The initiative to establish an online casino market in Virginia has hit a roadblock, even after both the Senate and House passed bills aimed at its expansion. The timeline for launching this sector has now been postponed to at least 2028, following the collapse of legislative negotiations before the March 14 deadline.
During the recent 2026 session, lawmakers in the state Senate and House of Delegates were unable to reconcile the differences between House Bill 161 and Senate Bill 118. Although both bills had successfully passed their respective chambers, a unified version was necessary for final approval.
Conferees from both chambers failed to reach an agreement before the session concluded on Saturday night. Consequently, the legislative process will need to restart in 2027, requiring both the Senate and House to pass any approved measure once more before it can be implemented.
The final drafts of both bills had already agreed on enactment language that necessitated a second round of approval in 2027, making 2028 the earliest possible launch date for online casino operations.
The Senate approved SB 118 with a narrow 19-17 vote in late February, while the House followed suit by passing HB 161 with a 67-30 margin the next day. Both votes required further reconsideration before they could be finalized.
During the crossover process, each chamber made amendments to the other's proposal. However, lawmakers later rejected these changes, reverting each bill to its nearly original form before entering conference discussions.
Both proposals outlined a similar market structure, allowing Virginia’s land-based casinos to partner with up to three online platforms for statewide iGaming. Current operators in the state include Caesars Entertainment, Rush Street Gaming, Hard Rock International, Boyd Gaming, and The Cordish Companies.
The proposed bills included a $2 million platform fee and a $500,000 initial licensing fee, with operators facing a 20% tax on adjusted gross gaming revenue. A portion of the tax revenue was intended to address potential impacts on land-based casinos, with oversight assigned to the Virginia Lottery Board.
Negotiations faltered over the allocation of tax revenue and the distribution process.
The iGaming legislation also included a stipulation linked to a separate proposal aimed at establishing a unified gambling regulatory body in Virginia.
Two versions of this initiative were under consideration; however, Senate Bill 609 did not advance from conference before the session concluded, while House Bill 271 was postponed until 2027.
The National Association Against iGaming, which includes members such as Cordish, Red Rock Resorts, Monarch Casino & Resort, and Churchill Downs Inc., opposed the legislation.
In a statement shared on social media, NAAiG spokesman Oliver Barie remarked, “Virginia lawmakers made the right decision today by rejecting the expansion of online casino gambling. Virginians made their voices heard and stopped a proposal that would have placed casino-style betting on every phone and smart device with 24/7 access.”
Barie further noted, “iGaming carries serious consequences, including increased risk of addiction and financial harm for families, while diverting money away from brick-and-mortar businesses and our local communities. We thank the legislators who chose to protect Virginia and rejected the expansion of this harmful policy.”
The proposed legislation also aimed to ban online sweepstakes casinos. With the bills not progressing, these platforms continue to operate in a legal gray area, while regulated online casino gaming remains prohibited in the state.
Despite the setback on online casino legislation, several other gaming-related measures were successfully passed by the General Assembly before its adjournment. Lawmakers approved SB 756, which authorizes a land-based casino in Fairfax County, contingent upon voter approval. Additionally, a measure was approved to prohibit the use of credit cards for sports betting.
Furthermore, lawmakers reached an agreement on legislation banning against-the-house betting.