Virginia Lawmakers Approve New Regulatory Body Bill, Reject iGaming & Skill Games

Virginia’s legislative session continues with several gaming bills that advanced and a few that have not. While lawmakers agreed that the creation of an official gaming regulator is a must, they didn’t seem to be on the same page when it came to online casino gaming.

Creating New Regulator Is of Utmost Importance

Perhaps the most important development was the passing of the Virginia Gaming Commission bill (SB 195), which seeks to create an independent gaming regulator. For context, gaming in the state is currently under the purview of the Virginia Gaming Commission.

SB 195 was one of two such measures, with the other one, SB 558, ending up folded into the former. The resulting measure passed the Senate subcommittee by a landslide, emphasizing the importance of creating a new regulatory body.

At the same time, a bill seeking to greenlight a casino in Fairfax County (SB 756) has advanced and has been referred to the Finance Committee. The measure’s objective is to create a new casino that will prevent money from leaking into Maryland. If SB 756 secures all necessary approvals, its fate will be decided by state voters.

In the meantime, SB 129, which seeks to tighten the state’s sports betting rules and prevent products that blur the line between daily fantasy sports and sports betting, advanced with unanimous approval. In addition to tightening the rules, the bill will require fantasy sports operators to pay a $50,000 fee before they are allowed to offer such products in the state, with DFS to be taxed at 10% of the revenue.

Lawmakers Reject iGaming, Skill Games, for Now

While everyone agreed that the creation of a new regulatory body is of paramount importance, not everyone was on the same page regarding skill games and online casinos. Some lawmakers in the state sought to regulate both verticals via bills SB 661 (skill games) and SB 118 (iGaming).

The former bill sought to bring the controversial skill games sector into the light and regulate it as another type of gaming entertainment. However, the subcommittee failed to pass the measure. Even if it had been passed, its future would still have been uncertain since the Governor previously vetoed a similar bill.

In the meantime, lawmakers also rejected SB 118, which sought to make Virginia the next online casino state. While proponents asserted that it’s better to regulate the vertical rather than allowing money to leak into the black market, the subcommittee noted that the current version of the bill didn’t include sufficient safer gambling measures.

However, a separate House proposal (HB 161) is still on the table.