(AsiaGameHub) – Virginia’s legislative session concluded this week without the legalisation of online casinos, as lawmakers were unable to reach an agreement on competing proposals.
A conference committee tasked with resolving differences between House Bill 161 and Senate Bill 118 could not find common ground, leaving the proposed framework for iGaming in limbo and necessitating new legislative efforts for any future advancement.
Dealmakers at an impasse
Both bills shared key provisions, such as a 20% tax rate on adjusted gross gaming revenue, platform and licensing fees, and limitations on operator partnerships with existing land-based casinos.
These bills had advanced through the Senate in February following a late House vote reversal, with HB161 having been introduced only in January of this year.
However, the bills diverged on the allocation of tax revenue and the specific protections to be put in place for traditional brick-and-mortar establishments. HB161 included measures aimed at mitigating potential job losses resulting from online gaming, while SB118 did not.
HB161 had proposed an additional 6% economic development fee designated to fund a “Hold Harmless” account, intended to compensate casinos for potential revenue decreases due to online competition.
The legislation aimed to designate the Virginia Lottery Board as the iGaming regulator, allowing 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 an initial $500,000 licensing cost.
Fiscal analyses presented to the House highlighted procedural complexities, noting that regulators would require operators to submit separate notices for each platform, and the broad implementation timelines in the drafts could lead to delays.
Additional reforms intended to support the expansion of online gaming also failed to pass. Lawmakers abandoned plans to establish a unified gambling regulator during the conference committee process, and other related legislative measures were either stalled or rejected, which could complicate future regulatory approaches if the legislature decides to revisit the issue.
Oliver Barie, a spokesperson for the National Alliance Against Internet Gambling (NAAiG), issued a statement commending lawmakers for blocking the bills, stating: “Virginia lawmakers made the right decision by rejecting online casino gambling.”
Progress on other gaming fronts
Despite the setback in legalising online casinos, the General Assembly did approve several other gaming-related reforms. These included authorising a conditional land-based casino in Fairfax County, contingent on local voter approval, prohibiting the use of credit cards for sports bets, and strengthening regulatory oversight for certain daily fantasy sports formats.
Furthermore, the Virginia Supreme Court recently upheld a ban on electronic skill games, reinforcing the state’s authority over gambling regulations.
It is unlikely that lawmakers will revisit the online casino legalisation measure in the immediate future. Previous narrow committee vote outcomes and ongoing political opposition suggest that lawmakers will not reconsider online casino legalisation without significant compromises regarding revenue sharing and regulatory oversight.
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