Virginia’s iGaming future is increasingly trending toward reality, as lawmakers convened on August 19 to examine a landmark proposal and the feasibility of a centralized gaming regulator. The Joint Subcommittee to Study the Feasibility of Establishing the Virginia Gaming Commission held a pivotal meeting—bringing new research, industry insights, and public testimony to the forefront.
Aiming for Structural Reform
At present, the Virginia Lottery regulates sports betting, retail casinos, and online lottery offerings. However, many argue this system is stretched too thin—and ill-suited for overseeing expanded gaming verticals like iGaming. The proposed solution? A new, independent Virginia Gaming Commission to govern sports wagering, casinos, fantasy sports, charitable gaming, and iGaming under one roof.
Delegate Marcus Simon, sponsor of a previously proposed iGaming bill, emphasized the urgency of a regulated alternative:
“Sort of starve the bad actors out of business by providing a legal, regulated, and taxed alternative that’s more consumer-friendly.”
He highlighted the lost opportunity of untapped tax revenue: iGaming isn’t creating demand—it’s already happening unregulated. This system simply doesn’t capture those revenues for the Commonwealth.
Capturing the Unregulated Marketplace
Presenters referenced recent studies estimating Virginians wagered between $11.9 billion and $16 billion on illegal online casinos in 2024. In comparison, states that regulated iGaming saw up to 90% of illicit gamblers migrate to legal platforms—potentially yielding
$400 million in annual tax revenue for Virginia.
Keith Whyte of Safer Gambling Strategies offered a safety-centric perspective, drawing from New Jersey’s example:
“Players could be encouraged, and even incentivized, to take control through deposit limits, time limits, budget calculators, and personalized activity dashboards.”
Caution from Opponents
Not everyone is convinced of the need to expand. Brooke Archambeau from the Moose Lodges of Virginia warned:
“Virginia needs to get its own house in order before considering a new and risky form of gaming like iGaming.”
Mental health consultant Brianne Doura-Schawohl opposed using illegal behavior to dictate policy:
“Do you make this decision to legalize based upon the people breaking the law right now?”
HB 2171: A Planned Framework
House Bill 2171, introduced by Delegate Simon earlier in 2025, laid out a detailed blueprint:
- Up to three online skins per retail casino (total of 15 platforms statewide)
- Licensing and regulatory oversight transitioning to the Gaming Commission when established
- 15% tax on adjusted gross gaming revenue, with most funds directed to the state’s General Fund, and a slice set aside for problem gambling support
- Strong consumer protections—including 21+ age limits, geolocation verification, and responsible gambling controls
Projections suggest iGaming could generate $5.3 billion in new taxable revenue over five years, while boosting land-based casino revenue by roughly 8.4% compared to a scenario without iGaming.
Despite its promise, HB 2171 was tabled in committee, and a companion Senate bill was subsequently withdrawn. Lawmakers now plan to revisit the concept in the 2026 legislative session, armed with further study.
Bottom line: Virginia is mapping out a thoughtful and structured path toward legalizing iGaming. With growing alignment on consumer safety, revenue potential, and regulatory modernization, all signs point to a renewed push in 2026 to bring online casino gaming under a transparent, regulated framework.