Virginia Poised to Legalize Online Gambling After Last-Minute Legislative Push

Both the Virginia House and Senate passed bills to legalize internet gaming, which could generate hundreds of millions in tax revenue annually.

Published on Feb. 24, 2026

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In a last-minute scramble ahead of crossover in the Virginia General Assembly, legislation to legalize online gambling, known as iGaming, narrowly passed both the state Senate and House of Delegates. The bills would create a legal framework for internet casino games like slots and blackjack, which are currently only legal in eight states but generate billions in unregulated revenue from Virginians annually. Proponents argue legalization will make online gambling safer by implementing age verification and consumer protections, while opponents warn of the potential for increased addiction, especially among youth.

Why it matters

Virginia's move to legalize iGaming comes as millions of Americans already participate in unregulated online casino games, with estimates that Virginians alone spend between $12-16 billion on these activities annually. Legalizing and regulating the industry could generate significant tax revenue for the state, but also raises concerns about the social costs of expanded gambling access, particularly for young people.

The details

The Senate version of the iGaming bill initially failed on Monday before being reconsidered and passing 19-17. The same scenario played out in the House, where the bill initially failed but was ultimately approved 67-30 after Democrats met during a recess. The legislation would impose a 20% tax on iGaming operators' adjusted gross revenue, as well as a 6% economic development fee to offset potential losses for existing brick-and-mortar casinos. Experts estimate Virginia could see $240 million in net revenue from iGaming by fiscal year 2028, growing to $845 million by 2032.

  • On Monday, the Virginia Senate initially failed to pass an iGaming bill before reconsidering and approving it 19-17.
  • On Tuesday, a similar scenario played out in the Virginia House of Delegates, where the iGaming bill initially failed but was ultimately approved 67-30 after a recess.

The players

Schuyler VanValkenburg

A Democratic state senator from Henrico who moved to reconsider the initial failed Senate iGaming bill, leading to its eventual passage.

Mamie Locke

The Democratic state senator from Hampton who carried the iGaming legislation in the Senate.

Bill Stanley

A Republican state senator from Franklin County who spoke in opposition to the iGaming legislation, warning of the potential for increased addiction, especially among youth.

Abigail Spanberger

The Governor of Virginia, who appears supportive of creating a gaming commission to regulate the state's gambling industry but is skeptical of expanding gaming without the authority up and running.

Oliver Barrie

A spokesperson for the National Association Against iGaming, who expressed concerns about transparency in the Virginia lawmakers' votes on iGaming.

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What they’re saying

“Senate Bill 118 will legalize iGaming in the commonwealth of Virginia and dramatically curtail Virginia's thriving illegal iGaming market and generate upwards of $14 billion in new taxable revenue over the first five years and tens of tens of billions of dollars every subsequent five years in perpetuity.”

— Mamie Locke, State Senator (pilotonline.com)

“We are being asked to take the single most addictive device in human history, the smartphone … a device that has already rewired the brains of our children, that has already driven anxiety, depression and suicide rates in young people to historic levels, and now we're being asked to put a slot machine on it.”

— Bill Stanley, State Senator (pilotonline.com)

“When legislation expanding 24/7 online casino gambling initially fails and then passes within hours after reconsideration, Virginians deserve transparency about what occurred.”

— Oliver Barrie, Spokesperson, National Association Against iGaming (pilotonline.com)

What’s next

The House version of the iGaming legislation would require the legislature to pass the bill for a second time in 2027 before an iGaming industry could be up and running beginning in January 2028. The Senate version has a start date of January 2027.

The takeaway

Virginia's move to legalize online gambling highlights the growing popularity and prevalence of unregulated internet casino games, which generate billions in revenue from Virginians annually. While legalization could bring significant tax revenue, it also raises concerns about the potential for increased addiction, especially among young people, underscoring the need for a balanced and transparent approach to gambling expansion.