Efforts to establish an online casino market in Virginia have come to a halt, despite the Senate and House both passing legislation to support the expansion. The timeline for introducing this market has been deferred until at least 2028, following failed legislative discussions ahead of the March 14 deadline.
Members of the state Senate and House of Delegates wrapped up the 2026 session without reconciling the discrepancies between House Bill 161 and Senate Bill 118. Although both bills gained approval in their individual chambers, they needed a consolidated version for final endorsement.
Representatives from both chambers could not finalize an agreement before the session concluded on Saturday evening. This means the legislative process must restart in 2027, requiring both branches of the Virginia General Assembly to pass any approved legislation again prior to rollout.
The finalized drafts of both bills had already agreed on implementation language, necessitating a second approval round in 2027, pushing the earliest potential launch of online casino operations to 2028.
Consensus on structure, disagreement on revenue allocation
The Senate passed SB 118 with a narrow 19-17 margin in late February, while the House approved HB 161 by a 67-30 vote the following day. Both votes mandated a reconsideration for final passage.
Each chamber modified the other’s proposal during the legislative crossover. Subsequently, they rejected these amendments, reverting each bill to nearly its original form before engaging in conference discussions.
Both drafts proposed a similar framework for the market. Virginia’s existing land-based casinos could align with up to three online platforms each to provide iGaming services across the state. Present operators in Virginia include Caesars Entertainment, Rush Street Gaming, Hard Rock International, Boyd Gaming, and The Cordish Companies.
The proposed bills included a $2 million platform fee along with an initial licensing fee of $500,000. Operators would have been taxed at a rate of 20% on adjusted gross gaming revenue. A percentage of the tax earnings was earmarked to mitigate concerns regarding the potential impact on land-based casinos. The Virginia Lottery Board would have managed oversight.
Discussions reached an impasse over the distribution of tax revenue and the regulations surrounding its allocation.
The iGaming legislation was tied to a separate initiative aimed at establishing a cohesive gambling regulatory authority in Virginia.
Two variants of this proposal were also under scrutiny. Senate Bill 609 did not progress out of conference before the session concluded, while House Bill 271 was postponed until 2027.
Voices of Opposition
The National Association Against iGaming, which includes members such as Cordish, Red Rock Resorts, Monarch Casino & Resort, and Churchill Downs Inc., voiced their disapproval of the proposed legislation.
“Virginia lawmakers made the right choice today by preventing the expansion of online casino gaming. Citizens of Virginia expressed their concerns and successfully blocked a measure that would have enabled casino-style gaming on every mobile device with 24/7 accessibility,” stated NAAiG spokesperson Oliver Barie on social media.
“iGaming presents significant risks, including increased addiction and financial repercussions for families, while diverting funds from traditional businesses and local communities. We appreciate the lawmakers who prioritized Virginia’s well-being and rejected this detrimental proposal,” Barie added.
The suggested bills also contained clauses to ban online sweepstakes casinos. As the legislation did not advance, these platforms will continue to operate in a legal gray area while regulated online casino gaming remains off-limits in the state.
Advancements in Other Gaming Regulations
While the online casino initiatives stalled, multiple other gaming-related bills successfully passed through the General Assembly prior to adjournment.
Lawmakers approved SB 756, which allows for a land-based casino in Fairfax County, pending a voter approval. A ban on using credit cards for sports betting was also enacted.
Additionally, legislators endorsed a measure prohibiting against-the-house daily fantasy sports and implementing a 10% tax on peer-to-peer DFS operators. The conference process also culminated in the agreement on SB 661, which enables skill gaming machines to return to establishments such as convenience stores, gas stations, restaurants, and bars.
The proposals related to the Fairfax County casino, DFS legislation, and skill gaming provisions are now awaiting review from Governor Abigail Spanberger.