On Tuesday, Feb. 3, the ABC/Gaming Subcommittee held a hearing about Virginia House Bill 161, one of the two bills that would legalize iGaming in the state (while subsequently banning sweepstakes casinos).
“I think that some of the headlines that say a delegate wants to bring ‘casino-style gaming’ to your phone through this bill. That’s not what this bill does,” said Delegate Marcus Simon, the bill’s sponsor, ahead of the subcommittee vote. “Casino-style gaming is happening on people’s phones in the Commonwealth of Virginia already. It’s estimated that iGaming has a $12 billion business in Virginia that’s completely unregulated and untaxed.
“What this bill is really meant to do is to bring the gaming on your phone within a legal framework that’s going to be highly-regulated and includes consumer protections.”
While sweepstakes casinos were never mentioned during the hearing, Simon did hint at the problem when you outright ban something that’s popular amongst legal adults.
“We can try banning these things, and you can start a prohibition-style approach to it,” he said, referring to iGaming in general. “I think that the best way to combat the illegal operators is to create a legal alternative for them to bring it in and have everyone subject to the regulations.”
Delegate Phil Hernandez raised concerns about how iGaming would affect the Virginia Lottery (specifically, how lottery funds support education programs). Delegate Holly Seibold was concerned that iGaming doesn’t go far enough to relegate underage gaming, and Delegate Marcia Price thought the commonwealth was moving too fast. Virginia’s first casino opened in 2022, and Price wanted the state to slow it down before legalizing iGaming.
“I do want to share a few thoughts, especially as we get new bills,” Price said. “I hear, ‘It’s happening already, so let’s regulate it.’ And I’m going to say something outlandish to prove my point, but crack is happening right now. Is that the next thing we’re going to regulate?
“When are we going to slow down and just take a break?”
The ease of iGaming (“you don’t even have to have on pants to gamble”) was, as Price said, “a bridge too far.”
Despite this, the bill passed out of the subcommittee on a 5-4 vote. Despite their initial concerns, Price and Seibold voted to send it to the House Appropriations Committee, along with Delegates Will Morefield, Joshua G. Cole, and Luke Torian.
Senate bill also out of subcommittee
Senate Bill 118 — which is the exact same legislation as HB161 — got out of its Senate subcommittee on Jan. 28 with a vote of 9-6. SB118 initially stalled in subcommittee due to concerns about its language on who would regulate the proposed iGaming market. The amended bill clarifies the duties of state regulators and instructs future iGaming platforms to take proactive steps to prevent gambling addiction.
The legislation would allow Virginia’s five brick-and-mortar casinos to partner with up to three third-party mobile iGaming operators apiece, with each mobile platform paying a $2 million fee. The brick-and-mortar casinos would also have to open live-dealer studios within the state, potentially creating jobs or offsetting potential job losses.
Both bills, SB118 and HB161, determine that an unlicensed party “offering or conducting a sweepstakes in which a person present in the Commonwealth may participate by paying or proffering something of value, including an entry fee for the opportunity to win or receive cash or a cash equivalent” would constitute an illegal game.
Next steps
SB118 goes to the Senate Finance Committee. HB161 heads to the House Appropriations Committee. No hearings have yet been scheduled.
