Virginia has taken a significant step towards legalizing online casino gaming with the advancement of a bill that enhances protections against problem gambling. The legislation, known as SB 118, successfully passed through the General Laws Committee and is now set to be reviewed by the Senate Finance Committee. This marks a crucial moment in the push to introduce regulated online casinos, commonly referred to as iCasinos, to the state.
The bill allows Virginia’s five brick-and-mortar casinos to partner with up to three mobile iGaming operators, each paying a substantial fee of $2 million. Additionally, it mandates that these casinos establish live dealer studios within the state, further integrating online gaming with local economies. Lawmakers have emphasized strong consumer safeguards, responding to concerns about the potential for problem gambling.
During a recent subcommittee hearing, several committee members expressed their support for the bill after revisions were made to enhance its problem gambling protections. Sen. Jeremy McPike, a proponent of iGaming legalization, noted that the updated bill includes “more prescriptive” measures than those found in any other state. Although he abstained from the vote, he indicated that the additional consumer protection elements could sway his support.
The revised legislation introduces specific and enforceable duties for state regulators and iGaming providers. Among these are automated systems designed to detect problem gambling behavior, which will trigger interventions based on player data. This proactive approach includes a three-phase intervention process that ensures players receive timely communications about responsible gambling practices and easy access to support resources.
As the bill advances, lawmakers have made adjustments to address previous concerns, including the removal of provisions that would have allowed players to use prepaid or credit cards for online gambling. The measure passed out of the General Laws Committee with a vote of 9-6, reflecting the ongoing debate surrounding the implications of iGaming within Virginia.
If SB 118 passes through the Senate Finance Committee, it will then move to the full Senate for consideration. Should it receive approval there, the bill will still require passage through the House of Delegates and may face potential veto from the governor. The Finance Committee is expected to take up the bill in the coming month, evaluating its financial implications, job creation potential, and the impact on existing brick-and-mortar casinos.
The discussion around online casinos has highlighted a divide within the gaming industry. Major national iGaming operators, such as Caesars and Boyd Gaming, have testified in favor of the bill, arguing that online gaming can attract new customers without negatively affecting their physical casino revenues. Conversely, the Cordish Companies, which operate Live! Casino Virginia, have voiced concerns that iGaming could harm brick-and-mortar establishments’ taxable income and job stability.
Labor unions have also weighed in, suggesting they could back the legislation if assurances are made to protect existing jobs. This sentiment echoes challenges faced by similar legislation in other states, where union opposition has played a critical role in the outcome of iGaming proposals.
As Virginia approaches the possibility of becoming the ninth state to approve real-money iGaming, the outcome of SB 118 will be closely monitored as it could set a precedent for future legislation in other jurisdictions. The debate continues to evolve, with lawmakers balancing the potential economic benefits of online gaming against the need to safeguard consumers and protect jobs within the traditional gaming sector.
