Despite bills to legalize online casino gaming passing both chambers of the Virginia legislature in 2026, state legislators will have to try again next year.
Lawmakers in the state Senate and the House of Delegates could not come to an agreement on the details of the iGaming legislation in time before the state’s legislative session ended for the year on Saturday night, March 14.
While House Bill 161 and Senate Bill 118 would each have authorized online casino gaming in the state and both shared many common points, the respective bills differed on details such as where tax revenue from the vertical would go. Both chambers appointed conferees to try to reconcile the differences, but the impasse could not be overcome and time ran out this weekend.
It means that while the bills could be revived in new efforts in next year’s session, the conversations will have to start all over again in 2027 after months of progress in 2026.
Virginia iCasino bills were the same, but different
The Virginia Senate approved SB 118 by a 19-17 vote in late February and the House green-lit HB 161 by a 67-30 vote the following day, although a re-vote was required in both instances. But each chamber made amendments to the opposite chamber’s bill before approving the crossed-over legislation. Each chamber then dissented with the other chamber’s amendments to their respective bill, restoring them to more or less their original forms.
Both bills would have allowed each of the state’s three land-based casinos to partner with up to three commercial online casino platforms to offer the products state-wide. Caesars Entertainment, Rush Street Gaming, Hard Rock International, Boyd Gaming and The Cordish Companies all run brick-and-mortar casinos in Virginia. Both bills set out $2m platform fees for licensees as well as $500,000 initial licensing fees, would have taxed iCasino operators at 20% of their adjusted gross gaming revenue, and would have dedicated some portion of tax revenue to offsetting industry cannibalization concerns. The Virginia Lottery Board would have regulated the online casino market.
A large hurdle seemed to have been overcome when SB 118’s language on enaction was brought in line with HB 161’s. The final form of both bills would have required both chambers of the Virginia General Assembly to pass the approved 2026 legislation again in 2027, thereby effectively delaying the earliest market launch date to 2028.
However, lawmakers in the two chambers could not agree on the tax revenue allocation division or the processes involved in that distribution.
The online casino bills also included a caveat that hinged on the passage of other 2026 legislation that aimed to create a new, unified gambling regulatory body in Virginia. Like the iCasino push, there were two different versions of that effort, too. Senate Bill 609 also died in conference when the session ended at the weekend. Before that, House Bill 271 was continued to 2027.
Casino association hails bills’ failure
One of the biggest opponents of Virginia’s progress towards legalizing online casino gaming this year was the National Association Against iGaming, the membership of which includes land-based casino operators Cordish (which runs Live! Casino Virginia near the state capital of Richmond), Red Rock Resorts, Monarch Casino & Resort and Churchill Downs Inc.
“Virginia lawmakers made the right decision today by rejecting the expansion of online casino gambling,” said NAAiG spokesman Oliver Barie in a statement posted on social media on Saturday.
“Virginians made their voices heard and stopped a proposal that would have placed casino-style betting on every phone and smart device with 24/7 access. iGaming carries serious consequences, including increased risk of addiction and financial harm for families, while diverting money away from brick-and-mortar businesses and our local communities. We thank the legislators who chose to protect Virginia and rejected the expansion of this harmful policy.”
However, the online casino effort would also have banned online sweepstakes casinos; its death means sweeps can continue operating in a legal grey area in Virginia while regulated iGaming remains outlawed.
But Virginia casino, DFS & skill games bills did pass
While the online casino effort died at the final hurdle, several gaming-related bills did pass before Virginia’s session ended.
In addition to Virginia becoming the latest state to ban credit card usage for sports betting, the General Assembly passed SB 756 to authorize a new brick-and-mortar casino in Fairfax County, as long as county voters give their approval.
Lawmakers also passed a bill that would ban against-the-house daily fantasy sports (DFS) in the state and tax peer-to-peer DFS operators at 10%. Unlike the iCasino and gambling regulator cases, legislators came to a conference agreement on the DFS bill. The conference process was also successful for SB 661, which would allow skill gaming machines to return to retail and hospitality businesses like convenience stores, gas stations, restaurants and bars.
The Fairfax County casino bill, the DFS legislation and the skill game bills now head to Gov. Abigail Spanberger’s desk to be signed into law.
