Virginia lawmakers have taken a major step toward legalizing online casino gaming after both the state Senate and House of Delegates approved measures establishing a regulatory framework for internet-based iGaming. The legislation, passed during last-minute sessions ahead of crossover deadlines, aims to make internet slots, blackjack, and other casino games lawful under state supervision.
Currently, only eight US states allow regulated online casino games, yet Virginians spend an estimated $12–16 billion annually on unregulated platforms. Supporters of legalization argue it will enhance player safety through age verification and consumer protections, while opponents warn of potential gambling addiction, particularly among younger users.
Legislative Details and Re-Votes
The Senate version, SB 118, initially failed 19-20 before reconsideration led to a narrow 19-17 approval. The House companion, HB 161, also needed a second vote, passing 67-30 after an initial defeat. “The provisions of this act shall not become effective unless reenacted by the 2027 Session of the General Assembly,” reads the revised language in SB 118, ensuring lawmakers revisit the proposal before operators can launch.
Both bills would allow Virginia’s five existing land-based casinos—including Caesars, Hard Rock, Boyd, Rush Street, and Cordish—to operate up to three online casino platforms each. Operators would pay a $500,000 licensing fee and a $2 million platform fee, while licenses would last five years with an option for renewal at half cost. Taxation is set at 20% of adjusted gross revenue, with portions allocated to “Hold Harmless Funds” to offset potential revenue losses for retail casinos and the Virginia Lottery.
The Virginia Lottery Board would regulate online casinos, with the full iGaming market expected to launch in 2028 under HB 161 or July 2027 under SB 118, depending on the final bill adopted. The legislation would also effectively prohibit unlicensed online sweepstakes casinos unless authorized by the state.
Oversight, Safeguards, and Operators
In addition to taxation and licensing, both bills include measures to address problem gambling. HB 161 designates 5% of tax revenue to the Problem Gambling Treatment and Support Fund, while other allocations support lottery operations and general state revenue.
Licensed operators would be required to meet specific regulatory qualifications, including platform security and geofencing to ensure players are physically located in Virginia. The expected offerings would include thousands of slots, table games, and live-dealer studios within the state. With up to three online licenses per retail casino, up to 15 platforms could launch once the market opens.
Currently, Virginians can legally participate in online sports betting and state lottery games. Unregulated sweepstakes casinos and prediction markets also operate in the state, though legalization could change their status by directing competition toward licensed operators.
Timeline and Outlook
Even if legislation passes this year, online casino platforms will not launch immediately. Regulatory frameworks, licensing approvals, and platform construction are likely to delay a market opening until 2027 or 2028. Observers say iGaming in Virginia appears inevitable, though careful legislative planning will determine the exact timing.
The state’s move underscores a growing recognition of the revenue potential from regulated online gaming while balancing consumer protections and social concerns about gambling.
Source:
“Virginia Poised to Legalize Online Gambling After Last-Minute Legislative Push”, nationaltoday.com, February 24, 2026
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