Legislative attempts to legalise online casino in Virginia came to an end this week as lawmakers failed to reconcile competing bills.
Negotiators in a conference committee could not resolve the differences between House Bill 161 and Senate Bill 118, leaving the proposed iGaming framework stalled and requiring fresh efforts for any future progress.
Dealmakers at an impasse
Both bills shared several fundamental provisions, including a 20% tax on adjusted gross gaming revenue, platform and licensing fees, and restrictions on operator partnerships with existing land-based casinos.
They survived the senate in February after a last minute House vote flip after HB161 was only introduced in January this year.
However, they differed on how tax receipts would be routed and what protections would be implemented to safeguard traditional brick-and-mortar venues. HB161 had included plans to mitigate job losses caused by online gaming whereas SB118 did not.
HB161 had proposed an additional 6% economic development fee intended to fund a “Hold Harmless” account. This would compensate casinos for potential losses attributed to online competition.
The bills had sought to establish the Virginia Lottery Board as iGaming regulator, permitting each of the state’s licensed land-based casinos to partner with up to three online platforms, subject to a $2 million platform fee and a $500,000 initial licensing cost.
Fiscal analysis provided for the House underlined procedural complexities. Regulators would require operators to file separate notices for each platform, and the broad implementation timelines in the drafts could lead to delays.
Additional reforms designed to complement online gaming expansion failed to pass. Lawmakers abandoned plans to establish a unified gambling regulator during the conference process, and they stalled or rejected other related legislative measures, complicating future regulatory pathways if the legislature revisits the matter.
Oliver Barie, spokesman for the National Alliance Againsst Internet Gambling (NAAiG), released a statement praising lawmakers’ decision to block the bills. He said: “Virginia lawmakers made the right decision by rejecting online casino gambling.”
Progress on other gaming fronts
While online casino legalisation faltered, the General Assembly approved several other gaming reforms. These included authorising a conditional land casino in Fairfax County, pending local voter approval. As well as barring credit card usage for sports bets, and tightening regulatory controls on certain daily fantasy sports formats.
In addition, the Virginia Supreme Court recently upheld a ban on electronic skill games, reinforcing state jurisdiction over gambling regulations.
Lawmakers are unlikely to revive the measure in the near-term. Earlier narrow committee vote outcomes and persistent political opposition indicate that lawmakers are unlikely to revisit online casino legalisation without substantial compromises on revenue sharing and regulatory oversight.
Original article: https://igamingbusiness.com/legal-compliance/legal/virginias-online-casino-legalisation-fails-amid-legislative-deadlock/
