West Virginia Could Bump Online Casino Tax Rate to 25%

West Virginia lawmakers could bump their online casino tax rate if new bills are approved.

The proposals, known as HB 4397/HB 4398, would add an additional 10 percent to the state’s 15 percent standard. That 15 percent is one of the lowest among the eight states (seven operational) with legal online casinos. 

Charging iGaming platforms the extra 10 percent would generate an additional eight figures in tax revenue annually.

West Virginia online casino tax growth

West Virginia launched its online casino market in July 2020. Its last full fiscal year (FY 2025) resulted in $7.5 billion in wagers, $307.7 million in revenue, and $46.2 million in tax collection.

Revenue soared to $35.9 million in Dec. 2025 alone, representing a 58 percent year-over-year increase. If that’s any indication, the West Virginia market could grow to become quite lucrative.

Using the 15 percent tax, West Virginia collected $33.9 million in iGaming taxes during the first half of FY 2026. A 25 percent tax rate would’ve driven that total to $56.5 million, more than $10 million above the yearly record, with six months still left in the fiscal year.

West Virginia’s proposed 25 percent tax rate would put it near the median of the national iGaming tax landscape, but not the mean. While Connecticut (18 percent) and New Jersey (19.75 percent) would be close behind, Rhode Island (62.45 percent), Delaware (57 percent), and Pennsylvania (54 percent) would all charge more than twice as much. 

Michigan, the seventh state with operational online casinos, imposes a graduated tax rate up to 28 percent.

Pros and cons of the bills

The arguments for and against the new West Virginia online casino bills are familiar to those following the gaming industry.

Supporters claim that the state would benefit greatly from the additional tax funding. 

According to the U.S. Bureau of Economic Analysis, West Virginia has the third-lowest nominal GDP per capita in 2024. For context, the top 12 states were just about or more than 50 percent higher.

The influx in funding could be used for public improvement projects such as education, transportation, and medical infrastructure.

On the flip side, critics worry that higher taxes could impede online casino operators from offering promotions to customers and general market expansion.

Regardless of the outcome of the tax situation, West Virginia’s consistent growth as a home for iGaming suggests that it will steadily produce more tax revenue as long as the market continues on an upward trajectory.