Virginia politicians seeking to legalize in-state college sports betting for the tax revenue

Only collegiate sports betting on out-of-state teams is presently permitted in Virginia, but a novel approach put forth by a new bill might change that.

Delegate Garrett McGuire’s HB 1527 would change state law to authorize wagering on NCAA Division I Virginia college teams while taxing operators at 50% of the gross revenue they make on those bets. That in-state college sport-specific tax rate would more than triple the state’s current 15% tax rate on internet sports betting, and would be enforced on in-state college sports bets instead of the 15% rate.

Although the measure has been introduced, it has not yet been referred to a committee for final consideration.

Virginia college athletics would receive all tax income. The attempt to expand but severely tax Virginia college betting comes at a time when the NCAA and some other stakeholders continue to advocate for more limits on wagering on NCAA events. Several states have approved bans on player prop bets for collegiate sports during the previous couple of years. Efforts to limit collegiate player props are on the legislative agenda in states such as New Jersey and Washington this year.

It’s worth mentioning that Virginia already forbids NCAA player props. HB 1527 shows that the prohibition would remain in force even if this measure were enacted, meaning that Virginia citizens would be permitted gamble on games featuring in-state college teams,

The measure further says that every single dollar of the money from that 50% tax would go towards a to-be-established NCAA Division I Sports Betting Fund and be utilized for the sole purpose of funding Division I college and university sports programs in the state.

Each program would get a share of the revenue directly equal to the amount of money it generates for the fund. Meanwhile, the law would also quadruple the percentage of money from the standard 15% tax rate on sports betting that goes into a specific problem gambling support fund, from 2.5% to 5%. The remaining bulk of the earnings goes into the state general fund.

Only the passage of Gaming Commission legislation would bring about change. Another important section specifies that, even if the bill passed the legislature, its amendments would only become effective if the state passes and enacts legislation to form a Virginia Gaming Commission or other similar entity for the purposes of governing gaming in the state. If such a bill did pass, this college sports betting act would become effective in accordance with the requirements of the other legislation.

Other gambling initiatives in Virginia this year, such as a campaign to legalize online casino, also feature a provision that makes them contingent on a new consolidated gambling regulator being created. Regulation of gambling in Virginia is currently split between several entities; the Virginia Lottery oversees casinos and sports betting, the Virginia Racing Commission regulates horse racing gambling and the Virginia Department of Agriculture and Consumer Services is in charge of daily fantasy sports.

Multiple bills to establish a gaming commission are now advancing through the Virginia state legislature. Two independent Senate measures have been consolidated, with SB 558 rolled into SB 195. That proposal was unanimously adopted by a 15-0 vote in the General Laws and Technology Committee.

Source:

“Virginia bill would legalize in-state college sports betting to tax it heavily” , Tom Nightingale, sbcamericas.com, January 30, 2026.