HB 161: Virginia Lottery; internet gaming authorized, definitions, penalties, effective clause. - Virginia

Commerce Agriculture & Natural Resources Subcommittee Substitute → Finance and Appropriations Substitute · 6 edits

MODERATE

The bill was transferred from the House to the Senate, resulting in significant changes to the regulatory framework. The Senate version removes requirements for labor peace agreements and reduces the number of platforms a casino can offer from four to three, while adding new rules requiring 25% of promotional spending to occur on-site at physical casinos. It also restructures the tax and revenue distribution system, creating a new Modern Public Education Fund and altering the timeline for when operators can begin offering services.

Scope change

The bill's scope shifted from a House proposal to a Senate substitute that tightens operational limits for online gaming operators and introduces new financial obligations to support physical casino operations and public education.

REQUIREMENT

The requirement for casino operators to sign labor peace agreements with unions to prevent strikes or work stoppages was removed entirely.

A new requirement mandates that at least 25% of promotional free play spend must be redeemable for in-person play at the physical casino.

ELIGIBILITY

The maximum number of internet gaming platforms a casino operator can offer was reduced from four to three, unless they contract with a qualified entertainment company.

FISCAL

The tax revenue distribution plan was changed to allocate 95% of tax revenue to a new Modern Public Education Fund, replacing the previous allocation to the general fund and the Internet Lottery Hold Harmless Fund.

TIMELINE

The effective date for operators to begin accepting notices of intent was moved from July 1, 2027, to a date determined by the Board, and the sunset clause for the bill was shortened to require reenactment by the 2027 session.

DEFINITION

The definition of 'Internet gaming operator' was updated to reference a new section number (§ 58.1-4143) due to the reorganization of the article.

Appropriations Substitute → Commerce Agriculture & Natural Resources Subcommittee Substitute · 1 edit

MINOR

The bill text was reformatted from a standard legislative layout to a 'House Substitute' version, which primarily involves structural changes like adding page numbers, headers, and adjusting line spacing. No substantive policy changes, such as new laws, funding amounts, or eligibility criteria, were introduced in this specific markup.

Scope change

The scope and applicability of the bill remain unchanged; the content is identical to the previous version.

TECHNICAL

The document structure was altered to include 'House Substitute' headers, page numbers, and adjusted line breaks, which are formatting updates rather than changes to the bill's legal content.

General Laws Substitute → Appropriations Substitute · 7 edits

MODERATE

The bill was transferred from the General Laws Committee to the Appropriations Committee, changing the committee responsible for reviewing the legislation. The text of the bill itself was significantly shortened, removing detailed definitions, operational rules, tax rates, and penalty structures that were present in the original version. This suggests the Appropriations version is a placeholder or a draft intended for funding discussion rather than a complete legislative proposal.

Scope change

The scope of the bill's content was drastically reduced; it no longer contains the specific operational rules, tax rates, or penalty provisions that would govern internet gaming in Virginia.

DEFINITION

Removed detailed definitions for terms like 'Adjusted gross internet gaming revenue,' 'Internet gaming supplier,' and 'Labor peace agreement.'

REQUIREMENT

Deleted all sections regarding licensing fees, application processes, labor mitigation plans, and consumer protection rules.

FISCAL

Removed the 15% tax rate, revenue distribution formulas, and the creation of specific funds for problem gambling and operator losses.

ENFORCEMENT

Deleted all penalty sections, including felony charges for unlicensed gaming and fines for equipment tampering.

TIMELINE

Changed the committee proposing the bill from the House Committee on General Laws to the House Committee on Appropriations.

SCOPE

Changed the section range of the new article from 58.1-4142 through 58.1-4157 to 58.1-4142 through 58.1-4159.

TECHNICAL

Added draft headers and page numbers, indicating this is a working document rather than a final text.

ABC/Gaming Subcommittee Substitute → General Laws Substitute · 1 edit

MINOR

The bill was reformatted from a draft committee substitute to a clean General Laws substitute, removing internal markup symbols and page headers while retaining the exact same legislative text. No substantive policy changes, definitions, fees, or timelines were altered; the document remains identical in legal effect.

TECHNICAL

Removed internal legislative markup symbols (e.g., '- ', '1...1') and draft headers that were present in the previous version.

Introduced → ABC/Gaming Subcommittee Substitute · 4 edits

MODERATE

The bill was amended to correct formatting errors and significantly modify the definition of 'Adjusted gross internet gaming revenue' to include a deduction for bonuses and promotions, which will lower the taxable revenue for internet gaming operators. The amendment also removed a redundant line item regarding tax withholding from the Board's regulatory powers.

Scope change

The bill's scope regarding tax calculation changed by expanding the definition of deductible expenses for internet gaming operators.

FISCAL

The definition of 'Adjusted gross internet gaming revenue' was changed to allow operators to deduct the value of bonuses and promotions (up to 25% of wagers) from their gross revenue before calculating the 15% tax, reducing the tax base.

DEFINITION

The text for 'Adjusted gross internet gaming revenue' was updated to explicitly include the deduction for bonuses or promotions as a third category of allowable expense.

REQUIREMENT

A line item requiring the Board to establish thresholds for withholding state and federal income taxes from gaming prizes was removed from the Board's list of powers and duties.

TECHNICAL

Various formatting issues were corrected, including the removal of placeholder text and the addition of proper section numbering and headers.

Virginia Lottery; internet gaming authorized, definitions, penalties, effective clause.

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