Virginia Senate and House Pass Online Casino Bills After Dramatic Revotes
Virginia lawmakers advanced online casino legalization this week after both chambers approved the legislation on reconsideration votes following initial floor defeats.
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Senate Bill 118 & House Bill 161
The Senate narrowly passed Sen. Mamie Locke’s SB 118 on February 16 after an initial 20–19 vote against the bill was reconsidered. A second vote later in the day approved the legislation 19–17, with three senators switching from “no” votes to abstentions. The outcome mirrored SB 118’s earlier committee path, where the bill also advanced only after a failed vote and subsequent revision.
Today, the House experienced a similar reversal. Del. Marcus Simon’s companion bill, HB 161, failed on the House floor by a 49–46 vote on February 17 before lawmakers approved a motion to reconsider. In the subsequent revote, the House passed the bill 67–30, allowing it to beat Virginia’s crossover deadline.
With both bills approved in their chambers of origin, SB 118 now moves to the House, and HB 161 heads to the Senate. Lawmakers must reconcile key differences between the two versions before finalizing an online casino framework.
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Different Delays, Same Destination
While both bills authorize the Virginia Lottery to license online casino gaming for the state’s five land-based casinos, their implementation timelines differ significantly.
The Senate-amended version of SB 118 would delay the launch of online casinos until July 1, 2027, while requiring the Virginia Lottery to complete regulatory rules by January 2027.
The House-passed HB 161 goes further, requiring the legislation to pass again during the 2027 session before taking effect. That reenactment requirement could push a potential iGaming launch into 2028, even if the bill is signed into law this year.
Both versions would allow each casino operator to offer up to three online casino platforms, subject to an initial $500,000 license fee and a $2 million per-platform fee.
The bills now align on a 20% tax rate on adjusted gross gaming revenue and include a 6% allocation to a Casino Gaming Hold Harmless Fund to offset potential impacts on land-based casinos.
Sweepstakes Casinos Effectively Banned Under iGaming Framework
Despite separate sweepstakes-focused legislation being delayed until 2027, both online casino bills would effectively ban sweepstakes-style casino platforms unless they obtain full online casino licenses.
Under the bills’ language, offering sweepstakes-style gaming for cash or cash equivalents to Virginia residents would constitute illegal internet gaming unless conducted by a licensed operator. The Virginia Lottery would have enforcement authority, including the ability to issue cease-and-desist orders or seek injunctive relief against unlicensed platforms.
As a result, if either SB 118 or HB 161 is enacted, sweepstakes casinos would be prohibited regardless of the outcome of the standalone sweepstakes study bill.
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