West Virginia Could Raise Sports Betting Taxes Substantially

By Cheryl Coward | Jan 27, 2026, 9:03am

West Virginia lawmakers are weighing a sharp tax hike on sports betting for both online and retail sportsbooks.

House Bill 4398, introduced Jan. 16 by Del. Adam Burkhammer, would raise the state’s sports wagering “privilege tax” to 25% from 10% of adjusted gross sports wagering receipts.

The 150% tax increase would make West Virginia one of the pricier markets in the country for sportsbooks, but it would still be significantly lower than the highest-taxing states, which tax around 51%.

HB 4398 is currently pending in the House Local Governments Committee.

Potential impact on bettors and operators

For bettors, the tax hike could possibly impact them in multiple ways:

Reduced promotions and bonuses as sportsbooks typically cut back on promos when taxes increase.
Less favorable betting lines from operators in order to maintain profitability.

Operators could also see a decrease in bets from casual bettors who may be priced out of the market.

The fiscal note to HB 4398 projects additional sports betting tax revenue of $1,147,500 for the current fiscal year (for the partial period April 1–June 30 after the higher rate starts) and $5,724,750 in 2027 and thereafter, assuming similar market performance.

West Virginia would join a small group of tax‑hiking states

If the West Virginia bill succeeds, the state will join five others that have succeeded in increasing the tax rate after the legalization of sports betting. Ohio was the first to do so, doubling its initial rate to 20% in its first year. The governor tried to increase the rate again to 40%, but the state legislature blocked the attempt.

Maryland increased the mobile sports betting tax to 20% from 15% to. Illinois replaced its flat 15% tax with a graduated system ranging from 20% to 40% on adjusted gross sports wagering receipts in 2024 and added a per‑wager excise tax in 2025.

Louisiana raised its online sports betting tax to 21.5% from 15%. New Jersey also raised its online sports betting tax, increasing the online rate to 19.75% from 13%.