On Wednesday, Virginia’s Senate General Laws Committee approved a bill to legalize online casinos, moving the proposal forward in the legislative process. The bill, known as SB 118, is linked to the creation of a new regulatory body, the Virginia Gaming Commission (VGC), through additional proposals SB 195 and SB 558. The measure is contingent on the establishment of the VGC and seeks to consolidate the regulatory oversight currently divided among three agencies. The advancement of this bill marks a significant move in Virginia’s gambling landscape as the state seeks to streamline gaming regulation and address responsible gambling concerns.
The progression of the iCasino legislation follows a subcommittee hearing last week where lawmakers voiced reservations regarding responsible gambling measures. Senator Mamie Locke, who sponsors the bill, responded by introducing amendments aimed at strengthening the proposal’s appeal. These changes mandate the future regulator to develop comprehensive responsible gambling policies, including advertising standards and player identification requirements. Despite these amendments, the bill faces a challenging journey, with its next hurdle being the Finance Committee. This committee’s stance will be crucial for the bill’s prospects, as political negotiations continue to shape its path. An industry source indicated that those advocating for regulation of skill-based gaming terminals might use the VGC proposal as a strategic bargaining chip, potentially jeopardizing the iCasino bill.
In tandem with the iCasino bill, the committee also advanced legislation concerning daily fantasy sports—SB 129—which proposes a 10% tax on operator revenue and prohibits contests played against the house. Furthermore, the Virginia Senate is poised to consider a House-passed bill, HB 515, which aims to ban the use of credit cards for sports betting transactions.
Senator Locke’s push for the iCasino bill is not a new endeavor. Last year, she introduced similar legislation but withdrew it to foster further dialogue on the matter. Subsequent hearings by a joint subcommittee reviewed the feasibility of establishing the VGC, underscoring the perceived need for a unified regulatory entity to better manage the expanding gambling sector. Virginia’s gambling landscape has evolved over the past decade, with the legalization of physical casinos and online sports betting. Currently, the Virginia Lottery Board, Virginia Racing Commission, and Virginia Department of Agriculture and Consumer Services each oversee different aspects of gambling activities, from casinos and sports betting to horse racing and charitable gaming.
Delegate Paul Krizek, who backs a House version of the regulatory proposal, has advocated for the VGC, emphasizing that its creation would streamline oversight and enhance consumer protection by establishing uniform standards. This regulatory consolidation is also seen as a means to boost economic opportunities by providing clear guidelines that could foster competition among small businesses and minority-owned firms.
The proposed regulatory framework for iCasinos allows each of Virginia’s five existing casinos to operate up to three online platforms, contingent on paying a $2 million licensing fee per platform. The plan includes a proposal for a sixth casino, which was also advanced by lawmakers. Notably, operators such as Caesars and Boyd Gaming have expressed support for the bill, whereas Cordish Companies, a key member of the National Association Against iGaming, opposes it. The legislation proposes a 15% tax on operator revenues, allocating 5% of the proceeds to the Problem Gambling and Treatment Support Fund and 6% to the Internet Gaming Hold Harmless Fund. Additionally, the bill requires operators to establish live-dealer studios within the state, a move anticipated to create over 1,000 jobs.
As the legislative process unfolds, the establishment of the Virginia Gaming Commission remains a priority, as reported by Virginia Public Radio. The next steps involve further review by the Finance Committee and potential negotiations across both legislative chambers. The outcome will determine the direction of Virginia’s iGaming and broader gambling regulatory environment in the coming months.