Expanding the number of sports betting licenses that the Virginia Lottery can issue, the Virginia General Assembly has the potential to strengthen a market that is about to be launched.
During its meeting, the ABC/Gaming Subcommittee of the Virginia House of Delegates advanced the legislation on Tuesday. HB 1847, with a 7-1 vote in favor from the subcommittee, will now proceed to the full General Laws committee.
The primary focus of the proposed legislation lies in its impact on the maximum number of licenses. Specifically, it aims to provide clarity on which licenses would be included in a mandated cap.
In the past few years, over 20 states in the US have passed laws to legalize sports betting. Virginia also joined this trend by legalizing it in July 2020. As a result, industry experts have praised Virginia for its efforts in establishing a competitive marketplace, thanks to the state’s effective regulatory framework.
The upcoming market, anticipated to be launched within the next few weeks, may become even more fiercely competitive.
Virginia Casinos and Sports Betting Licenses
During a recent 90-day application period, 25 sportsbooks have submitted applications to the Virginia Lottery, which will now be responsible for overseeing sports betting and casino gambling in the commonwealth.
At first, it was anticipated by lotto officials that they would authorize a minimum of four sportsbooks, but not exceeding 12. Nevertheless, the implementation of HB 1847 might result in a potential increase to 19.
The latest bill was introduced by Del. Mark Sickles, a dedicated advocate of sports betting. According to him, the bill aims to refine their previous attempts by providing clarity on the inclusion of licenses for sportsbooks in the official count of new Virginia casinos.
“The bill I have in my possession today is entirely technical in nature. Enclosed within it are provisions that we believed were already approved last year.”
Casino-resorts have been granted the approval by voters in Bristol, Danville, Norfolk, and Portsmouth, located in the state of Virginia. Furthermore, a fifth casino-resort, situated in Richmond, is set to be decided upon in the upcoming November ballot. The majority of these casinos have already formed partnerships with sportsbook operators.
According to Virginia Lottery Executive Director Kevin Hall, each casino has the option to develop its own mobile app for sports betting. However, despite the original intention for these licenses not to be considered as part of the cap, the governing body was forced to include them.
Sickles informed the subcommittee that the lottery did not interpret it in the same manner, stating that it was not their original intention.
Instead, his proposal is to treat Virginia casinos in the same manner as professional sports teams. According to the Virginia sports betting legislation, if a pro team moves its headquarters to Virginia, they can form a partnership with a sportsbook operator and obtain a license, without it being counted towards the limit. Sickles wants to extend this assurance to casinos, ensuring that their sports betting licenses won’t be counted either.
He introduced the latest bill with the aim of increasing cap space, which could potentially lead to the availability of five additional sports betting licenses for online-only sportsbooks if it becomes law.
Other Sports Betting Considerations
HB 1847, along with another bill, tackled various sports betting details, including the potential increase in the number of licenses.
Among them:
Olympic Betting Permitted
Virginia initially passed a law that prohibited betting on youth sports, but inadvertently, it would have also required the VA Lottery to prohibit betting on the Olympics, which involve athletes under the legal age.
HB 1847 would authorize Olympic betting, with Hall expressing his support for the amendment. Nevertheless, the prohibition on betting involving in-state colleges and universities will persist.
OK to Bet at Brick and Mortar Sportsbooks
In addition to online bets, Virginia casinos would be allowed to accept in-person wagers under HB 1812, another bill that aimed to address technical language and provide clarification.
The bill was introduced by Del. Paul Krizek, who emphasized the significance of brick-and-mortar options for sports betting in casinos. According to him, this provision enables casinos to provide their customers with an authentic Vegas-style experience. The bill successfully passed with a vote of 7-1 and will now proceed to the General Laws committee.
Subcommittee Addresses Charitable Gaming, Human Trafficking
During Tuesday’s meeting, the members of the subcommittee discussed a few other measures related to gaming.
In addition to various initiatives, HB 1944 mandates that Virginia casinos should offer training on human trafficking. This training would ensure that all employees who engage with the public are equipped to identify and report possible victims of human trafficking.
The virtual meeting witnessed numerous community advocates pledging their support for the bill, resulting in the committee’s unanimous approval with a vote of 8-0.
Two bills, HB 1943 and HB 1944, related to charitable gaming, were tabled by the subcommittee for a future discussion.
Additional information and time for study was required by the members, specifically regarding two bills. The first bill pertained to regulations and language, while the second bill focused on potential payouts and prize amounts.
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