Virginia has been studying the idea of legalizing sports betting in the state. Prior to forming any detailed Virginia sports betting law, the General Assembly passed a law to study the industry last year. SB 1126 commissions a report on “gaming in the commonwealth”. The study aims to study the impact of having a sports betting platform . In addition, it will also study the possible revenue the state could generate from it.
And just last week, the state’s legislature has received the study. It reveals that the state can generate around $790 million in net revenue on an annual basis. This means that they can also collet around $260 million in tax revenue if the state will legalize its commercial casinos.
Virginia Sports Betting
Currently, there is no legislation on sports betting. Although efforts to legalize sports betting as well as online gambling could be seen by 2020. And with a rapidly growing sports betting market in the US, even bookies have been creating their own online sportsbooks with good pay per head prices. The study touches on sports betting revenue, among other things.
First off, the study focuses on studying physical shops or casinos in the state. If casinos in Danville will push through, that alone could generate half of the $790 million revenue estimate. Online casinos, meanwhile, could generate $84 million annually.
As for sports betting, a fully-developed betting market could generate around $55 million in annual gaming tax. This assumes fair taxes and online sports betting will be in place. Land-based casinos will likely take a few more years (around 2023) to take in sports bets, but if the state will allow independent sports betting operators, we can see the market open as early as 2020.
The report will not serve as a resource for legislators to come up with any policy on sports betting for the 2020 legislative session. If the second vote for SB 1126 will pass voting, all these will be legal in the state. Of course, there’s a lot they still need to do. Especially since operational policy as well as tax rates and regulation is still not detailed in any bill. This could take months, or even years. The state should, however, consider working on this as fast as possible, since they could lose potential income and tax revenue from neighboring states with sports betting. Sports bettors are known to find ways online or by travelling through state lines to be able to place wagers, after all.