The public comment period on the proposed rules and regulations of sports betting in Virginia ended last Wednesday and some of the initial policies have received opposition from major gambling operators.
During the review process, major platforms like DraftKings and FanDuel have taken issue with some of the consumer protection rules that officials are proposing. One particular regulation that has received negative feedback is the one that requires the betting platforms to provide players with information that can help them make “informed decisions about their gambling”. These information include how the odds were calculated, odds of winning a bet, and the handle and payout amounts.
Other Issues That Drew Negative Reactions
According to the gambling operators, no other sports betting state in the United States has imposed a similar requirement. FanDuel in particular, noted that it recently offered 24 different bets on an NBA playoff game and that had nearly 300 potential outcomes and even more possible parlay wagers. Presenting the required information under Virginia’s proposed Sports Bettors Bill of Rights in real time will cause logistical problems on both processing power and screen space.
Other issues that drew negative reactions include the process of allowing players voluntarily ban themselves from sports betting for two years, five years, or for life if they feel they are losing too much money or if they feel they are getting addicted to gambling. The regulations also requires gambling operators to submit all marketing and advertising materials to the Lottery for pre-approval. The advertising rules also prohibit them from targeting minors and ads that violate “good taste” are disallowed.
Additionally, there is a proposed rule that bans betting on the Olympics, something which was not included in the legislation of the General Assembly. For this issue, the operators argued that excluding some sports evets would defeat the purpose of the legislation. Several companies also requested for a more lenient advertising policy where they won’t need a formal sign-off in advance.
Laying The Foundation of Virginia Sports Betting
The public review is being conducted by the Lottery to lay the foundation of the sports betting rules in Virginia. The outcome of the review will determine how quickly or not sports betting will launch in the state and what the bettors expect to see in the betting apps when they are officially launched. If all goes well, sports betting is expected to start next year in Virginia.
This year, the General Assembly passed a legislation authorizing the Virginia Lottery to hand out between four to 12 sports betting licenses in the state. Sports betting in Virginia will start online, largely via sports betting apps. However, it could eventually expand to the brick and mortar casinos being planned in different cities and the Colonial Downs operated Rosie’s gambling places.
The Virginia Lottery Board is expected to meet on Tuesday to vote on the new rules on sports betting. Once the rules and regulations are in place, the Lottery will begin accepting applications for sports betting licenses next month. Sports betting is expected to bring in an annual $55M in state tax revenues.