Oh So Close: WV Online Casinos Are Just One Step Away From Reality

Written By Sean Chaffin on March 11, 2019Last Updated on March 15, 2024

West Virginia’s legalization of online gambling is nearing fruition as the WV Senate granted its approval with a 26-7 vote on Friday. Following this, the legislation returned to the House of Delegates for concurrence and final approval, which it successfully obtained on Saturday, coinciding with the session’s last day.

The bill legalizing the launch of West Virginia online casinos is currently awaiting the signature of Republican Gov. Jim Justice. Gov. Justice has a 15-day window to either sign the legislation into law or veto it.

While it is not certain that he will sign the bill, in 2018 he permitted the legalization of West Virginia sports betting, including mobile and online platforms, without adding his signature.

The legislation is scheduled to become effective 90 days after it is passed. Del. Jason Barrett, a Democrat representing Berkeley in District 61, spearheaded a bipartisan effort aimed at supporting the casino industry in the state. In an interview with Online Poker Report in February, Barrett expressed his intentions.

By implementing our iGaming legislation, we aim to take the lead once more by allowing traditional casino games, usually played at physical establishments, to be accessible through electronic devices. If this legislation is approved, iGaming holds the promise of generating millions of dollars in revenue for our state.

A look at the WV online casino bill

State legislators view the legalization of online gaming as a means to generate additional revenue by capitalizing on activities that are already popular within the state. Under this legislation, the state’s four racetrack casinos and TheGreenbrier would be permitted to offer iGaming options.

The Wheeling Intelligencer recently interviewed Del. Shawn Fluharty (D-Ohio), a co-sponsor of the bill, to discuss its details.

Enabling online gaming would grant individuals the opportunity to engage in various activities such as online poker. At present, there exists a thriving illegal market where people play online games through foreign platforms, resulting in West Virginia losing out on potential revenue. Our objective is to reduce the illicit market’s influence and generate income by legalizing and regulating online gaming within the state.

In WV online casinos, you can find a wide variety of games that are typically found in traditional casinos.

  • Poker
  • Slots
  • Blackjack

Internet gaming properties would be required to pay a licensing fee of $250,000, and the state would receive 15 percent of the total gross revenue.

According to gaming experts, Eilers & Krejcik Gaming, the latest estimate indicates that the figure is 5 percent higher than the earlier version, which projected a total economic impact of $11.6 million and up to $29.9 million by its fifth year.

In addition, those properties would have the opportunity to collaborate with external companies and operators, as permitted by the state’s sports wagering market regulations.

The West Virginia Lottery Interactive Wagering Act, also referred to as the official title, aims to authorize and oversee the licensing and regulation of online casinos within West Virginia by the West Virginia Lottery Commission.

Possible challenges for WV online casinos

There could be possible challenges that the Mountain State may face as online gaming becomes a possibility in the upcoming year.

The recently passed legislation permits the state to participate in Interstate compacts, emphasizing:

The Legislature intends to approve interactive wagering within the state and establish agreements with other authorized jurisdictions.

Nevertheless, the recent reinterpretation of the Wire Act raises uncertainties regarding the validity of those agreements.

The Department of Justice has recently prolonged the delay in enforcing the new opinion by an extra 60 days, in addition to the initial 90-day delay. Nevertheless, uncertainties still surround the interstate compacts, and it is possible that the matter will need to be resolved through legal proceedings.

In February, the New Hampshire Lottery Commission initiated legal proceedings against the Department of Justice by filing a lawsuit. The purpose of this lawsuit is to obtain an injunction on the Wire Act reinterpretation. Additionally, several other states are also contesting the opinion of the DOJ.

  • New Jersey
  • Pennsylvania
  • Michigan

Generating a sufficiently large player pool, particularly for online poker, might pose challenges for West Virginia. With a population ranking of 38th in the nation, the state has faced difficulties in the growth of mobile sports wagering.

Last week, BetLucky Sportsbook, the sole mobile sports betting app to launch in WV, abruptly halted its operations. Consequently, as we approach one of the most highly anticipated sporting events of the year, March Madness, there are currently no online sportsbooks available in WV.

BetLucky, which launched in December, has generated only a fraction of the total revenue from mobile sports betting. It should be mentioned that the revenue from mobile sports betting was gradually increasing. Lawmakers might anticipate a further increase in these figures, considering the potential appeal of online gaming as well.