Virginia currently only allows college sports betting on out-of-state teams, but that could change under a new proposal.
Delegate Garrett McGuire’s HB 1527 would amend state law to legalize wagers on NCAA Division I Virginia college teams while imposing a 50% tax on operator gross revenue from those bets.
The bill has been introduced but is still awaiting committee referral for discussion.
Next Steps Depend on Virginia Gaming Commission
Even if HB 1527 passes the legislature, its provisions would only take effect after the state establishes a Virginia Gaming Commission or similar agency to oversee gaming statewide.
Regulation in Virginia is currently split. The Virginia Lottery oversees casinos and Virginia sports betting, while the Virginia Racing Commission regulates horse racing gambling, and the Department of Agriculture and Consumer Services manages daily fantasy sports.
Several bills to create a consolidated gaming regulator are advancing. In the Senate, SB 558 was merged into SB 195, which was unanimously approved 15-0 by the General Laws and Technology Committee on Jan. 28 and referred to Finance and Appropriations. A House version, HB 271, is currently under review by the Gaming Subcommittee of the General Laws Committee.
If the gaming commission legislation is enacted, HB 1527’s college sports betting provisions could go into effect, creating a heavily taxed framework to support Virginia’s NCAA Division I athletic programs while maintaining existing player prop restrictions.
Heavy Taxes Proposed for Virginia College Sports Bets
The proposed 50% tax would be more than triple the state’s current 15% rate on online sports betting and would apply only to bets on Virginia college teams.
The push to expand, but heavily tax, Virginia college betting comes as the NCAA and other stakeholders continue to push for tighter restrictions on wagering, particularly on player props. Several states have approved bans on college player prop bets in recent years, and states including New Jersey and Washington are pursuing similar restrictions in 2026.
Virginia already bans college player props, and HB 1527 would maintain that prohibition. Residents would be able to bet on games featuring in-state college teams without betting on individual player stats.
Revenue from the 50% tax would be dedicated to a proposed NCAA Division I Sports Betting Fund, which would support college and university athletic programs across Virginia. Each program would receive a share of the revenue proportional to how much it generates for the fund.
Additionally, the bill would increase funding for problem gambling support, doubling the share of revenue from the general 15% sports betting tax going to the state’s problem gambling fund from 2.5% to 5%. The remainder would continue to flow into the state’s general fund.
