Virginia Online Casino Senate Bill Voted Down In Subcommittee
By Drew Ellis
Published:
The pursuit of legalizing online casinos in Virginia hit a roadblock late last week.
On Friday, Senate Bill 118 suffered a 3-4 defeat, with one abstention, during the Senate General Laws and Technology Gaming Subcommittee vote.
While it doesn’t completely kill the efforts, the Virginia Legislature concludes business in mid-March, which requires any legislation to pass through its introduced chamber by Feb. 17. That leaves any further progression of the effort highly unlikely.
House Bill 161, which also looks to legalize iGaming in the state, is still awaiting its subcommittee meeting with the ABC/Gaming Committee.
Why SB 118 Failed to Pass its Subcommittee
The debate over SB 118 is one we’ve heard many states have around the US when legalizing online casinos gets introduced.
Proponents believe it is a great new source or revenue for the state. Along with that, they believe that residents are gambling online illegally, and this will at least bring that money into a regulated and legal format.
Opposition to the bill believe that iGaming will cannibalize any retail casino business. They also express concerns over increased gambling addiction.
In regard to Virginia specifically, one debated issued was who would be responsible for regulating online casinos in the state. The Virginia Lottery oversees online lottery and online sports betting in the state. Adding iCasino could be more than the organization is able to handle.
Establishing a Virginia Gaming Commission is on the table, as SB 195, did pass through the subcommittee that would see that very organization created. However, even if legislation does continue to pass through, it could take multiple years to get the commission up and running.
Optimism for VA Online Casino Future
Despite the setback, there was a lot of indication during the committee meeting that Virginia online casinos have a future.
Currently, members of the committee in opposition remained concerned about regulations and efforts to protect residents from problem gambling and gambling addiction. As more safeguards are put in place, it should help bring more support from legislators.
According to Legal Sports Report, committee chairman Jeremy McPike indicated passing legislation would just be a matter of time.
“Appreciate the patron’s work, it is something that needs to be regulated, at some point. We gotta figure this out,” McPike said. “I’m going to abstain on this one because I do want to see legislation that really ups the game in terms of problem gaming. We need to deal with this and this is probably one of the most challenging areas with problem gaming.”
The reason iGaming legislation is likely to pass is the undeniable tax revenue it brings in for legalized states.
West Virginia is bringing in over $1 million a week in iGaming tax revenue. Virginia has a much larger population that would allow it to bring in tax revenue closer to New Jersey and Michigan.
New Jersey recorded over $580 million in tax revenue from online casinos in 2025, while Michigan produced nearly $600 in state tax revenue with another $225 million going to city and local entities around the state.
It is likely that HB 161 will meet similar pushbacks as it currently stands, but has the opportunity to make it through the subcommittee.
Until legislation is able to go further, Virginia residents will have the option to cross the state border and use legal West Virginia online casinos.
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.
