On Friday, the West Virginia House of Delegates made significant progress towards legalizing online poker and gambling, as they passed H2934, also known as the West Virginia Lottery Interactive Wager Act, with a vote of 72-22. With online sports betting already legal in the state, this development brings West Virginia closer to the imminent launch of legal online casinos.
The Future of WV online casino gambling
The online gambling bill is currently being sent to the Senate Finance Committee. Insiders anticipate that chairman Craig Blair will promptly include the bill in the agenda, allowing it to be read on the floor three times and ultimately voted on. This timeline ensures that there will be sufficient time left in the session to override a veto, if necessary.
The decision regarding whether Republican Gov. Jim Justice will sign the bill remains uncertain. He has maintained silence on the matter throughout this year’s session. Nonetheless, in 2018, he permitted sports wagering to be legalized without providing his signature.
Up to this point, the inclusion of online gaming in the state’s gambling options has garnered bipartisan backing. Although the Republicans hold the majority in both the House and Senate, the bill has gained substantial support from members of both parties.
Del. Shawn Fluharty, a sponsor of the bill and a staunch advocate for the legalization of online gambling, believes that legalizing it could serve as a means to generate essential revenue from activities that are already commonly practiced in the state.
To the Wheeling Intelligencer, he addressed the topic of online gambling regulation.
The proposed measure aims to enable online gaming, such as the freedom to engage in online poker. Currently, an extensive illicit market exists where individuals play online games through overseas platforms, resulting in no financial gain for West Virginia. Our objective is to reduce this illegal market and generate revenue that is currently flowing out of the state.
During the bill’s debate period on the House floor, he expressed the same sentiments. Fluharty also posted a tweet directed at the 22 individuals who voted against it.
The WV online casino gambling bill
To participate, properties must pay a licensing fee of $100,000 in order to offer interactive wagering. The bill states that the state’s share of revenue would be raised from 10 percent to 15 percent.
According to Fluharty, the previous government estimates indicated that the level would generate a cumulative economic impact of $17.5 million initially, which could potentially increase to $45.3 million by its fifth year.
The inclusion of an additional 5 percent should result in an increase of that number. Furthermore, the legalization of the state’s online lottery sales would be facilitated by the law. The licensing and regulation of online gaming within the state would be overseen by the Lottery Commission.
Potential impact of WV online casino gambling
At present, in West Virginia, there exists a single online betting app, making it challenging to accurately predict the potential revenue that the state could generate.
BetLucky Sportsbook has generated a meager $337,000 in gross revenue since its launch in December, which is significantly lower when compared to the substantial $7.2 million received from live wagering. However, with the impending launch of DraftKings Sportsbook WV and FanDuel Sportsbook, BetLucky’s mobile sports betting revenue is expected to experience a substantial increase. Additionally, it is worth noting that BetLucky currently serves two out of the five sportsbooks in West Virginia.
States that have passed online poker and have combined player pools may face challenges in joining shared liquidity pools due to the Department of Justice’s recent reinterpretation of the Wire Act, despite the state having a population of only 1.8 million.
- New Jersey
- Delaware
- Nevada
Nevertheless, the bill includes provisions that permit the establishment of such agreements in the event that they are deemed legally permissible amidst the anticipated legal conflict that many anticipate will arise regarding this matter.
The bill notes that:
The Legislature intends to grant authorization for interactive wagering within the state and establish agreements with other approved jurisdictions.
Additionally, the legislation seems to permit properties to form partnership agreements with prominent online poker and gambling providers, mirroring the trend observed in the state’s sports betting industry. Such partnerships have played a significant role in shaping the online gambling scene, akin to the successful collaboration between PokerStars and various Atlantic City casinos in New Jersey. It is important to note that these partnerships would still need to obtain approval from the state.
The legislation notes:
Without prior approval from the commission, a management services provider is not allowed to assign, delegate, subcontract, or transfer their duties and responsibilities under a management services contract to a third party. Before offering any services, third parties must first obtain a license as a management services provider under this article.
Approval would require a minimum of 18 votes, with the Senate consisting of 34 members.
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