Efforts to legalize online casino gambling in Virginia lost momentum last week after a closely divided Senate subcommittee rejected a key proposal, leaving supporters to reassess strategy as the legislative calendar tightens.
Senate Bill 118 failed to advance out of the Senate General Laws and Technology Gaming Subcommittee on a 4–3 vote. The measure, introduced by Sen. Mamie Locke at the start of the year, would have authorized internet-based casino gaming and allowed each licensed casino to operate up to three online platforms. Operators would have paid a $2 million licensing fee for each platform.
While the vote does not permanently end the push for online casinos, timing now presents a major hurdle. The General Assembly adjourns in mid-March, and bills must clear both chambers by February 17. That schedule leaves little room for reviving SB 118 during the current session.
Revenue Hopes Meet Regulatory Concerns
Supporters of SB 118 framed online casinos as a new stream of tax revenue for the state and argued many Virginians already gamble online through unregulated sites. Legalization would bring that activity under state oversight and generate public funds.
Opposition focused on potential downsides. Some lawmakers warned that online gambling could draw customers away from retail casinos and worsen social harms tied to gambling. Questions also emerged over whether the existing regulatory structure could handle an expanded market.
The Virginia Lottery currently regulates sports betting and lottery games, but several legislators doubted its capacity to oversee online casinos as well. Some argued that creating a standalone Virginia Gaming Commission would provide stronger oversight, though it could take years to establish.
Despite the setback, lawmakers suggested the issue remains unresolved rather than settled. Subcommittee chair Jeremy McPike said the debate centered on strengthening protections, particularly those aimed at addressing problem gambling.
SB 118 followed an earlier attempt by Locke to legalize online gambling. A similar bill introduced in 2024 ultimately failed during the 2025 regular session.
Parallel Proposals And Broader Review Ahead
A separate measure, House Bill 161, remains active in the House of Delegates. Introduced by Delegate Marcus Simon, it would legalize online casino gaming and place regulatory authority with the Virginia Lottery Board. The proposal has not yet been assigned a committee hearing date.
Beyond the current session, lawmakers are preparing for a broader review of gambling policy in 2026. That effort would combine renewed consideration of online casino legalization with changes to statewide regulation.
Delegate Paul Krizek is developing legislation to create a Virginia Gaming Commission that would consolidate oversight now split among several agencies. Regulation is currently shared by the Virginia Lottery Board, the Virginia Racing Commission, and the Department of Agriculture and Consumer Services.
Virginia’s gambling landscape has expanded steadily over the past several years. Voters approved land-based casinos in 2019, followed by legalization of sports betting in 2020. The state now includes permanent and temporary casinos, historical horse racing machines, live racing at Colonial Downs, charitable gaming, electronic pull tabs, daily fantasy sports, and online sports wagering.
As lawmakers look toward 2026, the failed vote on SB 118 underscores unresolved questions around online casinos, particularly how to balance revenue goals, consumer protections, and regulatory capacity.
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