A bill to legalize online casinos in Virginia scraped through a House subcommittee after a fierce debate over funding, jobs, and gambling risks.
A Vote That Could Reshape Virginia Gaming
By the narrowest of margins, House Bill 161 moved out of the House General Laws gaming subcommittee, with a 5–4 vote pushing it to Appropriations. It’s the latest attempt to regulate real-money online casinos in Virginia, a market supporters say is already booming — just illegally.
Bill sponsor Del. Marcus Simon argued that Virginians are already betting roughly $12 billion a year with unregulated platforms. His pitch? Bring it into the light, tax it, and wrap it in consumer protections.
“This bill is meant to bring the gaming on your phone within a legal framework,” Simon told the committee.
What the Bill Would Do
The proposal would:
- Legalize and regulate online casino platforms
- Charge $2 million licensing fees
- Impose a 15% gross gaming revenue tax
- Ban prepaid and credit card deposits
- Require live-dealer iGaming studios based in Virginia
- Fund gambling treatment and harm reduction programs
Virginia would be the first state to mandate in-state live-dealer studios — a move meant to create jobs and give local workers a slice of the action.
Supporters: It’s Already Here — Let’s Tax It
Backers from major operators like Caesars and Evolution Gaming lined up behind the bill. The Sports Betting Alliance, which includes FanDuel, DraftKings, BetMGM, and bet365, also supported it.
Henry Watkins of Evolution claimed the bill could create up to 2,000 jobs via studio operations. Others pointed to states like Michigan and Pennsylvania, where lotteries reportedly grew even after iGaming went live.
Critics: Bad News for Schools and Workers
Opposition came fast and loud. The Virginia Lottery estimated up to $616 million in lost K-12 education funding over five years if the bill passes. Khalid Jones, the Lottery’s executive director, warned that shifting dollars online could gut lottery sales, which currently feed directly into education.
Brick-and-mortar operators like Live! Casino Virginia and Churchill Downs also protested, fearing online gaming would cannibalize their revenue and lead to layoffs.
Mark Stewart of Live! Casino Virginia said the bill could cost 2,000 jobs and siphon off $220 million in lottery funds annually.
Addiction Fears Take Center Stage
Emotional testimony from problem gambling advocates drove home another issue: addiction.
“I lost over $2 million to two casinos in six months,” said Stacey Rendon, a Michigan resident. David Nangle, a former Massachusetts lawmaker, questioned the wisdom of making gambling a 24/7 pocket option.
“You don’t even have to put on pants to gamble,” added Del. Marcia Price, who voted against the bill.
Senate Bill Gains Steam Too
The House isn’t alone. A Senate committee recently advanced its own iGaming bill, SB 118, sponsored by Sen. Mamie Locke. After adding a slew of responsible gambling measures, Locke’s proposal found enough support to move forward.
The Senate plan is tied to the creation of a unified regulator — the Virginia Gaming Commission (VGC) — that would take over from the patchwork system currently split between the Lottery, Racing Commission, and Agriculture Department.
What’s Next: Tight Vote, Tough Road
HB161 now heads to the House Appropriations Committee, where funding impacts will take center stage. With the bill barely advancing, expect fierce negotiations over tax splits, education funding, and safeguards before any full House vote.
Senate action will hinge on how SB 118 performs in the Finance Committee and whether lawmakers can agree on the VGC’s creation.
Bottom Line for Players
If this passes, Virginia could become the ninth U.S. state to legalize real-money iGaming — with up to 15 online casino platforms linked to brick-and-mortar casinos. That’s a potential game-changer for players. But it also means a wave of new apps, promotions, and possibly more gambling harms if protections don’t keep pace.
The fight isn’t over — but the odds of legal iCasinos in Virginia just got a little better.
