The Senate Finance and Appropriations Committee in Virginia has voted 8-6 to advance Senate Bill 118, which could potentially legalize iGaming across the state and allow for retail casinos to partner with up to three online casino platforms.
iGaming operators looking to expand its presence to Virginia would be required to pay a $2m platform fee under SB 118, which goes toward establishing the Virginia Gaming Commission, a new regulator meant to oversee the state’s iGaming market.
Operators would also be taxed at a 15% rate according to SB 118, remaining on course with Virginia’s current revenue tax on online sports betting operations.
As a result of the legislation, sweepstakes casinos would be deemed illegal without an iGaming license, while the Virginia Gaming Commission is provided the ability to issue cease-and-desist orders against any unlicensed operators.
The state’s House of Representatives passed a companion bill to SB 118 which requires the legislation be re-enacted in 2027, potentially delaying iGaming legalization even if the Senate bill were to be approved in this year’s session.
The legislation will now head to the Virginia Senate for full chamber discussion and a potential vote to advance SB 118 to the House of Representatives.
During its legislative session on February 10, the Senate Finance and Appropriations Committee also passed SB 129, which would require daily fantasy sports (DFS) operators in Virginia to apply for licensing with the Department of Agriculture and Consumer Services.
Any operators approved by the Department of Agriculture and Consumer Services would then be subject to a 10% revenue tax, while SB 129 includes language which specifies DFS contests as peer-to-peer play.
The Virginia Lottery released the state’s online and retail sports wagering activity for December 2025 on January 30, as AGR increased 80.6% to $79.3m despite total handle falling 3.2% to just over $710.9m
