Efforts to legalize online casinos in Virginia encountered a setback late last week.
On Friday, Senate Bill 118 faced a 3-4 defeat, with one member abstaining, during the vote in the Senate General Laws and Technology Gaming Subcommittee.
While this defeat doesn’t entirely terminate the initiative, the Virginia Legislature is set to conclude its session in mid-March, meaning any bill must pass through its originating chamber by February 17. This timeline makes further advancement of the proposal unlikely.
House Bill 161, aimed at legalizing iGaming in Virginia, is still awaiting discussion in its subcommittee with the ABC/Gaming Committee.
Reasons for SB 118’s Subcommittee Defeat
The discussion surrounding SB 118 mirrors debates seen across the U.S. regarding the legalization of online casinos.
Supporters argue it offers a new revenue stream for the state and that residents are already engaging in illegal online gambling, which could be regulated under a legal framework.
Conversely, opponents are concerned that iGaming could undermine retail casino businesses and raise issues related to gambling addiction.
A specific point of contention in Virginia is the matter of who would regulate online casinos. Currently, the Virginia Lottery manages online lotteries and sports betting, but adding iCasinos might exceed its capacities.
Proposals include the establishment of a Virginia Gaming Commission, linked to the passage of SB 195 in the subcommittee. Even if this legislation progresses, setting up the commission could take several years.
Hope for the Future of Online Casinos in Virginia
Despite the recent defeat, there remains optimism about the future of online casinos in Virginia.
Members of the committee opposing the bill voiced concerns related to regulations and measures to safeguard residents against problem gambling. As more protective measures are implemented, support from lawmakers may increase.
According to Legal Sports Report, committee chairman Jeremy McPike noted that passing legislation is likely just a matter of time. He emphasized the need for regulation, stating, “We have to figure this out.”
The potential tax revenue from iGaming is a significant driving factor for its adoption, as demonstrated by West Virginia, which generates over $1 million weekly in iGaming tax revenue. Virginia’s larger population could yield tax revenues comparable to New Jersey and Michigan.
New Jersey reported over $580 million in tax revenue from online casinos in 2025, while Michigan raised nearly $600 million, with an additional $225 million directed to localities within the state.
Although HB 161 may face similar challenges as SB 118, it still has a chance to advance through the subcommittee. Until then, Virginians may opt to gamble at legally operating online casinos in West Virginia.
