iGaming Legislation Details
Sen. Mamie Locke (D-Portsmouth) introduced the legislation, which would allow Virginia’s five existing brick-and-mortar casinos to operate their own online casino platforms. Under the proposal, these licensed venues would pay an initial fee of $500,000 with annual renewals costing $250,000.
The bill also permits casino operators to partner with up to three third-party online casino platforms. Each partnership would require an initial $2 million licensing fee, with annual renewals set at $1 million. Revenue from iGaming operations would face a 15% state tax, while upfront licensing fees would fund the establishment of a state gaming commission.
The legislation now advances to the Senate Finance and Appropriations Committee for further consideration.
Opposition From Gaming Stakeholders
The bill’s progress drew immediate criticism from multiple sectors. Virginia Moose Lodges, representing 78 lodges and 54 Women of the Moose Chapters across the state, voiced concerns about the impact on charitable gaming operations.
“SB118 is a dangerous, shortsighted, and sweeping expansion of gambling on cellphones 24/7, 365,” the organization stated. “iGaming siphons money from charities and undercuts major public investments in recently approved casinos.”
The National Association Against iGaming (NAAiG), whose members include The Cordish Companies and Churchill Downs, raised concerns about potential revenue loss to the Virginia Lottery, which contributes approximately $900 million annually to public education.
“Early impact estimates suggest the commonwealth could lose up to $500 million over the next five years, nearly $100 million per year for schools,” an NAAiG spokesperson said. “While Gov. Spanberger has made affordability a top priority, quickly moving to 24/7 online gambling would undermine state and local budgets, making it the wrong choice for Virginia.”
Shift Under Democratic Leadership
Governor Abigail Spanberger’s administration represents a departure from former Governor Glenn Youngkin’s more restrictive approach to gaming expansion. The Democratic governor has shown greater openness to additional gambling options, continuing a trend that began under Governor Ralph Northam’s administration between 2018 and 2020.
During that period, Virginia legalized sports betting, historical horse racing machines, and authorized five commercial casinos, transforming the commonwealth from one of the nation’s most restricted gaming markets into a more diversified gambling jurisdiction.
Skill Games Debate Continues
Alongside the iGaming debate, Virginia lawmakers are considering House Bill 1272, introduced by Del. Cliff Hayes (D-Chesapeake), which would regulate and tax skill games. These slot-like machines, found in convenience stores and other retail locations, would be subject to an $800 monthly fee per machine.
The Youngkin administration had effectively prohibited these devices, but the new legislation seeks to bring them under regulatory oversight. Virginians Against Neighborhood Slots opposes the measure, stating: “While other states look to ban neighborhood slots, some elected officials in Virginia want to bring tens of thousands of them to main streets across the commonwealth. Let’s keep these dangerous machines illegal in Virginia.”
HB1272 remains under consideration in the House General Laws Committee.
Virginia currently operates five licensed commercial casinos and has an active sports betting market, generating significant tax revenue for the state. The commonwealth’s approach to gaming regulation continues to evolve as lawmakers balance economic opportunities with concerns about gambling expansion.
Source: Casino.org
