Virginia Lawmakers Exploring iGaming For 2025
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Virginia lawmakers are already considering a gaming expansion in the state ahead of the 2025 legislative session.
Sen. Mamie E. Locke (D-23) pre-filed SB 827 to legalize iGaming in the Old Dominion state. If approved, the state three brick-and-mortar casinos will be eligible to apply for an iGaming license and partner with up to three online casino operators.
State lawmakers will kick off the 2025 legislative session on Wednesday, Jan. 8.
Only Seven States With Legalized iGaming
Locke is hoping to usher Virginia into the small cache of states that offer legalized iGaming. Only seven have currently approved the form of gaming, and they include:
- Connecticut
- Delaware
- New Jersey
- Michigan
- Pennsylvania
- Rhode Island
- West Virginia
Locke’s piece of legislation would allow for up to nine iGaming operators in the state, partnering with up to three iGaming license holders. Each license will cost $1 million acquire and will be valid for five years. The bill only allows iGaming operators to participate if they’re currently licensed in at least three other states.
The bill taxes iGaming at a 15% rate of adjusted gross gaming revenue, earmarking the vast majority of tax revenue for the general fund at 97.5%. The remaining 2.5% of iGaming tax revenue would be deposited in the state’s Problem Gambling Treatment and Support Fund.
The bill also allows for the legalization of online poker.
“An Internet gaming operator may offer up to three Internet gaming platforms, either directly or through a licensed Internet gaming platform provider. An Internet gaming operator may contract with up to three Internet gaming platform providers to operate the Internet gaming platforms on its behalf. Each Internet gaming platform shall be offered under a single distinct brand, except that each Internet gaming platform may use a second distinct brand to offer poker. The Internet gaming platforms shall not be required to be branded or co-branded with the brand of the Internet gaming operator or its casino gaming operator. The provisions of this subsection shall not prohibit a holder of an Internet gaming operator license from using fewer than three Internet gaming platforms or from using a single brand to offer both Internet poker and other Internet games on an Internet gaming platform,” the bill reads.
The Virginia Lottery Board would oversee iGaming activity and licensing in the state.
Rules by September 2025
The bill requires the Virginia Lottery Board to promulgate and approve iGaming rules and regulations by Sept. 2025. However, as the board is crafting its iGaming rules, it can also begin taking license applications on July 1, 2025.
It’s an interesting proposition for the Old Dominion state, as one of the seven legalized iGaming states is neighboring West Virginia. West Virginia’s iGaming tax rate is also at 15% of adjusted gross gaming revenue.
Since July, West Virginia has generated more than $20 million in iGaming tax revenues, topping $1 million for the week ending Dec. 28.
Robert Linnehan
Covering regulatory developments in online gambling. Editing/writing/creating a newsletter for readers across all formats.
