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West Virginia's mobile sports betting faces another delay over legal hurdles

A federal law throws a wrench in West Virginia's betting plans. With DraftKings' app on hold, the state's $5.5M tax goal feels further away than ever.

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2 min read
The image shows a group of men standing next to each other on a field, wearing helmets and gloves....
The image shows a group of men standing next to each other on a field, wearing helmets and gloves. In the background, there is a blur of people, a board with text, and a sky. The text on the board reads "Auburn vs Virginia Tech - 11/28/15 College Football Pick, Odds, and Prediction".

West Virginia’s push to launch mobile sports betting has faced another setback. The state’s lottery has delayed approval for DraftKings’ online sportsbook over legal concerns. This follows earlier closures and disputes that have slowed the rollout of digital wagering.

Originally, lawmakers had expected sports betting to bring in $5.5 million in taxes during the first year. So far, the results have fallen far short of that target.

In 2018, state officials legalised sports betting, predicting strong revenue from both retail and online platforms. By May 2019, however, tax collections from sportsbooks reached just over $949,000—well below the $5.5 million forecast.

The latest obstacle involves DraftKings, whose mobile app now faces an indefinite wait. The West Virginia Lottery has raised questions about the company’s compliance with the federal Wire Act, which bans interstate transmission of betting data. The issue centres on DraftKings’ use of ‘wallet servers,’ some of which are based in New Jersey, where the company already operates. Lottery Director John Myers remains optimistic about a future launch but admits building a compliant system will take time. This delay adds to West Virginia’s ongoing struggles with mobile betting. In March, Delaware North’s sportsbooks and BetLucky app shut down abruptly due to a vendor dispute. The company has since filed a lawsuit against Miomni, the provider behind the failed platform. Despite these challenges, officials still aim to expand online betting options. Yet each setback pushes the timeline further, leaving the state’s sports betting revenue well below initial expectations.

The postponement of DraftKings’ app marks another hurdle for West Virginia’s sports betting ambitions. With legal concerns unresolved and past closures still unresolved, the state’s digital wagering market remains in limbo. Tax revenues continue to lag, leaving officials to navigate both technical and regulatory obstacles before mobile betting can fully launch.

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