Virginia’s internet gaming bill delayed for further study

Anchal Verma January 22, 2025
Virginia’s internet gaming bill delayed for further study

Internet gaming, which was to be legalised in Virginia by law proposed by its government, is still in a hold. Lawmakers called for deeper analysis of its possible impact as the Senate Bill 827 by Senator Mamie Locke awaits debate and passage for regulating online gaming in the state.

Aiming for a regulated online gaming market

Hampton senator Mamie Locke introduced the bill to create a safe and legal online gaming structure in Virginia. The bill will allow the Virginia Lottery Board to issue licenses for casino operators providing internet gaming services.

“This bill is designed to authorise reputable, regulated companies to provide internet gaming to Virginians within a safe and legal market,” Locke said. However, she acknowledged that the proposal requires more time for refinement, aiming to reintroduce it for consideration by 2026.

Proposed licensing and revenue model

The fee to apply is $1 million, and they will pay 15 percent in taxes on the earnings. This tax income will be given to the state’s General Fund to account for 97.5 percent of the fund, while other local governments and Problem Gambling Treatment and Support Fund take smaller shares at 2.5 percent.

Locke emphasised the potential for significant revenue generation, noting that internet gaming could unlock new income streams for the state.

Concerns over revenue impact

Despite its potential revenue, the proposal has caused a stir with regard to the overall economic effects. The Virginia Department of Planning and Budget was quick to point out that internet gaming could cut funds for existing programs, including the Lottery Proceeds Fund and the School Construction Fund.

A fiscal impact statement from the Virginia Lottery projected a net negative effect on overall state revenues. Critics argue that increased competition from online gaming could divert spending away from traditional lottery sales and casino gaming, impacting long-standing funding mechanisms.

What’s next?

The delay provides an opportunity to explore the full implications of internet gaming in Virginia. Lawmakers will assess the economic, social, and regulatory factors before moving forward.

Virginia can, by 2026, be a regulated hub for online gaming, providing legal and safe ways for residents to engage in such activities. This vision, however, must be weighed against the existing revenue streams, along with the possible risks of problems such as addiction.

As the state takes a cautious approach, the outcome of this debate could set a precedent for other states considering similar measures.

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