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Subcommittee lays iGaming legalization framework on table for study after stakeholder debate
Summary
House Bill 2171, which would create a regulated online (iGaming) market in Virginia, was gently laid on the table by a subcommittee for study and work‑group discussion after stakeholders and commercial operators urged further technical work.
House Bill 2171, proposing a regulated iGaming market in Virginia, was gently laid on the table by a House Labor and Commerce subcommittee so stakeholders and the committee's gaming work group can study technical issues.
Patron Delegate Odelia Simon presented the bill as a framework to legalize and regulate online casino‑style games that currently operate in an unregulated sweepstakes market. She and supporting witnesses said regulated offerings, vetted by government reviewers, would provide consumer protections that the offshore, unregulated products lack. The bill cites examples from other states and would create a licensing and testing regime similar to those adopted for sports betting.
John Mormon, senior government affairs manager for DraftKings, said a regulated market is the best legal alternative to the pervasive illegal market and offered to answer technical questions about tax and regulation. Committee members asked about treatment funding; the bill proposes a 2.5 percent allocation to a problem gambling treatment and support fund, a figure witnesses said could be adjusted. Mormon and other supporters said tax rates and revenue destinations vary by state and offered to provide comparative data to the committee.
David Hallock of the Coalition for Fantasy Sports urged study and technical work: "There are a lot of technical issues with some of the language that really needs to be worked out, and we can work with the patron and the work group over the next year and get it right," he said.
Committee leadership said establishing the new Virginia Gaming Commission and an adequate regulatory apparatus is prerequisite to implementing iGaming; members worried about rolling out a major new market before regulators and staffing are in place. The clerk recorded the motion to "gently lay on the table" and the transcript shows the committee passed that motion 7 to 0, sending the bill to further study and stakeholder work groups.
