Virginia lawmakers could make another serious push to legalize online casino gaming in 2027, but questions about regulatory oversight, consumer protections, and the impact on the state’s expanding casino industry remain significant hurdles.
- Separate House and Senate bills passed with bipartisan support in 2026 but were not reconciled before the session ended.
- Oversight, consumer protections, and concerns about addiction, jobs, and tax distribution remain central hurdles for 2027.
- DraftKings CEO Jason Robins sees momentum across the DMV region even as proposals stalled in Washington, DC, and Maryland.
Virginia state Sen. Jeremy McPike said his fellow lawmakers are continuing to evaluate how iGaming could bring an existing offshore market under state oversight. Legalization could generate tax revenue while funding consumer safeguards and problem gambling programs.
“I think there’s a pragmatic sense, whether you participate in sports betting or, for instance, iGaming, or are interested in that venue, of how you provide sort of a consumer protection framework, a regulatory framework that makes sense and certainly the revenue aspects,” McPike said during an iDevelopment and Economic Association panel last week.
The comments came after Virginia produced the nation’s most promising iGaming legislation in 2026. Separate versions passed the House and Senate with bipartisan support, but lawmakers could not reconcile the measures before the session ended.
The failed legislation could have permitted Virginia’s five retail casinos to partner with as many as three online operators apiece, creating a market with up to 15 platforms. Concerns about addiction, casino employment, and tax revenue distribution helped prevent final passage.
Oversight could determine next steps
McPike said Virginia’s gaming framework remains relatively immature after the state rapidly expanded beyond its lottery to include sports betting, retail casinos, and historical horse racing.
The Virginia Lottery currently oversees several forms of gambling, while multiple agencies have roles in others. McPike said lawmakers have worked for several years to develop a more mature gaming commission model.
That effort could help determine whether iGaming advances. Legislation introduced in 2026 would have shifted oversight of casinos, sports betting, daily fantasy sports, and historical horse racing from the lottery to a new Virginia Gaming Commission.
“As you expand markets, do you have the infrastructure and staffing to stand up a new market and regulate it and provide the consumer protection back end?” McPike said.
DraftKings sees DMV momentum
DraftKings CEO Jason Robins offered a more optimistic assessment of the region’s legalization prospects during a separate conversation with Wells Fargo analyst Trey Bowers Monday.
Robins said there was “pretty decent momentum” in several states and specifically identified the Washington, DC, Maryland, and Virginia region.
Robins argued that the case for legalization extends beyond new tax receipts. He said lawmakers are increasingly recognizing the size of the illegal online casino market and the potential consumer-protection benefits of replacing offshore sites with regulated platforms.
“People love the product,” Robins said. “More and more people are asking their legislators for it. They’re playing it in other states.”
Still, iGaming has proved far more difficult to legalize than sports betting. Seven states operated legal online casinos in 2025, generating $10.73 billion in revenue, a 27.6% increase from the prior year. Pennsylvania, Michigan, and New Jersey produced 90% of that total.
The narrow legal footprint has persisted despite the revenue potential. Retail casino operators, labor groups, and responsible gambling advocates have repeatedly raised concerns about cannibalization, job losses, and increased access to casino games.
Regional efforts remain unsettled
Washington, DC, lawmakers held a lengthy iGaming hearing in May but did not vote on the proposal. The bill has not received a vote or hearing since.
Maryland’s 2026 effort also stalled after the bill's sponsor withdrew legislation proposing a voter referendum. A companion regulatory bill subsequently failed to advance before a key legislative deadline. Casino representatives and local officials raised concerns about jobs, tourism, and the effect on retail properties.
Those setbacks leave Virginia as a potential focal point for the region in 2027, though McPike indicated legalization will require more than projected tax revenue.
“When you know that it is there, it’s at your fingertips, do you choose to take inaction or do you take action?” McPike said. “That’s the moral compass that I think all of us have got to think through.”
