An online casino bill in Virginia was put on hold this week, but it could set up for a potential 2026 legalization.
Sen. Mamie Locke introduced Senate Bill 827 this year to legalize and regulate a Virginia online casino market. However, during a Monday hearing of the Senate subcommittee on gaming, Locke requested that the bill be put on hold.
Locke filed the bill in December, ahead of the short, odd-year Virginia session, which lasts for 30 days.
“This bill is designed to authorize reputable, regulated companies to offer internet gaming to Virginians within a safe and legal market,” Locke said. “However, after introducing this bill, we have decided that it requires further study on this issue.”
Virginia online casino bill
Locke’s bill would allow the Virginia Lottery Board to issue online casino licenses. Operators would pay a $1 million application fee, along with a 15% tax on revenue.
Each of the state’s five casinos could have up to three online skins.
Del. Marcus Simon similarly tabled his companion bill, House Bill 2171, on Tuesday. The sponsors believe a study group can help better detail the benefits of legalizing the industry with hopes of a serious legalization attempt in 2026.
Lottery worries in Virginia
One of the lawmakers’ chief concerns about the bill is that the Virginia Lottery is already overburdened. The state is in the midst of a gambling expansion, with those five approved casinos in various stages of development.
A fiscal note for the online casino bill also expressed concern that the iLottery expansion from 2020 would suffer. Still, the note suggested a minimum impact of $50,000.
The lottery cannibalization could join protests from the new land-based casino industry. Brick-and-mortar casinos’ concerns about potential lost revenue have also hampered online casino efforts in other states.
Cordish Companies, which has the rights to a casino in Virginia, has led online expansion opposition in multiple states.
Virginia casino operators
The other four Virginia casino operators all have online gaming operations or partnerships:
- Boyd Gaming
- Caesars Entertainment
- Hard Rock
- Rush Street Gaming
With three skins each, the casinos could also partner with industry leaders like DraftKings, FanDuel and BetMGM. MGM Resorts, a 50% owner of BetMGM, has extra incentive to enter the market given its MGM National Harbor, which operates in Maryland, just miles from the Virginia border.