Virginia Considers Legalizing Online Casinos with New Bill SB 827

Licensing and Regulation

If passed, the Virginia Lottery Board would oversee licensing and compliance, allowing only the four companies currently licensed to operate physical casinos to apply for iGaming licenses.

These operators could run up to three platforms, or “skins,” per license, broadening options for players while maintaining a controlled market. A one-time $1 million application fee would be required for each license, making it a significant investment for operators.

Taxes, Consumer Protections, and Operational Rules

The proposed law establishes a 15% tax rate on gross revenue, with 2.5% earmarked for responsible gambling programs and the remaining 97.5% directed to Virginia’s general fund. Operators would be obligated to implement strict age and location verification systems to ensure players are at least 21 years old and physically located in the state.

Responsible gambling tools, including deposit limits, temporary account suspensions, and access to a problem gambling hotline, would also be mandatory. The bill introduces a ban on using public devices for online gambling, with an exception for licensed casinos, which could provide on-site gaming devices.

Live dealer games, streamed from facilities outside Virginia, would be permitted, adding an innovative dimension to the offerings. Penalties for violations, such as unauthorized operations or tampering with game outcomes, are included to safeguard market integrity.

Legislative Timeline

Virginia’s cautious yet structured approach reflects an intent to expand its gambling offerings responsibly. By limiting licenses to existing casino operators, the state seeks to control market growth while tapping into the economic potential of iGaming.

The legislative session runs until February 22, 2025, after which it will be clear whether Bill SB 827 will be approved and signed into law by the governor.

In addition to the proposed iGaming legislation, it’s noteworthy that sports betting has been legal in Virginia since January 2021. The state permits both online and retail sports wagering, regulated by the Virginia Lottery.

Residents aged 21 and over can place bets on professional sports; however, wagering on in-state college teams is prohibited. Currently, several renowned sports betting platforms operate in Virginia, including BetMGM, FanDuel, and DraftKings.

The state continues to expand its gambling landscape, with four casinos under construction and plans to increase retail betting locations.