In December 2024, Senator Mamie Locke introduced Senate Bill 827, intending to legalize iGaming in Virginia, but she called for a delay in January 2025 to allow comprehensive study of the industry. Meanwhile, discussions around the issue have not ceased. The Joint Subcommittee to Study the Feasibility of Establishing the Virginia Gaming Commission has been actively examining the potential impact since its formation in 2023. Their findings could shape the future of the state’s gambling landscape.
The subcommittee convened in August to delve into the implications of legalizing iGaming, a market with potential revenues running into billions. Locke’s bill, when enacted, would permit the Virginia Lottery Board to distribute online casino licenses. Prospective operators would face a $1 million application fee and a 15% tax on their revenue, with the state’s existing five casinos eligible to apply for up to three iGaming skins each. Virginia’s experience with sports betting, legalized in 2020 and operational since January 2021, reveals a robust market, having accepted $24.7 billion in wagers and generated $2.4 billion in revenue.
According to Virginia Public Radio, the establishment of a new regulatory agency is considered crucial before any further gambling expansion. This agency could become a legislative priority for the 2026 session, underscoring the importance of robust regulation in any potential market expansion.
However, not all voices support the introduction of iGaming. The Virginia Lottery has expressed reservations, highlighting the strain the development of five casinos places on its resources. The Cordish Companies, with casino interests in Virginia, stand as a vocal critic of online casino growth across the United States. As a key member of the National Association Against iGaming, formed in collaboration with Churchill Downs Inc., they represent a significant opposition force.
In contrast, insights from experienced jurisdictions offer reassurance to proponents of iGaming. David Rebuck, former director of the New Jersey Division of Gaming Enforcement, shared his perspective with the subcommittee in August. He addressed fears of job loss and the potential negative effects on supporting industries, saying these concerns did not manifest as anticipated in New Jersey. Instead, he described how iGaming complemented existing casino operations, enhancing the overall growth of the industry.
The debate continues as stakeholders weigh the economic benefits against potential challenges. Advocates argue that embracing iGaming could unlock a billion-dollar economy in Virginia, bolstering state revenues and creating jobs. They point to New Jersey and other states as examples where iGaming has successfully coexisted with traditional gambling venues, driving increased engagement and revenue.
Yet, opponents remain steadfast, citing concerns about market saturation and the readiness of regulatory frameworks to handle rapid expansion. They argue that the focus should remain on ensuring the successful integration of current gambling ventures before further broadening the scope. The potential impact on problem gambling and the need for infrastructure capable of managing increased activity are also points of contention.
As Virginia prepares for its legislative elections, industry advocates are investing heavily in forming a favorable political environment for iGaming. The outcome of these elections could significantly influence the direction of gambling legislation in the state. Lawmakers will need to balance competing interests and concerns, striving to craft policies that maximize economic benefits while safeguarding community welfare.
Virginia stands at a crossroads, with the possibility of joining the ranks of states that have embraced the digital transformation of gambling. Whether iGaming becomes a reality hinges on legislative decisions, regulatory readiness, and the evolving dynamics of stakeholder interests. As discussions advance, the state’s potential to harness a lucrative new market remains a focal point of debate.
The coming months will likely see intensified efforts from both sides of the iGaming debate, with each presenting their case to lawmakers and the public. The decision will ultimately reflect the state’s priorities and vision for its gambling sector. For now, the question of whether Virginia will embrace iGaming remains open, with significant implications for the state’s economic future.
David Harrison stands tall in gambling journalism, marrying his firsthand casino experiences with a deep understanding of betting psychology. His articles transform complex gambling jargon into engaging tales of strategy and chance, making the world of betting accessible and enjoyable. David’s knack for narrative extends beyond print, making him a sought-after speaker on gambling trends and future bets. In the realm of gambling, David is both a scholar and a storyteller, captivating readers and listeners alike.
