Here Come WV Online Casinos: Governor Signs Gambling Bill

Written By Way Yuhl on March 27, 2019 – Last Updated on September 15, 2022

West Virginia’s legislation to legalize online casinos officially came into effect on Wednesday.

The West Virginia Lottery Interactive Wagering Act, also known as H 2934, has officially become law as Governor Jim Justice did not take any action on the bill.

It remained uncertain whether Justice would sign the bill, leaving the West Virginia gambling community on edge, anxiously awaiting his decision.

Instead, he opted not to sign the bill legalizing WV sports betting, effectively allowing it to become law through his inaction. By neither signing nor vetoing it, he permitted the bill to automatically take effect 15 days (excluding Sundays) after being sent to his desk.

The benefits that apply to sports betting also extend to online casino gambling in WV.

West Virginia has recently joined the ranks of states that have legalized online poker and online casino gambling, making it the fifth state to do so. Additionally, it becomes the third state to allow mobile sports betting, online casino, and online poker, following in the footsteps of the other states.

New Jersey
Pennsylvania

What does the WV online gambling law allow?

The West Virginia law resembles other online gambling bills, indicating that there is nothing unusual about it.

Individuals who are 21 years or older and reside within the state will now have the opportunity to engage in online poker and other casino games, thanks to the implementation of the new law.

To engage in gambling activities, physical presence at a casino is not mandatory for players. As long as a player is situated within the boundaries of a specific state, they can conveniently partake in games using a computer or mobile device from any location within that state.

Online casino games and poker will be included in West Virginia’s gambling options, thanks to the new law that has significantly broadened the scope.

Blackjack
Roulette
Craps
Slots

In essence, it encompasses all games available in a physical, Las Vegas-style casino establishment.

Coming soon: 5 WV online casinos

The countdown for the launch dates of online casinos has officially started. With the legalization of online casino gambling, the existing land-based casinos in WV are now eligible to apply for a license. This bill presents a chance for each of the five WV casinos to obtain an operating permit.

The Charles Town Races at Hollywood Casino
Mountaineer Casino, Racetrack & Resort – a thrilling destination for gambling, horse racing, and leisure activities.
The Greenbrier’s Casino Club
Mardi Gras Casino and Resort
Wheeling Island Hotel

The recently passed legislation establishes a provision for the state to receive a reasonable 15 percent tax from online gambling earnings. In contrast, Pennsylvania enforces a 36 percent tax rate on sports betting and a staggering 54 percent tax rate on online slots.

The state will collect extra revenue through licensing.

The cost of establishing online gaming licenses is $250,000 each. These licenses remain valid for five years and require a renewal fee of $100,000. Additionally, platform and service management licenses come at a cost of $100,000, while supplier licenses are priced at $10,000.

During the discussion in the WV Legislature, Eilers & Krejcik Gaming projected that the state’s first-year revenue would reach approximately $11.6 million.

The passage of the bill was not solely motivated by the goal of generating more revenue for the Mountain State. Del. Jason Barrett (D-Berkeley, District 61) spearheaded a coalition of legislators from both parties to bring the bill to a vote. He argues:

Currently, online poker is deemed illegal and is conducted overseas, raising valid concerns regarding game integrity and ensuring timely player payments due to the absence of regulation in offshore operations.

Today, a bill was signed to establish regulations for games and ensure the safeguarding of players.

The WV online casino bill drew bipartisan support

The bill received broad support from legislators in West Virginia, regardless of their party affiliations. This was due, in part, to the potential for substantial revenue generation and the opportunity it presented for West Virginia to join an exclusive group. On February 22nd, the bill was successfully passed in the House with a significant majority vote of 72-22. Similarly, on March 8th, the Senate also approved the bill with a large majority vote of 26-7.

In truth, individuals are already engaging in gambling, whether it is within the boundaries of the law or not. By legalizing, regulating, and taxing these activities, the government can now benefit from them.

Del. Shawn Fluharty, a bill cosponsor, has highlighted the prevalence of online gambling among West Virginia residents in offshore platforms. This unregulated activity is occurring without generating any revenue for the state of West Virginia.

Barrett agrees:

Our state has the potential to generate millions of dollars in revenue through iGaming.

Recent Wire Act opinion implications

In addition, the law enables the state to establish an agreement with other online gaming states, enabling them to collaborate and share players within a compact.

Interstate gaming might be put on hold until the parties involved fully comprehend the intentions of the DOJ, due to the ongoing debate and recent changes in the Wire Act opinion.

The West Virginia Lottery, responsible for overseeing online gambling in WV, has publicly stated that the opinion is raising concerns among operators.

According to WV Lottery Director John Myers, as reported by WV Metro News,

The situation has made everyone more cautious about proceeding until we find a resolution. We are making every effort to address the issue and are collaborating with our national organization to gain insights into the upcoming decision by the DOJ.

Determining the potential impact on the launch of online casinos in WV is challenging.

Besides West Virginia, other states are also seeking clarification. New Hampshire has recently taken legal action by filing a lawsuit to challenge the opinion, and a coalition of 25 states, led by West Virginia’s Attorney General, has expressed its concerns.