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Virginia lawmakers are in the process of drafting legislation that would allow sports betting in a state that hasn't necessarily been friendly towards gambling in the past.
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Neighboring West Virginia has already legalized sports betting and has plans to open sportsbooks in all five of its casinos, though the rollout thus far hasn't exactly been smooth.
Virginia likely wants to prevent that state from siphoning off its own market potential.
While West Virginia's Hollywood Casino in Charles Town is accessible to those living in more populous northern cities and suburbs of Virginia such as Arlington and the areas within a hundred miles outside of Washington, DC, the roundtrip is two hours on average. That's not even counting traffic.
Virginia Democratic state Sen. Chap Petersen is counting on keeping these folks in-state. He said he’ll file a bill to legalize betting on professional sports. The proposal would also create a state authority to regulate it. Direct tax revenue would go toward reducing tuition at Virginia community colleges.
Betting on college sports wouldn’t be allowed, presumably even those schools outside the state.
To date, New Jersey and Mississippi have enjoyed some success offering sports betting following a Supreme Court decision back in May overturning decades of prohibition.
Outside of Nevada, which was previously the only state permitted to offer full service sports betting, only a handful of states have jumped into the fray. Each has its own unique set of laws. For example, New Jersey does not allow wagering on its own college teams but lets its residents bet online from anywhere within that state's borders. Mississippi does permit betting on its college teams but only allows Web gambling on casino properties. New Mexico began offering sports wagering from a casino that for many years operated out of a tent and did not require any amendment to current laws due to a Tribal compact already in place. Rhode Island just opened a sportsbook in one of its two casinos but does not permit parlays or Web gambling, at least for the time being.
All of the states that will offer sports betting intend to tax at 10% or greater while only those 21 or older can place wagers. New Jersey imposes a 13% tax on Web gambling. Rhode Island tax could be more than three times that number. Internationally-licensed sportsbooks are accessible from every state and none of these impose a tax while those 18 and up can place bets.
Offshore operators are counting on the state tax implications alone to drive business their way once folks get a taste of the thrill sports betting has to offer. New Jersey sportsbooks have already adapted a version of the in-play wagering concept that has become hugely popular in the offshore and European markets.
But even the NJ sports betting outfits are likely to limit offerings (i.e. no eSports for now) due to the high operating costs and low handle when compared to that of online casinos.
- Gilbert Horowitz, Gambling911.com
