Virginia Online Casino Legalization Won’t Happen In 2026 As Legislative Session Ends
By Drew Ellis
Published:
Hopes for iGaming legalization in Virginia this year are no longer.
Despite a lot of traction on separate Virginia Senate and Virginia House of Delegates bills to legalize iGaming, neither was approved before both chambers ended their 2026 legislative sessions on Saturday.
A conference committee had been created in hopes of finding a compromise between the two bills to pass a single piece of legislation, but that didn’t occur.
Both pieces of legislation contained a reenactment clause, which would require passage of a second vote in 2027. So, should any talks on legalization resume in 2027, it could push Virginia online casinos into 2028, or later.
Online Casino Bills Differ in Tax Distribution
Each chamber passed an iGaming bill that was sent to the other. The Virginia Senate passed SB 118, while the Virginia House of Delegates passed HB 161.
Both bills would have allowed Virginia’s land-based casinos to offer iGaming platforms with up to three different partners. Platform fees of $2 million would be required from the land-based casinos, while iGaming operators would be subjected to a $500,000 license fee. Each of these licenses and fees would remain valid for five years before needing to be renewed at half the price.
Both bills also were set on a 20% tax rate on each operator’s adjusted gross revenue, while both having the reenactment clause.
The major differences in the bills came with how the tax revenue would be distributed in the state.
SB 118 called for:
- 95% to the Modern Public Education Fund
- 3% to the Gaming Regulatory Fund
- 2% to the Problem Gambling Treatment and Support Fund
HB 161called for:
- 5% to the Problem Gambling Treatment and Support Fund
- 6% to the Internet Lottery Hold Harmless Fund until Jan. 1, 2037
- 89% to the General Fund; 95% after Jan. 1, 2037
After each chamber rejected the other chamber’s bills, an iGaming Conference Committee was formed in attempt to find a common bill. But, the committee was unable to find common ground.
Regulatory Oversight Bills Also Delayed
Another concern with legalizing iGaming in Virginia for lawmakers is who would be responsible to oversee the industry.
The proposed bills called for the Virginia Lottery Board to establish and enforce necessary regulations, as they are currently responsible for overseeing online lotter and online sports betting in the state.
However, there are also Virginia Senate (SB 609) and Virginia House (HB 271) bills that were created seeking to create new regulatory commissions.
SB 609 would establish the Virginia Lottery and Gaming Authority, while HB 271 would establish the Virginia Gaming Commission.
In each case, these establishments would be responsible for the oversight of iGaming if created. Like the iGaming bills, neither bill was agreed upon and pushed until 2027 for further consideration.
An agreement on a commission or regulatory body will be a key step to getting iGaming past the finish line in Virginia.
iGaming Legalization Likely to Continue in 2027
This year has seen the most progress toward legalizing online casinos in Virginia.
It seems the idea has picked up a lot of steam given the fact that two bills got to this phase.
More politicking and lobbying will likely take place throughout 2026 to push for another run in 2027.
One of the keys will be if the 2027 bills also require a reenactment clause that would then push any legalization until at least 2028.
Should common ground be found on tax revenue allocation and a governing board, Virginia could become the next state to legalize iGaming.
Drew Ellis has experience covering the gambling industries in North America and around the world. Decades of media experience provide him with the background to handle the complexities of different gambling laws and policies around the United States and North America. Ellis has primarily focused on online and retail casino news since 2021. Prior to working in the gambling industry, Ellis spent over 20 years in the newspaper industry, covering sports and the gambling. His work for The Mt. Pleasant Morning Sun and The Oakland Press was recognized with awards by the Associated Press and other media organizations. Drew has also contributed to the Detroit Free Press and the Associated Press.
