- Senate Bill 118 passed committee 9-6 after adding automated problem gambling detection and stronger player safeguards.
- Five casinos can partner with three online operators each for $2 million, with live dealer studios creating 1,000+ jobs.
- Bill faces opposition over revenue concerns and heads to the Finance Committee before the March 14 deadline.
RICHMOND, Va. - Virginia lawmakers gave new life to an online casino proposal this week following the addition of tougher safeguards aimed at addressing problem gambling, reviving a measure that had faltered in committee just days before.
By a slim 9-6 vote, Senate Bill 118 passed the Senate General Laws and Technology Committee this Wednesday, advancing Virginia's efforts to allow internet casino operations. The idea had collapsed in a subcommittee meeting just one week prior, but over the weekend, changes aimed at gambling addiction issues convinced a few lawmakers to reconsider.
The revised draft includes player safety regulations that are higher than those found in the majority of other states with comparable statutes, according to Sen. Jeremy McPike, who initially remained out of the subcommittee discussion. McPike partnered with Sen. Mamie Locke, the politician behind the idea, to draft stricter clauses targeted at protecting people from gambling-related damage.
Automated detection systems that track player behavior for indications of problem gambling are mandated under the revised legislation. Operators must take action when warning indicators arise through a three-phase procedure that includes access to gambling counselors, required instructional courses, and messages about responsible gaming. Additionally, the measure eliminated clauses that permitted credit cards and prepaid cards as payment methods.
Market Structure and Requirements
SB 118 would allow Virginia's five physical casinos to collaborate with up to three online operators, resulting in a total of 15 platforms. The physical casinos would have to set up live dealer studios inside state lines, which advocates claim could create more than 1,000 jobs, and each operator would have to pay a $2 million licensing fee.
Blackjack sites in Virginia would be subject to a 15% gross gaming revenue tax rate, with 5% of proceeds going to programs that treat compulsive gambling.
The operator of Live! Casino Virginia, Cordish Companies, is against the bill, arguing that online gaming will reduce income at conventional casinos and result in job losses. Research presented during hearings indicated physical casinos stand to lose roughly $78 million in yearly tax revenue along with somewhere between 1,800 and 2,200 positions. On the other hand, Caesars and Boyd Gaming argue that legal online blackjack draws in new customers instead of stealing business from their physical sites.
Read more: Senate Panel Blocks Virginia Online Blackjack Push
The Finance Committee has the bill now and will crunch numbers on what it means for state coffers before making the call on sending it forward. Backers of the measure are racing against the calendar since lawmakers pack up and head home March 14, which does not leave much runway to get this through the Senate and then over to the House side.