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House Bill 161, which seeks to legalize regulated online casino gaming in Virginia, squeezed through the House General Laws gaming subcommittee on February 3 with a 5–4 vote. The measure now moves to the House Appropriations Committee, where lawmakers will continue weighing its impact before deciding whether to send it to the full chamber.
The debate went on for nearly two hours, drawing testimony from casino operators, lottery officials, racing interests, and advocates for problem-gambling support.
Supporters of the bill, including sponsor Del. Marcus Simon, argued that the bill would bring oversight to an already thriving illegal market, pointing to estimates that Virginians wager around $12 billion annually with unregulated online casinos.
“What this bill is really meant to do is to bring the gaming on your phone within a legal framework that’s going to be highly regulated and include consumer protections,” Simon stated.
A companion measure in the Senate cleared its own committee last month by a 9–6 vote and now awaits review in the Senate Finance Committee, keeping the issue alive in both chambers as the legislative session unfolds.
Retail gaming cannibalization remains the bill’s biggest roadblock
The biggest argument in Virginia’s online casino debate continues to center on whether digital platforms will take money and jobs away from the state’s existing gambling industry.
At Tuesday’s hearing, national betting operators backed the bill, with the Sports Betting Alliance, representing FanDuel, DraftKings, BetMGM, and bet365, arguing that regulation would help improve consumer protections without reducing revenue from retail operators.
Caesars, which already runs one of Virginia’s five land-based casinos, shared that view. Executive Ken Hutchinson told lawmakers his company supported legalization, insisting that online play would not destroy the physical market.
Opponents, which included Live! Casino Virginia vice president Mark Stewart argued differently, warning that legalizing iGaming could strip the state of hunhdreds of millions in annual revenue and wipe out thousands of jobs tied to physical casinos.
Churchill Downs, with its horse tracks and historic racing facilities, was part of the opposition, as well as gaming groups including Virginia Moose Lodges and VFW posts.
Del. Marcia Price, who voted against the measure, said she feared online casinos would make gambling too accessible and losses more common, as the physical barriers that exist with traditional venues would be removed. “You don’t even have to put on pants to gamble,” she stated.
What does HB 161 say?
If House Bill 161 becomes law, Virginia would join eight other states in regulating real‑money online casino gaming and stand out as the fifth to allow more than two operators.
The framework ties online play directly to the state’s land-based casinos. Each of the five existing venues could team up with as many as three mobile partners, opening the door to a maximum of 15 platforms.
Caesars, Hard Rock, Boyd, Rush Street Gaming, and Cordish Companies through its Live! Brand are the current casinos in Virginia. Lawmakers are also considering a separate proposal for a casino in Tysons, which would likely carry the same rights to three online partners.
A 15% tax on gross gaming revenue is included in the bill and is one of the lowest rates among states with legal online gambling. Part of that would be directed back to the physical casinos to soften the effects of potential losses they might face due to online operators.
The bill also bans deposits made with prepaid cards or credit cards and introduces automated alerts tied to betting patterns, designed to flag risky behavior before it gets out of control.
While these protections helped the bill get some backing, the narrow vote shows that the battle ahead is still tough. As Del. Marcia Price remarked after the bill advanced, “I know this is a difficult vote for some of y’all.”
Source: Covers
