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Virginia’s online casino effort looked close to finished last week. Senate Bill 118 failed in subcommittee, and frustration over weak consumer protections was clear. A few days later, the bill is alive again, thanks to a rewrite that lawmakers say fundamentally changes how online gambling would work in the commonwealth.
The updated version passed the Senate General Laws and Technology Committee on a 9-6 vote, sending the proposal to the Senate Finance and Appropriations Committee for its next test.
Virginia’s SB 118 revival gains momentum
SB 118 is sponsored by Sen. Mamie Locke, who has long pushed for regulated online casino gaming in Virginia. The bill failed 4-3 in a subcommittee vote last week, with one abstention, largely because of concerns that responsible gaming tools relied too heavily on players policing themselves.
That feedback drove the rewrite. Lawmakers worked quickly to reshape the bill, adding detailed, enforceable requirements aimed at preventing problem gambling before it spirals out of control.
Operators must act on risky play early
The biggest change shifts responsibility away from players and squarely onto operators. Under the revised bill, online casino platforms would be required to use player data and automated monitoring tools to detect risky behavior.
Once a player is flagged, operators must follow a three-stage intervention process. The steps range from direct communication and education to mandatory tutorials and, when necessary, access to professional support resources. Each operator would also be required to submit a strategic implementation plan explaining how its systems identify and respond to potential problem gambling.
Several senators said these requirements go further than those in most states by placing the rules directly in statute rather than leaving them to regulators or voluntary industry standards.
Stricter online casino payment rules
Lawmakers also tightened the rules around payments. Credit cards were already banned under earlier drafts. The committee substitute removed prepaid cards as well, responding to concerns about anonymity and the difficulty of tracking spending behavior.
Other platform-level safeguards remain in place, including break-in-play notifications, detailed account statements covering at least one year of activity, and limits on marketing to suspended accounts. Operators would also be required to prominently display the national gambling help hotline on their platforms.
Inside Virginia’s online casino market
Regulation would fall under the Virginia Lottery, at least until a proposed Virginia Gaming Commission is created. Each land-based casino in the state could offer up to three online casino platforms, each with a $2 million fee.
Operators would pay $500,000 for a five-year license, with renewals priced at half that amount. The bill sets a 15% tax rate on adjusted gross revenue, with portions earmarked for problem gambling treatment and a temporary iGaming hold-harmless fund. The remaining revenue would flow into the state’s general fund.
The bill also draws a firm line against sweepstakes casinos, banning unlicensed platforms and attaching significant civil penalties for violations.
VA lawmakers weigh risks and rewards
Supporters say regulation is long overdue because Virginians are already gambling online on unregulated sites that do not offer consumer protections. Opponents argue that online casinos could hurt lottery sales and reduce funding for public schools.
Those concerns are likely to dominate the next committee meeting. For now, Virginia’s SB 118 has a second chance. Its future will depend on whether lawmakers believe strict oversight is enough to make online casinos legal in Virginia.
