Virginia iGaming Bill Passes Senate, But Legislation Delays Online Casinos Until July 2027
Posted on: February 17, 2026, 08:59h.
Last updated on: February 17, 2026, 08:59h.
- Legislation to authorize Virginia iGaming has cleared the Senate
- The Virginia Senate also backed a casino in Northern Virginia by way of Fairfax County
Virginia is one major step closer to welcoming online casinos after the Senate passed Senate Bill 118 on Monday with a 19-17 vote.
SB118, introduced by Mamie Locke (D-Hampton City), would allow the five authorized brick-and-mortar casinos to operate online slot machines and table games. Money raised from the issuing of iGaming licenses would help fund the establishment of a state gaming commission that would relieve the Virginia Lottery Board of its casino and sports betting regulatory duties.
With many senators uneasy about more gambling, Locke’s bill was amended on Monday to require that considerable time be given to allow for the appropriate consideration and implementation of responsible gaming safeguards related to online casinos. The legislation was altered to stipulate that no licensed online casino will commence operations in the commonwealth until at least July 1, 2027.
Virginia iGaming Bill Changes
To win over the majority support in the Virginia Senate, SB118 was overhauled to satisfy concerns that the state was rushing towards more gambling without properly ensuring consumer protections.
The bill now requires that the Virginia Lottery Board take until Jan. 2027 to promulgate regulations to govern iGaming. A summary of the proposed online casino rules would be subjected to a 30-day comment period and a town hall before the end of the year. The provisions would then be enacted and become effective on July 1, 2027.
What didn’t change in SB118 is that casinos would be able to secure iGaming licenses for $500,000, with annual renewals at $250,000. However, if the casino plans to use a third-party iGaming partner, those arrangements would cost $2 million upfront and be renewed yearly at $1 million.
Each casino could operate and/or partner with as many as three online gaming platforms, or skins. Gross revenue from iGaming would be subject to a 15% tax.
Of the tax money, 89% would go to the Virginia General Fund. Five percent would go to the Problem Gambling Treatment and Support Fund, and 6% percent, until Jan. 1, 2030, would go to the Internet Gaming Hold Harmless Fund, which would be used to offset brick-and-mortar casino losses.
The Virginia House of Delegates is expected to take up the iGaming debate on the floor later today.
Fairfax Casino Bill Clears Senate
The Virginia iGaming bill is the latest gaming measure to clear the Senate.
Last week, Senate Majority Leader Scott Surovell’s (D-Fairfax) Senate Bill 756 passed with 23-14 support. The bill seeks to authorize a sixth casino license, with the concession earmarked for Fairfax County in Northern Virginia.
SB756 faces public and local government opposition. In December, the Fairfax County Board of Supervisors passed a position statement to its 2026 Legislative Program formally opposing a casino. Numerous local homeowners and civic groups have also spoken against gambling.
Proponents say the county needs new revenue to curb rising property taxes. State lawmakers around the commonwealth are also getting on board with the claim that a casino in Northern Virginia would generate significant tax revenue and capture gaming money that’s currently flowing into Maryland.
Northern Virginia is among the most affluent regions in the US.
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