Virginia has already tightened up the tax rules applied to online sports betting sites in the state, but there may be interest in toughening them even further.

A bill introduced by Democratic Sen. Jeremy McPike would further limit the deductions licensed operators can apply to their taxable revenue from sports betting-related promotions to no more than 2.5% of total internet wagers handled each month between July 2023 and July 2024. The ceiling would then drop to 2.25% of monthly handle between July 2024 and July 2025, to 2% between July 2025 and July 2026, and then to 1.75% from then on.

The proposals in McPike’s bill would be in addition to changes made during a budget process in Virginia in 2022, which made it so operators can only deduct free bets and other promotions for a year rather than forever.