West Virginia is better known for its majestic mountain ranges, coal mines, and logging industry than casinos but this is not to say it lacks alternatives for those who seek to gamble. The Mountain State is friendly to gamblers who can legally engage in casino gaming, sports betting, horse race betting, video gaming terminals, lotteries, and daily fantasy sports. Legal online casinos, sportsbooks, and poker are also available to West Virginians.
The state is home to five commercial casinos, four of which operate as part of the racetracks located in Wheeling, New Cumberland, Cross Lanes, and Charles Town. The Greenbrier Casino Club in White Sulphur Springs is the only commercial gaming venue that operates separately from a racetrack.
The Greenbrier Casino houses 37 tables for games like craps, baccarat, banked poker, blackjack, and roulette. Patrons can also take a spin on over 300 slot machines but the venue is only open to registered guests of the resort.
The commercial gambling industry has a massive impact on the Mountain State’s economy as it accounts for over $487 million in annual tax revenue and employs more than 8,300 West Virginians. The state’s five commercial casinos collectively generated $668 million in gross gambling revenue, which further goes to show how mature the local industry is.
Landbased Gambling Laws in West Virginia
A curious mixture of modern and old-fashioned laws governs the gambling industry of West Virginia. Gambling regulations are relatively lax here as the state allows for a wide range of operations, including lotteries, video lottery terminals, and table games.
Indian gaming remains unavailable for the time being since West Virginia has no federally recognized native tribes. The West Virginia Lottery Commission (WVLC) regulates most forms of legal gambling in the state. Let’s have a more in-depth look at the laws that govern brick-and-mortar gambling in the Mountain State.
State Lottery Act
Racetrack Video Lottery Act
Limited Video Lottery Act
Lottery Racetrack Table Games Act
Greenbrier Casino Act
West Virginia Code, Chapter 61, Article 10
State Lottery Act
Lotteries have been legal since the mid-1980s and are regulated under the provisions of the West Virginia Code, Chapter 29, Article 22 (State Lottery Act). The legislation created the West Virginia Lottery Commission, outlining its structure and regulatory duties. Lottery winners should be determined entirely by chance during draws held in public in the presence of an independent accountant selected by the WVL director.
Lottery players who win $1 million or more have the right to claim their prizes anonymously under Section 29-22-15a. Winners have 180 days to redeem their prizes and can receive them via electronic fund transfers, checks, or any other method approved by the Federal Reserve System. Any unclaimed winnings revert to the West Virginia Lottery Fund.
Selling lottery tickets to underage persons is prohibited but adults can purchase and gift them to people under 18. If a minor happens to win $5,000 or more, a parent, relative, or legal guardian must collect the prize on their behalf. Counterfeiting or forging lottery tickets is considered a criminal offense and comes with fines of up to $1,000 or/and confinement in a correctional facility for a maximum term of one year. The same goes for running unauthorized lotteries without a license.
Racetrack Video Lottery Act
Residents of the four counties with authorized racetracks approved video lottery terminals (VLTs) in a 1994 referendum, allowing the tracks to legally operate slot machines on their premises. VLTs at pari-mutuel facilities fall under the scope of the West Virginia Code, Chapter 29, Article 22A, otherwise known as the Racetrack Video Lottery Act.
According to Section 29-22A-7, only facilities that hold valid licenses from the West Virginia Racing Commission can apply for VLT licenses. Players cannot use credit or debit cards to buy credits for the machines. Section 29-22A-12 restricts the maximum number of video lottery terminals per racetrack to 400.
However, the pari-mutuel operators can seek permission from the WVLC for the installation of additional terminals. The machines should be located in designated areas approved by the state regulator. Installing and operating unauthorized gaming machines is a violation that comes with maximum penalties of up to $25,000 and imprisonment of one year.
Limited Video Lottery Act
In 2001, West Virginia lawmakers approved new legislation known as the Limited Video Lottery Act. It legalized the operation of slot machines outside pari-mutuel facilities in stand-alone adult-only locations like bars, for example. The adult facilities can collectively operate no more than 9,000 slot machines across the state. All gaming terminals should come from licensed manufacturers that have obtained approval from the state regulator.
