Following unexpected reversals on both the Senate and House floors, Virginia’s effort to legalise online casinos remains in play, with legislation advancing in each chamber.
The Virginia Senate first rejected SB 118 on Monday by a narrow 20–19 vote. Hours later, however, lawmakers reconsidered and approved the measure in a 19–17 vote. The shift came after Senator Schuyler VanValkenburg, who had initially voted against the bill, requested a motion to reconsider. During the subsequent vote, VanValkenburg and two other senators who previously opposed the measure — Bill DeSteph and Stella Pekarsky — abstained.
In the Virginia House of Delegates, Delegate Marcus Simon’s companion proposal, HB 161, initially failed on Tuesday in a 46–49 third-reading vote. Less than an hour later, delegates reversed course, passing the bill by a decisive 67–30 margin following a reconsideration.
Tuesday marked the deadline for bills to clear their chambers of origin. While minor differences exist between the Senate and House versions, they are limited. Should neither bill pass both chambers in its current form, a conference committee may reconcile the proposals into a final version capable of securing approval.
When would Virginia online casinos start?
The Senate revised its version of the legislation to include an effective date of 1 July 2027. Meanwhile, the House proposal requires approval by the Legislature again next year. Delegate Marcus Simon’s bill sets a 15% tax rate, lower than the Senate’s proposed 20%.
Senator Mamie Locke’s SB 118 had earlier faced uncertainty this session but advanced last month after the General Laws Committee added enhanced responsible gambling provisions.
Locke argued that regulating online casinos would help “reduce Virginia’s growing illegal iGaming market.” However, several lawmakers voiced opposition, raising concerns about problem gambling and addiction.
Industry stakeholders expressed optimism over the weekend that the expansion measures would clear key hurdles. Sources also indicated that progress on online casino legislation was linked to a separate proposal establishing a Virginia Gambling Commission, which passed on Monday.
Virginia Public Radio identified the creation of a unified regulator as one of lawmakers’ primary objectives this session. The administration of Governor Abigail Spanberger likewise endorsed the move, citing the need for streamlined oversight.
“Our current patchwork system is inefficient,” said Secretary of Agriculture and Forestry Katie Frazier. “It leaves gaps in oversight, complicates consumer protection, limits reliable data collection, and makes it harder to ensure fair and responsible gaming. Governor Spanberger remains concerned about expanding gaming without first creating a single regulatory body with clear authority, uniform standards, and strong enforcement powers.”
At present, the Virginia Department of Agriculture and Consumer Services regulates charitable gaming and daily fantasy sports.
Path to Virginia online casino Senate passage
Senator Mamie Locke introduced a proposal to legalise online casinos last year but later withdrew it to encourage broader debate. Subsequently, a legislative subcommittee conducted hearings on the potential creation of a Virginia Gaming Commission.
Since that time, several lawmakers have emphasized the need for a unified gambling regulator before pursuing additional gaming expansion.
Over the past decade, Virginia has authorised land-based casinos and online sports betting. Alongside horse racing and daily fantasy sports (DFS), these gambling activities are currently overseen by three different regulatory bodies.
Should gambling expansion advance without a companion bill establishing a Virginia Gaming Commission, responsibility for drafting regulations for the iCasino sector would fall to the Virginia Lottery. The framework would allow existing casino operators in the state to obtain online casino licences. Virginia is home to five casinos.
Under the proposal, a five-year licence would require a $500,000 fee, with renewals set at $250,000. Each licence holder could operate up to three online platforms, with each platform subject to a $2 million fee.
The Joint Legislative Audit and Review Commission projects that online casino revenue in Virginia could reach $845 million by fiscal year 2032.
