Virginia’s latest biennial budget accomplished what legislation could not this year: an end to unlimited promo deductions for VA sportsbooks.
A bill failed to gain traction in the 2022 legislative session to limit Virginia online sportsbooks to just 12 months of promotional deductions instead of keeping it uncapped.
The language instead made its way into the biennial budget and went into effect July 1, Virginia Lottery Deputy Director of Gaming Compliance Gina Smith said at Wednesday’s board meeting.
That means the operators that launched in Virginia before June 30, 2021, are now on the hook to pay taxes on those promotional dollars. Virginia is the second state to cut promo deductions this year after Colorado‘s legislature passed a change in May.