Licensed retailers can offer up to seven video lottery terminals on their premises, although the Lottery Commission can authorize certain businesses to offer up to ten machines upon request. There should be a distance of at least 150 feet between the licensed outlets.
In 2021, the state regulator approved a measure that introduced new working hours for the limited VLT operators, allowing them to open as early as six in the morning. The slot machines should have a theoretical return of no less than 80% and no more than 95% of the overall sum wagered on them. As of November 2021, West Virginia had over a thousand outlets with video lottery machines.
Lottery Racetrack Table Games Act
Chapter 29, Article 22C of the West Virginia Code brought legal table games to the Mountain State. The legislation authorized the four racetracks to host games like roulette, baccarat, craps, and blackjack on condition they acquire the licenses necessary for this purpose.
The table games operators can provide complimentary services and items to their customers in the form of accommodations, beverages, food, tokens, and non-cash gifts. The maximum and minimum limits should be conspicuously displayed at each table. The rules of the games should be readily available to patrons in printed form.
Greenbrier Casino Act
Greenbrier is one of the oldest resorts in the United States, having served as such since the late 1770s. It received authorization to offer slot machines and table games in 2007 under the provisions outlined in the West Virginia Code, Chapter 29, Article 25 (Greenbrier Casino Act). This is the only facility in the state that has authorization to operate casino-style games outside the four racetracks.
West Virginia Code, Chapter 61, Article 10
Chapter 61, Article 10 of the West Virginia Code (Crimes against Public Policy) outlines the penalties imposed on persons who engage in illegal gambling activities. Keeping and exhibiting gaming tables, keno, and slot machines without authorization can land the violators in jail for two to twelve months. The wrongdoers will also suffer fines between $100 and $1,000.
Playing unauthorized chance-based games constitutes a misdemeanor and is subject to fines ranging from $5 to $300. In the worst-case scenario, the individuals who willingly engage in such activities can end up in prison for ten to thirty days. Cheating at gambling is also against the law and is punishable by a maximum imprisonment of one year and fines equal to at least five times the amount won by the cheater.
Landbased License Types and Fees
All commercial gaming operations in West Virginia are subject to licensure. Racinos require video lottery operator and table game operator licenses. One of the requirements is for the pari-mutuel facility to hold a valid racing permit, issued by the West Virginia Racing Commission. The applicants must be of good character and preferably with clean criminal records. Authorized racinos must pay annual license fees of $500,000.
Fees Imposed on Gaming Venues Outside Racetracks
Supplier Licenses
Fees Imposed on Gaming Venues Outside Racetracks
The initial application fee for the commercial casinos operating outside racetracks is $65,000. The renewal fee for the second year of operation is $250,000, but increases to $500,000 for the third year. The formula for calculating the renewal fees for every other year afterward is rather complex, but the amount due generally ranges from $500,000 to $2.5 million. At the time of writing, the Greenbrier Casino Club is the only commercial gaming venue that operates separately from a horse or dog racetrack.
Supplier Licenses
The companies that supply commercial casinos and racinos with table games equipment also require licenses. The West Virginia Lottery Commission might accept supplier permits issued in other jurisdictions but only on condition the licensing requirements there overlap with those in the Mountain State. The renewal fees imposed on approved suppliers stand at $100. The companies that manufacture video lottery terminals incur licensing fees of $10,000 per year.
Gambling Taxes in West Virginia
The Racetrack Video Lottery Act outlines the tax rates imposed on authorized commercial gambling businesses in Section 29-22A-10. Licensed facilities that operate such machines can only retain 46.50% of their net profits while the remainder is used for the horse racing purses, employee pensions, and other racetrack-related programs. Table games are taxed at a rate of 35%, based on the adjusted gross receipts from their operation.
