After surprise flip-flops on the Senate and House floors, Virginia’s online casino push remains alive with bills in both chambers advancing.
The Virginia Senate initially voted 20-19 against sending SB 118 to the lower chamber on Monday. Several hours later, however, senators reversed the decision with a 19-17 vote in favour of the legislation. The final vote came after Senator Schuyler VanValkenburg, who initially voted no, called for a reconsideration vote. Then, VanValkenburg and two other previous no votes, Senators Bill DeSteph and Stella Pekarsky, declined to vote.
A separate but similar House version to legalise online casinos, Delegate Marcus Simon’s HB 161, failed an initial third reading vote on Tuesday, 46-49. Less than an hour later, however, delegates passed the bill by a 67-30 reconsideration vote.
Tuesday was the deadline for legislation to pass its chamber of origin. The differences between the Senate and House bills are slight enough that if neither one passes both chambers as-is, a conference committee could ultimately agree to a version that can receive final passage.
When would Virginia online casinos start?
The Senate amended its bill to carry an effective date of 1 July 2027. The House bill carries a stipulation that it needs to also pass the legislature next year. Simon’s House bill also includes a 15% tax rate, compared to the Senate’s 20%.
Senator Mamie Locke’s SB 118 also looked like it might have died earlier this session before the General Laws Committee advanced the bill last month with added responsible gambling components.
Locke said legalising the industry would help “curtail Virginia’s thriving illegal iGaming market”. Multiple lawmakers spoke against the bill, citing gambling addiction concerns.
Industry sources were optimistic heading into the weekend that expansion legislation would pass. Sources also suggested the success of the online casino legislation was tied to a separate legislative package creating a Virginia Gambling Commission. That legislation also passed on Monday.
Virginia Public Radio listed a consolidated regulator as one of the session’s top goals for legislators. Last week, Governor Abigail Spanberger’s administration called for a consolidated gambling regulator.
“Our patchwork approach is inefficient. It creates gaps in oversight and makes it more difficult to protect consumers, collect reliable data and ensure fair and responsible gameplay,” Secretary of Agriculture and Forestry Katie Frazier said. “Governor Spanberger is deeply concerned about any discussions of gaming expansion in Virginia without first establishing a single entity with clear authority, consistent standards and strong compliance and enforcement capabilities.”
Currently, the Virginia Department of Agriculture oversees charitable gaming and daily fantasy sports.
Path to Virginia online casino Senate passage
Locke also proposed legalising online casinos last year. However, she quickly pulled it to advocate for further discussion on the issue. A subcommittee then held hearings on establishing a Virginia Gaming Commission.
Since then, multiple legislators have called for a consolidated gambling regulator prior to further gaming expansion.
In the past decade, the state has legalised brick-and-mortar casinos and online sports betting. The various options of gambling in Virginia, which also include horse racing and DFS, now fall under the purview of three separate regulators.
If the gambling expansion is passed without a Virginia Gaming Commission companion bill, the Virginia Lottery would be charged with setting up the regulatory language for the iCasino industry. It would include an online casino licence for existing Virginia casino operators. There are five casinos in Virginia.
A five-year licence would carry a $500,000 fee, with a $250,000 renewal fee. Each licence could operate up to three platforms, with each carrying a $2 million fee.
The Joint Legislative Audit and Review Commission estimates online casino revenue could reach $845 million by fiscal year 2032.
Pat Evans
Pat covers the legislation and regulation of online gambling in North and South America, having covered the US sports betting industry extensively since 2019.
Original article: https://igamingbusiness.com/gaming/online-casino/virginia-online-casino-bill-survives-senate-vote/
