Virginia’s Online Casino Bill Proposes Four Licenses and 15% Tax Rate

Virginia’s online casino hopefuls are off to a strong start in 2025, thanks to Senator Mamie Locke’s pre-filed bill aiming to legalize iGaming and live dealer games within the state. Hoping to get the discussion around legalized online casinos underway as quickly as possible, the lawmaker submitted Senate Bill 827 far ahead of the legislative starting January 8. 

The bill, among many other topical provisions, proposes that the Virginia Lottery Board will serve as the industry’s regulator. Additionally, the Board is authorized to issue four licenses to the existing casino operators in the state, and each of them will be entitled to launch three skins.

With sports betting and land-based casino gaming already legalized in the Old Dominion, the state will look to consolidate its gains from the gambling industry. 

Since the launch of legalized sports betting in Virginia back in January 2021, sportsbooks have generated north of $19 billion in betting handle. Furthermore, sports betting operators have pooled about $1.9 billion worth of revenue while the government collected taxes totaling $224.2 million.

Senate Bill 827 Already Referred to Committee on General Laws and Technology

Locke’s pre-filed bill was forwarded to the Senate Committee on General Laws and Technology days after filing. The lawmaker anticipates a fast-tracked process that will see Virginia become only the eighth state in the country to legalize online casino gaming. 

According to the proposed timeline, the lottery board is expected to start accepting licensing applications by July while it should release regulations in September. 

For now, the state joins a list of other jurisdictions that have shown early interest in the online gambling discourse this year. Notable among them is Illinois where Governor JB Pritzker was rumored to have included internet casinos to the budget proposal for the year. Lawmakers in Maryland and Louisiana have also filed iGaming-related bills in their respective state chambers. 

If Senate Bill 827 pushes through, interested parties will have to pay a $1 million application fee for the five-year digital licenses. Caesars Virginia, Hard Rock Bristol, Rivers Casino Portsmouth and Golden Eagle Corp. are currently the four operators within state borders. They will each be required to have their distinct online casinos brands and another brand for online poker.

However, under the bill, online casino revenue will attract a 15% tax. Of that total 2.5% will go towards responsible gambling initiatives while the remainder will go into state coffers. 

Land-Based Casino Industry Continues to Flourish in Virginia

While the fate of online gaming in the state remains yet to be determined, the brick-and-mortar segment of the industry is experiencing early successes. 

Back in October 2024, construction started on the long-anticipated Norfolk waterfront casino estimated to cost about $300 million. Similarly, 82% of residents in Petersburg voted in favor of a $1.4 billion casino project last November. 

This January, Senator Scott Surovell, Virginia Senate’s majority leader, filed a measure that will permit the establishment of a resort-styled casino in the Tysons area of Fairfax County. 

“It would generate hundreds of millions in tax revenue for both the Commonwealth and Fairfax County,” Surovell told news reporters. He further remarked that residents were going over to Prince George’s County in Maryland to gamble at the MGM National Harbor, a move that is costing the state $300 million in tax revenue. 

“It’s always really disturbed me that that thing was plopped right there to suck money out of our state that should be remaining in the state, helping to pay for schools and services. About one-third of it is being funded by Virginia residents going into Maryland,” Surovell continued. 

That said, a strong land-based casino structure is shaping in Virginia and its results may be significantly helpful for the launch of online gaming.