Gambling Legislation

Virginia Scraps Online Gambling Discussions Almost As Soon As They Begin

Virginia Scraps Online Gambling Discussions Almost As Soon As They Begin
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The Senate has already put an iGaming bill on the shelf, just two weeks after it was introduced

Virginia’s first attempt to explore online casino-style gambling has been sidelined just weeks into 2025. State Senator Mamie Locke introduced Senate Bill 827 to authorize and regulate online gambling but withdrew it shortly after its first committee assignment due to early resistance. Locke stated the proposal requires further examination before moving forward, halting discussions for the current legislative session.

The bill, filed in late December and officially introduced in January, faced opposition from key stakeholders, including the Virginia Lottery. Critics raised concerns about its potential impact on the lottery’s revenue and the broader state budget.

A Virginia Department of Planning and Budget report suggested that introducing online gambling could hurt lottery sales and profits, which currently fund school construction and other public initiatives. Research indicated that states offering online lottery and casino gambling see slower lottery revenue growth than states with only online lottery options.

Additional hesitations stemmed from potential tax shortfalls. Critics argued the proposed tax rates wouldn’t sufficiently cover the administrative costs of expanding online gaming. Moreover, the creation of new criminal penalties tied to online gambling crimes added complexity to the debate.

Locke described the bill as an effort to provide Virginians with access to a safe, regulated online gambling market. However, she acknowledged the importance of addressing these financial and legal concerns before moving forward. The Virginia Criminal Sentencing Commission, for instance, warned of a possible increase in crime and associated costs, though it lacked detailed data to quantify the impact.

With these challenges and no immediate solutions, Locke opted to pause the legislation. The decision underscores the difficulty of expanding state-level online gambling, a trend that saw no new states approving such measures in 2024. Virginia’s delay signals that progress in this area remains uncertain for now.

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