Virginia Lawmakers Heading to iGaming Conference Committee

• Both the Virginia Senate and House yesterday rejected iGaming substitute bills
• Both chambers prefer their own approved iGaming bills
• Representatives from the Senate and House will head to a conference committee to see if a compromise on iGaming can be made

The Virginia House of Delegates and Senate will soon head to a conference committee to see if a compromise on iGaming legalization can be reached.

Both the House and Senate yesterday unanimously voted down substitute iGaming bills, preferring their own approved legislation, and agreed to send representatives to a conference committee to see if common ground can be found to legalize the new form of gaming in the state.

While both versions of the iGaming bill include a reenactment clause for a second vote in 2027, key differences in tax allocation remain between the two legislative chambers.

We Prefer Our Bill, Thank You Very Much

Both the Virginia Senate and House of Delegates yesterday presented substitute iGaming bills to each chambers. The Virginia Senate unanimously rejected the House substitute bill, with 40 members voting the bill down and zero approving the document.

The House vote was similar, as 94 members voted the Senate substitute bill down with zero approving the legislation.

Without concurrence on iGaming, both chambers agreed to send representatives to a conference committee to see if a consensus on Virginia iGaming can be reached. The Virginia House of Delegates will send Dels. Marcus B. Simon (D-13), Paul E. Krijek (D-6), and Terry L. Austin (R-37), while the Senate will send Sens. Mamie E. Locke (D-23), Jeremy McPike (D-29), and Todd Pillion (R-40).

The Virginia House of Delegates approved HB 161 by a 67-30 vote in late February, crossing the bill over into the Senate. It came one day after the Virginia Senate approved SB 118 by a 19-17 vote.

Both pieces of legislation are similar, but key differences in taxation and revenue allocation have led to the need for a conference committee.

Virginia iGaming Bills Have Similar Bones

Both approved Virginia iGaming bills will allow each of the state’s three land-based casinos to offer iGaming through partnerships with online iGaming operators. Casino gaming operators will be able to partner with up to three iGaming operators to conduct iGaming in the state through an initial $2 million platform fee. Additionally, approved iGaming operators will be required to pay a $500,000 initial licensing fee.

Both bills allow for iGaming licenses to be valid for five years, upon which both casino gaming operators and iGaming operators will be able to renew licenses at half their initial fee ($1 million for a casino gaming operator and $250,000 for an iGaming operator).

Additionally, both bills set the iGaming tax rate at 20% of an operator’s adjusted gross gaming revenue.

There are other substantive differences in either bill versions, but tax revenue allocation is where the bills greatly differ. The House and Senate both have different plans for what iGaming revenue should support in the state. The Senate plans to earmark 3% of iGaming tax revenue to the Gaming Regulatory Fund for the costs associated with gaming, 2% of revenues to the Problem Gambling Treatment and Support Fund, and the remaining 95% to the Modern Public Education Fund.

The House, however, has a more complicated revenue allocation plan. The House plans to permanently allocate 5% of iGaming revenue to the Problem Gambling Treatment and Support Fund. Until Jan. 1, 2037, 6% of revenue will be allocated to the Internet Lottery Hold Harmless Fund and 89% to the general fund. After Jan. 1, 2037, the department will then allocate 95% of revenue to the general fund.