Virginia Lawmakers To Begin Online Casino Legalization Debate

Virginia lawmakers are preparing to discuss the potential legalization of online casino gambling, marking a significant step toward expanding the state’s gaming industry. Senator Mamie Locke has introduced Senate Bill 827, which outlines the framework for regulating online casinos in the state.

The bill, pre-filed in December 2024, has been referred to the Committee on General Laws and Technology for review. This development sets the stage for debates during the legislative session starting January 8, 2025.

The proposed legislation would permit online casino gambling under the oversight of the Virginia Lottery Board, which would be responsible for regulating the industry. If passed, the measure would allow Virginia’s four licensed casino operators to apply for licenses to offer online gaming platforms:

• Caesars Virginia

• Golden Eagle Corp.

• Hard Rock Bristol

• Rivers Casino Portsmouth

Each operator could establish up to three online skins, providing flexibility and variety in gaming options.

Operators seeking licenses would pay a $1 million application fee, with revenues from online gambling taxed at 15%. The tax allocation would be split as follows:

• 2.5% directed to responsible gambling initiatives

• 97.5% contributed to the state’s general fund

This structure reflects an effort to balance industry growth with the promotion of safe gambling practices and economic benefits for Virginia.

Virginia’s foray into online casino discussions comes on the heels of its successful sports betting market, which launched in 2021. Since legalization in 2020, the state’s sportsbooks have processed $19.2 billion in wagers, generating $1.9 billion in operator revenue and $224.2 million in state tax contributions.

Major operators have helped establish Virginia as a thriving market for sports betting, including:

• DraftKings

• FanDuel

• Betr

• Sporttrade

The proposed online casino legislation follows a national trend toward expanding iGaming, although such efforts have met resistance in some states. Currently, only seven states have legalized online casinos. Industry advocates are hopeful that more states, including Virginia, will join their ranks, particularly as the National Council of Legislators from Gaming States continues to refine model iGaming legislation to guide state-level efforts.

Virginia’s move is part of a broader push seen in states like Louisiana, Maryland, and Illinois, where lawmakers are exploring similar measures. In Illinois, Governor JB Pritzker is considering online gambling as a potential revenue stream to address a $3 billion budget shortfall.

While challenges remain, the growing interest in iGaming suggests that states are recognizing its potential to boost revenue and meet changing consumer preferences.