West Virginia Sports Betting Revenue, Handle and Taxes

West Virginia Sports Betting Revenue

West Virginia was one of the first states to legalize sports betting, all the way back in March 2018. You may notice that is before the repeal of PASPA, which happened in May 2018. West Virginia was ahead of the curve and was able to launch online sportsbooks in December 2018. At the time of writing, there are now nine sportsbooks operating in WV, including many of the top sportsbooks nationwide. Given that sports betting has been legal in WV for several years now, we have some great data on the West Virginia sports betting revenue.

The first full year of legal sports betting in West Virginia was 2019, during which we saw a West Virginia sports betting revenue of $228,285,426. Clearly, sports bettors were eager to begin betting on sports in WV. In 2020, the West Virginia sports betting revenue grew to $400,741,355, an increase of over $170 million. Fast forward to the end of 2022, a year in which the West Virginia sports betting revenue reached a staggering $571,317,850. Based on projections using the first half of 2023, we could see the West Virginia sports betting revenue reach another all-time high.

Despite having no professional sports teams, sports betting is extremely popular among West Virginia residents. If you are curious about West Virginia sports betting revenue by state rankings, that information is publicly available as well. You can also find West Virginia sports betting revenue by sport.

West Virginia Sports Betting Taxes

Understanding West Virginia sports betting taxes is extremely important. Not only should you know the West Virginia sports betting tax rate, but you also must understand how to report your West Virginia sports betting taxes during tax season as well. In WV, the West Virginia sports betting tax rate is 10%. 10% is actually quite low, given that the national average is 19%. Despite the low West Virginia sports betting tax rate, WV has still made quite a bit from tax revenue. In 2020, revenue from West Virginia sports betting taxes totalled $2,728,673. This increased significantly in 2021 and the revenue from West Virginia sports betting taxes in 2022 eclipsed $5 million. Based on numbers from the first half of 2023, it’s safe to say those figures will keep rising.

Remember, any winnings from sports betting must be reported when filing to have West Virginia sports betting taxes deducted from the winnings. The West Virginia sports betting tax rate is actually quite low compared to other states, so make sure you are compliant.

West Virginia Sports Betting Handle

The handle in sports betting refers to the total amount of money wagered by a specific population group. For instance, there is a West Virginia sports betting handle for all money wagered in WV, as well as a sports betting handle for the entire United States. With more and more states legalizing sports betting, the US betting handle continues to increase each year. In 2021, the United States sports betting handle was $58 billion. In 2022, the handle rose to $93.7 billion, and it appears that 2023 will see another increase.

The West Virginia sports betting handle also continues to increase year over year. In 2019, the first full year of legal sports betting in WV, the West Virginia sports betting handle was $228,285,426. The next two years saw West Virginia sports betting handles of $400,741,355 and $546,940,861, respectively. After 2022, it was reported that the WV sports betting handle totaled $571,317,850, which was not a massive increase from 2021, but an increase nonetheless. It remains to be seen if the West Virginia sports betting handle in 2023 will surpass 2022, but given the year-to-date (through June) mark of $234,328,376 it looks like there is at least a chance.

West Virginia Sports Betting Handle Per Capita

Sports betting handle per capita is calculated by dividing the state’s total betting handle by the state’s population. This gives us a way to compare the betting handle between states with wildly different populations. This is important, as we would not expect to see the same total sports betting handle in West Virginia as we would in New York. West Virginia ranks 40th in total population, while New York ranks fourth.

In 2022, the West Virginia sports betting handle per capita was $431, or $35.92 per month. This number has actually dropped a bit in 2023, as we are seeing a WV sports betting handle per capita of $29.50 per month. This is quite low, as we see neighbouring states with much higher betting handles per capita. For example, Virginia had a 2022 sports betting handle per capita of $81.25 per month. Ohio just legalized sports betting in 2023 and is seeing a sports betting handle per capita of $79.83 per month.

West Virginia Sports Betting Hold

The sports betting hold is the percentage of money that a sportsbook keeps for every dollar wagered by users. For example, if a sportsbook has a monthly handle of $10 million and a revenue of $2 million, that means it paid out $8 million in winnings. This means that the hold would be 20%.

In 2019, the West Virginia sports betting hold was 8.5%. The West Virginia sports betting hold has remained relatively steady over the years, as we saw a hold of 8.89% percent in 2022. Through the first six months of 2023, the West Virginia sports betting hold percentage is 7.75%. The WV hold percentage is right in line with the 2022 national average of 8.1%.