June marks the final month of the fiscal year in West Virginia. Across all categories, it has been a successful one for West Virginia online casinos.
As of May 13, online casinos have generated over $18 million in taxes and are on pace to reach $20 million for the fiscal year.
All forms of gambling, including retail casinos and betting, have generated $53.4 million in taxes in FY ’23. Sportsbooks reported $4.9 million in taxes. The state’s brick-and-mortar venues accounted for the remaining $30.4 million.
WV on-line casinos eyesight 50% development in a year
Western Virginians have wagered over $3.5 billion on iGaming applications and websites in FY ’23, resulting in $120.4 million in revenue. West Virginia online casinos are taxed at 15%, resulting in the $18 million mentioned above.
These numbers show increases from the full FY 2021-22 reporting period. With six weeks remaining of reporting, West Virginia online casinos already have year-over-year growth in all three categories.
- Handle: Up 36.6% YoY (from $2.6 billion in FY ’22)
- Revenue: Up 39.7% YoY (from $86.2 million in FY ’22)
- Taxes: Up 39.7% YoY (from $12.9 million in FY ’22)
As the final six weeks of FY ’23 play out, these percentages may surpass 50% YoY revenue and set new highs to start chasing in July.
Incredible growth being a trend in most sectors
Online casinos’ 50% growth in FY ’23 comes after over 100% YoY growth in FY ’22.
- Handle: Up 118.6% YoY (from $1.2 billion in FY ’21)
- Revenue: Up 147.3% YoY (from $34.9 million in FY ’21)
- Taxes: Up 158.6% YoY (from $5 million in FY ’21)
West Virginia’s gambling industry has also seen an increase in year-to-date revenue and tax contributions as the state’s gambling economy matures.
As of mid-May, it has already outperformed last year by generating $48.7 million in revenue and $4.9 million in taxes. Sportsbooks contributed $44.7 million in FY ’22 revenue, resulting in a $4.5 million tax bill.
Exactly where does betting tax cash go?
The West Virginia Lottery oversees casino and gambling activities in The Mountain State. Most of the gambling taxes are allocated to the Lottery, which supports funding for three agencies:
- Division of Tourism
- Division of Natural Resources
- State Park Development Fund
Casino revenue is subject to a 15% tax rate, while retail casino and sports betting revenue are taxed at 10%.
A portion of these funds goes towards WV Lottery administrative needs and pensions, while the remainder is allocated to tourism and state parks. Here’s a breakdown of taxes for FY ’23 to date:
- iGaming ($18.1 million): $15.2 million state share; $2.9 million administration share and pension
- Sports betting ($4.9 million): $4.2 million state share; $739,000 administration share
The West Virginia Lottery was established in 1986 and has contributed over $1.3 billion to tourism-related projects in its 37-year history.
iGaming may surpass 20 dollars million inside FY ’ 23 income taxes
West Virginia casinos are entering the final month of FY ’23 with iGaming already setting new records. However, they have the potential to achieve even greater milestones before the end of the fiscal year.
With a total of $18.1 million in taxes collected, the state only needs to collect an additional $1.9 million to reach $20 million for the fiscal year. This translates to a little over $300,000 per week, which has been easily achievable throughout the year.
YTD (Year-to-Date) online casino handle amounts to $3.52 billion, meaning casinos will need to average around $80 million per week to reach $4 billion in FY ’23.
While reaching the $20 million tax mark is likely, if casinos hit $4 billion in total wagers, they will surpass the tax milestone along the way.
Mountain Kerby comes from a background of poker, sports, and psychology. He brings all of that expertise into his writing, where he contributes articles on the growing legalized gambling, online casino, and gambling industry.
