Virginia Lawmakers Advance iGaming Bill

• Virginia Senators this week moved SB 118 out of the general laws and technology
• SB 118 legalizes iGaming in state
• The bill was not moved out of committee during a hearing last week, but added RG measures led to its approval

Several Virginia lawmakers are hoping the state becomes the ninth in the country to legalize iGaming, as members of a Senate committee narrowly moved a bill forward this week.

The members of the Senate General Laws and Technology approved SB 118, which legalizes iGaming in the state, by a 9-6 vote after added responsible gaming measures made the legislation more palatable for voters.

Sen. Mamie E. Locke’s (D-23) bill did not receive a vote of approval during a subcommittee meeting last week.

iGaming Bill Moves Forward

Locke’s SB 118 will allow each of the state’s current three land-based casinos to offer iGaming through partnerships with online iGaming operators. Casino gaming operators will be able to partner with up to three iGaming operators to conduct iGaming in the state through an initial $2 million platform fee. Additionally, approved iGaming operators will be required to pay a $500,000 initial licensing fee.

Two new brick-and-mortar casinos are slated to open in the state in 2026 and will be eligible to offer iGaming if approved.

During its initial subcommittee hearing last week, the bill was voted down by a 3-4 margin. However, additional responsible gaming measures were added to the legislation, which led to its committee approval.

The bill now heads to the Senate Finance and Appropriations committee. If approved by this committee, the legislation will then be sent to the Senate floor for consideration.

This is the second year in a row Locke has introduced an iGaming bill. In January 2025, Locke pre-filed SB 827 to legalize iGaming in the Old Dominion state. The bill allowed for the state’s brick-and-mortar casinos to apply for an iGaming license and partner with up to three online casino operators.

However, Locke pulled the bill back later in the month, noting that more research was needed on the topic.

Senate iGaming Bill Details

Lock’s legislation allows for iGaming licenses to be valid for five years, upon which both casino gaming operators and iGaming operators will be able to renew licenses at half their initial fee ($1 million for a casino gaming operator and $250,000 for an iGaming operator).

The bill authorizes the state’s iGaming tax rate at 15% of an operator’s adjusted gross gaming revenue. The legislation earmarks 5% of revenues allocated to the state’s Problem Gambling Treatment Fund, 6% allocated to the iGaming Hold Harmless Fund until Jan. 1, 2030, and the remaining 89% before Jan. 1, 2030, and 95% after Jan. 1, 2030, allocated to Virginia’s general fund.

The bill also sets civil penalties for individuals operating unlicensed iGaming and sweepstakes in the state. The legislation notes the following will be unlawful:

“Except if conducted by a licensed internet gaming operator, offering or conducting a sweepstakes in which a person present in the Commonwealth may participate by paying or proffering something of value, including an entry fee for the opportunity to win or receive cash or a cash equivalent, shall constitute illegal internet gaming in violation of this section, and shall subject the operator or sponsor, or any officer, employee, or agent of the operator or sponsor, to civil liability under this section.”

Any person or operator who violates this law may be liable for a civil penalty of not more than $100,000 for the first offense, $250,000 for the second and each subsequent offense. Each day in which a violation occurs will be considered as a separate offense.