News Virginia Senate Passes Online Poker, Casino Bill

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The Virginia Senate narrowly passed a bill legalizing online gaming and poker on Monday. The bill initially failed in a 20-19 vote but was brought back and passed 19-17.

SB118 would legalize iGaming and has drawn significant opposition in the Old Dominion State. A House version, HB161, recently passed out of two key committees.

Virginia is home to almost 9 million people. Virginia’s addition to to the Multi-State Internet Gaming Agreement, the country’s online poker shared liquidity compact, would be a huge boost to the player pool.

Each Operator Could Have 3 Skins​

As part of final passage in the Senate, an amendment was added to push implementation back to July 1, 2027. Under the plan, operators would be licensed in partnership with brick-and-mortar casinos.

Licenses would be granted for five years at a cost of $500,000, with a $250,000 renewal fee. Additionally, each operator would be allowed three platforms (also known as “skins”) with a $2 million fee for each.

The industry would be taxed at 20% of gross revenue with another 6% also included as an “economic development fee.” The 6% would be directed to a “hold harmless fund” to benefit live casinos that would theoretically be affected by online gaming.

“Moneys in the fund shall be used solely for the purposes of distributing equal monthly payments to casino gaming operators licensed to operate a casino gaming establishment in the eligible host cities,” the bill notes.

The bill directs 95% of revenue to be earmarked for state education with 3% going to the Gaming Regulatory Fund. Another 2% would be dedicated to the Problem Gambling Treatment and Support Fund. The legislation estimates bringing in $3343 million in tax revenue by Fiscal Year 2028, rising to more than $1 billion by 2032.

Sen. Mamie Locke (D), who sponsored the bill, said the proposal would “dramatically curtail Virginia’s thriving illegal iGaming market.”

Opposition Remains​

The Senate version differs just a bit from the House bill, which would tax the industry at just 15%, but with 6% still going to the Hold Harmless Fund. Both efforts face significant opposition from some legislators and civic groups.

“We are being asked to take the single most addictive device in human history, the smartphone … and now we’re being asked to put a slot machine on it. Let that sink in for a moment,” Sen. Bill Stanley (R) said.

The National Association Against iGaming (NAAiG) has also lobbied against legalization. The group is made up of regional casino operators, including the Cordish Companies, which owns and operates Live! Casino Virginia in Petersburg.

“Expanding online casino gambling in Virginia is a bad policy that would put casino-style betting on every phone and smart device 24/7, increasing the risks of addiction and financial harm,” NAAiG spokesman Oliver Barie said.

Other Virginia Gambling Bills​

Along with this bill, the Senate also approved three other gambling-related measures. Those included SB129, which would reform daily fantasy sports, including placing a 10% tax on operators’ contest revenues; SB756, which would legalize a casino in Fairfax County; and SB661, which would regulate and tax slot-like “skill games.”

In related news, the House is considering a bill to create a gaming commission. The commission would oversee all aspects of the gambling industry, which is currently regulated by three different agencies.

Source: https://www.cardplayer.com/poker-news/1638272-virginia-senate-passes-online-poker-casino-bill

 

[uptrendfinancialsignal]

The regulation is good but government keeping their hands in gambling always comes with tax issues. I see how the betting companies here adjust their odds once the government policies change. If Virginia push this through, players will definitely reap the benefit.