In early 2025, Virginia lawmakers decided to pause legislative attempts aimed at legalizing internet gaming, despite ongoing debates and significant financial backing from industry advocates in preparation for the upcoming elections. This pause followed the introduction of Senate Bill 827 by Senator Mamie Locke in December 2024. However, after its introduction, Locke requested the bill be set aside in January 2025 to allow more time for comprehensive study of the sector, especially considering Virginia’s brief 30-day legislative session in odd-numbered years. In tandem, Delegate Marcus Simon put forth a companion bill, House Bill 2171, which was also shelved for similar reasons.
During a hearing in January, Locke emphasized the intention behind the bill: to authorize credible and regulated companies to offer internet gaming within Virginia, ensuring operations are conducted within a secure and lawful framework. Yet, she acknowledged the necessity for further examination before proceeding.
Meanwhile, the Joint Subcommittee to Study the Feasibility of Establishing the Virginia Gaming Commission has been addressing the topic. Established in 2023, this subcommittee’s purpose is to assess the viability of forming a new regulatory body dedicated to gambling oversight within the state. A meeting is scheduled for next week, prior to the subcommittee’s dissolution on November 30.
In August, the subcommittee convened to discuss the potential legalisation of iGaming. Reports from Virginia Public Radio highlighted that creating a new regulatory agency might be prioritized in the 2026 legislative session, as lawmakers believe such an agency must be operational before any expansion in gambling activities.
Legalizing iGaming presents an opportunity for Virginia to tap into previously inaccessible revenue streams. During the subcommittee meeting in August, Simon argued that legalisation could effectively counteract illegal and offshore gambling activities. He projected that such a move could yield up to $5.3 billion in additional revenue over five years. Addressing concerns about market saturation, Simon remarked that the state currently earns nothing from these activities, as they occur without legal oversight. “We’re missing out on revenue that’s already being generated elsewhere,” he noted.
As the November elections approach, which could lead to significant changes in the legislature, the Sports Betting Alliance (SBA) has invested more than $2 million in campaign contributions to candidates. According to reports, in Virginia, donations from gaming companies rank second only to those from Dominion Energy this year. Although the SBA, with members including major players like FanDuel and DraftKings, opted not to comment on the ongoing discussions, their financial involvement underscores the importance of the issue.
Details of Locke’s proposed legislation reveal that the Virginia Lottery Board would be tasked with issuing licences for online casinos. A $1 million application fee would be required from operators, alongside a 15% tax on their revenue. Each of Virginia’s five casinos would potentially secure up to three iGaming skins. Proponents of the bill are hopeful that the study group will pave the way for a robust attempt at legalising iGaming in the state by next year.
The Virginia Lottery, however, has expressed reservations about this expansion. A spokesperson highlighted the agency’s current workload, managing five casinos in various stages of development. Opposition also comes from The Cordish Companies, which holds a stake in a Virginia casino and strongly opposes online casino expansions. As a leading member of the National Association Against iGaming, formed in collaboration with Churchill Downs Inc, The Cordish Companies have made their stance clear.
Adding a voice of experience, David Rebuck, the former director of New Jersey’s Division of Gaming Enforcement, addressed the subcommittee in August. He shared insights from New Jersey’s experience, noting that initial fears of job loss and negative impacts on industries surrounding casinos did not materialize. Instead, iGaming proved to be a complementary force, essential for sustaining growth in the state’s land-based casino sector.
Virginia has previously ventured into regulated gaming, legalising sports betting in 2020. Since its launch in January 2021, the state has seen sportsbooks handle $24.7 billion in bets, resulting in $2.4 billion in revenue. This historical context provides a framework for understanding the potential fiscal benefits iGaming could bring to the state, although it also underscores the careful consideration necessary to balance regulation with market growth.
Despite the promising economic forecasts, the debate on iGaming remains multifaceted. Critics argue that the social costs, including potential increases in gambling addiction, warrant serious attention. As elected officials and stakeholders continue to deliberate, the direction Virginia will take remains uncertain. What is evident, however, is the keen interest and substantial financial stakes involved in shaping the future of iGaming in the state. As discussions progress, all parties involved acknowledge the need for a nuanced approach that carefully weighs economic benefits against potential societal impacts. Such balanced deliberations will be crucial as Virginia navigates the evolving landscape of internet gaming.
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