Virginia Statewide Rule

Virginia Sports Betting Permit and Tax Law

Significant RestrictionsApplies statewide across Virginia (2026)

Key Facts

Permits authorized: No fewer than 4, no more than 12 statewide
Application fee: $50,000 nonrefundable, per principal
Issuance fee: $250,000 before permit is issued
Tax rate: 15% of adjusted gross revenue
Minimum bettor age: 21 years old
Regulator: Virginia Lottery Director
Application decision: Within 90 days of filing

Last verified: August 21, 2026

Summary

Virginia legalized online sports betting in 2020 under Code § 58.1-4032, but caps competition: the Virginia Lottery's Director issues no fewer than four and no more than 12 permits statewide, each requiring a $50,000 nonrefundable application fee per principal plus $250,000 before issuance. Permit holders pay a 15 percent tax on adjusted gross revenue, and bettors must be at least 21.

Submit an application to the Director, on forms prescribed by the Director, containing the information prescribed in subsection B; and Pay to the Department a nonrefundable fee of $50,000 for each principal at the time of filing to defray the costs associated with the background investigations conducted by the Department. ... The Director shall issue no fewer than four and no more than 12 permits pursuant to this section; however, if an insufficient number of applicants apply for the Director to satisfy the minimum, this provision shall not be interpreted to direct the Director to issue a permit to an unqualified applicant.

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Full Breakdown

Article 2 of Chapter 40, Title 58.1 governs Virginia sports betting, administered by the Virginia Lottery's Director. Under § 58.1-4032(A), an applicant submits a form to the Director containing background information, prior sports-betting experience, internal controls, gambling-prevention history, and suspicious-activity procedures, and pays a nonrefundable $50,000 fee per principal to cover the Department's background investigation, which includes a credit history check, a tax record check, and a criminal history records check under § 58.1-4032(C). The Director must decide an initial application within 90 days of receipt under § 58.1-4032(E).

If approved, the operator owes an additional $250,000 before the Director actually issues the permit, per § 58.1-4032(J). Section 58.1-4032(D)(2) caps the program itself: the Director 'shall issue no fewer than four and no more than 12 permits,' though an insufficient applicant pool doesn't force a permit on an unqualified applicant just to hit the floor. Permits must be renewed under § 58.1-4033 and can be suspended or revoked with civil penalties under § 58.1-4035. Once licensed, permit holders owe a 15 percent tax on adjusted gross revenue, gross wagering revenue minus winnings paid out, promotional bonuses, and uncollectible gaming receivables, under § 58.1-4037(A), with the proceeds distributed per § 58.1-4038.

Betting can occur only through a licensed 'sports betting platform' (an app or website) or a 'sports betting facility' inside a licensed casino, as defined in § 58.1-4030. Wagering on individual Virginia college athletes' performance and certain youth and high school events stays off-limits under § 58.1-4039, and only bettors 21 or older may participate.

Violations & Penalties

Knowingly accepting, redeeming, or offering to accept a sports bet from anyone under 21 is a Class 1 misdemeanor under § 58.1-4040. Making premises available for sports betting without a permit draws a civil penalty up to $1,000 per day per individual who places a bet, and advertising an unpermitted sports-betting operation carries a penalty up to $10,000 per violation: both enforced by the Director under § 58.1-4042(B).

Frequently Asked Questions

How many sports betting permits does Virginia issue?

State law caps the program at no fewer than four and no more than 12 permits under Code § 58.1-4032(D)(2). The Director of the Virginia Lottery won't force a permit on an unqualified applicant just to reach the four-permit floor, so the actual number in force depends on how many applicants clear the background investigation.

How much does a Virginia sports betting permit cost?

Applicants pay a nonrefundable $50,000 fee per principal when filing, which covers the Department's credit, tax, and criminal history background checks under § 58.1-4032(A) and (C). If the application is approved, the operator owes an additional $250,000 before the Director issues the permit, under § 58.1-4032(J).

What happens if someone under 21 places a sports bet in Virginia?

Knowingly accepting or redeeming a sports bet from, or offering to accept one on behalf of, a person under 21 is a Class 1 misdemeanor under Code § 58.1-4040. The statute reaches both the person taking the bet and anyone who offers to facilitate it for an underage bettor.

How is Virginia sports betting revenue taxed?

Permit holders pay a 15 percent tax on adjusted gross revenue, gross wagering receipts minus winnings paid to bettors, promotional bonuses, and uncollectible receivables, under Code § 58.1-4037(A). The Virginia Lottery's Director collects the tax, and proceeds are distributed as set out in § 58.1-4038.

Sources

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