The Online Dominion: Virginia Advances Online Casino Bill

The new year has been a great start for online casino legislation as Virginia follows in Maine’s footsteps. Lawmakers are considering a proposal to legalize online casinos and create the Virginia Gaming Commission, following a year of discussions aimed at improving gambling regulations. Check out our article for details on this new proposal.

2025: The Year of Discussions

Last year, Senator Mamie Locke pre-filed a bill to legalize online casinos but later pulled it in favor of discussions on regulation. In the last decade, Virginia legalized brick-and-mortar casinos and sports betting, but it was decided that regulation needed to be streamlined and a unified standard created.

“The creation of a Virginia Gaming Commission is not about building more bureaucracy, it’s about promoting smarter government.”

Paul Krizek, Virginia Delegate

After multiple discussions at the Joint Subcommittee to Study the Feasibility of Establishing the Virginia Gaming Commission, it was decided that establishing a gaming commission should be a priority. Online casinos won’t be a thing until this commission is created, but lawmakers have advanced a bill to legalize daily fantasy sports.

Framework for Online Casinos

Although online casinos are tied to this new commission, Senator Locke’s proposal outlines an approximate framework. The plan was to have the Virginia Lottery oversee online casinos, with each state casino allowed to operate up to 3 online platforms. They would also have to pay a $2 million license fee. Other provisions include:

• 15% tax on operator revenue
• 5% of the tax will go to the Problem Gambling and Treatment Support Fund
• 6% of the tax will go to the Internet Gaming Hold Harmless Fund.

Interestingly, the bill also proposes the creation of live-dealer studios, which could create more than 1,000 jobs for citizens. Lawmakers have also advanced a proposal for a sixth brick-and-mortar casino in the state. However, there’s still a lot of work to be done to improve the proposals if they are to pass.

Responsible Gambling and Streamlining

The proposal for a VGC is crucial as many lawmakers believe there’s too much bureaucracy in the current system. The Virginia Lottery Board manages casinos and sports betting; the Virginia Racing Commission handles horse racing; and the Department of Agriculture and Consumer Services handles charity gambling. Creating a unified ruleset would significantly improve businesses’ operations. Lawmakers are also discussing additional responsible gambling measures, such as:

• Online casinos must prominently display phrases like “1-800-GAMBLER” and “gambling problem”
• Legal gambling age is set to 21
• Use player data to identify problem gambling behavior

The responsible gambling provisions are what helped the bill advance, so they will likely be the focus of further discussion in future decisions. Meanwhile, operators seem split on whether online casino expansion is a good idea. While Caesars and Boyd Gaming support it, the Cordish Companies oppose it, along with the National Association Against iGaming.

Other Bills and Efforts

Senator Locke is not the only one with plans for future expansion. Delegate Marcus Simon is also attempting to legalize online casinos through HB 161. It has many similarities to Locke’s bill, aiming to make the Virginia Lottery Board the primary regulatory body and to create a 15% tax on operator revenue. Simon believes online casino expansion will help provide more state revenue.

“This is revenue not getting accessed by the commonwealth, we’re getting zero percent.”

Marcus Simon, Virginia Delegate

Meanwhile, lawmakers advanced SB 129, which bans “against-the-house” contests for daily fantasy sports and establishes a 10% levy on operator revenue. The Senate will also have to consider HB 515, which proposes banning credit card payments for sports betting. As for Locke’s SB 118 push for online casinos, it will now have to pass through the Finance Committee.

Conclusion

Although online casinos aren’t yet legalized, the current situation seems optimistic. Lawmakers will likely be busy throughout the year discussing the establishment of a new gambling commission and several other bills. We will keep you updated on any future developments.