In April 2020, the Virginia General Assembly granted approval for the legalization of sports betting, paving the way for the establishment of legal and regulated sportsbooks within the state.
In January 2021, Virginia sportsbooks commenced accepting wagers, albeit with a slight caveat.
Currently, Virginia betting options do not include the same in-state college sports that draw crowds to stadiums and arenas in the state.
This is unfortunate information for a state renowned for participating in bowl games, not to mention their impressive March Madness performances.
Virginia, being devoid of professional sports teams, feels the impact of the ban particularly severely. The region’s sports culture is largely intertwined with college games.
This implies that fans of Virginia college sports have to go out of town to place bets.
There is a wide array of choices available to them, ranging from the Smoky Mountains to the Eastern Seaboard.
Virginia shares a border with five states and Washington, DC. Surprisingly, five out of those six regions currently have or will soon have legalized sports betting. Interestingly, none of these neighboring areas have any college betting restrictions.
Virginia’s ban on in-state college betting
When the first operators launched in Virginia, the ban had a detrimental impact on the sports betting market, although it could have been much more severe.
Initially, certain lawmakers advocated for a complete prohibition on college sports betting. Nevertheless, legislators managed to reach a compromise. This middle ground grants Virginia residents and visitors the opportunity to place bets on college games taking place out of state. However, it excludes the possibility of placing bets on the University of Virginia and Virginia Tech.
In addition, the restrictions imposed by VA also extend to prohibiting college prop bets, regardless of whether the schools are located within or outside Virginia state boundaries. Essentially, Virginia sportsbooks are not allowed to provide prop bets for college-level events, regardless of the team or player’s location.
Not only is betting on the high scorer in the Duke-North Carolina game restricted, but there are also additional limitations in place. In Virginia, placing bets on Olympic games is prohibited, and the same goes for youth sports.
Virginia is for betting tourism in other states?
In order for in-state bettors to place bets on the Cavaliers, Hokies, or any of Virginia’s other 12 Division I collegiate programs, they will need to go to a different state to spend their gambling money.
Both UVa and Virginia Tech, along with Liberty University and Old Dominion University, are among the in-state programs affected by these circumstances. These four schools are in contention for bowl games due to their participation in the top-level Football Bowl Subdivision (FBS).
March Madness has a significant impact on Virginia’s multiple Division I basketball programs as well.
- George Mason University
- Virginia Commonwealth University (VCU)
- Hampton University
- James Madison University
- Longwood University
- Norfolk State University
- Radford University
- University of Richmond
- Virginia Military Institute
- The institution of higher learning known as the College of William & Mary.
Virginia’s ban on collegiate betting does not extend to events that involve Virginia teams, as long as out-of-state college teams are also participating.
In the event that a collegiate basketball tournament game is held in Virginia, bettors have the opportunity to place wagers on the matchups, including those involving schools from Virginia. It can be reasonably assumed that this is a loophole in the NCAA Tournament rules.
Why do states ban college sports betting?
One might question why states would choose to eliminate one of the most favored sports betting options available to their residents. Furthermore, why would they willingly forfeit the assured tax income that comes along with it?
Colleges and university representatives typically exert pressure on lawmakers, conveying their message through media interviews and public comment periods.
The proposed ban is often supported by athletic directors, coaches, compliance officers, and other university officials, who commonly provide two justifications.
- Preserving the honesty and credibility of college sports.
- Ensuring the safety of students and student-athletes by preventing gambling.
Nevertheless, the justifications and limitations frequently serve as mere superficial decorations.
In all fairness, a few delegates or senators hold principled opposition against gambling, hence they do not require any lobbying.
Facts and myths about college betting bans
Policymakers have numerous concerns, yet there is a clear and simple truth regarding the integrity of sports betting: the most effective method to eradicate corruption is by establishing a sizable, lawful, and regulated market.
Regulated operators successfully extinguished almost every significant betting scandal.
By diverting betting dollars away from illegal markets, regulators and legitimate sportsbook operators can enhance their surveillance of the industry. With their ample resources, they can promptly identify any potential endeavors to unlawfully manipulate betting outcomes.
Moreover, bans like these seldom, if ever, succeed in deterring betting. Bettors frequently resort to legal or illicit markets that cater to their preferences.
The US Supreme Court has weighed in
In 2018, the Professional and Amateur Sports Protection Act (PASPA) was invalidated by the US Supreme Court.
The groundbreaking court ruling paved the way for sports betting across the entire nation while effectively dismantling the unregulated offshore betting industry, which was worth billions of dollars. As a result, legal domestic wagering options emerged as a far superior choice.
Identifying and assisting problem gamblers and preventing minors from wagering has become more convenient now.
Regulated sports betting operators provide the essential transparency needed for a secure market in the realm of sports betting.
VA’s lost revenue due to the college betting ban
What is the extent of Virginia’s revenue loss due to its prohibition on sports betting within the state?
It is difficult to ascertain with certainty. However, revenue statistics from other states can provide us with some indications.
Approximately $25 million is the conservative estimate for annual betting on local colleges and universities.
The industry typically retains approximately 7% of the handle as revenue, resulting in a loss of approximately $275,000 in annual revenue for Virginia due to the 15% tax on sports betting revenue.
Wrapping up: VA sports betting could be better, could be worse
As Virginia set the groundwork for legal sports betting, it successfully accomplished numerous key aspects.
Because the state is welcoming to operators, numerous sportsbooks compete for bets. However, when the state limits betting on Virginia college games, bettors from the state opt to divert their funds to other markets instead.
Alternatively, they may choose not to place any bets, ultimately resulting in a situation that the state could have prevented.
There was an attempt to address a non-existent issue through the ban, resulting in negative impacts on both the market and the Virginia tax base.