Continued Efforts in Legalizing iGaming in Virginia

Earlier in the year, Virginia legislators decided to pause progress on bills targeting the legalization of iGaming within the state. Although the legislative process experienced a halt, conversations surrounding the topic have not ceased. Advocacy from industry supporters is robust, especially with substantial investments aimed at influencing the forthcoming legislative elections.

The potential economic benefits of iGaming make it a topic of interest. Analysts suggest that iGaming could evolve into a billion-dollar sector for Virginia, contingent on the endorsement and adoption of appropriate legislation.

The Legislative Path and Economic Potential

In December 2024, Senator Mamie Locke took a pivotal step by introducing Senate Bill 827. However, acknowledging the complexity of the industry, she requested more time to study the implications, thereby delaying its progression. The Joint Subcommittee to Study the Feasibility of Establishing the Virginia Gaming Commission has since been energetic in examining this potential direction. Established in 2023, the subcommittee's mandate is to evaluate the feasibility of creating a novel regulatory framework for gambling in Virginia.

During an August meeting, discussions centered on the potential authorization of iGaming, an industry that carries multi-billion-dollar potential. If enacted, Locke’s bill would empower the Virginia Lottery Board with the authority to distribute online casino licenses. The financial structure includes a hefty $1 million application fee and a 15% tax on operator revenues. State provisions would permit each of the five current casinos to apply for up to three iGaming skins. Since the state approved sports betting in 2020, its launch in January 2021 has triggered $24.7 billion in bets, yielding $2.4 billion in revenue.

Virginia Public Radio emphasizes the urgency of establishing a regulatory body before advancing gambling expansions. This initiative could receive prioritization in the 2026 legislative session.

Opposition and Industry Testimonies

Not all stakeholders are in favor of the proposed iGaming expansion. The Virginia Lottery has voiced its concerns, highlighting agency fatigue due to managing five casinos at varying operational stages. The Cordish Companies, having interests in a Virginia casino, stand firm against iGaming. This opposition is amplified by their role as a leading member of the National Association Against iGaming, an alliance formed with Churchill Downs Inc, advocating against online casino expansions in the United States.

As a counterpoint, David Rebuck, previously the director of the New Jersey Division of Gaming Enforcement, provided testimony to the subcommittee in August. He addressed and dispelled rumors that online casino legalization in New Jersey would cannibalize existing casino operations. Despite initial apprehensions regarding employment loss and adverse impacts on associated industries, Rebuck affirmed that iGaming, in actuality, provided a supportive role for brick-and-mortar casino growth.

These multifaceted discussions signify that while Virginia is on the cusp of potentially transformative changes in its gambling sector, consensus among industry, legislators, and regulators is essential for progress.