Virginia Votes Not To Approve Online Casino Proposal, But Optimism Remains

Virginia will not be home to any online casinos in the near future—at least, not yet.

The Senate General Laws and Technology Gaming subcommittee rejected Senate Bill 118 last week, temporarily preventing it from being written into law. The bill can still be reconsidered with amendments before the legislative session concludes on March 14.

Only eight states authorize online casino gaming. While Virginia is not one of them, it has recently shown a commitment to expanding its retail casino market.

VA says no to iGaming… for now

Last Friday’s VA Senate subcommittee meeting ended with a 3-4 vote opposing SB 118, halting the momentum that iGaming legalization had built.

The general debate surrounding the bill is similar to those that took place in many other states. Proponents argue that legalization will create a new source of tax funding for the state while reducing the potentially harmful effects of consumers wagering on illegal platforms.

Critics have often claimed that legalizing more forms of gambling will lead to an increase in problematic behaviors while cannibalizing retail casinos’ profits, such as the temporary facility opened in Petersburg last week.

There was also a question as to what entity would be responsible for regulating iGaming in the Commonwealth. The Virginia Lottery is in charge of overseeing approved sports wagering and online lottery operations, but its resources could be spread too thin if iGaming was added to its portfolio.

SB 195, which was already approved by the subcommittee, would establish the Virginia Gaming Commission to help with the regulatory processes. However, it could be a while before the Commission was operational.

While SB 118 failed, lawmakers seemed hopeful that a resolution would eventually be found, suggesting that the state isn’t totally out of the online casino business for the long term—but not without concessions and compromise.

More gaming proposals

“We gotta figure this out,” were the words said by subcommittee Chairman Jeremy McPike (D-29) during the hearing. He abstained from a vote and said that he wanted to see more of an emphasis on combating problem gambling before he signaled his approval.

Brianne Doura-Schawohl, a representative of Campaign for Fairer Gambling, also spoke on problem gambling-related issues.

“Research is clear, these [online casinos] are the single most addictive gambling products by about 10 times the rate,” she said. “Is this [legislative group] prepared to turn every Virginian’s hand into a casino?”

Another detail in SB 118 would force online sweepstakes casinos to receive licensing before being allowed to operate inside state lines, a reversal from their current license-free set-up. This structure would produce an estimated $27 million windfall for the state. 

The proposal drew the ire of Social Gaming Leadership Alliance Managing Director Sean Ostrow, who said that “responsible social plus companies will be unable to continue to operate in Virginia.”

A third bill, SB 129, was also reviewed by the subcommittee. 

The proposal, which was approved, is aimed at prohibiting daily fantasy contests with “against-the-house” styles. Effectively, that means that the “More” or “Less” wagering on platforms such as PrizePicks would become illegal.

All bills must be approved by both chambers of the state congress and approved by Gov. Abigail Spanberger (D) to become state law.