Ever since Virginia sports betting launched on Jan. 21, 2021, VA sportsbooks have reaped the benefits of a gambling tax loophole. But that’s no longer the case after Gov. Glenn Youngkin signed the state budget on Tuesday.
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Virginia Sports Betting’s Latest Twist
Within the amendment, sports betting companies are no longer eligible to write off money exhausted on bonuses and promotions from their taxable revenues. Specifically, free bets that Virginia sports betting operators offer, attracting their fair share of new costumers in the process, erased millions in tax revenues.
“I consider this a technical correction,” Del. Mark Sickles said to the Virginia Mercury.
Let’s start with a positive. The money churned out from Virginia sports betting will evidently increase. We’ve seen the advancements from that in states like New York, which recently set a record for the most tax revenue generated since it launched in late January.
A large wedge of it goes towards elementary and secondary education, youth sports programming, problem gambling prevention, treatment, and recovery services. In order to enforce responsible gambling, lawmakers agreed to the in-state colleges’ request of not allowing residents to bet on their teams when Virginia sports betting was initially launched.
“They were very passionate that it puts their students and their student body in an awkward position to have students betting on other students,” Del. David Bulova said during a committee meeting in February. “This is making sure that we’re not going ahead and putting our seal of approval on that kind of activity.”
When Does Virginia Sports Betting Amendment Kick Off?
Sportsbooks will be taxed on their bonuses and promos when the rest of the budget goes into effect on July 1. It will carry on for two years.
What Does This Mean For Virginia Sports Bettors?
Unfortunately, this alteration could lead to less bonus offers from sports betting apps. In turn, there could be moderate user growth for Virginia sports betting in the coming months.
The state still won’t receive any competition from online Maryland sports betting for the near future, though. Despite a push by Gov. Larry Hogan to have operators launch in time for the 2022-23 NFL season, it may not even be ready for Super Bowl 57 odds, according to Legal Sports Report.
There are currently 14 sportsbook operators in Virginia — with Sports Illustrated representing one of the latest additions. Claim SI’s new user offer here.