Virginia is for lovers of straight bets or 8-team multi-sport parlays. In March of 2020, the Virginia General Assembly and Senate passed SB 384 and HB 896 to bring legal sports betting to the state.

Va Gambling Bill

Virginia casino gambling is not legal. Players in the west part of the state can go to West Virginia or Cherokee, North Carolina for casino action. Those in the east part of Virginia will probably prefer going to Maryland and Delaware.
Virginia gambling laws are strict about some types of gambling, but lax about others. For example, casinos are outlawed, but casino games in a social gaming setting are legal. This page covers everything you need to know about Virginia gambling sites, laws, and regulations. Online Gambling and Virginia Law.
2011 Code of Virginia Title 18.2 CRIMES AND OFFENSES GENERALLY. Chapter 8 Crimes Involving Morals and Decency (18.2-325 thru 18.2-403.4) 18.2-326 Penalty for illegal gambling.
Lawmakers voted to legalize casino gambling in five cities, including Richmond, if voters give their approval in local referendums. The four other cities would be Bristol, Danville, Norfolk.

Out-of-State Tax Credit and Gambling Winnings from Slot Machines

Records/Returns/Payments

05-28-2014

Re:Out-of-State Tax Credit and Gambling Winnings from Slot Machines
Dear *****:
This is in response to your letter to the Department of Taxation ('the Department') regarding the out-of-state tax credit and the gambling winnings that you ('the Taxpayer') received from slot machines. Because this response may be of interest to other taxpayers and practitioners, your letter is being treated as a ruling request under Va. Code § 58.1-204.

FACTS

In 2010 and 2012, the Taxpayer received gambling winnings from slot machines in West Virginia and paid taxes on that income to West Virginia. For the relevant taxable years, the Taxpayer was a resident of Virginia. Pursuant to advice from her tax preparer that the out-of-state tax credit does not generally apply to gambling winnings, the Taxpayer also paid taxes on her gambling winnings to Virginia on her 2010 and 2012 income tax returns. The Taxpayer contends that the out-of-state tax credit should apply to her gambling winnings and that the double taxation of her gambling winnings is unfair and discriminatory.
Va. Code § 58.1-332 A generally allows Virginia residents to claim a tax credit for income taxes paid to another state if the income is earned or business income or gain on the sale of a capital asset. The terms 'earned income' and 'business income' are defined in 23 VAC 10-110-221 for purposes of the out-of-state tax credit. 'Earned income' is defined as wages, salaries, or professional fees and other amounts received as compensation for professional services actually rendered. See 23 VAC 10-110-221 B2. 'Business income' is defined as income derived from an activity which constitutes a business for federal income tax purposes for which federal Schedule C, E, or F must be filed. See 23 VAC 10-110-221 B3.
In addition to this general out-of-state credit, Va. Code § 58.1-342 B grants the Department the authority to enter into an agreement with another state to exempt nonresidents from the Virginia income tax when they receive compensation from working in Virginia if such other state similarly exempts Virginia residents. Virginia entered into such an agreement with West Virginia in 1988 (see enclosed). This reciprocity agreement exempts Virginia residents from the West Virginia income tax and from the requirement to file a West Virginia income tax return with regard to compensation paid in West Virginia. In exchange for this treatment, West Virginia residents are exempt from the West Virginia income tax and filing requirements for compensation paid in Virginia.
Similar to the general credit under Va. Code § 58.1-332 A, the terms of the reciprocity agreement apply only to specified types of income. For purposes of the reciprocity agreement, 'compensation paid in West Virginia' is compensation described in W. Va. Code § 11-21-41, which includes salaries, wages, or compensation for personal services performed in West Virginia.
In this case, the Taxpayer received gambling winnings from slot machines located in West Virginia. The Department has held on numerous occasions that gambling winnings are generally not earned or business income for purposes of the out-of-state tax credit. See P.D. 99-47 (4/2/1999), P.D. 98-159 (10/20/1998), P.D. 95-171 (6/23/1995), P.D. 95-164 (6/22/1995), and P.D. 95-152 (6/12/1995). The Taxpayer's gambling winnings from slot machines are not earned income because the income was not compensation from professional services rendered.
Nor has the Taxpayer demonstrated that her gambling winnings consist of business income. For an individual's gambling activities to be considered a trade or business, the gambling activities must have been pursued full time, in good faith, and with regularity, to the production of income for a livelihood, and not a mere hobby. See C.I.R. v. Groetzinger, 480 U.S. 23 (1987), and P.D. 95-152. Unless the Taxpayer provides facts showing that her gambling activities met the above requirements, the Taxpayer's gambling winnings are not considered business income and do not qualify for the out-of-state tax credit.
It is well-established that the taxation of income by more than one state is not unconstitutional. The Supreme Court held that the Due Process Clause does not prevent the taxation of personal income by more than one state. See Curry v. McCanless, 307 U.S. 357 (1939) and Graves v. Elliott, 307 U.S. 383 (1939). The Supreme Court also held that double taxation alone does not violate the Equal Protection Clause. See Illinois Cent. R. Co. v. State of Minnesota, 309 U.S. 157 (1940), Guaranty Trust Co. of New York v. Commonwealth of Virginia, 305 U.S. 19 (1938), and Ft. Smith Lumber Co. v. State of Arkansas ex rel. Arbuckle, 251 U.S. 532 (1920). Therefore, there is no legal authority preventing Virginia and West Virginia from imposing taxes on the Taxpayer's gambling income.

