Virginia Moves Closer to Legal Online Casinos After Senate Approves SB118

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Virginia State Capitol (Photo by Win McNamee/Getty Images)

The Virginia Senate has taken a significant step toward legalizing online casinos, narrowly passing Senate Bill 118 (SB 118), legislation that would authorize regulated iGaming across the state if ultimately approved by the House and signed into law.
The bill passed by a 19-17 vote after an initial rejection earlier the same day, highlighting how divided lawmakers remain over the expansion of online gambling. A late amendment included in the final Senate version delays implementation until July 1, 2027, creating a longer runway for regulators and stakeholders to prepare for a potential market launch.
Under the proposal, existing land-based casino operators in Virginia would be eligible to apply for iGaming licenses, each costing $500,000 for a five-year term, while individual digital platforms operated under those licenses would require an additional $2m fee. The legislation also proposes a 20% tax on adjusted gross iGaming revenue, along with a 6% economic development fee designed to support existing brick-and-mortar casino markets.
Most tax revenue generated from online casino operations would be directed toward public education initiatives, with smaller portions earmarked for gaming regulation and responsible-gambling treatment programs.
Fiscal projections tied to the legislation suggest the state could generate hundreds of millions in annual revenue once the market matures, although analysts also anticipate some cannibalization of existing lottery revenue streams.
The bill now moves to the Virginia House of Delegates, where lawmakers are considering related legislation that could require passage in two legislative sessions before final approval. That procedural hurdle means the path to legalized online casinos in Virginia remains uncertain, but the Senate vote signals continued momentum for iGaming expansion across U.S. jurisdictions.