Virginia’s House of Delegates and Senate each passed online casino gaming legalization bills this week. Differences between the respective proposals must be resolved before iGaming can be legalized.
- Virginia lawmakers formed a conference committee to reconcile differences between House and Senate online casino legalization bills before the March 14 session deadline.
- The main dispute involves how to distribute a 6% revenue allocation tied to concerns about iGaming cannibalizing casino or lottery revenue.
- If approved in 2026 and again in 2027, Virginia could become the ninth U.S. state to legalize online casino gaming.
After each chamber rejected the other’s proposed versions, lawmakers have convened a conference committee composed of three members from both House and Senate to work out differences between the bills. If the committee can’t reach a solution, the legislation can’t pass into law.
A single bill must pass the full General Assembly before the 2026 session adjourns March 14.
Key differences
Though both bills place a 20% tax on gaming revenue, reimbursement streams from potential iGaming cannibalization is a key sticking point.
The House version would place a flat 6% “economic development” fee on iGaming platforms’ revenues for the operators of the state’s five brick-and-mortar casinos. Until July 2032, those funds would be divided equally between the five operators (Hard Rock, Caesars, Cordish, Rush Street, and Boyd). After that date, the casinos would have to demonstrate losses attributable to iGaming to receive funds.
Under the Senate proposal, the iGaming platforms would allocate 6% of the 20% tax to the state lottery as way to reimburse potential losses to the Virginia Lottery’s online product.
Fears that real-money online gaming hurts state’s existing gaming revenues - and their accompanying tax dollars - has been a major sticking point for iGaming legalization in statehouses across the country. Though iGaming proponents have cited statistics in current iGaming states that show online offerings complement and potentially expand existing gaming revenues, stakeholders from some brick-and-mortar casinos and state lotteries in multiple states have said these games hurt revenues and cost jobs.
To help assuage concerns, both bills include provisions to help offset job losses and generate new employment opportunities. That includes a requirement that all five casino operators open live-dealer studios in Virginia.
Bills' details
Much of the rest of the bills’ key components are largely similar.
If passed as written, the five casino operators could each partner with up to three third-party operators. This means the company’s respective flagship brands, which include Caesars Palace, Hard Rock, BetRivers, and Stardust, would all be among the leading candidates to earn licensure.
FanDuel and DraftKings, the nation’s two leading iCasinos by revenue, have also indicated interest in Virginia if the bill passes. Other major brands, including BetMGM, Fanatics, bet365, and Hollywood Casino, would also likely seek market access deals.
Real-money digital slots, table games, and poker would all be permitted. Virginia could also join other legal online poker jurisdictions in an interstate compact that allows players in each member state to play against each other.
The current language allows shared iCasino and sports betting accounts, a common practice in other legal iGaming states. Like these other jurisdictions, players would have to be age 21 or older.
VIRGINIA: Both the House (70-29) and Senate (21-17) approved their amended versions of iGaming legislation today, potentially setting it up for a conference committee. One key element in both bills now is the reenactment clause.
— John A Pappas (@yanni_dc) March 4, 2026
If passed in 2026, the legislation would have to be passed again in 2027 by the full General Assembly. Advocates of the two-state passage mandate have argued this gives lawmakers more time to understand the potential financial and employment impacts of the bill.
Though that provision would effectively prevent legal iGaming in 2026, Virginia’s effort has been the most promising of any U.S. jurisdiction this year. Maryland and a handful of other states have considered legalizing real-money online casinos but have not taken significant legislative action.
If approved, Virginia would be the ninth state to legalize iCasinos.
Virginia would join New Jersey, Michigan, Pennsylvania, and West Virginia as the fifth state with a full competitive marketplace. Rhode Island, Delaware, Connecticut, and Maine have approved iCasinos but permit four or fewer operators.
