West Virginia’s fiscal year ends in June, and online casinos are set to break records once again. By mid-May, the state’s iGaming platforms had already generated over $18 million in taxes, putting them on track to exceed $20 million by the fiscal year’s end. In total, all forms of gambling—online, retail, and sports betting—have contributed $53.3 million in taxes, with sportsbooks accounting for $4.9 million and brick-and-mortar casinos adding $30.4 million.
West Virginians wagered over $3.5 billion on iGaming apps in FY ’23, resulting in $120.4 million in revenue, a 39.7% year-over-year increase. The state’s 15% tax on online gambling has already surpassed the $12.9 million collected in FY ’22, highlighting a trend of consistent growth.
Online Gambling Sees Unprecedented Growth
This growth is not unique to FY ’23. In FY ’22, West Virginia online casinos experienced a more than 100% increase in key metrics compared to FY ’21. The handle grew by 118.6%, while revenue skyrocketed by 147.3%, and taxes surged by 158.6%. These trends continue to reflect the evolving and maturing gambling sector in the state, especially as sports betting has seen similar year-to-date (YTD) increases in revenue and tax contributions.
Through mid-May, sportsbooks have generated $48.7 million in revenue, a notable improvement over the $44.8 million from FY ’22. Tax revenue from sports betting has already climbed to $4.9 million, up from $4.5 million last year.
Funding Tourism and State Parks
All gambling tax revenue in West Virginia goes through the West Virginia Lottery, which was established in 1986. A significant portion of the collected taxes is used to fund the state’s Division of Tourism, Division of Natural Resources, and State Park Improvement Fund. This revenue also supports the West Virginia Lottery’s administrative needs and pensions.
For FY ’23, online casino taxes total $18.1 million, with $15.2 million allocated to the state and $2.9 million for administration and pensions. Sports betting taxes have contributed $4.9 million, with $4.2 million going to the state and $739,000 for administrative expenses.
Eyeing the $20 Million Milestone
As the fiscal year closes, West Virginia’s iGaming sector is poised to hit new milestones. With just $1.9 million more needed to reach $20 million in taxes, online casinos are well-positioned to meet this goal. At the current rate, generating $300,000 in taxes per week has been a consistent achievement.
Additionally, total wagers could exceed $4 billion by year’s end, which would far surpass tax expectations. While the $20 million tax goal seems imminent, reaching $4 billion in total wagers would mark an even more impressive accomplishment for West Virginia’s ever-growing online gambling industry.
Source : https://www.playwv.com/west-virginia-online-gaming-taxes-18m-record-pace/
