Senate Bill 827 was postponed for additional research, which caused Virginia’s attempt to legalize online casinos to stall. Lawmakers postpone the conversation until the 2026 session, citing concerns about the economy, regulatory burdens, and lottery revenue risks.
Following the failure of Senate Bill 827 in January 2025, Virginia’s attempt to legalize internet casino gaming has been put on hold. The bill, which would have granted the Virginia Lottery the power to regulate and license iGaming, was put on hold for additional study. Currently, it is doubtful that the measure will be brought up before the 2026 session.
To hear the benefits, disadvantages, and difficulties of legal online casinos in the state, the Joint Subcommittee to Study the Feasibility of Establishing the Virginia Gaming Commission convened on Tuesday. Since players may play on their phones, real-money casinos are convenient, but detractors point out that there are hazards for both customers and legislators.
Sen. Mamie Locke, the bill’s sponsor, postponed it to provide legislators more time to evaluate the risks to the economy and the regulations. The Virginia Lottery expressed worries that the action may put a strain on its ability to operate and damage lottery funds.
The hiatus has shaped the possible impact on players, operators, and state coffers and set the ground for a protracted discussion that will continue until 2026.
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Virginia Online Casinos’ Current Situation Following a 2025 Setback
Sen. Mamie Locke proposed Senate Bill 827, which aimed to allow legal online casinos in Virginia. Regulation through the Virginia Lottery was part of the concept.
It would have permitted the operation of up to three online gambling platforms by each of the state’s land-based casinos. A 15% revenue tax and a $1 million licensing fee would be paid by operators, with a part going toward responsible gaming initiatives.
Following a warning from fiscal analysts that iGaming could lower lottery sales, a significant source of state revenue, lawmakers tabled the bill. The Virginia Lottery also protested, pointing out that oversight of sports betting and the opening of additional casinos already put a strain on its resources.
The House likewise failed to pass a companion bill, and both houses decided to postpone the discussion until the following full session.
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