West Virginia lawmakers propose tax hikes for sportsbooks, iGaming
West Virginia legislators have introduced bills to raise tax rates on sports betting and online casino operators to 25%. The proposals also include new reporting requirements for sportsbooks.
West Virginia lawmakers have filed new legislation that would significantly raise tax rates on both sports betting and iGaming operators in the state. Delegate Adam Burkhammer introduced two bills on January 16, House Bill 4398 and House Bill 4397, aiming to increase the existing tax levels for these verticals.
Under the proposals, the sportsbook tax rate would rise from the current 10% to 25%, while the iGaming tax rate, currently at 15%, would also be bumped up to 25%. The changes reflect a broader push by state legislators to boost revenue from legalized gambling as the market continues to grow.
Weekly reporting and operator provisions
In addition to higher tax rates, HB 4398 would require sportsbook operators to file weekly tax reports and remit payments on a weekly basis. The bill also includes provisions allowing operators to carry forward weekly losses, though refunds remain calculated at the current 10% rate if a license is surrendered, a detail that has not yet been updated in draft language to reflect the proposed 25% rate.
A similar reporting requirement is included in the iGaming tax proposal under HB 4397, although it does not contain the same loss carry‑forward language. Both bills were referred to the House Local Government Committee for review
Following other states’ tax increases
Several U.S. states have raised gambling taxes in recent years as sports betting and online casino markets have grown. In 2025, New Jersey considered a 25% tax but ultimately set it at 19.75% for both sportsbooks and iGaming. Illinois introduced a per-bet tax after raising rates in 2024, applying a sliding scale from 20% to 40% depending on operator size. Maryland increased its mobile sports betting tax from 15% to 20%, while Louisiana raised rates from 15% to 21.5%.
In Ohio, sports betting taxes doubled from 10% to 20% in 2023 shortly after legalization. Governor Mike DeWine proposed another increase in 2025, but lawmakers rejected it. Massachusetts is considering a bill in 2026 to raise sportsbook taxes from 20% to 51%, potentially creating one of the highest rates in the country.
These examples highlight the trend of states adjusting gambling taxes after markets become established, a consideration West Virginia now faces in deciding whether to maintain low rates or increase revenue through higher levies.