Tax Allocation
Taxes Imposed on Players’ Winnings
Tax Allocation
The West Virginia Lottery Commission uses up to 4% of the tax money it collects from video lottery terminals to cover its operating expenses. The rest goes toward the tracks’ employee pension funds, the dog and horse racing purses, and the counties hosting the gaming facilities. The money generated from video lottery terminals is allocated as follows:
| Racetrack Employee Pensions | 1.00% |
| Racing Commission | 1.00% |
| Thoroughbred Development Fund | 1.50% |
| County Governments | 2.00% |
| Tourism Fund | 3.00% |
| Employee Compensation Debt Reduction | 7.00% |
| Dog and Horse Racing Purses | 7.00% |
| WV Lottery Commission | 30.00% |
| Licensed Racetracks | 46.50% |
| Other Purposes | 1.00% |
Taxes Imposed on Players’ Winnings
The profits players generate from casino-style gaming are not taxed on a state level in West Virginia. However, if the winner refuses to provide their taxpayer identification number or social security number, a withholding tax of 6.5% is in place. Federal backup withholding tax rates of 24% apply to winnings that exceed the following thresholds – $600 for lotteries, $1,200 for slots and bingo games, $1,500 for keno games, and $5,000 for poker tournaments.
Responsible Gambling Policies
The minimum age for participation in casino-style gambling in West Virginia coincides with that for the rest of the country, i.e. 21 years old. Lotteries and raffles come with a lower minimum threshold of 18 years old. The local gambling statutes do not contain any specific provisions that impose restrictions on gambling-related advertising.
Compulsive Gambling Treatment and Prevention
Self-Exclusion from Gambling
Other Responsible Gambling Requirements
Compulsive Gambling Treatment and Prevention
Section 29-22A-19 of the West Virginia Code established the Compulsive Gambling Treatment Fund. The Department of Health and Human Resources controls the fund and allocates the money deposited there by licensed gambling businesses in the state. The monies go toward different programs for treatment and prevention of gambling addiction. The operators must contribute $150,000 to $500,000 to the fund each year.
Self-Exclusion from Gambling
West Virginians can voluntarily exclude themselves from gambling at commercial casinos but should submit their exclusion requests in writing. The requests are submitted to the Director of the Lottery Commission who has the sole discretion to determine whether the exclusion should be temporary or permanent. Excluded individuals who seek to remove themselves from the list must again submit written requests for their removal.
Other Responsible Gambling Requirements
Racetracks and stand-alone commercial casinos in West Virginia can offer complimentary drinks to their customers but visibly intoxicated patrons cannot partake in gambling on licensed premises. Retailers that operate limited video lottery machines must display the contact numbers of state-sanctioned providers of compulsive gambling treatment in conspicuous places. The signs should also caution players about the social, financial, and health hazards associated with excessive gambling.
Legal Status of Online Casino Gambling
Legal online casinos arrived in the Mountain State in the first half of 2019 after House Bill 2934 passed into law as the West Virginia Lottery Interactive Wagering Act (West Virginia Code, Chapter 29, Article 22E). The bill cleared the West Virginia Senate with 26 votes “for” and 6 votes “against” in early March 2019 before landing on the desk of Governor James Justice at the end of the same month. The Governor took no action and the bill passed into law without further consideration.
Operator Licenses Cost and Validity
Occupational Licenses
Supplier and Management Services Provider Licenses
Operator Licenses Cost and Validity
Officially in effect since June 2019, the Interactive Wagering Act is quite prototypical where US online gambling legislation is concerned. It allowed existing brick-and-mortar casinos to apply for interactive licenses that enabled them to legally offer remote casino-style games and poker.
Each of the five landbased venues can operate no more than one gambling site and accept online customers aged 21 or above as long as they are located within state borders. Each authorized operator must pay an initial fee of $250,000 upon receiving their interactive license.
The permits are valid for five years and their renewal costs $100,000 apiece. Licensed operators are subject to a 15% privilege tax imposed on their adjusted gross remote gaming receipts. According to Section 29-22E-16, the operators can pay their privilege taxes in weekly installments each Wednesday.
