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A bill to legalize and regulate online casinos in Virginia has made its way into the Virginia Senate’s Committee on General Laws and Technology. Due to the shortness of the legislative calendar in Virginia for 2025, there is precious little time to advance the proposal.
In a matter of weeks, sponsors of SB 827 will face potential obstacles and unknowns from the gambling industry in the state and political interests in Richmond. Should SB 827 become law, however, it could set up 2025 with an air of optimism for online gambling.
This is the first attempt at an online casino bill in the state, where even brick-and-mortar casino gaming is a novelty. In 2020, lawmakers authorized the construction of up to five retail casinos. The third of those has just opened as projects for two other casinos are in their infancy.
Virginia Senator introduces online casino bill
Virginia Sen. Mamie E. Locke prefiled SB 827 on the final day of 2024. Consideration of the bill could happen as quickly as Jan. 9 as the 2025 session begins on Jan. 8.
SB 827 extends the operations of existing casino licensees in Virginia to include iGaming. Should it become law, Virginians would have access to regulated apps for online slots and table games.
The Virginia Assembly meets for only 30 days in odd-numbered years. Although the option to extend the session up to another 15 days exists and Virginia Gov. Glenn Youngkin has the power to call for a special session, the fate of SB 827 will probably become evident quickly.
While the tight calendar could prove an impediment to SB 827’s progress, the content of SB 827 might counteract that effect. If nothing else, though, the bill should start a conversation that could carry on into the full-length legislative session of 2026.
Budget focus could bring SB 827 to bear
The intent of the short sessions in odd years in Virginia is to address issues in the state’s bi-annual budget. As SB 827 concerns bringing in new tax revenues, it could get attention.
The bill assesses a 15% tax on adjusted gaming revenue from online casinos. Most of those tax dollars, 97.5%, would go to the state’s general fund.
In a December 2024 speech concerning budget items, Youngkin did not address gambling in any way. The extra revenue that iGaming could provide might be appealing for some of the budget items he did mention like the repeal of the state’s vehicle tax and more funding for education.
Youngkin’s support or lack thereof won’t be the only difference maker for SB 827.
Stakeholders deciding SB 827’s future
One of the most important factors in whether SB 827 becomes law could be the support or lack thereof from casino operators in Virginia. The table seems set for some pushback there.
While the bill would give existing casino licensees the ability to offer iGaming, at least one of them is likely to balk at that chance. Cordish Companies, which has staunchly opposed the expansion of regulated online casino play, now have a foothold in Virginia via their future operation of a Live!-branded casino in Petersburg that voters in the city approved in November.
However, other licensees like Caesars and Rush Street Gaming, which have casinos in Danville and Portsmouth respectively, could be just as adamant in support of iGaming. Both of those companies maintain robust online casino products in other US states.
Should SB 827 gain some momentum in Richmond, stakeholders will probably make their sentiments clear. Regardless of SB 827’s fate, Virginia will set the tone for 2025 when it comes to the expansion of regulated online casino play in the US.
