- Virginia lawmakers propose lifting the ban on betting for in-state NCAA Division I college teams through House Bill 1527.
- The bill would impose a 50% tax on operator revenue from in-state college bets, more than triple the current 15% rate on other sports wagers.
- All tax revenue would fund Virginia college athletic programs directly, with each school receiving money based on how much betting activity it generates.
RICHMOND, Va. — A new proposal in the Virginia legislature could open the door for betting on local college teams, but it comes with a catch. Operators would face one of the steepest tax rates anywhere in the nation.
Delegate Garrett McGuire introduced House Bill 1527 on January 29, seeking to overturn Virginia’s existing ban on placing bets on the state’s 14 NCAA Division I programs. Present regulations allow residents to wager on college sports across the country, yet block bets on teams like Virginia Tech, the University of Virginia, James Madison, and other schools located within the state.
The proposed legislation would change that dynamic entirely. Bettors would receive access to typical wagers including moneylines, point spreads, and totals on games featuring Virginia schools. The law, however, upholds the state’s current prohibition on proposition bets, which is consistent with recent NCAA efforts to do away with player props in response to integrity concerns brought up following a January point-shaving controversy.
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A Steep Price for Operators
What sets this proposal apart is its financial structure. HB 1527 would levy a 50% tax particularly on earnings from in-state college wagers, whereas Virginia sportsbooks are now subject to a 15% tax rate on gross revenue from sports betting. That rate is among the highest in any state where sports betting is permitted and more than triples the regular tax.
The revenue wouldn’t pass to Virginia’s general fund. Rather, every dollar raised would go straight into a recently established NCAA Division I Sports Betting Fund that would only be used to assist the state’s collegiate athletic teams. Popular programs would receive greater payouts since each program would be compensated according to the amount of betting action it generates.
The bill confronts a crucial contingency: it would only take effect if Virginia established a Gaming Commission to oversee all gambling activity. Currently, several state entities are in charge of regulation. Legislation to create such a panel is proceeding through both chambers, with Senate Bill 195 passing committee unanimously on January 28.
With December’s legal sports betting handle reaching $711 million statewide, the potential market for in-state college betting represents a substantial opportunity if operators decide the 50% tax rate is workable.
