Legalized Online Casino Gambling Delayed in Virginia

The residents of Virginia were anticipating having access to legalized online casino gambling by mid 2027. Due to some unresolved Congressional issues, that access will like be delayed until sometime in 2028.

The issue at hand involved the legislature's inability to get legislation passed related to the consolidation of three (3) key gambling regulatory bodies. Those three (3) bodies included:

• The Virginia Lottery Commission


• The Virginia Racing Commission


• The Charitable Gaming Board

With HB 271, lawmakers were to consolidate these three (3) groups into one independent regulatory agency that would oversee all aspects of legal gambling throughout the state. The bill was introduced by Del. Paul Krizek, who mentioned during a recent committee meeting that:

"We’ve got too many agencies regulating gaming as it is right now."

A key opponent to this approach was Senate Finance Committee Chair Louise Lucas, who felt it would be more prudent to simply increase the legislative reach of the Virginia Lottery Commission.

With neither side willing to give on the issue, the Committee decided, by a vote of 11-3, to shelve the matter until the first legislative session of 2027.

The Effect on Online Casino Gambling

With this oversight bill stalled until 2027, it was no longer possible for lawmakers to move forward on online casino legislation without a regulatory body in place.

According to the House's iGaming bill, HB 161, this delay calls a reenactment clause, which means the bill must again pass the legislature in 2027 before becoming law. That delays any possibility of iGaming access until sometime in 2028. The Senate's iGaming legislation, SB 18, is seeking to get iGaming to the masses by July 1, 2027. The issue: The House and Senate have yet to reconcile these two bills.

As of now, iGaming in Virginia would include these provisions:

• A $500k initital licensing application and fee


• An overall online casino "platform fee" of $2 million


• A tax rate of 15% on gross online casino gross adjusted revenue

Supporters of this legislation are anxious to get something passed due to the outgoing flow of casino wagering dollars to sweepstakes casinos, offshore casinos, and prediction market access. Every dollar wagered outside of the state's reach becomes tax money that will never be claimed. That effectively could translate to several billion dollars of lost tax revenue for the state over five years.

Creating Budget Issues

Under the assumption that online casino gambling would become legal, lawmakers approved a 2026 budget that included associated tax revenue. That's why it's dangerous to legislate based on something that has not yet been finalized.

This issue is going to have spending ramifications throughout fiscal year 2026. It's something that the legislature will have to immediately tackle in March of 2027, with a possible new legislative group sitting in control. For now, residents will have to remain patient should they have any aspirations of legally playing online casino games of chance.