Like many states, Virginia does not allow betting on its colleges’ sporting events. But that could soon change.
Senate Bill 124, offered on Jan. 10, would eliminate the current prohibition on betting on “a college sports event in which a Virginia public or private institution of higher education is a participant.” The prohibition on betting on youth sports would remain.
Virginia legalized both retail and online sports betting on July 1, 2020. FanDuel accepted Virginia’s first legal sports bet on Jan. 21, 2021. It was one of several states that restricted bets on in-state colleges’ sports. They worried about the potential pressure on college athletes to accept bribes or manipulate game outcomes.
Bill 124’s sponsor, Sen. Schuyler VanValkenburg, argues that people are already betting on Virginia college sports teams, either from other states or illegally.
“You can ban it, but people are still going to do it," VanValkenburg said, according to the Richmond Times-Dispatch. "The fear that this is going to corrupt or put pressure on Virginia athletes, that’s already there. We’re already living in that world.”
Time for a change?
Since legalizing sports betting, Virginia has made only one change to its operations – and that was done without requiring a bill. In 2022, Virginia enacted a budget provision to limit the time operators can deduct the cost of free bets and other promotions to just one year. The change basically closed a loophole that operators used to deduct promotional costs over an unlimited period of time. Virginia’s sports betting tax revenues jumped more than 60% after the change.
Last year, a bill tried to further tighten tax regulations for sports betting operators. Senate Bill 1142 would have gradually reduced the deductions operators could apply to their taxable revenue from sports betting-related promotions from 2.5% to 1.75%. That bill was later tabled in Appropriations and never passed.
Legislators don’t have a lot of time to pass SB 142. Virginia’s legislative session ends on March 9.
