Key Moments:
- Virginia Senate reversed its initial vote and approved SB 118 by a 19–17 margin after reconsideration
- House Bill 161 was revived and passed 67–30 following an earlier defeat
- Key differences between the bills include tax rates and implementation timelines, with further reconciliation likely required
Legislation Gains Ground After Dramatic Votes
Virginia’s efforts to legalize online casinos have progressed, with both chambers moving forward on separate bills following tense reconsideration votes. On Monday, the Virginia Senate initially voted down Senate Bill 118 in a 20–19 decision. Later that same day, the Senate reversed its position, passing the measure by a 19–17 vote after Senator Schuyler VanValkenburg, who had first opposed the bill, called for a new vote and, with two colleagues, abstained on the subsequent vote.
In the House, a parallel measure, House Bill 161 introduced by Delegate Marcus Simon, faced and overcame a similar setback. The proposal was first defeated with a 46–49 vote on Tuesday but was then passed by a 67–30 margin less than an hour later following a successful motion to reconsider.
Provisions and Key Differences
The Senate and House bills diverge on several fronts. Senate Bill 118 sets an effective date of July 1, 2027, and proposes a 20 percent tax rate. Meanwhile, the House version seeks a 15 percent tax rate and must be approved again in the next legislative session. Both measures direct a significant share of gambling tax revenue toward public education, the Problem Gambling Treatment and Support Fund, and local government efforts. Existing casino taxes in Virginia go to the Gaming Proceeds Fund at rates up to 20 percent. Funding from sports betting and potential iGaming taxes supports education and dedicated trust funds in line with Virginia’s current tax code.
| Bill | Tax Rate | Effective Date | Additional Steps Required |
|---|---|---|---|
| Senate Bill 118 | 20% | July 1, 2027 | — |
| House Bill 161 | 15% | — | Required to pass again in next year’s session |
Regulatory Structure Under Discussion
Debate continues regarding regulatory oversight. Senator Mamie Locke’s SB 118 gained momentum after amendments added measures for responsible gambling in committee. Locke has stated that regulated online casinos would address Virginia’s extensive unregulated iGaming activities.
Despite these developments, significant opposition remains, particularly from Governor Abigail Spanberger’s administration, which has highlighted the need for a unified regulatory body. Oversight is currently distributed among several agencies, including the Department of Agriculture, responsible for charitable gaming and daily fantasy sports.
At a legislative session, Secretary of Agriculture and Forestry Katie Frazier remarked, “Our patchwork approach is inefficient. It creates gaps in oversight and makes it more difficult to protect consumers, collect reliable data and ensure fair and responsible gameplay.”
She also added that “Governor Spanberger is deeply concerned about any discussions of gaming expansion in Virginia without first establishing a single entity with clear authority, consistent standards and strong compliance and enforcement capabilities.”
Possible Outcomes and Market Impact
Should neither bill establish a new regulatory body, oversight of online casinos would fall to the Virginia Lottery. Licenses would be valid for five years and require a $500,000 fee, with $250,000 charged for renewals. Operators could run up to three platforms, each with a $2 million platform fee.
According to reports cited by multiple media outlets, the Joint Legislative Audit and Review Commission has projected that online casino revenue in Virginia could reach $845 million by 2032.
- Author
Daniel Williams
