Virginia Lawmakers Advance Competing Online Casino Bills

Virginia lawmakers are taking another step toward legalizing online casinos, but the path forward is far from settled.

This week, both chambers of the Virginia General Assembly approved their own versions of legislation that would allow online gambling. 

The Senate passed Senate Bill 118 by a narrow 19-17 vote, while the House approved House Bill 161 more comfortably, 67-30.

Same, But Different

Even though both bills support the same idea, they differ in some important ways.

One key issue is the way the state would use tax revenue from online casinos. The Senate proposal focuses on protecting Virginia’s five existing casinos by directing funds to help offset any losses those properties might face once online gambling begins. 

The House bill takes a similar approach but goes a step further, also setting aside money to cover potential losses to the state lottery’s online games.

The two chambers also disagree on timing. The Senate bill would allow online casinos to launch in July 2027, while the House version pushes that date back to January 2028.

Before any of that can happen, lawmakers will need to reach a compromise. And even then, there is another major obstacle. Governor Abigail Spanberger has made it clear she is not comfortable expanding gambling without stronger oversight.

During debate in the Senate, language that would have used licensing fees to help create a new gaming commission was removed. That provision is still included in the House version, and it could play a critical role in whether the governor signs off.

Katie Frazier, a member of Spanberger’s cabinet, recently explained the governor’s position. 

“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,” said Frazier.

Next on the List

In addition to online gambling, lawmakers are considering allowing a casino in Northern Virginia, regulating slot-like skill games, and updating Virginia’s Fantasy Contests Act by changing taxation and oversight of the state’s fantasy sports industry. 

Virginia’s gambling industry has grown quickly in recent years. 

Since 2020, the Old Dominion State has approved casinos, sports betting, and other forms of gaming. Right now, most oversight rests with the Virginia Lottery Board, but some officials believe that is no longer sufficient.

Online casinos are already operating in seven US states, including Rhode Island, Connecticut, New Jersey, and Michigan, with Maine as the eighth state waiting to go live, generating billions in revenue. 

Now, supporters say Virginia could benefit from the same perks, with the final decision depending on whether lawmakers and the governor can agree on how to regulate it.