Another US state is continuing to fill the progress bar towards legalising iGaming, as House Bill 161 plans to bring online casinos to Virginia.
The bill has passed two committee stages in Virginia’s House of Delegates – the General Laws Gaming Subcommittee on 3 February with 5-4 votes in favour and the full General Laws Committee on 5 February with 12-8 votes in favour. It is now on its way to the Appropriations Committee.
SB 118, a companion measure in the state’s Senate, was initially stopped in its tracks in subcommittee but was able to progress last week with a 9-6 vote in favour after several responsible gambling measures were added in. It will now be reviewed by the Finance Committee.
Under HB 161, a maximum of 15 iGaming platforms could be launched, as Virginia’s five existing land-based casinos – run by Caesars Entertainment, Rush Street Gaming, Hard Rock International, Boyd Gaming and Cordish Companies’ Live! Casino – will be able to have up to three online casino skins each.
A licensing fee of $500,000 must be paid to enter the market, as well as a $2m platform fee. Operator gross gaming revenue and platform adjusted gross revenue will both be taxed at 15%, while the market will be regulated by the Virginia Lottery.
Of note, 6% of all tax revenue would go to an Internet Gaming Hold Harmless Fund and would be used to offset any loss of revenue by land-based operators that is attributed to iGaming. The establishment of Virginia-based live dealer studios is also part of the bill.
The bill will also serve as a legislative ban on online sweepstakes gaming, as any company offering a sweepstakes game would violate the law and be subject to penalties, unless they are licensed as an iGaming operator.
Operator optimism
Virginia would become the ninth US state to legalise iGaming if its legislation is signed into law, joining the likes of Connecticut, Delaware, Maine, Michigan, New Jersey, Pennsylvania, Rhode Island and West Virginia.
With financial reporting taking place, operators are taking the opportunity to express their optimism in the potential of Virginia legislating online casinos.
BetMGM CEO Adam Greenblatt said during the operator’s investor call earlier this week that Virginia legalising iGaming would be good news, but its financial impact might not be felt until next year, as the process from legislation to bets being placed can take several months.
“It’s Virginia and iGaming states that are the primary upside. As we’re seeing with Alberta, the process of regulating a new market is not trivial. There are lots of considerations. I think there’s been some analysis on this; on average, from law passing to first bet taken is about nine months.
“So I think good news this year would probably only have a financial impact in the real world in 2027. I don’t think 2026 is at risk one way or the other from new states.”
