Sports Betting in Virginia: A Virtual Destination
Lawmaker in Virginia Examines Sports Betting with Vigilant Attention
Virginia lacks physical casinos, but that's just fine for Delegate Mark Sickles who envisions the state as a pioneer in mobile and interactive sports betting. His bill proposes turning Colonial Downs into a sports betting powerhouse, all on your iPhone.
Sickles, who introduced HB 1638 in November 2019, is keen on avoiding costly infrastructure investments and keeping Virginia's landscape casino-free. He wants the state to reap the benefits of a digital sports betting industry. The revenue generated would be directed towards reviving a state struggling in a challenging economic climate. But he's not just dreaming.
Sports Betting Revenue for Research and Economic Transformation
"Our lottery does around $2 billion in business annually, with $600 million in net revenue," Sickles said. Sports betting, while not as lucrative, would provide funds for research projects and economic transformation in the state. Virginia needs to diversify its economy to become more resilient.
Historically, the state has relied heavily on the military as an employer. However, significant job losses since 2000 have highlighted the need for economic diversification. In the southwest corner of the state, coal mining struggles persist. Sickles hopes sports betting could help alleviate these financial woes.
The Road to Legalization
Before Sickles' vision can become a reality, sports betting must be legalized. Sickles isn't the only lawmaker with such intentions; Senators Chapman Petersen and Delegate Marcus Simon are also drafting sports betting legislation.
However, Sickles advises against expectations for legalization in 2019 due to potential one-year moratoriums. This could be due to the ambitions of Bristol lawmakers who wish to build a casino, and the Pamunkey tribe's plans to open a casino in Virginia. Negotiations between the state and tribe would need to occur before any gaming pact can be established.
proposed Bill Details
Sickles' bill proposes a 15% tax on adjusted gross revenue, a $250,000 application fee, and a cap on the number of permits that could be issued. The Virginia Lottery, rather than the state, would oversee regulation, although Sickles doesn't expect the lottery to have its own sports betting app.
All aspects of the bill are open to discussion, with Sickles already planning amendments to increase the number of available licenses. He's also open to negotiations regarding the 15% tax rate and application fee. Operators may find the tax rate slightly steep compared to other states, but the application fee remains competitive.
As of now, Virginia's sports betting market continues to grow steadily, with the potential for flexibility in future legislative changes. While specific reform proposals are yet to emerge, trends from other states could provide insights into potential adjustments to Virginia's sports betting framework.
- Delegate Mark Sickles envisions Virginia as a pioneer in mobile and interactive sports betting, transforming Colonial Downs into a sports betting powerhouse accessible via iPhone.
- Sickles proposes the revenue generated from sports betting would fund research projects and economic transformation in a state facing challenging economic conditions.
- Sickles and other lawmakers, including Senators Chapman Petersen and Delegate Marcus Simon, are drafting sports betting legislation, but legalization may not occur in 2019 due to potential one-year moratoriums.
- Sickles' bill includes a 15% tax on adjusted gross revenue, a $250,000 application fee, and a cap on the number of permits, with the Virginia Lottery overseeing regulation.
- Sickles plans to amend the bill to increase the number of available licenses and is open to negotiations regarding the tax rate and application fee.
- As the sports betting market in Virginia grows, trends from other states could inform potential adjustments to Virginia's sports betting framework, with specific reform proposals yet to emerge.
