After extending its session, the Virginia General Assembly passed legislation Sunday allowing casinos in five cities and statewide sports gambling.
Both bills had bipartisan support and are expected to be signed by Gov. Ralph Northam.
The casino gambling bill permits the construction of casinos in Richmond, Danville, Norfolk, Bristol and Portsmouth if a referendum passes in the locality on the 2020 general ballot. The Virginia Lottery would be in charge of regulating the casinos.
The legislation passed after the House and the Senate worked out their disagreements on the tax structure. The compromise bill imposes a tax that ranges between 18 percent and 30 percent, which would depend on the amount of money taken in by the casino.
There would be an 18 percent tax on the first $200 million of adjusted gross receipts of an operator, a 23 percent tax on adjusted gross receipts between $200 million and $400 million and a 30 percent tax on gross receipts that exceed $400 million.
The amount of tax revenue that would go to the city would be on a similar ranged scale: 6 percent on the first $200 million of adjusted gross receipts, 7 percent on adjusted gross receipts between $200 million and $400 million and 8 percent on adjusted gross receipts that exceed $400 million.
If a gambling establishment is operated by a Virginia Indian tribe, then one percent of the tax revenue would go to the Virginia Indigenous People’s Trust Fund. Eight-tenths of one percent goes to the Problem Gambling Treatment and Support Fund and two-tenths of one percent goes to the Family and Children’s Trust Fund
The remaining revenue would go to the state’s general fund.
The sports gambling bill also came out of a conference committee after delegates and senators hashed out disagreements about whether Virginians should be allowed to bet on college games that include Virginia-based sports teams. The compromise bill prohibits such bets.
