Virginia Lawmakers Weigh iGaming Legalization as Gaming Commission Study Advances

Online casinos (iGaming) were once again a topic of discussion in Virginia as legislators gathered for a meeting of the Joint Subcommittee to Study the Feasibility of Establishing the Virginia Gaming Commission on August 19.

Presentations brought new data, including on illegal gambling, industry perspective, and public testimony on iGaming.

Building the Virginia Gaming Commission

The Joint Subcommittee has been studying the establishment of the Virginia Gaming Commission since 2023. The goal is to establish a unified oversight framework for casinos, sports betting, horse racing, fantasy sports, and charitable gaming under a single agency.

Currently, the Virginia Lottery is acting as the interim regulator. Lawmakers plan to continue reviewing the establishment of the Commission to produce recommendations for the 2026 legislative session.

They say setting up a new state gambling authority would likely be needed before expanding gaming options, such as iGaming. A bill to create that entity could be a top priority in the 2026 legislative session.

Illegal Market Size & Consumer Risk

One of the most common arguments to legalize iGaming is illegal gambling and the size of the unregulated market. In the meeting, presenters underscored the scale of illicit wagering in Virginia.

They referenced a recent AGA study indicating that Virginians wagered $11.9 billion on illegal online casinos in 2024, as well as another study by an unnamed competitor, which reported a higher number of $16 billion. The presentation claims that 90% of illicit gamblers transitioned to legal platforms in states that legalized iGaming.

Supporters of iGaming legalization argued that regulating the market would capture a significant portion of that activity. They estimate the state could generate $400 million annually in tax revenue.

Delegate Marcus Simon, sponsor of HB 2171, a failed iGaming bill in 2025, told colleagues:

“Sort of starve the bad actors out of business by providing a legal, regulated, and taxed alternative that’s more consumer-friendly.”

“This is revenue not getting accessed by the Commonwealth, we’re getting zero percent…And this doesn’t create the online gambling market. They’re already doing it.”

Keith Whyte of Safer Gambling Strategies, neutral on legalization, noted that Virginia could borrow from New Jersey’s model:

“Players could be encouraged, and even incentivized, to take control through deposit limits, time limits, budget calculators, and personalized activity dashboards.”

But opponents urged caution. Brooke Archambeau of the Moose Lodges of Virginia warned that the state lacks the necessary regulatory infrastructure.

“Virginia needs to get its own house in order before considering a new and risky form of gaming like iGaming,” Archambeu said.

Brianne Doura-Schawohl, a gambling and mental health consultant who opposes legalization, stressed that lawmakers shouldn’t let the illegal market set the timetable.

“Do you make this decision to legalize based upon the people breaking the law right now?”

HB 2171: A Cautious Approach

The August 19 meeting revisited HB 2171, introduced in the 2025 session by Del. Simon. The bill proposed:

• Online casino platforms must partner with retail casinos, with up to three skins allowed per license (up to 15 online casino platforms in total).
• Oversight initially by the Virginia Lottery Board, with jurisdiction shifting to the new Virginia Gaming Commission once established.
• Licensing fees to help fund regulatory infrastructure.
• Strict consumer safeguards, including age verification (21+), geolocation limits, and problem-gambling controls.
• Tax of 15% on adjusted gross gaming revenue. The majority (97.5%) will go to the state’s General Fund, while 2.5% will contribute to a newly established Problem Gambling Treatment and Support Fund.

Economic projections estimate iGaming could generate $5.3 billion in new taxable revenue over five years, while also boosting land-based casino revenue growth by 8.4% compared to a market without iGaming.

HB 2171 was referred to the House General Laws Committee, where it failed to advance.

State Sen. Mamie Locke introduced a companion bill (SB 827) in the Senate. However, after Simon’s bill died, Locke withdrew her legislation, stating the need for further studies. She has indicated that she plans to reintroduce a bill in 2026.

Virginia’s Retail Casinos: A Growing Base

Part of Archambeau’s concerns were also centered on the impact of gambling expansion on Virginia’s Moose Lodges’ fundraising.

On behalf of the iGaming proponents, Dave Rebuck, the past Director of New Jersey’s Division of Gaming Enforcement, said the state was the first to legalize iGaming, which hasn’t had competitors’ profits, adding:

“iGaming was complementary and helped the land-based casinos.”

Revenue data from New Jersey supports that. In June 2025, the state recorded record gaming revenue of $606.2 million. Retail casinos once again beat online platforms and generated $284.1 million, up 4.3% year-over-year. In 2025, the sector is up 2.2% from 2024.

Unlike New Jersey, Virginia’s land-based casino industry is relatively young. The state approved five locations in 2020, with the first temporary location opening in 2022. Currently, three casinos have permanent facilities:

• Hard Rock Hotel & Casino Bristol opened a temporary facility in 2022 and a permanent casino in December 2024.
• Rivers Casino Portsmouth debuted in January 2023 as the state’s first permanent casino.
• Caesars Virginia in Danville opened a temporary facility in 2023 and a permanent casino in December 2024.

A fourth location, HeadWaters Casino & Resort in Norfolk, backed by the Pamunkey Indian Tribe and new partner Boyd Gaming, experienced multiple delays.

Still, it broke ground in October 2024 and plans to open a temporary casino in November 2025. The developers plan to open the permanent resort in 2027.

Meanwhile, Cordish Companies began construction of the fifth casino in Petersburg in March.

Furthermore, Comstock Companies is pushing for a Northern Virginia casino in Tysons. However, that requires amendments to the law and voter approval.