Virginia’s legislature approved the amendments in gambling legislation, proposed by the state’s Governor Ralph Northam earlier this month. Both chambers of the state’s bicameral General Assembly voted in favor of Governor Northam’s changes to several casino and sports wagering bills that could lead to the further expansion of Virginia’s gambling industry.
The Virginia lawmakers originally voted in favor of several gambling-related bills in March 2020. These were subsequently returned by Governor Northam with proposed changes that required a second approval from the General Assembly before the bills could be signed into law.
The approval of the changes paved the way for casino projects in five Virginia cities. Bristol, Portsmouth, Norfolk, Richmond, and Danville may be given the chance to host gambling facilities provided that local residents voice their approval in a referendum in November 2020. Senate Bill 36 was met with almost no opposition in the Senate receiving 30 votes in favor and only 9 votes against.
Lawmakers Also Approved the Proposed Changes on Taxes
The state’s legislature also voted in favor of redirecting a portion of the gambling tax revenue from the general fund toward funding the construction, repairs and upgrades of public schools across the Old Dominion.
Under the approved amendments, 6% of the first $200 million of adjusted gross gambling revenue will be used for funding the locality. Adjusted gross revenue from $200 million to $400 million will be taxed at 7% while that exceeding $400 million will incur taxes of 8%.
A percentage of these taxes will be used to combat gambling addiction via the Problem Gambling Treatment and Support Fund. A portion of the money is also intended for the Family and Children’s Trust Fund.
Provided that the casino is operated by one of the Native American tribes in the state, 1% of the collected taxes would go to the Indigenous People’s Trust Fund. The remainder will be used for funding the local public school system.
The General Assembly also gave the thumbs up to the amendments for a bill that could bring legal sports betting to the Old Dominion. The bill will enable Virginians to legally wager on college and professional sports events. However, it disallows wagering on college games that involve Virginia-based teams.
The Governor Has Until May 28 to Approve or Veto the Gambling Bills
The lawmakers turned up to vote in spite of the current COVID-19 crisis but followed all social distancing requirements and wore masks. Senator Todd Pillion, who sponsored the casino bill, stressed that yesterday’s approval of the changes gave the local legislature the chance to fulfill one of the state’s biggest priorities, namely funding the construction of local schools.
House Delegate Terry Kilgore emphasized the introduction of a casino in Bristol could give the region’s economy a powerful push. Virginia’s Governor has until May 28 to approve or turn down the amended bills.
Governor Northam’s approval will lead to the biggest gambling expansion the Old Dominion has witnessed since the 1987 launch of the Virginia Lottery, which is currently struggling due to the COVID-19 pandemic.
The Lottery has taken a severe hit, registering a 28% drop in revenue as of March 2020. According to Kevin Hall, who heads the Virginia Lottery Board, this tendency is likely to continue despite the fact tickets are still sold at key locations such as grocery shops.
