The Virginia Senate has passed Senate Bill 118, which aims to regulate online casino gaming in the state, but only after it was amended to meet the terms of House Bill 161. Both bills now incorporate a two-session reenactment requirement before they can proceed.
The two-session reenactment requirement
This requirement means that, if the Bill is passed during a session, it must be passed in the next session before it can proceed to become law, and it means bettors in the Old Dominion will have to wait until at least 2028 before they have any hope of seeing regulated online casinos.
Virginia passed legislation in 2020 which permitted casino developments in Bristol, Danville, Portsmouth, Richmond and Norfolk.
The same regulation also permits mobile sports betting. However, there has been extensive political debate and discourse regarding the regulation of online casinos.
Online casino conflict in Virginia
On the one hand, proponents believe iGaming regulation can raise additional tax revenue while also protecting Virginian bettors.
Meanwhile, on the other hand, existing commercial casino operators worry that the move might cannibalize the retail market.
Last month, House Bill 161 was amended to include the two-session reenactment. As its companion, Senate Bill 118 was expected to undergo similar changes.
Other changes were made to SB 118 to bring it in line with HB 161.
Operators will be required to file separate notices of intent for each online skin they open and must also enact labor peace agreements.
Further, the distribution of gambling taxes has also been changed, having previously funnelled tax revenue to education initiatives, the new structure means:
- 89% to the 'General Fund'
- 6% will go to the 'Lottery Hold Harmless Fund'
- 5% will go to support problem gambling initiatives
Other Virginia gambling bills
At the same time, several other gambling bills progressed through committee.
SB 661 aims to regulate skill games in the state. The bill was changed to meet the terms of HB 1272 before passing.
SB 129 now mirrors HB 145. It would more precisely regulate fantasy sports competitions, imposing a 10% tax and preventing house-banked competitions that the state believes are more akin to sports betting than to true fantasy competitions.
SB 609 also passed, after amendment, and would see the creation of a super committee to oversee all gambling regulation within the state.
Finally, despite local representatives voting against it, SB 756 passed the Appropriations Committee stage and will now be heard by the Full Virginia House. The Bill would allow a new casino to be built in Fairfax County.
The Bill has undergone significant changes over several years. Whereas the initial Bill called for the casino to be built in Tysons, that stipulation has been removed. But it still requires that the casino be part of a 1.5 million-square-foot multipurpose development.
Meanwhile, the developer must also commit to creating at least one public safety facility in the area of the new development. However, despite the changes, there is still considerable pushback against the Bill.