Occupational Licenses
Employees who directly engage in the remote wagering activities require occupational licenses at the cost of $100 apiece. The occupational licenses require annual renewal by the end of June of the respective year. Each renewal comes at the expense of $100 in non-refundable fees.
Supplier and Management Services Provider Licenses
The third-party entities the landbased operators contract with for the conduct of remote wagering also require authorization. They must receive management services provider licenses at the cost of $100,000. Supplier licenses are necessary for persons or companies that sell or lease remote gaming equipment and systems to licensees of the West Virginia Lottery. The supplier permits cost $10,000 apiece and require annual renewal. The West Virginia Lottery maintains a comprehensive list of all interactive gaming licensees operating within state lines.
Sports Betting Regulation in West Virginia
West Virginia became the fifth US state with legal sports betting after local lawmakers approved wagering on sports in 2018. The Mountain State subsequently took its first legal sports bet at the end of August of the same year. These activities are regulated under the West Virginia Lottery Sports Wagering Act (Section 29-22D of the West Virginia Code).
Up to 3 Mobile Skins per Landbased Operator
Betting on WV Collegiate Teams Is Possible
Wide Range of Sports and Bet Types
Taxes and Fees
Up to 3 Mobile Skins per Landbased Operator
The legislation authorized existing racinos and casinos to provide in-person and mobile sports wagering under licenses. Each of the five brick-and-mortar gambling locations can operate up to three different mobile skins. The logo of the corresponding licensed casino should be clearly displayed on the mobile platform operated by its skin partner.
Betting on WV Collegiate Teams Is Possible
Everyone within state lines can join the betting action as long as they are of legal age (21 years old). West Virginia is laxer when it comes to sports wagering, imposing very few restrictions on the allowed events. Residents can have a flutter on a wide range of professional and collegiate games, even those that involve West Virginian college teams. However, wagering on high-school sports is a no-no, which makes sense since the participating players are minors.
The West Virginia Lottery Commission regulates both retail and mobile sports wagering. Local punters can find the full list of sports betting licensees on the website of the lottery operator. The Greenbrier Casino Club partnered with BetMGM and FanDuel, while the Charles Town and Cross Lanes racinos decided to team up with Barstool Sports/Penn National Gaming and William Hill/Caesars Entertainment, respectively.
Wide Range of Sports and Bet Types
The authorized sportsbooks feature a wide range of sports including popular ones like soccer, basketball, football, boxing, baseball, hockey, and motor racing. The variety of bet types is just as great, with parlays, straight bets, props, teasers, futures, and round robins being the most common options. Registered and verified online customers also have access to various in-play markets.
Taxes and Fees
The state levies a 10% tax on the authorized sportsbooks’ gross sports betting revenue. The licenses cost $100,000 apiece and require renewal once every five years. Renewing the permits costs the same amount as the initial licenses. No integrity fees are payable to professional sports leagues under the West Virginia legislation.
Gambling Regulatory Bodies in West Virginia
The West Virginia Lottery Commission (WVLC) oversees most gambling businesses in the state, including retail VLT operators, commercial casinos, and sportsbooks. Created in the mid-1980s after the passage of the State Lottery Act, the WVLC consists of seven members, including an authorized public accountant, a lawyer, and a marketing expert.
The West Virginia governor chooses the members and appoints them with the consent of the state senate. The rules dictate that only four members of the regulatory body can belong to the same political party. The agency’s members can serve for five years and are eligible for reappointments after their terms expire.
Conclusion
Despite its small size, West Virginia has a developed gambling industry with a substantial contribution to the local economy. Four racinos and one stand-alone commercial casino have received authorization to operate landbased and remote casino-style gambling. In-person and mobile sports wagering is also available in the Mountain State.
What is more, West Virginia is likely to witness further gambling expansion in the future. The Senate approved a bill earlier in 2022 that could possibly enable the four racetracks to launch second casinos in their counties if it moves forward. The state’s sports wagering legislation also underwent amendments recently to allow for legal wagering on esports.
