Key Moments:
- House Bill 161 moved forward in Virginia’s House General Laws gaming subcommittee with a close 5–4 vote on February 3
- The Senate’s companion bill previously passed its committee by a 9–6 vote and is awaiting Senate Finance Committee review
- Legislation proposes a 15% tax on gross gaming revenue and allows each land-based casino up to three mobile partnerships
Subcommittee Vote Propels HB 161 Forward
House Bill 161, which would legalize and regulate online casino gaming in Virginia, narrowly advanced in the House General Laws gaming subcommittee following a 5–4 decision. The measure now heads to the House Appropriations Committee for further evaluation regarding its economic and social implications before it can proceed to the floor.
Stakeholders Deliberate at Length
Lawmakers spent nearly two hours examining the bill, hearing from representatives of casino operators, lottery officials, advocates for responsible gaming, and members of the racing sector. Bill proponents, including sponsor Del. Marcus Simon, pointed to an estimated $12 billion wagered annually by Virginians in the unregulated online space. Del. Simon stated, “What this bill is really meant to do is to bring the gaming on your phone within a legal framework that’s going to be highly regulated and include consumer protections.”
Parallel Action in the Senate
In a similar development, the Senate’s version of the bill passed its respective committee last month with a 9–6 vote and is now awaiting deliberation by the Senate Finance Committee. Thus, the issue remains active in both legislative chambers.
Concerns Over Impact on Retail Casinos
The primary concern surrounding the proposal relates to the potential cannibalization of Virginia’s land-based gaming market. Supporters from national betting firms – including the Sports Betting Alliance, which represents FanDuel, DraftKings, BetMGM, and bet365 – argued that regulated iGaming would enhance consumer protections without hurting revenue from brick-and-mortar operators. This viewpoint was echoed by Caesars, which operates one of Virginia’s five physical casinos.
Conversely, opponents such as Live! Casino Virginia vice president Mark Stewart cautioned that the shift to online gaming could strip Virginia of hundreds of millions in annual revenue and lead to significant job losses. Opposition also came from Churchill Downs, Virginia Moose Lodges, and VFW posts. Del. Marcia Price, who opposed the measure, expressed concerns about increased gambling accessibility: “You don’t even have to put on pants to gamble,” she stated.
Key Provisions of House Bill 161
If enacted, HB 161 would make Virginia the ninth state to regulate real-money online casino play and the fifth to allow more than two online operators. Each of Virginia’s five current land-based casinos – Caesars, Hard Rock, Boyd, Rush Street Gaming, and Cordish Companies (Live! Brand) – would be able to partner with up to three mobile platforms, for a possible maximum of 15 online operators. Legislators are also reviewing a separate proposal for a casino in Tysons, which could receive equivalent licensure.
| Key Feature | Details |
|---|---|
| Online Casino Partnerships | Up to 3 per land-based casino, max 15 statewide |
| Tax Rate on Gross Gaming Revenue | 15% |
| Prohibited Deposit Methods | Prepaid cards and credit cards |
| Responsible Gaming Measures | Automated alerts based on betting behavior |
Next Steps and Legislative Outlook
The close vote highlights a divided response to HB 161, notwithstanding its built-in protections. As Del. Marcia Price remarked, “I know this is a difficult vote for some of y’all.” The House Appropriations Committee will now further analyze the proposed regulatory framework as legislative discussions continue.
- Author
Daniel Williams
