Virginia has taken a significant step towards legalizing online casinos by advancing a bill that includes enhanced safeguards against problem gambling. The proposal, which passed the Senate General Laws Committee with a vote of 9-6, is now set for further examination by the Senate Finance Committee.
The legislation, known as SB 118, aims to regulate real-money online casino gaming in Virginia, allowing the state’s five existing casinos to partner with up to three mobile iGaming operators. Each partnership would require a fee of $2 million and the establishment of live dealer studios within the state.
During discussions in the subcommittee, lawmakers expressed concerns about problem gambling, leading to the inclusion of stronger consumer protection measures. Sen. Jeremy McPike, a supporter of the bill, noted that the revised proposal contains “more prescriptive” protections than those in any other state. He abstained from the subcommittee vote but indicated his support for the bill due to its enhanced consumer protection elements.
The updated legislation mandates specific, enforceable duties for state regulators and iGaming providers. This includes automated systems designed to detect problem gambling behaviors, which will trigger interventions based on player data. The legislation outlines a three-phase intervention process, offering proactive communications about responsible gambling and easy access to support resources. Notably, provisions allowing players to use prepaid or credit cards were removed to further protect consumers.
With the bill now moving to the Senate Finance Committee, lawmakers will evaluate its financial implications, potential job growth, and effects on traditional brick-and-mortar casinos. The committee’s discussions are expected to take place next month.
The path to legalizing online casinos in Virginia reflects a broader national trend. If approved, Virginia will become the ninth state to permit real-money iGaming, joining the ranks of New Jersey, Pennsylvania, West Virginia, and Michigan. The split vote in the General Laws Committee highlights the contentious nature of online casinos, which has also divided opinions within the gambling industry.
Supporters like national iGaming operators Caesars and Boyd Gaming, who operate physical casinos in Virginia, testified in favor of the bill. They argue that online gaming would attract new customers without negatively impacting existing revenues from traditional casinos. Conversely, Cordish Companies, which operates Live! Casino Virginia, opposed the bill, asserting that it could harm the taxable income of brick-and-mortar establishments and jeopardize jobs.
Labor unions have also weighed in, indicating that they might support the legislation if additional protections for existing jobs are guaranteed. This concern mirrors issues that contributed to the failure of a similar bill in Maryland last year.
If the Finance Committee approves the bill, it will then be sent to the full Senate for a vote. Following that, it will require passage through the House of Delegates and must survive a potential gubernatorial veto before becoming law. The ongoing discussions surrounding this legislation reflect the evolving landscape of gambling in Virginia, balancing economic opportunities with responsible gaming practices.
