Virginia’s initiative to legalize online gaming has encountered a setback, as lawmakers have opted to postpone the bill to allow for additional analysis.
Senator Postpones Debate for Further Refinement
Senator Mamie Locke of Hampton introduced Senate Bill 827, which seeks to empower the Virginia Lottery Board to license casino operators for internet gaming. However, the bill has been temporarily set aside to facilitate further research and refinement, as reported by the Virginia Mercury.
Senator Locke emphasized that the bill’s objective is to establish a controlled and secure online gaming market within the state. Although the bill was prepared for discussion, Locke requested the Senate Subcommittee on Gaming to delay its review. She stated that more time is needed to ensure the plan effectively addresses all pertinent issues and confirmed intentions to reintroduce the bill for consideration by 2026.
The proposed legislation outlines a framework where operators would pay a $1 million application fee and a 15% tax on their earnings. The revenue generated would be allocated to Virginia’s General Fund (97.5%), with 2.5% directed to the Problem Gambling Treatment and Support Fund. Local governments would also benefit from this arrangement.
Online Gaming Bill Faces Scrutiny Over Effects on Lottery and Casino Revenues
While the bill presents an opportunity to generate new income, concerns have arisen regarding its potential impact on the state’s existing funding mechanisms. The Virginia Department of Planning and Budget cautioned that online gaming could reduce revenue from the Lottery Proceeds Fund and the School Construction Fund by diverting activity from traditional lottery sales and physical casino gaming. A financial analysis by the Virginia Lottery predicted that if the bill becomes law, it would negatively affect state revenues overall.
Virginia ventured into online gambling by legalizing sports betting in 2020, which has contributed significantly to tax revenue. Proponents of the bill argue that online casinos, offering games like slots, table games, and live dealer options, could further boost the state’s income. However, some lawmakers and casino owners remain skeptical, expressing concerns that online gaming might adversely affect the profits of brick-and-mortar casinos.
Despite these concerns, research from other regions indicates that online gaming often complements land-based casinos rather than harming them. States like Maryland and Louisiana are also considering the legalization of online casinos, highlighting the growing trend of digital gaming platforms nationwide.
Virginia’s current proposal envisions its four existing casinos—including Caesars Virginia and Hard Rock Bristol—taking the lead in establishing online gaming operations. As the state continues to evaluate this initiative, key stakeholders will strive to balance potential financial gains with the need to address industry and community concerns effectively.
Gaming Legislation in Virginia and Other States
Virginia’s gaming landscape has evolved significantly in recent years. The Virginia Lottery oversees lottery gaming, sports betting, and casino gaming within the state.
In 2020, the state expanded its gaming options to include online iLottery games, casino gaming—including mobile betting permitted only on-site—and sports betting, both online and in-person at authorized facilities.
As of January 2025, Virginia is considering the establishment of a centralized regulatory body, the Virginia Gaming Commission, to oversee all forms of gaming, excluding traditional and mobile lottery games. This initiative aims to streamline regulation and oversight as the state’s gaming industry continues to grow.
Across the United States, gaming regulations vary significantly by state. Following the 2018 Supreme Court decision allowing states to regulate sports betting, 38 states and Washington D.C. have legalized it in some form.
For instance, Colorado legalized sports betting in November 2019, with online and mobile betting going live in May 2020. The state offers bettors a wide choice, with 20 licensed sportsbooks accessible both in person and online.
In contrast, states like Missouri are still in the process of legalizing sports betting, with significant movements toward legalization expected by the end of 2023.
This patchwork of regulations reflects the diverse approaches states take based on their unique legislative priorities and public sentiments.
Responsible Gaming Efforts
Responsible gaming efforts are integral to the expansion of gaming activities. In Virginia, a portion of the revenue from sports betting and casino operations is allocated to the Problem Gambling Treatment and Support Fund. This fund supports programs aimed at preventing and treating gambling addiction.
Additionally, the state has implemented a voluntary exclusion program, allowing individuals to self-exclude from gaming activities for periods of two years, five years, or a lifetime. These measures demonstrate Virginia’s commitment to promoting responsible gaming practices.
Other states have also prioritized responsible gaming. For example, New Jersey requires online gambling operators to provide tools that help players set deposit, loss, and session limits, promoting responsible gambling behaviors. Similarly, Colorado mandates that licensed sportsbooks include responsible gaming messaging in their advertising and provide resources for problem gambling support.
These efforts highlight a broader recognition of the importance of responsible gaming initiatives to mitigate the potential negative impacts of expanded gaming opportunities.
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