Virginia Senate Advances iGaming Bill Toward 2027 Launch

Virginia lawmakers have taken another procedural step toward legal online casino gaming after the state Senate approved Senate Bill 118 following a divided vote. The measure passed 19-17 on February 16 after an earlier vote in the same chamber failed by a 19-20 margin. Senators later reconsidered the proposal and advanced it, reflecting ongoing disagreement over digital gambling expansion.

The legislation proposes legal online casino operations under a structured regulatory framework. Lawmakers inserted a delayed implementation provision setting July 1, 2027, as the earliest possible launch date. This means operations would not begin immediately even if the bill ultimately becomes law.

Sen. Mamie Locke described the proposal as a regulatory measure, stating it would “legalize iGaming in the Commonwealth of Virginia and dramatically curtail Virginia’s thriving illegal iGaming market.”

Licensing Structure And Revenue Allocation Plans

The proposal assigns oversight responsibilities to the Virginia Lottery. Licensing eligibility would remain limited to the five operators currently running land-based casinos within the state. Each license would require an initial payment of $500,000 covering five years, followed by a renewal cost of $250,000. Operators could manage up to three online platforms, each requiring a $2 million platform fee.

Tax provisions within the bill include a 20% rate on adjusted gross iGaming revenue plus an additional 6% economic development charge. Legislators plan to direct 95% of tax proceeds into the Modern Public Education Fund, while smaller allocations would support regulatory activities and problem gambling initiatives.

Revenue from the development fee would fund a Casino Gaming Hold Harmless Fund. That mechanism aims to offset potential revenue declines at existing casinos in Bristol, Danville, Norfolk, Portsmouth, and Petersburg. Equal payments would continue through July 2032 before operators must show measurable losses linked to online gaming activity.

Financial projections presented during the legislative review suggest substantial revenue potential. Estimates point to approximately $343 million in state income during the first fiscal year after implementation, with annual figures exceeding $1 billion by fiscal year 2032. Market maturity projections suggest net iGaming revenue could reach $3.56 billion by fiscal year 2031.

Concerns Over Social Effects And Market Impact

Debate surrounding the proposal has included financial and social considerations. Analysts expect possible reductions in lottery income following legalization. Forecast models indicate Virginia’s iLottery revenue could decline 25.5% during the first year after implementation, with potential losses reaching 53% below expected levels by fiscal year 2032. Additional projections from the Department of Planning and Budget estimate annual lottery profit reductions between $77 million and $163 million. Operational staffing costs at the Lottery could increase by about $1.16 million annually starting in fiscal year 2028.

Opposition has focused largely on addiction risks and changes in gambling behaviour. During Senate discussion, Sen. Bill Stanley stated: “We are being asked to take the single most addictive device in human history, the smartphone … and now we’re being asked to put a slot machine on it, let that sink in for a moment.” He referenced public health research suggesting online gambling presents higher addiction risks than traditional in-person betting.

Some legislators have also questioned potential employment effects at existing casino properties and whether mobile access could redirect gambling spending away from physical venues.

The proposal now heads to the House of Delegates, where lawmakers are examining a separate measure, HB 161. That proposal requires approval in two consecutive legislative sessions before becoming law. If applied to Senate Bill 118, the effective launch date could move beyond the currently projected 2027 timeline.

Differences between the two chambers include implementation timing, regulatory language, and procedural requirements. Lawmakers will need to reconcile these points before final approval becomes possible. Additional gambling-related proposals under consideration in the same legislative session include measures addressing daily fantasy sports, a potential casino framework in Fairfax, and regulatory provisions for skill-based gaming.

Source:

Virginia Senate Advances iGaming Bill With 2027 Timeline, news.worldcasinodirectory.com, February 17, 2026