Virginia Online Casino Bill Put On Pause By State Senate Subcommittee

An online casino bill was dealt a setback in Virginia this week.

Sen. Mamie Locke (D-23) requested that Senate Bill 827, which she introduced earlier this year, be put on pause. If approved, the bill would allow the Virginia Lottery Board to issue gaming licenses to online casino operators.

The bill was first filed in December ahead of the 30-day odd-year legislative session. 

Put on the back burner

SB 827 was set to be discussed by the Senate Subcommittee on Gaming at the start of the week.

The bill’s sponsor said that she believes more time is needed to study the intricacies of an online casino market before Virginia is ready to open its arms to operators within the industry.

Notably, Del. Marcus Simon also withdrew his accompanying piece of legislation, House Bill 2171, on Tuesday.

One of the main concerns for Locke and others is the hefty burden that would be placed on the shoulders of the Virginia Lottery.

“This bill is designed to authorize reputable, regulated companies to offer internet gaming to Virginians within a safe and legal market,” Locke said. “However, after introducing this bill, we have decided that it requires further study on this issue.”

According to the details of the bill, operators would pay a $1 million application fee and, if approved for licensing, a 15 percent tax on their gross gaming revenue to the Virginia Lottery Board.

Virginia’s growing gaming market

A fiscal note for the online casino bill provided by the Virginia Department of Planning and Budget suggested that legalization could have a negative impact on the iLottery expansion the Virginia government authorized in 2020. 

Retail casinos, one of which in Norfolk is under development and yet to open, also worry that opening online casinos would cause a drop in their bottom lines.

The Cordish Companies is one such company that has the rights to a Virginia casino and that led opposition towards online casinos in other states.

If nothing changes with the bill, it will allocate 2.5 percent of taxable revenue to the Problem Gambling Treatment and Support Fund, The remaining 97.5 percent will be sent to Virginia’s General Fund.

Each of the state’s five casinos would be eligible to host three online skins, translating to a total of 15 online casino operators statewide. 

Virginia is in the process of building one of the most robust gaming markets in the country. It is regularly one of the 10 highest-grossing sports betting states, and it could soon add another casino in Fairfax County if a ballot referendum is approved by the legislature.