Virginia lawmakers early this year shelved bills that had been introduced to legalise iGaming in the state, but discussions have continued while industry advocates have poured money into the upcoming legislative election.
Senator Mamie Locke introduced Senate Bill 827 in December 2024, but she requested the legislation be put on hold in January to allow for more time to study the industry. Virginia was in a shortened odd-year session that lasted 30 days. Delegate Marcus Simon also tabled his companion bill, House Bill 2171, in January.
“This bill is designed to authorise reputable, regulated companies to offer internet gaming to Virginians within a safe and legal market,” Locke said during a January hearing. “However, after introducing this bill, we have decided that it requires further study on this issue.”
While the legislation is on hold, the Joint Subcommittee to Study the Feasibility of Establishing the Virginia Gaming Commission has discussed the issue. The legislature created the subcommittee in 2023 to examine the potential of creating a new gambling regulator in the state. The subcommittee plans to meet next week. It will sunset on 30 November.
It met in August and touched on potential iGaming legalisation. Virginia Public Radio recently reported the creation of a new regulatory agency could be a top priority during the 2026 session, as lawmakers indicated the agency would need to be in place before any further gambling expansion.
Expansion could create new revenue for the state
Simon told the subcommittee in August that legalisation would combat illegal and offshore gambling in the state. He said it would generate up to an estimated $5.3 billion in new revenue in a five-year period and he also addressed potential cannibalisation concerns.
“This is revenue not getting accessed by the commonwealth, we’re getting zero percent,” Simon said. “And this doesn’t create the online gambling market. They’re already doing it.”
With the legislature potentially seeing a shake-up from the November election, the Sports Betting Alliance has contributed more than $2 million to candidates this year, according to Virginia Public Radio. It reported that campaign contributions on behalf of gaming companies are second highest in the state this year, behind those from Dominion Energy.
The SBA, which counts major operators such as FanDuel and DraftKings among its members, declined to comment for this story.
Virginia iGaming bill details
Locke’s bill would allow the Virginia Lottery Board to issue online casino licences. Operators would pay a $1 million application fee with a 15% tax on revenue.
Each of the state’s five casinos could apply for up to three iGaming skins.
The sponsors hoped the study group could help lay out a serious Virginia iGaming legalisation attempt next year.
The Virginia Lottery has previously objected to the expansion. A representative said the agency is overburdened with five casinos in various stages of development. The Cordish Companies, which has rights to a casino in Virginia, is a chief opponent of online casino expansions in the US. It is a lead member of the National Association Against iGaming. The Cordish Companies and Churchill Downs Inc formed the group earlier this year.
David Rebuck, former director of the New Jersey Division of Gaming Enforcement, appeared before the subcommittee in August and said fears of cannibalisation from when the Garden State legalised online casinos did not pan out.
“There were fears casino workers could lose their jobs and that the supporting industries around casinos would suffer,” Rebuck said. “iGaming demonstrated itself to be complementary to the existing forms of gaming and critical to sustaining the growth of the land-based casinos.”
Virginia legalised sports betting in 2020. Since launching in January 2021, sportsbooks have taken $24.7 billion in wagers, generating $2.4 billion in revenue.
Lawmakers put their Virginia iGaming bills on hold this year to allow more study while the state examines creating a new gaming commission.