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Virginia Lawmakers Advance Gaming Commission Bill While Online Casino Proposal Stalls

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Yagmur Canel
Content Manager
Updated:
Reading Time: 4 minutes

Lawmakers in Virginia approved several gambling bills on regulatory restructuring while delaying broader expansion into online casino gaming. A key Senate panel voted in favour of establishing a central gambling regulator in the state. However, divisions remained over consumer protection, fiscal impact, and oversight for online gambling. The outcome signals a cautious strategy that prioritises regulatory infrastructure before approving new gambling formats.

A sunset view of Richmond, Virginia's skyline.

Virginia Approves Centralised Gaming Regulator, Delays Online Gambling Expansion: Quick Overview

  • Lawmakers approved plans for creating a centralised gaming regulator while rejecting a proposal to legalise online casino gaming. The decision follows a parliamentary vote to block iGaming.
  • The proposed Virginia Gaming Commission would consolidate oversight currently divided among several agencies. Lawmakers stated that unified regulation is necessary to manage enforcement and consumer safeguards across existing gambling sectors.
  • The online casino bill failed after concerns about addiction protections, fiscal impact, and regulatory readiness. Legislators signalled the issue may return once the new regulatory framework is established.

Centralised Gambling Oversight Moves Forward

Senators unanimously advanced SB 195, legislation that would establish a Virginia Gaming Commission to consolidate oversight currently divided among multiple state agencies. Lawmakers repeatedly described the proposal as a structural reform rather than an expansion of gambling activity, emphasising that the regulator would not independently authorise new gaming products.

Supporters argued that Virginia’s rapidly evolving gambling market requires unified supervision before additional formats are considered. Casinos, sports betting, and historical horse racing have been legal in Virginia since 2020. However, regulation is fragmented and under the control of multiple agencies.

Authorities explained that regulatory cohesion is essential for managing enforcement and consumer safeguards across existing sectors. The bill to establish a centralised regulator is being viewed as the first step for any future debates about legalising online casino gambling.

Virginia’s current regulatory framework divides the responsibility among three agencies. The Virginia Lottery oversees casinos and sports betting, the Virginia Racing Commission regulates horse racing and wagering, and the Virginia Department of Agriculture and Consumer Services supervises charitable gambling and daily fantasy sports.

Lawmakers expect a consolidation to create consistent standards and strengthen administrative capacity. As online gambling continues to gain momentum in North America, the need for regulation is becoming evident. Neighbouring Alberta recently unveiled its online gambling framework, ahead of market launch in 2026.

Online Casino Proposal Faces Resistance

The Senate subcommittee voted 3–4 against advancing SB 118, a bill to legalise statewide online casino gaming. The proposal would have allowed Virginia’s five land-based casinos to partner with third-party operators to offer digital slots, table games, and poker.

Opposition stemmed from responsible gambling safeguards, smartphone accessibility, and concerns about the state’s readiness to regulate online platforms. Budget officials warned that online casinos could divert spending from the Virginia Lottery and physical casinos that fund public programs.

Fiscal reviews questioned whether proposed tax and licensing structures would offset the cost of regulating a new online market. Authorities raised concerns about operational capacity and long-term enforcement requirements. However, revenue from iGaming is on the rise in the region, with Canada being a prime example.

Lawmakers said the bill required stronger addiction safeguards and clearer plans for training staff. Several senators described the framework as incomplete and unsuitable for implementation. Those concerns ultimately prevented the bill from securing majority support in parliament.

Supporters of the bill argued that Virginians already access offshore gambling platforms without safeguards. They said legalisation would introduce oversight and strengthen consumer protections and not create a new market. Senator Mamie Locke framed the issue as a regulatory choice rather than a moral one.

Locke noted:

We can either keep it illegal, or we can put guardrails around it. We can sit here and, you know, clutch our moralistic pearls all we want to. But it’s already being done, so we can keep it illegal or we can put some guardrails.

Continued Debate Over Consumer Protection

A revised substitute proposal attempted to address earlier objections by introducing advertising rules, identity verification standards, and additional responsible gambling programs. The bill was tied to the creation of the gaming commission and would not take effect until the regulator is operational.

Despite those changes, lawmakers failed to agree on timing and readiness. Although the Senate vote stalled the current online casino effort, lawmakers emphasised that the conversation is far from over. Several senators indicated they may reconsider iGaming once a centralised regulator has been established.

Analysts are hopeful that committee politics and fiscal analysis will continue to shape the proposal’s trajectory. Some lawmakers suggested that debates over skill-based gaming machines and other gambling issues could influence negotiations. The broader trend reflects national caution as states weigh economic benefits against regulatory and social concerns.

Virginia’s approach to gambling regulation emphasises infrastructure over expansion. The advancement of the gaming commission signals long-term structural reform. Questions surrounding the legalisation of online casinos remain unresolved as policymakers continue to balance fiscal impact, oversight, and consumer protection.

Regulation & Compliance