Virginia’s Gambling Expansion Stalls

This week, Virginia lawmakers decided to delay efforts to legalize online casino gaming but advanced a bill that could bring retail casino gaming to Fairfax County. Sen. Mamie Locke’s online casino proposal (SB 827) will not move forward until 2026, as the state seeks more time to study its economic impact. Meanwhile, SB 982, which proposes a brick-and-mortar casino in Tysons, passed early committee hurdles, though it faces significant opposition from residents.

Online Casino Bill Shelved Until 2026

SB 827 aimed to expand Virginia’s gambling landscape by allowing gaming licensees to offer online slots and table games. With the state collecting taxes on operators’ winnings, proponents saw potential economic benefits. However, Sen. Locke requested a postponement, citing the need for further study. The Senate Subcommittee on Gaming obliged, pushing the proposal to the 2026 session.

The short legislative calendar in odd-numbered years, when the General Assembly meets for only 30 days, contributed to the decision. This delay provides time to address concerns raised by various stakeholders, including fears that online casino gaming could divert revenue from existing gambling enterprises like the Virginia Lottery.

The fiscal note for SB 827 also highlights challenges, projecting decreased lottery revenue and potential impacts on state funding for corrections and other programs. Additionally, Virginia’s gubernatorial election in 2025 adds uncertainty, as leading candidates have not taken positions on online casino gaming.

While online gaming takes a back seat, the Fairfax County casino proposal gained momentum. SB 982 cleared two hearings and now awaits further consideration by the Senate Finance and Appropriations Committee. If passed, the bill would allow a public referendum in Fairfax County in 2026 to decide on granting a casino license for Tysons. Supporters point to economic development opportunities and the proposed site’s proximity to the Metro Silver Line. However, the proposal has yet to attract a specific developer, leaving questions about its feasibility.

Fairfax County residents have voiced strong opposition to the Tysons casino proposal. During a recent hearing, many expressed concerns about its impact on local communities. Vienna’s town council formally opposed the bill, and Loudoun County residents have launched a petition against it.

This resistance mirrors previous challenges to casino proposals in Virginia. Richmond voters rejected similar measures in 2020 and 2021, leading to a state-imposed moratorium on subsequent referendums in that city. The Fairfax proposal, however, remains legally viable if SB 982 passes the Assembly and overcomes a potential gubernatorial veto.
2026:

 

We need more time to fully understand the economic impacts and address the concerns of stakeholders before moving forward with this legislation.

 

A Year of Potential Change

While 2025 will bring no immediate changes to Virginia’s gambling landscape, 2026 could be pivotal. The extra time for research and advocacy may strengthen the case for online casino legalization, while the outcome of the Fairfax County referendum will shape the future of retail gaming in the state.

For now, Virginia’s gambling enthusiasts must wait as lawmakers navigate the economic, political, and social complexities of expanding gaming options.