An online gaming bill has advanced out of two key Virginia House committees this week, and a companion bill has also moved through a key subcommittee in the Senate.
HB161 passed on a 5-4 vote in the House General Laws Gaming Subcommittee and 12-8 in the House General Laws Committee. The bill now heads to the Appropriations Committee.
In the Senate, the General Laws and Technology Gaming subcommittee initially rejected SB118. However, the committee eventually passed the bill by a 9-6 margin after lawmakers added additional responsible gaming measures. The issue now heads to the Finance Committee.
Partnering With State Casinos
Virginia legislators began considering legalization in January. The House effort is led by Del. Marcus B. Simon (D). The bill would allow the state’s five casinos to offer online gaming. Caesars Entertainment, Rush Street Gaming, Hard Rock International, Boyd Gaming, and the Cordish Companies would also be able to offer online poker.
Each property would be allowed up to three skins, and the tax rate would be set at 15%, with 6% of that earmarked for the Internet Gaming Hold Harmless Fund. The fund would be used to offset any lost revenue experienced by land-based casinos.
Operators will pay a $500,000 licensing fee and a $2 million platform fee. The Virginia Lottery would regulate the industry.
In an effort to create jobs, the plan also mandates that any online live dealer games derive from studios in the state. The bill also makes sweepstakes casino platforms illegal, a move seen in several other states in recent months.
Simon believes the bill can bring in millions of dollars in state revenue from an activity Virginians are already engaging in. He argues that the bill simply brings them into a legal, regulated environment while also creating jobs in the state.
“We can try banning these things. We tried prohibition with alcoholic beverages, and it just drives into an illicit market,” he said in committee discussion. “The best way to combat the illegal operators is to create a legal alternative for them, bring it in and then have everybody subject to the regulations.”
Boost To Online Poker In The US
For poker players, the bill allows the state to join the Multi-State Internet Gaming Agreement shared liquidity compact.
Virginia has a population of 8.8 million, which would be a nice boost to MSIGA. Other members in the agreement include Pennsylvania (13 million), Michigan (10.1 million), New Jersey (9.5 million), Nevada (3.2 million), Delaware (1 million), and West Virginia (1.8 million).
Opponents have argued that online gaming would cannibalize the state’s three current brick-and-mortar casinos in Bristol, Danville, and Portsmouth. Another casino is expected to open in Petersburg in 2027.
In related news, another bill was also recently introduced to create the Virginia Gaming Commission to oversee all aspects of the gambling industry in the state. The commission would take over the duties currently overseen by three different agencies.
