Virginia iGaming Bill Abruptly Pulled Days After Submission
A bill proposing the legalization and regulation of online casino-style gambling in Virginia has been withdrawn for further consideration. The move comes just a couple of days after its initial committee assignment.
LISTEN TO THIS ARTICLE:Senate Bill 827, introduced by State Senator Mamie Locke, was the first measure of its kind in Virginia and was aimed at establishing a legal framework for internet gambling in the state. However, the bill faced early opposition, including from the Virginia Lottery, and has been postponed for additional study.
Senator Locke formally requested on Monday that the Virginia Senate Subcommittee on Gaming delay discussions on the bill. This decision came less than two weeks after the bill was introduced for the 2025 legislative session.
The measure, pre-filed in December 2024 and receiving its first legislative notice on January 8, sought to authorize regulated companies to offer online gambling in a controlled and legal environment. Despite its introduction, Locke indicated that further study and evaluation were necessary before moving forward with the proposal.
The opposition to the bill was fueled in part by two critical impact statements. The first, issued by the Virginia Criminal Sentencing Commission (VCSC), projected an increase in crime and related correctional costs if online gambling were legalized.
Due to limited historical data, the VCSC included a placeholder cost estimate of $50,000, the minimum amount permissible for such projections. The commission also noted that the precise financial implications of increased crime on state correctional facilities could not yet be determined.
More Business News
Lottery Revenue Concerns Raised
The second and more pointed critique came from the Virginia Department of Planning and Budget. It had raised concerns about the potential impact of online gambling on state revenues, despite empirical data suggesting the opposite occurs.
The department's fiscal analysis suggested that the introduction of online casino gaming would reduce profits generated by the Virginia Lottery, negatively affecting funding allocated for education and school construction. The report highlighted research from states with similar models, such as Michigan and Pennsylvania, showing that the coexistence of online lottery and online gambling often leads to reduced growth in lottery sales and profits.
The Department of Planning and Budget also highlighted shortcomings in the bill's proposed tax rates. It argued that they were insufficient to cover the administrative costs associated with regulating online gambling.
The department suggested that additional fees and taxes could be levied on operators to mitigate the financial shortfall. The analysis further noted that the bill introduced new criminal classifications related to online gambling, including Class 5 and Class 6 felonies, but acknowledged that the broader criminal impact remains unclear.
These concerns, particularly from the Virginia Lottery and state budget analysts, presented significant obstacles to the progression of Senate Bill 827. With no clear resolution to these issues, Senator Locke withdrew the measure, effectively postponing any potential progress on online gambling legalization until at least the 2025 legislative session.
RELATED TOPICS: Business
Latest News
Most Read
Must Read
Interviews
When Helping Others Is a Life-Long Mission - An Interview with Gordon Moody CEO, Monica Shafaq
Dec 17, 2024
Interviews
Review this New Post
Leave a Comment
User Comments
Comments for Virginia iGaming Bill Abruptly Pulled Days After Submission