Virginia lawmakers are moving a significant online gaming bill forward after several months of sluggish progress. The bill makes way for a regulated online casino and shuts down sweeps casinos operating without a state licence.
The Senate committee voted 9–6 to advance SB 118. The legislation will now be heard by the Senate Finance Committee, while the House version is working through its own process. The latest votes appear to bolster the notion of iGaming regulation, particularly as politicians continue to discuss consumer protection.
Why Lawmakers Say This Can’t Wait
Supporters point to the sheer size of the unregulated casino activity happening online in Virginia, amounting to about $12 billion in yearly transactions. Their argument for such a policy is simple: people gamble as it is, but much of this is done on unregulated websites with little in the way of enforcement.
In their reasoning, a legal market would permit Virginia to establish standards and guide users away from offshore sites. They also believe it would allow regulators to address a lawbreaker more straightforwardly.
Sweeps Casinos Would Be Explicitly Outlawed
One of the largest parts of SB 118 concerns sweeps casinos. Such sites often employ the language of “prize” or “sweepstakes” to offer casino-style games outside the regular gaming law.
This bill would make unlicensed sweeps-style gaming illegal across the state. It would also clarify that only licensed internet gaming operators can offer play tied to prizes or cash value substitutes. There would also be a fine for operators working without a license.
New Duties for Operators
The revised bill also proposes tough measures to promote responsible gambling. Operators would be required to monitor real-time player data to identify potential problem signs. These include longer play time, increased bets, or behavior that may indicate chasing losses.
Spotted problem signs would set off a step-by-step process. The process might begin with educational prompts, proceed with temporary limitations, and, in the most critical instances, culminate in account closure.
The bill also includes stricter funding requirements. Prepaid cards will no longer be an option, and the prohibition on the use of credit cards remains. Other actions include clear statements, “break in play” messages, and the promotion of clear responsible gambling information (like the national helpline).
Industry Views Split
National brands like FanDuel, DraftKings, BetMGM, bet365, and Caesars have actively backed the measure throughout the hearings. However, some local operators (like Live! Casino Virginia) have expressed concern that online casino play could negatively impact spending at the physical location. That, in turn, would affect jobs and tax revenues.
What To Watch Next
If Virginia passes the bill, it would set a firm line against unlicensed sweeps casinos and place heavy compliance duties on operators. Other states will be watching closely, for the approach is detailed and could become a model for future online casino laws.
