Virginia legislators are considering enhanced scrutiny regarding whether to make online gambling legal, with industry officials and supporters of public health presenting vastly different opinions at a recent meeting of a Richmond-based subcommittee.
The legislators heard testimony regarding both the opportunities and challenges of regulating within-state iGaming.
Key Takeaways
- Virginia lawmakers are studying whether to legalize internet gaming
- Critics warn of addiction risks and negative impacts on casinos
- Additional meetings scheduled ahead of the 2026 General Assembly session
Dave Rebuck, a former Director at the New Jersey Division of Gaming Enforcement, described how New Jersey created the first regulated iGaming market in the country, which today remains the biggest in America.
According to Rebuck, Virginia will require a concerted plan with buy-in by state and federal officials to make similar progress.
Advocates of legalization claim that online gambling may bring convenience as well as generate huge income for the state. According to Del. Marcus Simon, the industry may generate up to $5.3 billion in taxable revenue in five years.
Meanwhile, critics pointed out threats related to consumer protection, gambling dependency, and financial impacts on casinos from Virginia.
Speaking for Safer Gambling Strategies, Keith Whyte stated that illegal operators usually prey on juveniles and self-excluded players with no protection or returns to Virginia's problem gambling fund. Brianne Doura-Schawohl, a public health professional, highlighted studies with rising rates of suicides, drug use, and financial losses among problem gamblers.
The subcommittee will convene twice more before the General Assembly reconvenes in January 2026. Casino operations, among other gaming matters, will come next on its agenda.
Previous attempts made to advance online gambling
This is not the first time Virginia lawmakers have considered internet gaming legislation. During the last General Assembly session, Sen. Mamie Locke introduced Senate Bill 827, which would have authorized the Virginia Lottery Board to license online casinos.
However, Locke asked for the measure to be delayed, saying the issue needed further study.
The proposal included a $1 million application fee for operators and a 15% tax on earnings, with funds distributed between local governments, the Problem Gambling Treatment and Support Fund, and the state's General Fund. While the bill promised new revenue streams, state analysts warned it could reduce proceeds from existing lottery sales and casino taxes.
Locke has said the proposal will likely be ready for renewed consideration by 2026.
Similar debates emerge in Ohio
Virginia is not alone in facing difficult questions about iGaming. Lawmakers in Ohio have also begun reviewing legislation to legalize Ohio online casino play. In May, the House heard testimony on House Bill 298, one of two measures designed to open the market.
Supporters argued that legalization would capture tax revenue that is currently being lost to unregulated offshore sites. Opponents raised concerns that unrestricted mobile access could worsen problem gambling and hurt brick-and-mortar casinos.
Industry voices remain divided. Ryan Soultz of Boyd Gaming, which operates retail and PA online casinos, said iGaming can coexist with physical properties. However, the National Association Against iGaming, which includes Cleveland's JACK Entertainment, opposes legalization, citing the risk of cannibalizing land-based casino revenues.
