Virginia Gaming Reorganization Bill Could Spark More Expansion

Virginia lawmakers proposed a new gaming commission and revived iGaming talks, but political and industry opposition still clouds legalization prospects.

Ryan Butler - Contributor at Covers.com
Ryan Butler • Senior News Analyst
Jan 13, 2026 • 14:07 ET • 4 min read
Photo By - Imagn Images.

Virginia lawmakers have introduced legislation to create the state’s first-ever gaming commission in a move that could help accelerate further gaming expansion.

Key Takeaways
  • Lawmakers introduced legislation to create the Virginia Gaming Commission, shifting oversight from the state lottery.

  • Separate legislation would legalize real-money online casino gaming, allowing brick-and-mortar casinos to partner with up to three third-party iGaming operators.

  • While the gaming commission bill already has bipartisan support, iGaming faces political and industry opposition that could complicate passage in 2026.

The bills introduced in both chambers this week would reassign oversight of Virginia’s casino, sports betting, daily fantasy sports, and historic horse racing industries from the state lottery to the new Virginia Gaming Commission. This would have a negligible direct impact on Virginia sports bettors or DFS players, but it could help spur further industry growth in a state that had opposed gambling for centuries.

Established in 1987, the Virginia Lottery was the first contemporary form of “gambling” legalized in the Old Dominion since its founding more than 400 years ago. It was the logical government body to oversee the boom in new gambling forms in recent years, but now lawmakers hope to spread out oversight.

The Virginia Lottery would continue to exist. The new commission would oversee most other forms of regulated gambling.

Online casino potential

The reorganization bill comes as Virginia is set to again consider real-money online casino gaming legislation. In a separate proposal, Virginia would allow third-party iGaming operators to partner with brick-and-mortar casinos to offer digital slots, table games, and poker.

If both bills are passed this year, the new commission would be set to regulate Virginia’s newest gambling form. Virginia could be the ninth state to legalize real-money online gaming and the second to do so this year, after Maine.

The Virginia Gaming Commission would also oversee potential new brick-and-mortar casinos. The bill establishing the commission also lays out how new casinos could be approved.

In 2020, voters in Danville, Bristol, Norfolk, and Portsmouth approved the first four licensed in-person casinos in Virginia history. After Richmond voters rejected a casino, voters in Petersburg approved the state’s fifth gaming facility in 2024.

Several other Virginia jurisdictions, including Roanoke and Tysons, have considered casinos of their own. Any such expansion would likewise require local voter approval.

The iGaming legalization bill allows brick-and-mortar casinos to partner with as many as three third-party mobile operators apiece. New in-person casinos could potentially create an avenue for even more iCasinos.

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Passing bills no sure bet

The gaming commission bill already has bipartisan and bicameral support and may prove noncontroversial as the state deals with a comparatively rapid gambling expansion after decades of little activity. Passing another form in iGaming may prove more difficult.

Online casino gaming has faced stiff opposition in most statehouses. Virginia lawmakers passed on serious consideration last year and face many of the same political headwinds in 2026.

Some Democrats in the House of Delegates and Senate oppose gambling over fears it harms customers, especially lower-income gamblers. Democrats have majorities in both chambers and flipped the governor’s mansion last fall.

Conservative anti-gambling voices also remain strong in the legislature, especially among Republicans. Any iGaming legalization bill would likely need bipartisan support to advance.

The bill also faces opposition from some Virginia gambling stakeholders.

Cordish Companies, which holds the Petersburg casino license, has vocally opposed iGaming, arguing it funnels residents’ dollars to out-of-state companies at the expense of existing in-state jobs at the brick-and-mortar properties. The operator of a Maryland casino, its opposition helped tank a similar legalization effort in Virginia’s northern neighbor last year.

It remains to be seen whether Virginia can continue its gambling development with iGaming expansion. But gaming-related bills introduced in the early days of the state’s 2026 legislative session underscore lawmakers’ growing interest in the industry.

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Ryan Butler - Covers
Senior News Analyst

Ryan is a Senior Editor at Covers reporting on gaming industry legislative, regulatory, corporate, and financial news. He has reported on gaming since the Supreme Court struck down the federal sports wagering ban in 2018. Based in Tampa, Ryan graduated from the University of Florida with a major in Journalism and a minor in Sport Management.  Before reporting on gaming, Ryan was a sports and political journalist in Florida and Virginia. He covered Vice Presidential nominee Tim Kaine and the rest of the Virginia Congressional delegation during the 2016 election cycle. He also worked as Sports Editor of the Chiefland (Fla.) Citizen and Digital Editor for the Sarasota (Fla.) Observer.

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