Virginia Considers Expanding into Online Casino Gaming

Virginia lawmakers may soon deliberate on a proposal to legalize online casino gambling, as State Senator Mamie Locke has introduced Senate Bill 827. Pre-filed in December, the bill was assigned to the Committee on General Laws and Technology for review ahead of the legislative session starting January 8.

If enacted, this legislation would position Virginia among a growing number of states capitalizing on the online casino market, which has proven to be a lucrative revenue source.

Proposed Framework for Online Casinos

The bill authorizes online casino gaming in Virginia, restricted to the state’s four licensed casino operators: Caesars Virginia, Golden Eagle Corp., Hard Rock Bristol, and Rivers Casino Portsmouth. These operators would be permitted to establish up to three online platforms, often referred to as “skins.”

To participate, operators would pay a $1 million licensing fee, with permits valid for five years. The Virginia Lottery Board would oversee regulation and implementation, ensuring compliance with state guidelines.

Under the proposed framework, Virginia would impose a 15% tax on adjusted gross online gaming revenue. Of this, 2.5% would be earmarked for the Problem Gambling Treatment and Fund, while the remaining 97.5% would be directed to the state’s general fund to various public programs and services.

The legislation prioritizes consumer protection through several measures. It requires strict age verification to ensure only individuals aged 21 or older can access online gaming services. Additionally, geolocation technology would confirm that all gaming occurs within Virginia’s jurisdiction.

Reflecting Broader Trends in Online Gaming

Virginia’s potential embrace of online casinos aligns with a growing trend across the United States. Currently, seven states—Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia—have legalized online casinos, highlighting their ability to generate significant tax revenue while maintaining strict regulatory oversight.

Beyond Virginia, states like Louisiana and Maryland are also examining legislation that could expand online casino opportunities as early as 2025. This surge reflects the increasing popularity of regulated online gaming, which combines accessibility with responsible gaming protections.

The Virginia Lottery Board has a pivotal role in overseeing the proposed industry, with a deadline of September 30, 2025, to finalize regulatory frameworks. Applications for licenses would open on July 1, 2025, allowing sufficient time for casino operators to prepare their submissions. By granting licenses exclusively to already-vetted operators, the state aims to mitigate risks while leveraging their expertise in gaming operations.

If approved, Senate Bill 827 would solidify Virginia’s position as a forward-thinking state in gambling reform, following its prior successes with sports betting and land-based casinos.

Source:

”Virginia online casino bill filed ahead of session”, cdcgaming.com, January 07, 2025.