Virginia has already tightened up the tax guidelines used to online sports betting websites in the state, but there might be interest in strengthening them even further.
A bill introduced by Democratic Sen. Jeremy McPike would even more limit the deductions licensed operators can use to their from sports betting-related promos to no more than 2.5% of total internet wagers managed each month in between July 2023 and July 2024. The ceiling would then drop to 2.25% of month-to-month handle between July 2024 and July 2025, to 2% in between July 2025 and July 2026, and then to 1.75% after that.
The proposals in McPike's costs would remain in addition to modifications made during a budget process in Virginia in 2022, that made it so operators can just deduct benefit bets and other promotions for a year instead of permanently. That has already affected tax profits understood from online sports wagering in Virginia.
In November, for instance, the Virginia Lottery reported that the total tax from sports wagering was practically $7.8 million after $817,857 in bonus offers and promos were deducted. In November 2021, the state received $4.2 million from sports betting (and its 15% tax rate on adjusted earnings) after about $15 million in advertising costs were subtracted.
Toughening the tone
Most operators have actually been taking bets in Virginia for more than a year currently, including the state's greatest bookie, FanDuel. That implies they have actually already run through their promotion allocation and would not be impacted by the proposed legislation. However, the costs, if passed, could put even more of a damper on promotion deductions in Virginia for bet365, which has yet to launch in the state, in addition to for any future entrants.
The legislation comes as lawmakers and regulators in the U.S. have been taking a harder tone with the legal sports wagering market just recently, consisting of tax tweaks in Colorado and Virginia, a proposed crackdown on "predatory" sportsbook bonus offers in New york city, and several fines advised by Ohio regulators.
The Virginia bill is similar to the legislation passed in Colorado that came into impact this month, which is anticipated to increase the efficient tax rate on sports-betting income in the state.
A limited-time offer
Senate Bill 1142 was prefiled and referred on Tuesday to the Virginia Senate's committee on financing and appropriations. The Virginia legislature on Wednesday again assembled in Richmond for its regular legislative session.
Whether the expense gains traction is a big question in the divided basic assembly. Democrats have a majority of seats in the Virginia Senate, however Republicans control the House of Delegates, meaning legislation will need cooperation to get passed. There is just minimal time to do so as well, as the session is just one month long, albeit with the possibility of an extension.
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Are more Sports Betting Tax Changes in Virginia En Route?
nancykirby8790 edited this page 2026-04-30 18:14:32 +08:00