Virginia Lawmakers Progress Competing Online Casino Legislation
Virginia legislators are making progress toward legalizing online casino gaming, but the route ahead remains uncertain.
This week, both the Senate and House in the Virginia General Assembly passed separate bills aiming to permit online gambling in the state.
The Senate narrowly approved Senate Bill 118 with a vote of 19-17, while the House more decisively passed House Bill 161 by 67-30.
Similar Goals, Different Details
Although both bills promote the legalization of online casinos, they differ significantly in key aspects.
A major point of divergence is how tax revenues generated from online casinos would be allocated. The Senate’s version prioritizes supporting Virginia’s five existing casino venues by channeling funds to compensate for any revenue losses that they might incur after online gambling starts.
In contrast, the House bill also includes provisions to allocate funds toward covering potential losses faced by the state lottery’s online games, going beyond the Senate’s approach.
The timing for the launch of online casinos also varies between the two proposals. The Senate recommends a launch date in July 2027, whereas the House suggests delaying it until January 2028.
Before implementation, these differences will require negotiation and compromise between the two chambers.
Regulatory Oversight and the Governor’s Stance
Another significant hurdle is Governor Abigail Spanberger’s insistence on stronger regulatory oversight before expanding gambling in Virginia.
During Senate discussions, a key measure aimed at using licensing fees to establish a new gaming commission was removed. This proposal, which remains in the House bill, is likely crucial for gaining the governor’s approval.
Katie Frazier, a member of Governor Spanberger’s cabinet, recently emphasized this position, highlighting the governor’s concerns about expanding gaming without a centralized authority possessing clear guidelines and effective enforcement capabilities.
Other Gambling-Related Legislative Initiatives
Alongside the online casino proposals, the legislature is also examining legislation related to authorizing a casino in Northern Virginia, regulating skill-based slot-like games, and amending Virginia’s Fantasy Contests Act to adjust taxation and oversight of fantasy sports.
Virginia’s gambling sector has expanded rapidly since 2020, with approvals for casinos, sports betting, and other gaming forms. Currently, the Virginia Lottery Board oversees most gambling operations, but some stakeholders believe enhanced oversight is needed.
Online casino gaming is already operational in several states including Rhode Island, Connecticut, New Jersey, and Michigan, with Maine preparing to launch soon. These states have generated substantial revenue from online gambling.
Proponents contend that Virginia stands to gain similar economic benefits if lawmakers and the governor reach a consensus on effective regulation.
