Despite the effort appearing all but dead during a subcommittee hearing last week, Virginia lawmakers advanced an iCasino proposal on Wednesday.
The Virginia Senate General Laws Committee advanced several gambling-related bills on Wednesday, including one, SB 118, legalising online casinos. The bill is tied to a proposal, SB 195 and SB 558, to create a Virginia Gaming Commission (VGC) and would not take effect until the commission is established.
Legislators also advanced the regulatory proposal on Wednesday. Virginia’s gambling industries are currently regulated by three separate agencies.
RG fixes help gain bill support
The iCasino advancement came following a subcommittee meeting last week that saw lawmakers express various concerns about responsible gambling and seemingly sidelining the bill. Ultimately, Senator Mamie Locke, the iCasino sponsor, brought a substitute to the table to address the concerns and gain enough support for passage. The proposal requires the regulator to develop a variety of protections and programmes, including advertising guidelines and identification requirements.
Multiple industry sources suggest the iCasino bill has a potential runway to pass this year, but it will not be an easy path.
“Lots of politics at play,” one source said. The source said the Finance Committee, the bill’s next stop, will be key.
Supporters of a bill looking to regulate skill-based terminal gaming machines could try to use the VGC proposal as leverage, which could also doom the iCasino legislation, according to the source.
The committee also advanced a daily fantasy sports bill, SB 129 on Wednesday, creating a 10% levy on operator revenue and banning “against-the-house” contests. The Senate will also soon consider banning credit card funding for sports betting, as the House passed HB 515, 94-3.
Virginia iCasino push
Locke introduced a similar proposal last year. She pulled the legislation before it was discussed, opting to advocate for more discussion about the issue. A Joint Subcommittee to Study the Feasibility of Establishing the Virginia Gaming Commission held multiple hearings last year.
Multiple lawmakers have said a consolidated gambling regulator is needed before further expansion. In the past decade, Virginia has legalised brick-and-mortar casinos and online sports betting.
Casinos and sports betting fall under the purview of the Virginia Lottery Board. The Virginia Racing Commission monitors live, historical and advanced deposit wagering horse racing, while the Virginia Department of Agriculture and Consumer Services regulates charitable gambling and daily fantasy sports.
“The creation of a Virginia Gaming Commission is not about building more bureaucracy, it’s about promoting smarter government,” Delegate Paul Krizek, who is sponsoring a House version of the regulatory proposal, told iGB earlier this year. “A unified commission would streamline oversight by bringing all gaming under one roof, with consistent standards and enforcement. It would strengthen consumer confidence by ensuring transparency and fairness across all gaming platforms.
“The creation of the VGC will support economic opportunity in the commonwealth by establishing clear rules that help small businesses, labour unions, women and minority-owned firms and local workers to compete on a level playing field.”
Virginia Public Radio reported that the establishment of a regulatory agency would be a legislative priority this year.
Virginia online casino framework
Under Locke’s bill, without the creation of the VGC, the Virginia Lottery Board would regulate the iCasino industry.
Each of the state’s casinos could offer up to three online casino platforms, with each platform carrying a $2 million licence fee. There are five casinos in the state, but lawmakers advanced a proposal for a sixth Wednesday.
Two of the casino operators, Caesars and Boyd Gaming, support the bill. Cordish Companies, one of the main members of the National Association Against iGaming, is against it.
Virginia would tax operator revenue at 15%, with 5% of the tax revenue going to the Problem Gambling and Treatment Support Fund and 6% to the Internet Gaming Hold Harmless Fund.
Locke’s proposal also mandates operators to create live-dealer studios in Virginia. The legislation estimates that that particular component could create more than 1,000 jobs.