On Wednesday, a Senate committee approved legislation in Virginia that would permit online casino gambling. Immediately, several of Virginia's land-based casino operators, fraternal organizations, and anti-gaming campaigns expressed strong opposition to the commonwealth's increasing proximity to becoming an iGaming state.

Senate Bill 118, sponsored by Senator Mamie Locke (D-Portsmouth), passed the Senate General Laws and Technology Committee on January 28 by a vote of 9 to 6.

The iGaming measure suggests enabling physical casinos to work with a maximum of three independent online casino platforms, with each skin initially costing $2 million. Annually, licenses would be renewed at a cost of $1 million. The five casinos in Virginia that are now licensed would be able to run their own online casino, with the first license costing $500,000 and subsequent yearly renewals costing $250,000.

A state gaming commission would be established by the first iGaming expenses. All revenue from iGaming would be subject to a 15% state tax.

The Senate Finance and Appropriations Committee is now considering SB118.

Virginia Democrats Celebrated Gambling

Abigail Spanberger, Virginia's new Democratic governor, seems committed to increasing the number of "sin industries." Along with recreational marijuana, Spanberger is more open to other gambling opportunities than his predecessor, Glenn Youngkin (R).

During Gov. Ralph Northam's (D) reign, Virginia, formerly one of the states with the tightest restrictions on gambling, saw a massive growth in the industry. Between 2018 and 2020, Virginia approved sports betting, slot-machine-like historical horse racing equipment, and five commercial casinos.

Under Spanberger's leadership, many Virginians are concerned that gambling would become more prevalent.

"SB118 is a dangerous, shortsighted, and sweeping expansion of gambling on cellphones 24/7, 365,” said the Virginia Moose Lodges, a nonprofit fraternal organization of 78 lodges and 54 Women of the Moose Chapters. “iGaming siphons money from charities and undercuts major public investments in recently approved casinos.”

To sustain their communities and operations, a number of Virginia's Moose Lodges engage in charitable gaming.

Live! is being built by The Cordish Companies, which is a member of the National Association Against iGaming (NAAiG). Online casinos, according to Churchill Downs, which owns and manages Rosie's Gaming Emporium HHR sites throughout the commonwealth and The Rose Gaming Emporium in Dumfries, and Casino & Hotel Virginia in Petersburg, are a net loss.

"As the Virginia Lottery Director warned last week, this proposal puts at risk the nearly $900 million the Virginia Lottery contributes to public schools each year. Early impact estimates suggest the commonwealth could lose up to $500 million over the next five years, nearly $100 million per year for schools. In effect, this legislation would defund public education while dramatically expanding 24/7 gambling,” an NAAiG spokesperson said.

“While Gov. Spanberger has made affordability a top priority, quickly moving to 24/7 online gambling would undermine state and local budgets, making it the wrong choice for Virginia,” the statement continued.

Skill Games Are Also Highlighted.

Skill games, which were commonplace in local establishments and generated millions of dollars for the state, were successfully banned by Governor Youngkin. House Bill 1272 aims to regulate and tax the slot-like machines, with an $800 monthly fee for each skill game a company hosts.

"While other states look to ban neighborhood slots, some elected officials in Virginia want to bring tens of thousands of them to main streets across the commonwealth. Let’s keep these dangerous machines illegal in Virginia,” Virginians Against Neighborhood Slots said.

Del. introduced HB1271. Cliff Hayes (D-Chesapeake) is still a member of the House General Laws Committee.