Virginia Internet Gaming Bill Delayed for Further Study, Eyes 2026 Launch

A proposal to legalize internet gaming in Virginia has been put on hold as lawmakers seek more time to assess its potential impact. Senate Bill 827,  introduced by Sen. Mamie Locke, D-Hampton, would authorize the Virginia Lottery Board to issue licenses to casino gaming operators for online gaming.

Sen. Mamie Locke, D-Hampton (left), on Monday requested a Senate subcommittee postpone discussing her bill on online gaming. (Nathaniel Cline/Virginia Mercury)

Locke requested the Senate Subcommittee on Gaming postpone discussing the bill on Monday, citing the need for additional study. “This bill is designed to authorize reputable, regulated companies to offer internet gaming to Virginians within a safe and legal market,” Locke said. “However, after introducing this bill, we have decided that it requires further study on this issue.”

She expects the proposal to be ready for consideration by 2026.

Under the legislation, operators would pay a $1 million application fee and a 15% tax on earnings, with revenue distributed  to local governments, the Problem Gambling Treatment and Support Fund (2.5%) and the state’s  General Fund (97.5%).

Despite the potential for new revenue streams, the proposal has raised concerns. The Department of Planning and Budget has warned that internet gaming could reduce revenue for the Lottery Proceeds Fund and School Construction Fund due to its potential impact on lottery sales and casino gaming taxes.

The Virginia Lottery also projected a net negative impact on overall state revenues, according to the fiscal impact statement.

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