Lynnae Williams Journalist
Lynnae is a journalist covering the intersection of technology, culture, and gambling. She has more than five years of experience as a writer and editor, with bylines at SlashGear and MakeUseOf. On the iGaming side,...
Read Full BioVirginia lawmakers have introduced legislation that would lift the state’s long-standing ban on betting on in-state college sports. If passed, House Bill 1527 would allow wagers on NCAA Division I games involving Virginia colleges and universities. The bill was filed on January 29 and is now awaiting referral to a committee in the General Assembly.
Under the existing law, Virginia residents are prohibited from betting on games involving in-state collegiate programs. The new legislation would create a specific exception for NCAA Division I sports played at Virginia colleges and universities, opening up a major new market for the state’s legal sportsbooks.
Bill Creates Narrow Exception for Division I
While the proposed legislation would open the door to betting on in-state college teams, it limits that access to NCAA Division I competition, allowing wagers only on “Virginia colleges and universities participating in an NCAA Division I competition for a given sport.”
Under the proposal, traditional game-level wagers, including moneylines, point spreads, and totals, would be allowed. However, the legislation is clear about proposition betting: the state’s longstanding blanket ban on these bets will remain in place. The bill doesn’t mince words on the topic: “no person shall place or accept a proposition bet on college sports,” language that applies whether a game involves an in-state or out-of-state team.
Beyond prop bets, the legislation says, “No person shall place or accept a bet on youth sports,” maintaining a ban that already exists under the state’s laws. Non-Division I schools are also off-limits. Violations are serious, as the bill states that “Any person convicted of violating this section is guilty of a Class I misdemeanor.”
The bill allows sports governing bodies to request that limits or restrictions be placed on certain types of wagers if they can demonstrate a “significant and unreasonable integrity risk.” Licensed sportsbooks will be consulted before any decision is made in these cases, according to the bill.
Bill Imposes 50% Tax With Revenue for College Athletics
HB 1527 goes beyond expanding betting options; it also introduces a unique tax structure. While the general tax on the state’s licensed sportsbooks is set at 15%, the bill proposes a substantial 50% tax on gross revenue generated from bets on in-state NCAA Division I sports.
One thing that sets the bill apart from legislation in other states is that it earmarks 100% of the tax revenue from in-state college betting for college athletics rather than the general fund. To facilitate this, the bill establishes a “special nonreverting fund” known as the NCAA Division I Sports Betting Fund.
According to the bill, “Moneys in the Fund shall be used solely for the purposes of supporting NCAA Division I college and university athletic programs in the Commonwealth.” In a move that rewards popular programs, disbursements will be made “directly to such college and university athletic programs in proportion to the amount of money such programs generate for the Fund.”
The provisions laid out in the bill won’t go into effect until the General Assembly establishes a Virginia Gaming Commission or similar agency to oversee legal gambing statewide.
States Revisit College Sports Betting as NCAA Pushes Back on Prop Bets
Virginia’s proposed legislation comes as state regulators face increased pressure from the NCAA to rein in the types of bets offered on college sports. Betting on college sports is legal in most states with regulated sportsbooks. However, several jurisdictions restrict wagers on in-state teams or prohibit certain markets.
In the wake of the point-shaving scandal that rocked college basketball in mid-January, the NCAA renewed calls for regulators to eliminate individual player prop bets on college athletes, arguing that those wagers increase the risk of harassment and game manipulation. At the time, NCAA President Charlie Baker urged states to remove what the association calls “high-risk” college betting markets.
Not all regulators have agreed with the NCAA on the subject. Most recently, regulators in Missouri rejected the association’s request to ban player prop bets, deciding to keep the markets in place. The Missouri Gaming Commission’s Chair, Jan Zimmerman, said they didn’t have enough information to ban the bets.
Virginia’s proposed legislation takes a middle-ground approach by expanding access to college betting while keeping prop bet restrictions in place.