CONCLUSION

For the foregoing reasons, the Taxpayer will not be eligible to receive the out-of-state tax credit for gambling winnings from slot machines located in West Virginia unless she demonstrates that her gambling activities constituted a trade or business for federal income tax purposes. The Code of Virginia provisions and regulations cited, along with other reference documents, are available online in the Laws, Rules & Decisions section of the Department's website, located at www.tax.virginia.gov. If you have additional questions, please contact ***** in the Office of Tax Policy, Policy Development Division, at *****.

- - - - Sincerely,

Craig M. Burns
Tax Commissioner

Introduction to Virginia Slot Machine Casino Gambling in 2020

Virginia slot machine casino gambling does not exist … yet. Last year, the state legislature and Governor approved three new casinos, but each awaits approval by voters in their local municipalities.

This post continues my weekly State-By-State Slot Machine Casino Gambling Series, an online resource dedicated to guiding slot machine casino gambler to success. Now in its third year, each weekly post reviews slots gambling in a single U.S. state, territory, or federal district.

Keep Reading … Or Watch Instead!

Or … Listen Instead!

Subscribe to my Professor Slots podcast at Apple Podcasts Google Podcasts Spotify Amazon Music Amazon Audible Gaana Stitcher Pandora iHeart Radio Tune-In SoundCloud RadioPublic Deezer RSS and everywhere else you find your podcasts!

Relevant Legal Statutes on Gambling in Virginia*

The minimum legal gambling age in Virginia depends upon the gambling activity:

Land-Based Casinos: 21 (expected)
Poker Rooms: Not available
Bingo: 18
Lottery: 18
Pari-Mutuel Wagering: 18

On March 22, 2019, Virginia Governor Ralph Northam signed State Bill 1126 into law. This state law does not authorize casinos in Virginia. However, in effect, it establishes

A Commission to study casino gaming regulations
A framework for the Lottery Board to oversee gaming
How eligible cities conduct a local casino approval referendum

Details of the state bill suggest eligible cities are Danville, Bristol, and Portsmouth. Regarding timing, the city of Bristol has scheduled their referendum for November 2020.

*The purpose of this section is to inform the public of state gambling laws and how the laws might apply to various forms of gaming. It is not legal advice.

Slot Machine Private Ownership in Virginia

It is legal to own a slot machine privately in the Commonwealth of Virginia.

Gaming Control Board in Virginia

The framework included in the 2019 passing of Virginia State Bill 1126 includes giving oversight of sports betting regulations to the Virginia Racing Commission. This expansion of its responsibilities is in addition to its current responsibilities overseeing horserace pari-mutuel wagering.

The Virginia Lottery Board will obtain responsibility for casino gambling, but specific gaming regulations are not yet available. Establishing these gaming regulations is currently underway by Virginia’s Joint Legislative and Review Commission.

Casinos in Virginia

There are currently no casinos with slot machines in Virginia.

Commercial Casinos in Virginia

There are currently no commercial casinos in Virginia. However, three eligible cities may have casinos after approval by voters. The Bristol referendum occurs first in November 2020.

These three potential casino locations include the cities of:

Danville located 144 miles southwest of Richmond near North Carolina
Bristol located 113 miles northeast of Knoxville near Tennessee
Portsmouth located 97 miles southeast of Richmond near Chesapeake

Tribal Casinos in Virginia

The Pamunkey Indian Tribe gained federal recognition in 2015 and is pursuing establishing a tribal casino. They intend to have improved educational and employment opportunities to ensure the long-term success of the tribe.

At this time, the tribe is searching for a suitable site for a casino resort located within Virginia. Potential sites for a tribal casino now include Richmond and Norfolk.

Continual and effective opposition of tribal casinos in Virginia comes from the casino operator of MGM National Harbor in nearby Maryland.

Other Gambling Establishments

As an alternative to enjoying Virginia slot machine casino gambling, consider exploring casino options in a nearby state. Bordering Virginia is:

North: Maryland Slots and District of Columbia Slots
East: The Atlantic Ocean
South: North Carolina Slots and Tennessee Slots
West: Kentucky Slots and West Virginia Slots

Each of the links above will take you to my blog for that neighboring U.S. state to Virginia.

Colonial Downs Racetrack offers slot-like historical horse racing (HHR) electronic gaming machines. This horseracing facility is in the eastern part of Virginia located 30 miles east of Richmond.

Our Virginia Slots Facebook Group

Are you interested in sharing and learning with other slots enthusiasts in Virginia? If so, join our Virginia slots community on Facebook. All you’ll need is a Facebook profile to join this closed Facebook Group freely.

There, you’ll be able to privately share your slots experiences as well as chat with players about slots gambling in Virginia. Join us!

Payout Returns in Virginia

As Virginia casinos await voter approvals, the state legislature is working to establish slot machine gaming regulations. Therefore, it is not yet known if Virginia will offer theoretical payout limits or return statistics.

Summary of Virginia Slot Machine Casino Gambling in 2020

Virginia slot machine casino gambling does exist but is now on the horizon. Commercial casinos are awaiting approval by voters in Bristol, Danville, and Portsmouth.

Va State Code Gambling Winnings

Annual Progress in Virginia Slot Machine Casino Gambling

In the last year, there has been no change to the slots gaming industry in Virginia. However, potential changes are imminent.

constiosencon1985.netlify.com

Va State Code Gambling