Virginia lawmakers advance online casino proposal
Virginia lawmakers moved forward with an online casino proposal on Wednesday, breaking a stalemate that had stalled progress during a subcommittee hearing last week.
The Senate General Laws Committee advanced several gambling-related measures, including Senate Bill 118, which would legalise online casinos. The bill is tied to Senate Bills 195 and 558, which propose the creation of a Virginia Gaming Commission. Until that commission is established, the Virginia Lottery Board would serve as the regulatory authority.
Currently, the state’s gambling industry is overseen by three separate agencies: Virginia Lottery Board, Virginia Lottery Board, and Virginia Department of Agriculture and Consumer Services (VDACS).
Responsible gaming concerns
The bill’s sponsor, Sen. Mamie Locke, introduced a substitute version to address concerns raised during last week’s subcommittee meeting about responsible gambling. Her revisions gained enough support for the measure to pass. The proposal requires regulators to implement protections such as advertising guidelines and player identification requirements, the use of player data, and automated triggers to detect risky gambling behaviour.
In addition, the plan would implement a three-phase intervention plan, including making an operator to communicate about responsible gaming resources, showing video tutorials on available support programmes, and providing access to a responsible gaming professional for at-risk players.
Support and opposition
Proponents argue that legalising iGaming would generate new revenue for Virginia. Opponents, however, warn that online casinos could undermine the state’s retail casino industry. The committee ultimately advanced Locke’s bill by a 9–6 vote, with Chairman Jeff McPike voting in favour despite being absent from the earlier subcommittee session. Senators Adam Ebbin and Bryce Reeves opposed the measure.
Industry impact
Under the proposal, each casino in Virginia could operate up to three online platforms, with a $2 million licensing fee per platform. The state currently has five casinos, and lawmakers recently advanced a proposal for a sixth.
Major operators like Caesars and Boyd Gaming support the legislation, while Cordish Companies, a member of the National Association Against iGaming, remains opposed. Locke’s bill also requires operators to establish live-dealer studios within Virginia, a move projected to create more than 1,000 jobs.
Taxation and revenue projections
Recent legislation reflects a broader national trend toward expanding regulated online gambling as a means to increase state revenue while enhancing player protections.
As of January 2026, measures like House Bill 161 (a bill that aims to legalise online casino gaming (iGaming) and poker) and Senate Bill 827 (a bill proposed authorising the Virginia Lottery to regulate internet gaming) propose a 15 percent tax on the adjusted gross revenue of online casino gaming.
According to the Virginia Legislative Information System, part of the Division of Legislative Automated Systems, these bills aim to establish a clear framework for taxation and oversight of digital gaming activities.
Early fiscal projections indicate the potential for hundreds of millions of dollars in annual tax revenue, with funds designated for education and public programmes. If enacted, Virginia’s model could serve as a benchmark for other states considering similar legislation. The legislation now heads to the Senate Finance and Appropriations Committee for further consideration.
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