Virginia's Online Casino Bill Takes Early Steps in 2025

Virginia is making early strides in 2025 towards potentially legalizing online casino gaming, with Senator Mamie Locke’s pre-filed bill, Senate Bill 827.

The bill, introduced before the legislative session officially began on Jan. 8, aims to bring iGaming and live dealer games to the state. It was quickly forwarded to the Senate Committee on General Laws and Technology for review with hopes of a swift approval process. If passed, Virginia would become the eighth state in the U.S. to legalize online casinos.

Proposed Timeline and Regulations

Under the proposed timeline, the Virginia Lottery Board would begin accepting applications for online casino licenses in July 2025, with the release of regulations expected by September.

The bill allows the state's four existing casino operators (Caesars Virginia, Hard Rock Bristol, Rivers Casino Portsmouth, and Golden Eagle Corp.) to apply for licenses to offer online casinos. These operators would also be permitted to offer online poker under separate brands. Each operator would pay a $1 million application fee for a five-year digital license.

Taxation and Responsible Gambling

The bill proposes a 15% tax on online casino revenue, with 2.5% earmarked for responsible gambling initiatives. The remaining 12.5% would go into the state’s general fund. This structure mirrors successful models seen in other states, where legalized online gambling has generated substantial tax revenue and created jobs.

Growing Support for Online Gambling

Virginia’s interest in online casinos is part of a broader trend in U.S. gambling expansion. In addition to Locke’s bill, lawmakers in Illinois, Maryland, and Louisiana have also filed iGaming-related proposals.

The push for online casinos in Virginia is driven by economic considerations, including the need for additional state revenue. Legalizing online casinos could also help keep Virginians from crossing state lines to gamble, particularly in places like Maryland where casinos such as MGM National Harbor draw Virginia residents.

The Case for Legalizing Online Casinos

The momentum for legalizing online casinos in Virginia has been building since the state legalized sports betting in 2020. Since then, Virginia sportsbooks have taken over $19 billion in wagers and generated $1.9 billion in revenue, contributing $224.2 million in taxes to the state.

This success has shown that Virginians are eager to engage in regulated gambling, making the case for expanding the industry to include online casinos.

Supporters of the bill argue that legalizing iGaming could further boost the state’s economy by creating more jobs and generating additional revenue. Meanwhile, some legislators are also emphasizing the importance of using tax revenue to fund responsible gambling programs.

Opposition from Some Casino Operators

Not all industry players are on board with online casino legalization. For example, The Cordish Companies, which is behind the development of the $1.4 billion casino project in Petersburg, has voiced concerns. They argue that online gambling could divert customers away from physical casinos, reducing revenue and reinvestment in the local economy.

The Future of Virginia's Casino Industry

In addition to the potential for online casinos, Virginia’s land-based casino industry is already seeing growth. Construction recently began on the Norfolk waterfront casino, expected to cost $300 million. In Petersburg, 82% of residents voted in favor of the $1.4 billion casino project last November. Lawmakers are also considering new proposals, such as one by Senator Scott Surovell, which could allow for a resort-style casino in Fairfax County’s Tysons area.

Looking Ahead

As Virginia's lawmakers work through the details of Senate Bill 827, the future of online casinos in the state remains uncertain. However, with a strong foundation already laid by legalized sports betting and land-based casinos, online gaming could be the next logical step.

If successful, Virginia will join a growing list of states embracing online gambling and could soon see the launch of iGaming alongside its thriving brick-and-mortar casino market.