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Just when it appeared the dream of legal online casinos in Virginia had died in committee, lawmakers pulled off a last-minute reversal. Both the Senate and the House of Delegates saw their respective bills fail initial votes, only to be resurrected hours later through parliamentary “reconsideration” motions.
VA online casinos: From floor defeat to landslide approval
Tuesday, Feb. 17, marked the official “Crossover Day” in Richmond, and the House didn’t want the Senate to have all the drama. After Senate Bill 118 narrowly escaped defeat with a 19-17 vote Monday, the House version, House Bill 161, followed a similar script today. The bill actually failed its first floor vote this morning but was brought back for a “do-over,” subsequently passing in a 67-30 landslide.
As of tonight, both chambers have officially passed their own versions of an online gambling framework. The two bills will now swap chambers as lawmakers attempt to agree on a single “playbook” before the legislative session concludes March 14.
The reversal highlights a classic political adage: Never count your chips until the session ends.
Sen. Mamie Locke, D-Hampton, a long-time champion of the measure, reminded colleagues that Virginians are already wagering billions on illegal offshore sites. Locke argued the state should regulate the industry to capture tax revenue rather than ignoring the existing black market.
Delayed launch and ‘hold harmless’ provisions
Prospective players shouldn’t clear space for blackjack apps just yet. To convert “no” votes into “yes” votes, leadership agreed to several concessions. The most significant change is a delayed launch; the Senate version mandates that real-money online casinos will not go live until July 1, 2027.
The legislation also includes “hold harmless” provisions designed to protect existing brick-and-mortar casinos from losing foot traffic to mobile apps.
Key Financial and Regulatory Components:
- Taxation: A 20% tax on adjusted gross revenue.
- Education Funding: 95% of tax proceeds will be allocated to the Modern Public Education Fund.
- Responsible Gaming: The bill mandates some of the strictest protections in the US, including automated technology to detect high-risk wagering behavior.
Virginia Lottery oversight and licensing fees
If SB 118 reaches the governor’s desk, the Virginia Lottery will serve as the official regulator. The agency faces a Jan. 1, 2027, deadline to finalize the industry “rulebook.”
The current version of the bill limits the “guest list” to the state’s five land-based casino operators. This includes Rivers Casino Portsmouth, Hard Rock Hotel & Casino Bristol, and Caesars Virginia in Danville, along with planned developments in Norfolk and Petersburg.
The Cost of Entry:
- Initial License: $500,000 fee (valid for five years).
- Renewal: $250,000 fee.
- Platform Fee: Each operator can host up to three separate mobile platforms, each requiring a $2 million fee.
While the upfront costs are steep, the Commonwealth is betting that the long-term tax yields will be significantly higher. Now that the bills have swapped chambers, they face further scrutiny. The House and Senate must now decide whether to approve the mirror versions, suggest further modifications, or reject the expansion of online gambling entirely.
