A Virginia Senate committee on Wednesday advanced legislation that would authorize and regulate online casino gaming in the commonwealth after it initially stumbled.
A 9-6 vote sent SB 118 to the Senate Finance Committee after the General Laws and Technology Committee adopted a substantially revised substitute aimed at strengthening consumer protections and responsible gaming requirements. The bill did not receive majority support in a subcommittee vote, 3-4 with one abstention, last week.
The legislation also outlaws sweepstakes casinos in the state.
Other gaming bills, including legislation that would end daily fantasy contests against the house and create the Virginia Gaming Commission, were also voted out of committee.
Tougher responsible gambling requirements
Lawmakers emphasized that significant changes were made following extensive committee debate, particularly around responsible gambling tools and payment methods. The substitute adopted Wednesday incorporates some of the most prescriptive responsible gaming requirements in the country, sponsors said.
The substitute mandates the use of player data technology to automatically detect at risk behavior, requires a three phase intervention process with escalating responses, and obligates licensees to adopt formal strategic plans outlining how responsible gaming tools and interventions will be implemented.
Earlier drafts of the legislation focused largely on consumer facing safeguards, including requirements for responsible gaming messaging, access to detailed account statements covering at least 12 months of activity, and player controlled tools such as deposit limits and temporary suspensions of internet gaming.
Responsibility shifts to operators
Those provisions also required operators to offer mechanisms allowing players to initiate breaks in play through pop up messages or account controls, but did not require operators to proactively monitor wagering behavior using data analytics.
The substitute expanded that framework by directing regulators to require internet gaming operators to develop a strategic implementation plan detailing the “use of player data and technology to aid in identifying potential problem gamblers,” shifting responsibility from player initiated controls to operator-led oversight.
The revised bill draws from regulatory frameworks in other states, including New York, but goes further by embedding enforceable responsible gaming standards directly into statute rather than leaving them to regulatory guidance or voluntary best practices.
In response to subcommittee concerns, the substitute also removed prepaid cards as an acceptable form of payment. Credit cards were already prohibited under prior versions of the bill.
Online casino financial details
The bill would place online casino gaming under the oversight of the Virginia Lottery, requiring any licensed casino operator seeking to offer online gaming to submit a separate notice of intent for each platform it plans to operate.
The bill allows each land-based Virginia casino operator to offer up to three online gaming platforms, each subject to a $2 million platform fee. An application fee for a five-year license would cost $500,000 and each renewal would cost $250,000.
Operators will pay a 15% tax on adjusted gross revenue.
No timeline change for online casino bill
One issue that remains is the timing required in the online casino bill does not line up with allowing the Virginia Gaming Commission to take on regulation from the beginning.
SB 118 would require online casino regulations to be promulgated by September.
“As the patron, alongside Sen. Reeves, of the gaming commission, I have to use this opportunity to say this is exactly why the gaming commission is so important,” Aird said at the subcommittee reading. “I know this legislation has a September 2026 delayed enactment but I hope we can keep the conversation going about that.”
iGaming opponents speak out
The National Association Against iGaming issued a statement following the vote to move the bill along.
“Today’s vote marks a dangerous step toward allowing 24/7 online casinos across the Commonwealth,” said spokesman Oliver Barrie. “This legislation would make Virginia only the eighth state to permit iGaming, even though research shows that lottery sales decline by about 5 percent after online gambling is introduced, undermining a revenue stream that returns 25 cents per dollar to public programs.
“As the Virginia Lottery Director warned last week, this proposal puts at risk the nearly $900 million the Virginia Lottery contributes to public schools each year. Early impact estimates suggest the Commonwealth could lose up to $500 million over the next five years, nearly $100 million per year for schools. In effect, this legislation would defund public education while dramatically expanding 24/7 gambling.
“While Governor Spanberger has made affordability a top priority, quickly moving to 24/7 online gambling would undermine state and local budgets, making it the wrong choice for Virginia.”
