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Virginia is one step closer to becoming the ninth state to legalize online gaming, including online casinos.
Senate lawmakers approved an iGaming legalization bill Monday, passing the legislation 19-17. The narrow victory came after the bill initially failed 20-17 earlier in the session day. Lawmakers endured a seven-hour floor session before finally approving the measure, overcoming spirited objections from critics who argue the expansion will do more harm than good to Virginians.
If approved by the House and signed by Gov. Abigail Spanberger, online casinos would launch in 2028 at the earliest. Under the current proposal, operators would pay a 15% tax rate on adjusted gross revenue.
Study projects $1B in online casino revenue
As part of the legislative process, lawmakers commissioned a study on the fiscal impact online casinos would have on the commonwealth.
The study found that online casinos would generate an estimated $343 million upon launching in fiscal year 2028, with revenue projected to eclipse $1 billion by fiscal 2032.
Estimated tax revenue projections of online casinos:
- FY2028: $343 million
- FY2029: $493 million
- FY2030: $698 million
- FY2031: $924 million
- FY2032: $1.06 billion
While the study notes that online casinos may cannibalize some state lottery revenue, it suggests the massive tax influx would more than offset those losses.
Next steps for Virginia online casinos
With the Senate’s approval, Virginia’s SB118 moves to the House for consideration. However, the legislative path remains complex. The House is currently weighing its own version of the bill; if that version passes, it would then move to the Senate for a reciprocal vote.
At least one member of the Spanberger administration has signaled support for gaming expansion. According to Virginia public radio station WVTF, Secretary of Agriculture and Forestry Katie Frazier spoke in favor of a House bill that would create a new, consolidated gambling commission to regulate the state’s growing industry.
If successful, Virginia would join eight other states in the legal iGaming market. Earlier this year, Maine legalized online casinos as an exclusive offering for the state’s federally recognized tribes, though a launch date has not yet been set.
The seven other states with active online casino markets are Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia.
