGaming markets mature. Data from other states (notably Illinois) shows wagering volumes can be sensitive to higher taxes, so operators, suppliers, affiliates and investors should monitor potential impacts on margins, promotions, pricing and product availability.

Why should I read this?

Short and blunt: if you work in iGaming or follow US gambling markets, this could change margins and market dynamics in West Virginia and signal what other states might do next. We’ve done the heavy lifting and pulled out the bits that actually matter — so you can decide fast whether to act.