Virginia Senate Advances iGaming Bill Toward 2027 Launch

Virginia’s Senate has pushed forward legislation that could eventually permit online casino gaming across the state. Senate Bill 118 secured approval on February 16 by a 19-17 vote after failing earlier the same day when it lost 19-20. The reconsideration highlighted divisions among lawmakers regarding digital gambling expansion.

The proposal includes a delayed implementation clause setting July 1, 2027, as the earliest potential start date for online casino activity. This means any legalisation process would unfold gradually, even if the measure ultimately passes all remaining legislative stages.

Sen. Mamie Locke framed the bill as a regulatory initiative, stating it would “legalize iGaming in the Commonwealth of Virginia and dramatically curtail Virginia’s thriving illegal iGaming market.”

, regulatory authority would fall to the Virginia Lottery. Licences would be restricted to the five companies already operating land-based casinos in the state. The framework outlines a $500,000 initial licence cost valid for five years, followed by $250,000 renewal fees. Operators could manage up to three online platforms each, with every platform carrying a $2 million fee.

Taxation provisions include a 20% levy on adjusted gross online casino revenue alongside a separate 6% economic development charge. Legislators intend to direct 95% of tax income to the Modern Public Education Fund. Remaining funds would support regulatory oversight and responsible gambling initiatives.

Money generated through the development fee would flow into a Casino Gaming Hold Harmless Fund designed to offset possible revenue declines at land-based casinos located in Bristol, Danville, Norfolk, Portsmouth and Petersburg. Equal payments would continue until July 2032 before any operator would need to demonstrate losses linked specifically to online gaming activity.

Revenue forecasts discussed during the legislative process point to substantial financial potential. State income could reach about $343 million during the first fiscal year after implementation and exceed $1 billion annually by fiscal year 2032. Projections suggest net iGaming revenue may approach $3.56 billion by fiscal year 2031 once the market matures.

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The projected gains come alongside concerns about broader financial effects. Analysts expect reductions in lottery income following any online casino launch. Forecasts indicate iLottery revenue could fall by 25.5% in the first year after legalisation, with possible declines reaching 53% below expectations by fiscal year 2032. Estimates from the Department of Planning and Budget suggest yearly lottery profit losses between $77 million and $163 million. Additional staffing requirements for the Lottery could add roughly $1.16 million annually beginning in fiscal year 2028.

Opposition voices have focused heavily on addiction risks linked to digital gambling. During debate, Sen. Bill Stanley stated: “We are being asked to take the single most addictive device in human history, the smartphone … and now we’re being asked to put a slot machine on it, let that sink in for a moment.” He referred to public health findings suggesting online gambling can carry greater addiction risks than in-person betting.

Concerns also extend to employment at physical casino venues and possible shifts in consumer spending patterns if mobile gaming expands.

Senate Bill 118 now proceeds to the House of Delegates, where lawmakers are reviewing a separate measure, HB 161. That proposal includes a requirement for approval in two consecutive legislative sessions before becoming law. If applied to the Senate bill, implementation timing could extend beyond the current 2027 projection.

Lawmakers must still resolve differences between the chambers on timelines, regulatory language and procedural details. Additional gambling-related proposals under discussion this session include measures on daily fantasy sports, a potential casino framework in Fairfax, and regulatory rules for skill-based games. The next phase of legislative consideration will determine whether online casino regulation advances, changes direction or stalls.

Source:

, news.worldcasinodirectory.com, February 17, 2026