Virginia iGaming Bill Stalls Out As Legislative Session Ends

• The Virginia General Assembly ended its legislative session on Saturday
• The House and Senate could not reach an agreement on an iGaming bill in a conference committee
• Virginia lawmakers will likely discuss iGaming legalization in 2027

After both a Senate and House bill approval, months of discussion, and a failed conference committee, Virginia iGaming hopes are officially dead for 2026.

The Virginia General Assembly concluded its legislative session on Saturday, March 14, without concurrence on an iGaming bill. The Virginia House of Delegates and Senate failed to reach a compromise during a conference committee discussing two approved iGaming bills.

While both versions of the iGaming bill include a reenactment clause for a second vote in 2027, key differences in tax allocation and revenue distribution proved to be too much to overcome.

Two Approved Bills, No Consensus

Virginia legislators approved two iGaming bills this session, which seemed to provide the necessary momentum to approve a consensus bill be sent to Gov. Abigail Spanberger (D). However, after both members of the House of Delegates and Senate agreed to a conference committee to work out differences between approved HB 161 and SB 118, a final compromise on the legislation could not be reached.

The Virginia House of Delegates approved HB 161 by a 67-30 vote in late February, crossing the bill over into the Senate. It came one day after the Virginia Senate approved SB 118 by a 19-17 vote.

Both approved Virginia iGaming bills will allow each of the state’s 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.

Both bills allow 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).

Additionally, both bills set the iGaming tax rate at 20% of an operator’s adjusted gross gaming revenue.

There are other substantive differences in either bill versions, but tax revenue allocation is where the bills greatly differ. The House and Senate both included different plans for what iGaming revenue should support in the state. The Senate planned to earmark 3% of iGaming tax revenue to the Gaming Regulatory Fund for the costs associated with gaming, 2% of revenues to the Problem Gambling Treatment and Support Fund, and the remaining 95% to the Modern Public Education Fund.

The House, however, had a more complicated revenue allocation plan. The House planned to permanently allocate 5% of iGaming revenue to the Problem Gambling Treatment and Support Fund. Until Jan. 1, 2037, 6% of revenue would be allocated to the Internet Lottery Hold Harmless Fund and 89% to the general fund. After Jan. 1, 2037, the department would allocate 95% of revenue to the general fund.

Discussions Again Likely in 2027

Virginia iGaming efforts had considerable momentum in 2026 and will likely be picked up again next year. However, legislators will have their work come out for them, as they will need to find common ground on what iGaming revenues will support in the state.

Additionally, it will be interesting to see if any future bills include a reenactment clause. Both approved bills this year included a unique clause which required subsequent passage in two consecutive legislation sessions before iGaming can be legalized in the state. No other state considering iGaming or sports betting legislation has included a similar reenactment clause into its approved bill.