Virginia’s HB 161 Wins First House Test, Advances to Powerful Appropriations Panel

HB161 has successfully cleared its first subcommittee on a 5-4 vote and is now with the influential House Appropriations Committee. Its companion Senate bill (SB118) also progressed out of its initial committee and is now under consideration by the Senate Finance Committee. 

Virginia’s HB161 aims to legalize and regulate iGaming activities under the Virginia Lottery Board. Both bills need to pass their respective chambers (House and Senate), and undergo reconciliation, before they are sent to the governor’s table.

No full-chamber votes or schedule for final voting has been announced yet.

Putting iGaming into a Legal Regulatory Framework

iGaming, or online casino games like slots, roulette, blackjack and poker are widel popular in the US, and these are currently offered through licensed apps and websites for real money. These real-money games accessible in seven states, and Virginia could potentially join the shortlist if HB161 continues to progress.

According to its bill sponsor, Marcus Simon, HB161 aims to situate the popular real-money games in a legal regulatory framework. Real-money games like slots, poker, and table games are already accessible in the Commonwealth of Virginia, with an estimated $12 billion revenue. This thriving gaming business remains un-regulated and untaxed, and HB161 will effectively legitimizes it.

Sweepstakes casinos, or gaming platforms built on the dual-currency network, was not directly discussed during the hearing leading to the vote. But Simon touched on the possibility of banning certain games, or prohibiting it. He added that the best way to confront illegal operarors is to create a legal alternative, but subject to cerrtain regulations.

Some Delegates Raised Concerns Over HB 161

Simon’s bill has its fair share of critics. 

Delegate Phil Hernandez highlighted its impact on Virginia Lottery, particularly on how lottery funds help educational programs. Delegate Holly Seibold wasn’t sold yet that the bill can address underage gambling.

Delegate Marcia Price, on the other hand, noted the bill’s quick progress. The state’s first casino opened in 2022, and Price wanted Virginian to take things slow before approving iGaming or even banning sweepstakes casinos.

HB161 and SB118 are on track for possible approval. The former has cleared its subcommittee, and now in Appropriations, and the latter is going to Finance.

While the final vote has not yet been scheduled, the prospects for both bills to pass are high.

REFERENCES:

• HB161

• SB118