The timeline calls for a public-comment period on proposed regulations in July-August, rules approved by that September 15 date, and operator applications should be made available to the industry by the end of September.
Given the Lottery Board has 90 days to approve the applications, lawmakers have affirmed their understanding that we could see the first legal sports wagers placed as early as December.
What Governor Northam wanted changed in Virginia Sports Betting
The major recommendation that Governor Northam attached to these bills was a $50 000 fee to cover background checks for the principal members of sports betting operators. It is understood that some of the potential Virginia sports betting operators will have as many as 20 employees that could fall under the category as principal. In that scenario, operators could be looking at potentially $1 million simply to undertake background checks.
Given that possibility, the Virginia Lottery Board will need to come up with a better definition of a principal employee to limit those exorbitant fees on the sports betting operators and encourage more operators to participate in the nascent industry.
Governor Northam also wanted the sports betting bill to permit Virginia-based teams from the NBA, MLB, NHL, or NFL (or those prepared to relocate to the state) to possibly apply for a sports betting license.
Clearly, this proviso was added to lure the Washington Redskins to relocate to the state when looking at locations for the construction of a new stadium. In addition, legislators have discussed that the Newport News/Virginia Beach area has been steadily courting an NBA team.
NASCAR Tracks can apply for Virginia Sports Betting
Governor Northam made it very clear that he also wanted changes to the legislation that permitted NASCAR tracks to be included as Virginia sports betting locations, and the state’s lawmakers approved the change.
The change will allow both the Martinsville Speedway and the Richmond Raceway to either apply for their own sports betting license or potentially partner with another sports wagering operator.
According the legislation, Virginia sportsbooks will be required to pay a $250 000 licensing fee valid for three years. All sports betting revenue is set to be taxed at a rate of 15 percent.
