Virginia Pushes Online Casino Legalization with Bill 827, But Vote Deferred to 2026

Sadonna Price
Author Sadonna Price
Published: Oct 2, 2025
Alex Ford
Fact Checker Alex Ford
Updated: Oct 2, 2025

Virginia is once again exploring entry into the online casino market. Senator Mamie Locke’s SB 827, supported by companion HB 2171, would authorize real-money online casino gaming in the state — but legislative momentum has stalled, pushing the issue into 2026.

What the Bills Propose

SB 827 would empower the Virginia Lottery Board to issue Internet gaming operator licenses, allowing each of Virginia’s existing casino operators to host up to three online platforms (“skins”).

The licensing process would carry a $1 million application fee and a proposed tax rate of 15% on adjusted gross revenue. The legislation also allows live-dealer online games from studios inside or outside the Commonwealth.

HB 2171, the House companion bill, was referred to subcommittees for review, but faced pushback and was tabled in some hearings.

Legislative Status & Delays

In early 2025, SB 827 was introduced during Virginia’s short legislative session. However, the Senate tabled the bill after a subcommittee hearing requested more study and consensus.

HB 2171 also lost shape in committee, with concerns raised about possible negative effects on Virginia’s iLottery and the regulatory capacity of the Lottery Board.

As of mid-2025, the issue is largely set aside, with many expecting renewed efforts in the 2026 session.

Support, Opposition & Key Concerns

Supporters’ Arguments:

  • Legalization would capture revenue currently lost to offshore and unregulated sites.
  • A regulated market could enhance consumer protection and responsible gaming safeguards.
  • Neighboring states that have launched online casino markets provide successful case studies.

Opponents’ Concerns:

  • The Virginia Lottery’s capacity to oversee a large new vertical is questioned, with fears it is already overstretched.
  • Potential cannibalization of iLottery revenues remains a concern.
  • Lawmakers and public health advocates have raised alarms over problem gambling, especially in communities lacking treatment infrastructure.

Outlook & What to Watch

The next window for serious movement is early 2026, when the legislature reconvenes and stakeholders have more time to refine the bill. Debate will likely center on tax rates, regulatory structure, license fees, and responsibilities of the Lottery Board.

Potential amendments may limit live dealer or out-of-state studios to reduce regulatory complexity. Meanwhile, operators, casinos, and gambling advocacy groups will be lobbying heavily to influence final language.

For now, Virginia’s casino expansion remains on hold — but the groundwork is clearly being laid for the next session.

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