A pair of Virginia bills backed by major sports betting operators were tabled in the House Appropriations Committee this month. SB 1142, which was tabled Monday, would allow sportsbook operators that have operated in the state for more than 12 months to exclude promotions from taxable revenue, up to 1.75% of their monthly handle.
A budget amendment passed last year prohibited mobile sports betting operators from excluding bonuses or promotions from adjusted gross revenue 12 months after they begin sports betting activity in the Commonwealth.
The Sports Betting Alliance, a coalition of BetMGM, DraftKings, Fanatics Sportsbook, and FanDuel, have lobbied for promotional tax deductions to be reinstated in some capacity. All of those operators but Fanatics are operational in Virginia. Their argument for a legislative change is that promotions and bonuses help operators transition bettors from the illegal market onto regulated, legal betting platforms.
Bills not dead
Since the bills were tabled in committee, they aren't technically dead for the 2023 legislative session, which ends on Feb. 25. It's not exactly a great sign for the bills, however, and brief discussion surrounding SB 1142 on Monday wasn't positive.'