Virginia's efforts to legalize online casinos took a dramatic turn this week — both the Senate and House bills were initially rejected in the first vote, but passed narrowly a few hours later in a re-vote. In plain terms, the lawmakers first gave a warning shot, then changed their minds and let it pass. However, behind this legislative rollercoaster, a more fundamental issue has emerged: the Governor's office and several legislators insist that a unified regulatory body must be established before discussing the expansion of gambling. Want to know the latest case of "rules first, gambling second" in US gambling legislation? Visit the PASA website for ongoing updates on state regulatory reforms.
1. Voting Reversal: From "Dead" to "Revived"
This week, the Virginia legislature witnessed two dramatic voting reversals:
Senate (SB 118): Initially rejected on Monday by a vote of 20-19, it passed a few hours later by 19-17. The key turnaround was when Senator Schuyler VanValkenburg, who had previously voted against, requested a reconsideration, and then he and two other opponents abstained.
House of Representatives (HB 161): Failed on Tuesday's third reading by a vote of 46-49, but passed again less than an hour later by 67-30.
The details of the bills from both houses differ slightly: the Senate version has a tax rate of 20% and takes effect on July 1, 2027; the House version has a tax rate of 15% and includes a clause requiring the legislation to be passed again by the legislature in 2027. As the differences are minor, a consensus is expected to be reached through the conference committee.
2. Regulatory Reform: Governor Insists on "Rules First"
Amid the legislative tug-of-war, Governor Abigail Spanberger's stance is particularly clear: opposes any form of gambling expansion before establishing a unified regulatory body.
Agriculture and Forestry Minister Katie Frazier stated at the hearing, "Our current fragmented regulatory approach is inefficient, has supervisory gaps, and struggles to protect consumers, collect reliable data, or ensure fairness and compliance." She emphasized the need to establish a single entity with "clear powers, unified standards, and strong compliance and enforcement capabilities."
Currently, Virginia's gambling regulation is managed by three different departments:
Charitable gambling and daily fantasy sports: Department of Agriculture
Physical casinos and online sports betting: State Lottery
Horse racing: Another regulatory body
The accompanying "Virginia Gambling Commission" bill has also passed this week, aimed at integrating all gambling regulatory functions. If the online casino bill ultimately passes but the commission is not yet established, the State Lottery will temporarily be responsible for setting regulatory details.
3. Behind the Numbers: 5 Million Population and $845 Million Forecast
According to estimates by the Joint Legislative Audit and Review Commission, by the fiscal year 2032, online casino annual revenue could reach $845 million. Currently, there are five physical casinos in the state, which will be the natural candidates for the first batch of online licenses.
The licensing framework has also been preliminarily clarified:
Five-year license fee: $500,000, renewal fee $250,000
Sub-platform fee: Each license can operate up to three platforms, with an additional fee of $2 million per platform
Supporters like Senator Mamie Locke emphasize that legalization helps "curb Virginia's thriving illegal iGaming market." Opponents, as always, worry about gambling addiction issues.
4. Conclusion: Which Comes First, Rules or Gambling?
This week's legislative tug-of-war in Virginia is superficially about the life and death of online casinos, but essentially it's a debate over the route of "regulation first or market first." The governor and reformers insist on the logic of regulation first, aiming to avoid the pitfall of other states where "the market moves too fast, and regulation can't keep up."
If both the final bill and the committee bill pass, Virginia will become another major eastern state to regulate entry into the online casino market, and its "rules first, then gambling" model may also serve as a reference for other states.
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This article is from "PASA-Global iGaming Leaders," a gambling industry news channel: https://t.me/pasa_news
Original in-depth gambling channel: https://t.me/gamblingdeep
Free data reports: @pasa_research
PASA Matrix: @pasa002_bot
PASA official website: https://www.pasa.news
