Despite appearing nearly defeated during a subcommittee hearing last week, Virginia lawmakers moved an iCasino measure forward on Wednesday.
The Virginia Senate General Laws Committee approved several gambling-related bills, including SB 118, which would legalise online casinos. The proposal is linked to companion bills SB 195 and SB 558, aimed at establishing a Virginia Gaming Commission, and would only take effect once that commission is formally created.
Lawmakers also advanced the regulatory legislation on Wednesday. Currently, Virginia’s gambling sector is overseen by three different regulatory bodies.
RG fixes help gain bill support
The move to advance iCasino legislation followed a subcommittee meeting last week where lawmakers raised several responsible gambling concerns, putting the bill’s future in doubt. In response, iCasino sponsor Senator Mamie Locke introduced a substitute version designed to address those issues and secure enough backing to move forward. The updated proposal directs regulators to establish a range of safeguards and initiatives, including advertising standards and identity verification requirements.
Several industry sources say the bill still has a possible path to passage this year, though they caution it faces significant hurdles.
“There’s a lot of politics involved,” one source noted, adding that the Finance Committee — where the bill heads next — will play a critical role.
The source also warned that supporters of legislation regulating skill-based terminal gaming machines may attempt to use the Virginia Gaming Commission proposal as negotiating leverage, which could ultimately derail the iCasino bill.
Meanwhile, the committee also approved SB 129 on Wednesday, a daily fantasy sports measure that would impose a 10% tax on operator revenue and prohibit house-versus-player contests. The Senate is also expected to take up legislation banning credit card deposits for sports betting, after the House overwhelmingly passed HB 515 by a 94–3 vote.
Virginia iCasino push
Locke put forward a similar measure last year but ultimately withdrew it before it reached debate, choosing instead to push for broader conversations on the topic. As part of that effort, the Joint Subcommittee to Study the Feasibility of Establishing the Virginia Gaming Commission conducted several hearings throughout the year.
A number of lawmakers have since emphasized that creating a unified gambling regulator should come before any additional market expansion. Over the past decade, Virginia has already approved both land-based casinos and online sports wagering.
Currently, oversight is split among multiple agencies. The Virginia Lottery Board regulates casinos and sports betting, the Virginia Racing Commission oversees live, historical and advance deposit wagering on horse racing, and the Virginia Department of Agriculture and Consumer Services is responsible for charitable gaming and daily fantasy sports.
Delegate Paul Krizek, who is leading the House version of the regulatory bill, previously told iGB that forming a Virginia Gaming Commission is aimed at improving efficiency rather than adding bureaucracy.
“A single commission would simplify oversight by placing all gaming activities under one authority, with uniform standards and enforcement,” Krizek said. “It would also boost consumer trust by ensuring transparency and fairness across every gaming platform.
“Establishing the VGC would also promote economic growth in the commonwealth by setting clear guidelines that allow small businesses, labor unions, women- and minority-owned companies, and local workers to compete on equal footing.”
According to Virginia Public Radio, creating a centralized gaming regulator is expected to be one of lawmakers’ top priorities this legislative session.
Virginia online casino framework
Under Locke’s proposal, if the Virginia Gaming Commission is not established, oversight of the iCasino market would fall to the Virginia Lottery Board.
Each licensed casino in the state would be permitted to operate up to three online casino platforms, with a $2 million licensing fee required for each platform. Virginia currently has five casinos, although lawmakers advanced legislation on Wednesday that would authorize a sixth.
Among casino operators, Caesars and Boyd Gaming have voiced support for the bill, while Cordish Companies—one of the leading members of the National Association Against iGaming—has opposed it.
The measure would impose a 15% tax on iCasino operator revenue. Of the proceeds, 5% would be directed to the Problem Gambling and Treatment Support Fund, while 6% would be allocated to the Internet Gaming Hold Harmless Fund.
The bill also requires operators to establish live-dealer studios within Virginia. Lawmakers estimate this provision alone could generate more than 1,000 new jobs statewide.
