The compromise attempt brings together the momentum from HB 161 and SB 118, although the House has added an amendment that demands the legislation pass another round in 2027 before it takes effect. Instead of taking a one-session approach to iGaming legislation, Virginia is making a policy change that must survive a second vote after another election cycle.
Supporters say that the time allows for due diligence, and critics argue that it also adds uncertainty. According to opponents, new lawmakers could re-open the core terms, or stop the bill completely, while the gaming money and play keep going to neighboring states with established markets.
What the Online Casino Framework Would Allow
The current proposal would make online casino gaming legal in 2028 at the earliest, and it would be regulated by the Virginia Lottery Board, as structured by the bill. There would be the ability for each of the land-based casinos to have up to three “skins”. Some of the key terms (as discussed in the legislation and the media) include:
- Eligibility tweak. iGaming activity in two other states would be required from an operator (as opposed to three as previously proposed);
- Tax rate. Recent versions have been discussed in the mid-teens, but the current SB 118 text sets it at 20% (above Virginia’s 15% sports-betting tax).
A Crackdown on Sweepstakes Gaming
One of the clearest messages within this package is reserved for those who run sweepstakes casinos and other unlicensed online casino-type operations. The strategy here is quite simple: if an operator is not licensed within this new structure, then it’s considered illegal iGaming.
The bill language proposes escalating penalties of $100,000 for a first offense, and $250,000 for each subsequent offense, and each day of operation is seen as a separate violation. It also contemplates stronger investigative tools, including subpoena authority for regulators.
Fairfax County Could Reshape the Market Later
A related but separate path would be provided by SB 756. This bill would permit a local referendum on whether Fairfax County should be designated as a local eligible host city for a casino. If Fairfax County is included and the project is approved locally, this would increase the land-based presence and ultimately the online presence related to physical casinos.
A restrictive feature of the bill is the referendum requirement itself. Approval would be required both countywide and in the local area where the casino would be built, which creates potential pitfalls.
Bottom Line for the Industry
Virginia is taking its path to iGaming, but it’s doing it with a deliberate slowdown. The 2028 launch allows time for the establishment of rules around oversight and enforcement. Yet, it also makes iGaming susceptible to a changed 2027 legislature and whatever pressure might be applied by the governor’s office for a stronger, singular regulator before adding more products.
