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Virginia Senate Passes iGaming Bill SB 118, Targeting 2027 Launch

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Yagmur Canel
Content Manager
Updated:
Reading Time: 3 minutes

The Virginia Senate has approved Senate Bill 118 (SB 118), a landmark measure to legalise and regulate iGaming, including online casinos, with the goal of a structured market launch in 2027. The bill cleared its Senate vote with bipartisan support, setting the stage for final legislative action later in the session as lawmakers debate regulatory frameworks, licensing conditions, and responsible gaming safeguards.

SB 118 represents a significant development in Virginia’s gaming policy, following earlier efforts where online casino proposals faced delays and legislative hurdles. The Senate’s passage marks a critical step toward establishing a regulated iGaming market under state oversight.

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Bill Overview: What SB 118 Proposes

Under SB 118, Virginia would authorise licensed operators to offer a range of iGaming products, structured under a regulated regime administered by the Virginia Lottery Board or a designated regulatory body. Key components of the bill include:

  • Licensing framework for online casino operators seeking to enter the Virginian market.
  • Defined regulatory standards for compliance, consumer protection, and responsible gaming tools.
  • Guidelines for taxation and revenue allocation once market launch occurs.
  • Provisions addressing integrity, fairness, and anti‑fraud measures.

The bill’s language indicates a planned operational launch in 2027, contingent on final legislative approval and regulatory rule‑making.

Legislative Support and Policy Context

Supporters of SB 118 argue that a regulated iGaming market would help Virginia capture revenue currently flowing to offshore operators and provide stronger safeguards for players. Advocates also highlight the importance of consumer protection measures embedded in the bill, designed to mitigate harm and prioritise responsible play.

The Senate’s action builds on earlier legislative momentum, including prior efforts on gaming expansion that encountered delays or stalled proposals. Last year, lawmakers advanced a separate gaming commission bill, while an online casino initiative was delayed amid regulatory design questions.

Notably, Virginia’s online casino legalisation timeline has shifted in recent sessions, with past proposals incorporating different structures and launch expectations.

Next Steps: House Consideration and Reconciliation

With SB 118’s passage in the Senate, the bill now proceeds to the Virginia House of Delegates for consideration. Lawmakers in the House will undertake committee hearings, potential amendments, and floor votes before reconciling differences between chambers.

Key legislative questions that may arise in the House include:

  • Clarification of licensing eligibility and fees.
  • Specifics on responsible gaming mandates, including age verification, self‑exclusion, and spending limits.
  • The role of existing regulatory agencies and the potential creation of new governance structures.
  • Detailed revenue projections and impact assessments for local jurisdictions.

If approved by both chambers, the bill would move to the governor’s desk for final signature before regulatory rule‑making and implementation begin.

Market Impact: Operators and Consumers

Should SB 118 become law, Virginia would join a growing roster of US states that have embraced regulated iGaming. Licensed operators would have the opportunity to apply for market access, subject to state standards for compliance, consumer protection, and financial reporting.

For players, a regulated iGaming framework promises greater consumer safeguards compared with offshore or unregulated alternatives, including:

  • Verified age and identity controls.
  • Mandatory responsible gaming tools like self‑exclusion and deposit limits.
  • State‑enforced fairness and payout standards.
  • Transparent taxation and consumer dispute channels.

The operational launch timetable, targeted for 2027, gives regulators and operators time to devise rules, issue licences, and build compliant platforms ahead of market entry.

Fiscal Considerations and State Revenues

Proponents point to the potential for new tax revenues that could support state priorities. Under SB 118’s framework, iGaming taxation would be structured in a way that balances industry sustainability with revenue generation, directing funds toward education, public services, or regulatory enforcement as legislated.

Fiscal impact analyses, often requested during bill hearings, will play a key role in shaping legislative debate, especially as lawmakers weigh projected revenues against infrastructure and oversight costs.

Looking Ahead: Expectations for 2026–27

With Senate approval secured, Virginia’s iGaming future now hinges on the House’s review and any amendments that emerge. Legislative leaders have indicated a willingness to advance a comprehensive market structure that reflects stakeholder input and aligns with responsible gaming principles.

If both chambers pass SB 118 and it is signed into law, regulated iGaming in Virginia could become a reality as early as 2027, offering a structured and transparent environment for online casino activity under state supervision.

Regulation & Compliance