Bill to allow betting on state college games introduced in Virginia's General Assembly

A bill introduced in the Virginia State General Assembly seeks to introduce a significant change in how citizens engage in sports betting. Senate Bill 124, sponsored by Senator Schuyler VanValkenburg, D-Henrico, aims to allow betting on college games, which is currently banned in the state.

Although sports betting is legal in Virginia, betting on its colleges’ sporting events is forbidden. Senate Bill 124 aims to change this restriction, allowing bets on teams such as the Virginia Tech football team or the University of Virginia basketball team. The window for passing SB 124 is limited, as the Virginia legislative session ends on March 9th.

Some lawmakers have expressed concerns the bill would leave college athletes susceptible to bribes and result manipulation. However, VanValkenburg argues that legalizing and regulating betting is safer, given that people are already betting on these games through illegal means or from other states.

“You can ban it, but people are still going to do it," VanValkenburg said, as per the Richmond Times-Dispatch. "The fear that this is going to corrupt or put pressure on Virginia athletes, that’s already there. We’re already living in that world.”

Since the legalization of sports betting in Virginia in 2021, the industry has seen significant growth. In November, residents bet $639 million, a record for a single month.

VanValkenburg believes that athletes already face pressures to accept bribes, especially since betting on Virginia's collegiate games is allowed in neighboring states. He also noted that some legal bets in Virginia already indirectly involve state college teams.

If a person bets on the University of North Carolina to win the ACC basketball championship, he or she has bet against the University of Virginia and Virginia Tech, the lawmaker points out.

However, the bill would not allow all types of betting on Virginia colleges, continuing to prohibit proposition bets, or prop bets. This type of bet involves placing money on specific outcomes, such as a quarterback throwing three touchdowns in a game.

Virginia colleges generally do not support betting on their teams. In 2020, presidents from several colleges called for a ban on such betting. Other institutions have not expressed an official stance on the bill.

Rick Hamlin, former basketball coach at Trinity Episcopal School, notes that Division I athletes have a lot to lose by accepting bribes. They risk their team position and, consequently, a potential professional career.

The players who are more susceptible to bribes are those at lower levels of college athletics, the coach said, where there’s less attention and less money to be made from their name, image and likeness.

Still, VanValkenburg advocates for the legalization and monitoring of betting for greater safety and transparency. He highlights that there are many ways to already bet on Virginia colleges, which calls for further regulation.

Currently, the sports betting market in Virginia is dominated by a few companies. Although 17 companies have obtained licenses to operate, FanDuel (40%), DraftKings (28%), and BetMGM (12%) control about 80% of the market.

Virginia legalized online and in-person sports betting in 2020, with FanDuel taking the state's first legal sports bet in January 2021. In 2022, the state enacted a budgetary change to limit promotional deductions by operators, boosting tax revenues by over 60%.

Some sports betting companies with smaller market shares have been withdrawing from Virginia. For instance, WynnBet ceased its operations in the state last year, and Unibet plans to close its doors in March.

Most sports betting in Virginia occurs through mobile apps, but a few portion is also conducted in person at casinos. Virginia voters approved the development of casinos in four cities.

Rivers Casino, located in Portsmouth, opened its doors a year ago. In Bristol, a temporary casino is already in operation, and a new permanent building, managed by Hard Rock, is expected to open this summer.

Danville followed a similar path, opening a temporary casino while awaiting the completion of its permanent structure, which will be managed by Caesars and is scheduled to open at the end of this year. Additionally, the Pamunkey tribe is developing plans for the HeadWaters Resort & Casino, near Harbor Park, although construction has not yet begun.