Virginia Finally Okays Regulated Retail and Interactive Sports Betting

The Governor of Virginia, Ralph Northam, has finally signed off three sports betting bills which will officially be effective as state law come 1st July. The three bills, Senate Bill 384, House Bill 4, and House Bill 896 were okayed by the governor after he was satisfied by the amendments he had requested last week on 22nd April.

However, given that House Bill 4 will be changing Virginia’s Constitution, it must be put to a public vote set to take place later in November this year. Residents will be voting for the approval of locations in cities where retail sportsbooks will be situated. The cities in question are Bristol, Danville, Norfolk, Richmond, and Portsmouth.

While no official timeline has been set for official sports betting debut, the Virginia Lottery Board has until 15th September to draw up a regulatory framework that will guide the newfangled sports betting industry in the state. With the governor’s signature on the legislation, Virginia follows Washington to be the second USA state to enact sports betting laws in the country in 2020.

A Breakdown of VA Sports Betting

The sports betting operations in the state will heavily lean towards online services, and the state lottery has the mandate to dictate the number of online exclusive licenses it will issue. This number has however been limited to between four and 12 internet betting licenses. These licenses will be granted purely based on offering the sate the most lucrative financial opportunity.

Furthermore, two bills were passed to authorize casino operations in the state and up to five of the maximum 12 licenses can be awarded to land-based casino facilities. Thus, based on that number, should all five casinos seek sports betting licenses, then it will leave only up to 7 untethered operating licenses in the state.

Moving on to Governor Northam’s recommendations as agreed by legislators before signing the bill into law, NASCAR facilities will fall under the ‘major sports franchise’ definition in the law. This, therefore, means that Richmond Raceway and Martinsville Speedway are allowed to offer retail and online sports betting just like pro leagues such as NFL, NBA, and MLB in case they are located in Virginia.  However, in case tracks and sports teams acquire licenses, their approvals won’t be tallied together with the casino and sportsbook licenses.

For sportsbook operators, any form of live-in game betting on their platforms will be required to use official league data under the new regulations.

Virginia Collegiate Sports Betting is a No-Go Zone

The new law prohibits any form of betting on college events that are taking place in the state. And on top of that, any games that involve a Virginia college team, irrespective of where the tournament takes place in the country will not be open for betting.

The in-state collegiate betting restriction seems a bit harsh, which could be why the governor recommended that operators be permitted to take wagers for events that involve the colleges.   

Licensing and Associated Fees

Any sports betting brand looking to start operating in Virginia will have to part with a $250,000 licensing fee that’s renewable after three years and agree to a 15% tax rate on all revenue from sports betting.

Additionally, in case anyone has ownership above 5% of a state-licensed sportsbook, the said individual will have to pay $50,000 in background checks fees for vetting carried out by the FBI. Mind you, this amount won’t be part of the standard fees levied for license acquisition by the associated company.

Should things fall in place starting July when the laws become effective, the Virginia sports betting industry is projected to bring in about $90 million in annual revenue for the state’s economy!