How does WV compare to our peers?

West Virginia was the fifth state to legalize sports betting in the United States. Although we had the first mover advantage, our state has not capitalized on this tremendous opportunity. West Virginia is losing MILLIONS of tax dollars because of the current legislation.

Sports betting has been illegal in the United States, except Nevada, until the Supreme Court lifted the federal ban on sports betting May 14, 2018. Several states decided to move quickly on this ruling and legalized sports betting in 2018. These states, in the order of legalization, include New Jersey, Delaware, Mississippi, West Virginia, New Mexico, Pennsylvania, and Rhode Island. Since this Supreme Court Ruling, over 20 states have legalized sports betting.

Hints:

Darker Blue = More State Tax Revenue
Some states have been around longer than others
See the following visual for total dollar amount of state tax revenue for each state

Main Point

West Virginia was the 5th state to legalize sports betting, but currently sits in 12th place in regards to Total State Tax Revenue.

*States listed N/A had discrepancies in their reported data*

WV has completely lost our first mover advantage and needs to act fast before our state gets left behind, like usual. Population of individuals over the legal gambling age in these states does play a significant role in these numbers. However, WV has a major legislation issue that has hindered potential economic growth for our beloved state.

Below we will focus specifically on West Virginia data and how we think WV can recapture the millions of dollars in tax revenue lost.

West Virginia is Lagging Behind

In 2018, Legislature passed the West Virginia Sports Wagering Act.

The Act gave the state’s existing brick-and-mortar casinos exclusive control of online sports wagering. Each casino was given three skins that they could assign to online sports wagering companies in exchange for part of those companies’ West Virginia revenues. The casinos have made lucrative deals with several large out-of-state companies.

If we take the total state tax of $6,944,341 and divide it by the total number of skins (7), then we get a value of $410,502.92 a skin per year.

The chart above displays the per year value of skin tied to each owner. When compared to the state average of $410,502, we can see the value of missed opportunities from these owners.

**This missed opportunity is directly tied to the current teathered licensing structure in WV.**

Delaware North has 2 skins with Miomni that are inactive. Delaware North's average value of skin per year is already significantly behind the WV average. When we factor in their inactive licenses, they are costing WV hundreds of thousands of dollars.

If we were to compare these two inactive licenses to the WV average value, Delaware North has cost the state over $2,000,000 in lost tax revenue since sports betting was legalized in WV!

**Why shouldn't we change the licensing structure in WV to promote more active licenses and fair market competition? The sports betting industry in WV is currently an oligopoly.**

Main Point

The tax value of a skin is roughly $410,502.92 per year in WV. Delaware North currently has two active skins with the average value of a skin per year at $48,155.

How Can West Virginia Catch up?

All PropMe asks, is the chance for West Virginia-based companies to compete on a level playing field in sports wagering. If the existing law makes that impossible, then the law must change to include untethered licenses. The existing law allows each casino three skins that they can assign to online sports wagering companies, in exchange for part of those companies’ West Virginia revenues. This is called tethered licenses. The casinos have made lucrative deals with several large out-of-state companies. PropMe advocates for fair market regulation in the West Virginia Sports Betting Industry. This will drive competition in our state, which will drive economic growth in WV through increased tax revenues.