Despite both the Virginia House of Delegates and Senate approving bills to legalize online casino gaming in 2026, the measures will not take effect this year. Lawmakers could not resolve differences over key details before the legislative session ended on March 14.
House Bill 161 and Senate Bill 118, while similar in scope, diverged on elements such as the allocation of tax revenue. Each chamber appointed conferees to reconcile these differences, but the effort proved unsuccessful, meaning any further action must restart in 2027.
The bills had proposed allowing Virginia’s three land-based casinos to partner with up to three commercial online platforms each. Caesars Entertainment, Rush Street Gaming, Hard Rock International, Boyd Gaming, and The Cordish Companies operate casinos in the state. Both bills included $2 million platform fees, $500,000 initial licensing fees, and a 20% tax on adjusted gross gaming revenue, with portions earmarked to address potential cannibalization of existing casino revenue. The Virginia Lottery Board would have overseen the regulated online market.
Agreement on Enactment, Disagreement on Revenue
A step toward consensus emerged when SB 118’s enactment language aligned with HB 161, which would have required the General Assembly to revisit the legislation in 2027. This effectively delayed any potential market launch to 2028. However, disputes over the distribution of tax revenues and the associated procedural details remained unresolved.
Additionally, both bills depended on related legislation to create a unified gambling regulatory body. Senate Bill 609, which aimed to establish such an authority, also failed to pass in conference, while House Bill 271 will continue in the 2027 session.
Opposition Voices Concerns
The National Association Against iGaming, which counts Cordish, Red Rock Resorts, Monarch Casino & Resort, and Churchill Downs Inc. among its members, opposed the bills. Oliver Barie, a spokesman for the organization, said: “Virginia lawmakers made the right decision today by rejecting the expansion of online casino gambling. Virginians made their voices heard and stopped a proposal that would have placed casino-style betting on every phone and smart device with 24/7 access. iGaming carries serious consequences, including increased risk of addiction and financial harm for families, while diverting money away from brick-and-mortar businesses and our local communities. We thank the legislators who chose to protect Virginia and rejected the expansion of this harmful policy.”
The failure of the online casino initiative also leaves online sweepstakes casinos operating in a legal grey area, as they would have been banned under the proposed legislation.
Other Gaming Bills Advance
While online casino efforts stalled, lawmakers successfully passed several other gaming-related measures. SB 756 authorizes a new land-based casino in Fairfax County, pending voter approval. Daily fantasy sports (DFS) are now subject to a ban on against-the-house formats, with a 10% tax on peer-to-peer operators. SB 661 allows skill gaming machines to return to venues including convenience stores, restaurants, bars, and other retail locations.
These measures now await the signature of Governor Abigail Spanberger.
Source:
“Virginia online casino effort dies despite state assembly passing bills”, sbcamericas.com, March 16, 2026
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