Virginia Senate Subcommittee Approves Online Casino Bill After Voting “No” Last Week

Just a few days after Virginia lawmakers halted an online casino bill, they approved an amended version of the same base proposal.

The Senate General Laws and Technology Gaming Subcommittee forwarded SB 118, which would legalize online casinos throughout the Commonwealth. The new version passed the vote, 9-6, after it failed last week, 3-4.

The next step for the bill is the Senate Finance and Appropriations Committee. If it passes their vote, it will advance to a hearing on the Senate floor.

Virginia online casino bill advanced

SB 118 was struck down last week, but lawmakers left the door to approval open if the bill was amended. Many members of the subcommittee didn’t vote at all and were waiting to see an updated version.

The bill, introduced by Sen. Mamie E. Locke (D-23), was outfitted with new responsible gaming arrangements that made it more agreeable. Sen. Jeremy McPike (D-29) said the revised proposal was “more prescriptive in the statute, probably more than any other state.”

The new details include a plan for online casino operators to identify at-risk gamblers with greater accuracy. That includes using automatic triggers to manage individuals suffering from problematic behaviors, intervention methods, and education for those displaying irresponsible behavior.

The basic structure of the bill would grant the state’s three land-based casinos up to three skins, meaning they could partner with up to three online casino providers. 

Casinos being built in Petersburg and Norfolk would also hold the option to partner with up to three online casino platforms once construction is completed. Both locations already have temporary retail facilities but are awaiting their permanent homes.

Problems and critics

Each casino hoping to facilitate online casino gaming would need to pay a $2 million platform fee. Each online operator would be required to pay a $500,000 licensing fee. Licenses would remain valid for five years, and renewal would cost $250,000.

Virginia would receive 15 percent of online casinos’ adjusted gross revenue in gaming taxes. An iGaming Hold Harmless Fund would receive six percent of that, and a Problem Gambling Treatment Fund would receive five percent. The remaining 89 percent would be awarded to the Virginia General Fund.

The 89 percent would become 95 percent in 2030.

Despite the bill’s progress, one key issue remains: The Virginia Gaming Commission, which would be established if SB 195 is approved, might not be ready in time to take over regulating the online casinos. The Virginia Lottery currently handles the state’s gaming enterprises, and the Commission would be created to assist with online casino oversight.

“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,” Sen. Laschrecse D. Aird (D-13) 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.”

Virginia could become just the ninth state to legalize online casinos.

Despite the opportunity, there are critics of legalization. The National Association Against iGaming issued a statement after SB 118 was approved by the subcommittee. 

“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,” said spokesman Oliver Barrie. “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.