Virginia’s iGaming Bill SB 827 Ends Before It Can Begin

While the bill promised to modernize the state’s gaming landscape, early opposition and critical impact statements made it clear that the road ahead was anything but smooth.

The Promises of SB 827

The bill sought to establish a regulated iGaming market in Virginia under the oversight of the Virginia Lottery Board. Its key features included:

• Limiting licenses to the state’s four physical casinos, allowing each to operate up to three online platforms.
• Requiring a $1 million license application fee and taxing gross gaming revenue at 15%, with 2.5% going toward responsible gambling programs.
• Mandating strict age verification and geolocation systems to ensure players were at least 21 and physically located in Virginia.
• Allowing live dealer games from outside Virginia but banning public devices for gambling except in licensed casinos.

On the surface, SB 827 appeared well-structured. However, objections arose quickly.

Why SB 827 Hit a Wall

The proposal faced opposition on multiple fronts. The Virginia Lottery expressed concerns that iGaming might cut into its lottery revenue. They argued that the tax rates proposed in the bill were too low to offset potential losses.

The Virginia Criminal Sentencing Commission warned that legalizing online casinos could increase crime and strain the state’s resources. While data was limited, the commission believed these risks were too significant to ignore.

Financial issues added to the criticism. The Department of Planning and Budget doubted whether the fees and taxes outlined in the bill could cover the costs of regulating iGaming. Many critics believed operators should pay higher fees to ensure the state’s costs were met.

What Could Have Been

If passed, SB 827 would have introduced online casino gaming with strong controls. The bill’s focus on responsible gambling and strict verification systems suggested a desire to balance growth with oversight. It also aimed to generate new revenue streams for Virginia.

However, the concerns from stakeholders like the Virginia Lottery were enough to halt progress. Their fears of lost revenue and insufficient tax structures overshadowed the potential benefits.

While SB 827 is unlikely to resurface in its current form, its introduction sheds light on where Virginia and perhaps the broader U.S. might head in the future.

For now, Virginia’s iGaming hopes are on hold. Whether 2026 brings new efforts or more cautious approaches, it’s clear that the conversation around iGaming in Virginia is far from over.