Last session, several online casino gambling bills were scrapped due to time constraints, but with the new legislative session looming, one promising bill has been resurrected for debate among Virginia lawmakers.
A Case for iGaming in Virginia
An iGaming bill, HB 161, sponsored by Delegate Marcus B. Simon, was pre-filed in the State House and will be a topic of discussion when the chambers convene at noon on January 26th. Last year, Simon proposed a similar bill, HB 2171, but that measure failed to gain traction.
With northern neighbor West Virginia having launched iGaming in March 2019, Simon stated last year that online casino gambling revenue was there for the taking, but the state had been lax in pursuing this revenue stream.
“This is revenue not getting accessed by the Commonwealth; we’re getting zero percent,” Simon remarked. “And this doesn’t create the online gambling market. They’re already doing it.”
Key Provisions of HB 161
This year’s bill would include banning sweepstakes using dual currency and levying a 15% tax on adjusted gross internet gaming revenue for as many as 15 platforms, with the state’s five casinos getting as many as three skins (brands) apiece. Out of that iGaming revenue, the state would earmark 5% to a Problem Gambling Treatment and Support Fund.
Revenue Allocation and Casino Protections
An additional 6% would be allocated to an Internet Gaming Hold Harmless Fund used to offset revenue losses experienced by the state’s retail casinos until January 2030. After that date, 95% of that revenue would be directed to Virginia’s general fund.
Moreover, a $2 million platform fee would be required, coupled with a $500,000 five-year internet gaming operator license. The rules established, licensing decisions, and enforcement would come under the auspices of the Virginia Lottery Board.
If the bill passes, Virginia would become the ninth state to green-light iGaming legislation, with seven US states having already launched, while Maine recently approved its own online casino gambling bill and is expected to launch at some point either this year or next.
Virginia Is for Gamblers
Decades ago, Virginia’s tourism bureau created a popular advertising campaign with the tag line being “Virginia Is for Lovers.” But fast forward over 50 years, and Virginia is rapidly staking its claim as a gaming destination with four new gleaming casinos operated by industry stalwarts such as Hard Rock, Caesars, Rivers, and Boyd Gaming in conjunction with tribal gaming nations.
A permanent location for the Norfolk temporary casino is underway, as is Petersburg’s Live! Virginia, which will open a temporary casino this month with a permanent facility expected to be completed in 2027. But before any of those gambling palaces swung open their doors to the wagering public, online sports betting officially launched in Old Dominion on January 21, 2021.
The past five years have seen Virginia double as a state known for Colonial Williamsburg, Mount Vernon, scenic beaches, and the Blue Ridge Mountains, coupled with a gaming destination close enough to the East Coast without the honkytonk of Atlantic City. The recent discussion surrounding online casino gambling could manifest into another tributary of an ever-expanding gaming industry in Virginia.
