Virginia Puts iGaming Bills on Hold Amid Regulatory Study

Virginia lawmakers have postponed efforts to legalize internet gaming (iGaming) in the state, citing the need for further study and the potential creation of a dedicated gaming regulatory agency. The delay comes amid continued industry lobbying and heightened campaign contributions ahead of the 2025 legislative elections.

Senator Mamie Locke introduced Senate Bill 827 in December 2024 to authorize regulated companies to offer online gaming to Virginians. In January, during the state’s 30-day odd-year legislative session, Locke requested the bill be put on hold. Her companion measure, House Bill 2171, sponsored by Delegate Marcus Simon, was similarly tabled. “This bill is designed to authorize reputable, regulated companies to offer internet gaming to Virginians within a safe and legal market,” Locke said during a January hearing. “However, after introducing this bill, we have decided that it requires further study on this issue.”

 

Topic	Details
Legislation	Senate Bill 827 and House Bill 2171 put on hold for further study
Reason	Need to examine industry impacts and create a potential gaming commission
Potential Revenue	Up to $5.3 billion over five years, according to Delegate Simon
Industry Influence	Sports Betting Alliance contributed $2M to candidates ahead of elections
Next Steps	Subcommittee meeting next week; possible 2026 legislative session focus

 

The Recent Developments

While legislative action is paused, the Joint Subcommittee to Study the Feasibility of Establishing the Virginia Gaming Commission has continued examining the potential of iGaming and other gambling expansion. Created in 2023, the subcommittee is tasked with assessing whether a new regulatory agency is necessary and plans to meet next week before its scheduled sunset on November 30.

In its August meeting, the subcommittee considered the potential economic impact of legalizing iGaming. Simon suggested online gaming could help combat illegal and offshore gambling, projecting up to $5.3 billion in revenue over five years. He also addressed concerns that online gambling might cannibalize existing casino revenues.

“This is revenue not getting accessed by the commonwealth, we’re getting zero percent,” Simon said. “And this doesn’t create the online gambling market. They’re already doing it.”

The political landscape surrounding iGaming is already shaped by industry influence. According to Virginia Public Radio, the Sports Betting Alliance (SBA), which represents operators including FanDuel and DraftKings, has contributed more than $2 million to candidates this year. Campaign contributions from gaming companies rank second in the state, behind Dominion Energy. The SBA declined to comment for this report.

Locke’s proposed legislation would permit the Virginia Lottery Board to issue online casino licenses, with operators paying a $1 million application fee and a 15% tax on revenue. Each of the state’s five casinos could apply for up to three online “skins,” allowing multiple digital platforms under a single license.

However, opposition remains. The Virginia Lottery has expressed concern over its capacity to manage online expansions while overseeing five land-based casinos in development. Similarly, The Cordish Companies—operator of a Virginia casino—and Churchill Downs Inc. formed the National Association Against iGaming, which has lobbied against online casino expansion in the U.S.

 

Virginia lawmakers have paused efforts to legalize online gambling, citing the need for further study and the potential creation of a dedicated gaming commission, while industry groups continue to lobby ahead of elections.

 

Industry Outlook

Industry experts argue the risks of cannibalization may be overstated. David Rebuck, former director of the New Jersey Division of Gaming Enforcement, told the subcommittee that online casinos in New Jersey complemented, rather than undermined, existing land-based operations. “There were fears casino workers could lose their jobs and that the supporting industries around casinos would suffer. iGaming demonstrated itself to be complementary to the existing forms of gaming and critical to sustaining the growth of the land-based casinos,” Rebuck said.

Virginia legalized sports betting in 2020. Since its launch in January 2021, sportsbooks have processed $24.7 billion in wagers, generating $2.4 billion in revenue—a benchmark lawmakers and industry stakeholders are watching as iGaming discussions continue.

As Virginia prepares for the 2026 legislative session, the establishment of a dedicated gaming commission may become a prerequisite for any new gambling expansions, signaling a cautious, study-driven approach to potentially significant changes in the state’s gaming landscape