The National Association Against iGaming issued a statement on Feb. 25 opposing the advancement of Virginia’s online casino bill, citing concerns about potential harm to lottery revenues and school funding.
The issue is significant because the Virginia Lottery currently provides substantial financial support for public education in the state. According to Oliver Barrie, spokesman for the National Association Against iGaming, “The vote marks a dangerous step toward allowing 24/7 online casinos across the Commonwealth This legislation would make Virginia only the eighth state to permit iGaming, even though research shows that lottery sales decline by about 5 percent after online gambling is introduced, undermining a revenue stream that returns 25 cents per dollar to public programs. As the Virginia Lottery Director warned last week, this proposal puts at risk the nearly $900 million the Virginia Lottery contributes to public schools each year. Early impact estimates suggest the Commonwealth could lose up to $500 million over the next five years, nearly $100 million per year for schools. In effect, this legislation would defund public education while dramatically expanding 24/7 gambling. While Governor Spanberger has made affordability a top priority, quickly moving to 24/7 online gambling would undermine state and local budgets, making it the wrong choice for Virginia,” according to Barrie as reported by Legal Sports Report.
The statement followed a 9-6 vote in the Senate General Laws and Technology Committee advancing SB 118, which authorizes online casino gaming under Virginia Lottery oversight with a 15% tax on adjusted gross revenue. Barrie referenced research on lottery sales declines post-iGaming and estimates of $100 million annual losses to schools according to Legal Sports Report.
A study using weekly data from New York found that legal sports betting led to a $3.13 decline in lottery ticket sales for every $100 wagered, with an average weekly drop of $11.5 million after mobile betting introduction. This substitution effect reduced overall gambling revenue in jurisdictions with lower sports betting taxes according to Economic Bulletin.
A report on Maryland’s potential legalization of online casino gaming highlighted risks including heightened addiction rates—75% of iGaming participants showed problem gambling versus 22% without experience—and projected losses in brick-and-mortar jobs as well as societal costs from health issues, family disruptions, and crime roughly equaling state revenues according to Morgan State University.
Barrie serves as spokesman for the National Association Against iGaming and focuses on advocacy against online gambling expansion in states like Virginia. He has addressed legislative votes emphasizing transparency and economic consequences such as lottery revenue declines and budget impacts according to Legal Sports Report.
