Virginia Online Casino Legalization Faces Key Test in Conference Committee

Lawmakers in Virginia are working to reconcile competing versions of several gambling-related bills after both legislative chambers approved measures that the other later amended and rejected. With disagreements still unresolved, the proposals have been sent to conference committees where House and Senate members will negotiate compromise legislation before the session concludes.

The legislation under discussion touches on several areas of the state’s gambling industry, including online casino legalization, daily fantasy sports regulation, skill game machines, casino development, and the potential creation of a new gaming regulator. Among the measures still being negotiated, the most closely watched involves competing proposals to legalize online casinos.

The Legislative Divide

The central dispute centers on Senate Bill 118 and House Bill 161, two bills that would authorize online casino gaming under the oversight of the Virginia Lottery. Both proposals outline a similar financial structure for operators entering the market. Each would require a $2 million platform fee along with a $500,000 initial license cost. Operators would also face a 20 percent tax on adjusted gross revenue, alongside a separate 6 percent “economic development fee” intended to support a casino gaming “hold harmless” fund.

That fund is designed to offset potential losses for land-based casinos once online gaming launches, although the two bills approach the system differently. The Senate version would compensate operators only after demonstrating revenue declines tied to iGaming. The House proposal instead distributes equal payments to casinos through July 2032 before transitioning to a loss-based model.

Additional differences appear in how tax revenue would be distributed. The House bill directs a portion of revenue toward problem gambling programs and channels most funds into the state’s general fund. The Senate version allocates smaller shares to regulatory costs and responsible gambling initiatives while directing the majority toward education funding.

Another notable distinction is a reenactment clause included in the House legislation. Lawmakers would need to pass the bill again in 2027 before it could take effect, which would delay any online casino launch until at least 2028. The Senate proposal would allow iGaming operations to begin on July 1, 2027.

Additional Gambling Measures Also Await Resolution

While the iGaming debate has drawn the most attention, several other gambling bills are also heading to conference committees. Two proposals focused on regulating daily fantasy sports, Senate Bill 129 and House Bill 145, would require operators to obtain licenses and pay a 10 percent tax on revenue. Although the bills share the same general framework, technical differences remain around licensing procedures and regulatory oversight.

Lawmakers are also revisiting the issue of skill game machines through Senate Bill 661 and House Bill 1272. These machines were previously banned in the state, though lawmakers attempted to establish a regulatory framework last year before the legislation was vetoed by Governor Glenn Youngkin.

Another proposal, Senate Bill 756, would authorize a voter referendum on a potential casino development in Fairfax County. The House approved the bill with amendments requiring the project to partner with an operator that has made voluntary commitments to the local community.

Meanwhile, Senate Bill 609 proposes reorganizing gambling oversight by creating a new Virginia Lottery and Gaming Authority. The House version suggests a different structure by establishing a separate Virginia Gaming Authority operating independently from the lottery.

What Next?

Conference committees composed of three lawmakers from each chamber will now attempt to reconcile the differences between the competing bills. If negotiators reach an agreement, both the House and Senate must vote again on the revised legislation before it can move to the governor’s desk. The lawmakers face a tight timeline to finalize the measures, with the current legislative session scheduled to conclude on March 14.