Virginia lawmakers did not endorse an online casino gaming legalization bill Friday, a vote that underscores entrenched political opposition.
- A Virginia Senate subcommittee voted 3-4 against advancing an online casino gaming bill.
- Supporters argue regulated iCasinos would generate new revenue and channel existing play away from unregulated operators.
- Opponents raised concerns about problem gambling, smartphone accessibility, and whether Virginia has adequate regulatory safeguards in place.
Lawmakers on a Senate subcommittee voted 3-4 against recommending the bill before the full General Law and Technology Committee. The entire 15-person committee could still advance the bill with a majority vote in a coming meeting, but Friday’s rejection in the initial phase reaffirms the divisive nature of legal iGaming.
Supporters testified Friday that regulated online casinos would generate new revenue for the state without hurting Virginia’s growing brick-and-mortar gaming industry. Sen. Mamie Locke, the bill’s patron (sponsor), said the legislation gives Virginians a chance to play with regulated sites instead of the unregulated providers already operating in the state.
“We can sit here and clutch our moralistic pearls all we want to. But it’s already being done,” Locke said. “So we can keep it illegal. Or we can put up some guardrails.”
Virginia iCasino supporters, opponents weigh in
Locke’s bill would allow digital real-money slot, table, and poker games. Third-party mobile operators would have to partner with one of the state’s five current brick-and-mortar casinos. These five facilities could have up to three digital partners, meaning there could potentially be up to 15 iCasinos in the state.
Officials from Virginia casino operators Caesars and Boyd Gaming were among the bill’s backers to testify Friday. The lobbying group representing FanDuel, DraftKings, BetMGM, bet365, and Fanatics also voiced support.
The bill was opposed by other gaming stakeholders in the state, including historic horse racing terminal operator Churchill Downs. The National Association Against iGaming, whose members include Virginia casino operator Cordish Companies, also spoke out against the bill.
Larger brick-and-mortar casino companies have joined with their digitally focused counterparts to champion iGaming legislation in statehouses across the country. Smaller, more regionally focused companies without significant iGaming assets have tended to oppose expansion.
The divide between gaming stakeholders has been one of many obstacles preventing iGaming expansion. Only eight states have approved legal real-money iCasinos, with only four (New Jersey, Pennsylvania, Michigan, and West Virginia) allowing more than four operator licenses.
Next steps for Virginia online casinos
Opponents Friday cited increased problem gambling risks from unrestricted access to digital versions of casino games. Multiple speakers said the addictive nature of smartphones, combined with gambling, could lead users to financial ruin.
Several lawmakers on the committee also worried about the state’s capacity to handle legal iGaming. After centuries of gambling restrictions, Virginia opened its first brick-and-mortar casinos as well as mobile sportsbooks within the past decade.
The subcommittee earlier Friday advanced a separate bill that would create a state gaming commission to regulate these new offerings, including potentially iGaming. The Virginia Lottery currently regulates state casinos and sportsbooks.
Multiple subcommittee lawmakers who voted against the bill indicated they could consider it if they became more comfortable with the legislation’s regulations as well as consumer protections and gambling addiction safeguards.
A full committee is set to weigh these issues with another vote in the coming days. Without majority support from the General Law and Technology Committee, Virginia will go another year without an opportunity to legalize iGaming.
