On November 19, 2024, Virginia lawmakers introduced Senate Bill 689 (VA SB689), a legislative proposal aimed at regulating cruise ship casino gaming in the offshore waters of the Commonwealth. The bill seeks to establish a framework for cruise ship operators to conduct casino gaming while ensuring that such activities remain ancillary to the primary purpose of scenic cruising and port visits.

Key provisions of VA SB689 require cruise ship operators to obtain a permit from the Department before engaging in casino gaming. Notably, the bill stipulates that gaming cannot occur within one mile of any port or anchorage used for passenger embarkation or disembarkation in Virginia. Additionally, the bill mandates that all casino gaming activities be limited to passengers aged 21 and older and that each cruise must include at least one stop in a foreign country.

The legislation also empowers the Board to develop regulations for enforcement and compliance. This includes the authority to revoke permits if operators fail to meet eligibility requirements or violate any regulations. Furthermore, the bill outlines a fee structure for permits, with annual fees set at $50,000 for ships using Virginia ports and $125,000 for those transiting without stopping.

The introduction of VA SB689 has sparked discussions among stakeholders, including cruise ship operators, tourism advocates, and regulatory bodies. Proponents argue that the bill could enhance Virginia's tourism sector by attracting cruise lines and generating additional revenue. However, some critics express concerns about the potential for increased gambling activity and its implications for local communities.

The economic implications of the bill are significant, as the fees collected will support the Department's operational costs and contribute excess funds to the School Construction Fund. This aspect of the legislation has garnered support from education advocates who see it as a potential source of funding for critical infrastructure needs.

As VA SB689 moves through the legislative process, its future remains uncertain. Lawmakers will need to weigh the potential benefits of increased tourism and revenue against the concerns raised by opponents. The outcome of this bill could set a precedent for how Virginia approaches gaming regulations in the maritime sector, with implications for both the economy and community welfare.