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This week, the Senate passed Senate Bill 118 that would regulate online casinos by a narrow 19-17 vote.
It authorizes internet gaming in the Commonwealth to be regulated by the Virginia Lottery Board. The bill permits the Board to issue an internet gaming operator license to a casino gaming operator that submits an application on forms approved by the Board, meets certain qualifications, and pays an initial licensing fee of $500,000. The tax rate is set at 20 percent of an internet gaming operator's adjusted gross internet gaming revenue with three percent allocated to the Gaming Regulatory Fund, two percent allocated to the Problem Gambling Treatment and Support Fund, and 95 percent allocated to the Modern Public Education Fund.
Meanwhile, the House approved House Bill 161 by a more comfortable 67-30 margin.
HB161 authorizes internet gaming in the Commonwealth to be regulated by the Virginia Lottery Board. The bill requires a casino gaming operator that intends to conduct internet gaming to submit a separate notice of intent to the Director of the Virginia Lottery for each internet gaming platform that it intends to offer accompanied by a $2 million platform fee that is to be deposited into the Internet Gaming Platform Fee Holding Fund for the purpose of funding start-up costs and other costs associated with the implementation and creation of a gaming commission. The bill permits the Board to issue an internet gaming operator license to a casino gaming operator that submits an application on forms approved by the Board, meets certain qualifications, and pays an initial licensing fee of $500,000. The tax rate is set at 20 percent of an internet gaming operator's adjusted gross internet gaming revenue with five percent allocated to the Problem Gambling Treatment and Support Fund, six percent allocated to the Internet Lottery Hold Harmless Fund until January 1, 2037 and the remaining 89 percent before January 1, 2037, and 95 percent after January 1, 2037, allocated to the general fund.
Time is not on the side of regulated online casinos in the commonwealth however as the legislative period ends March 14. Lawmakers reconvene April 22 to consider the governor's actions on any bills such as vetoes.
Virginia currently regulates the following sportsbook operators:
- Bally Bet Sportsbook
- Bet365 Sportsbook
- BetMGM Sportsbook
- BetRivers Sportsbook
- Caesars Sportsbook
- DraftKings Sportsbook
- Fanatics Sportsbook
- FanDuel Sportsbook
- Hard Rock Bet
- Sporttrade (exchange format)
- theScore Bet
- Betr Sportsbook
- theScore BET
While accessible in the commonwealth, the Virginia Lottery does not regulate offshore sportsbooks, prediction markets or sweepstakes casinos.
Virginia was the first U.S. state to formally legalize daily fantasy sports contests when it enacted the Fantasy Contests Act (in 2016). This law defines DFS (fantasy contests) and provides a legal framework for them.
The Senate and House are divided as to when online casino gambling can begin. The Senate bill would allow online casinos to launch in July 2027, while the House version pushes that date back to January 2028.
None of this may matter in the end as Governor Abigail Spanberger has made it clear she is not entirely on board, especially if the oversight is lacking.
- Chris Costigan, Gambling911.com Publisher
