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Virginia is Still for Land-Based Gaming Lovers

Legal Writer

Publish Date: Apr 02, 2026

Fact checked by: Matt Moreno

Key Points

Virginia got closer than any other U.S. state in terms of legalizing online casino play in 2026.
Stakeholders in Virginia concerned with the regulation of online casinos have expressed divergent sentiments on the matter.
Virginia leaders are too enamored with land-based casinos to envision a broader future.

After a serious push for iGaming regulation in Virginia, the message out of Richmond is that in-person gambling is nonetheless the priority in Old Dominion.

Excluding Maine, Virginia got closer than any other U.S. state in terms of legalizing online casino play in 2026. Barring any drastic surprises, that will be the case for the remainder of the year, as legislation toward that end likely won’t see any further action until 2027 at the earliest.

However, that doesn’t mean the Assembly in Richmond was idle on the matter of gaming. Lawmakers have made decisions on several matters related to physical casinos in the commonwealth that collectively send a clear message that they are the priority in Old Dominion. In turn, that suggests optimism around iGaming legalization in 2027 could be overzealous.

Virginia online casino bills shelved for 2026

While Virginia HB161 is technically in conference committee as of the time of this writing, its enactment in 2026 looks in need of a last-second miracle. Even if the committee does work out a uniform bill to send to Gov. Abigail Spanberger, both the House of Delegates- and Senate-approved versions contain a clause that would require the bill to be re-approved by both chambers in 2027 at this time.

At issue between the Delegates and Senate version is differing language regarding the allotment of tax revenue from online casino play. The Delegates version earmarks 6% of those funds to support brick-and-mortar casinos in the state while the Senate markup does not include that tenet.

The two drafts also differ on the allocation of revenue to support responsible gambling programs. The House-passed bill assigns more than double the amount toward that end (5% compared to 2%) as opposed to the Senate’s offering.

That inclusion of diverting tax revenue from online casinos to address concerns of cannibalization of physical casinos suggests which arm of the gaming industry has the loudest voice in Richmond. Other action by the Assembly in 2026 reinforces that reading of the rooms.

HB271’s continuance lengthens the odds for Virginia iGaming

On March 10, the Virginia Senate Finance and Appropriations Committee voted to continue HB271 to 2027. That legislation would create a new state agency called the Virginia Gaming Commission.

That body would have regulatory duties over all forms of gambling in the commonwealth other than the state lottery, which the Virginia Lottery would continue to oversee. Currently, disparate bodies are charged with oversight of various segments of gaming in Old Dominion like casinos, pari-mutuel wagering on horse races, and sports betting.

There is a catch with the delay of HB271, and that catch is related to the potential enactment of an online casino bill. Brad Kutner of WVTF reported on Feb. 11 that Virginia Secretary of Agriculture and Forestry Katie Frazier testified that Spanberger would prefer to see such a body take shape prior to any further expansion of gaming happening in the commonwealth.

“Our patchwork approach is inefficient,” Frazier said. “It creates gaps in oversight and makes it more difficult to protect consumers, collect reliable data and ensure fair and responsible gameplay. Governor Spanberger is deeply concerned about any discussions of gaming expansion in Virginia without first establishing a single entity with clear authority, consistent standards and strong compliance and enforcement capabilities.”

Lack of movement for HB271 in 2027 could mean that Spanberger would veto any online casino legislation that might reach her desk without the Virginia Gaming Commission in place. Both versions of HB161 would currently add regulating iGaming to the Virginia Lottery’s responsibilities.

While matters related to online casinos have hit roadblocks, a measure that solely addresses in-person betting has experienced relative success in the capitol for 2026. The enduring quest to find a home for new brick-and-mortar casinos in Virginia carries on.

Casino referendum could proceed in Fairfax County

On March 4, the House of Delegates approved SB756, which had cleared the Senate on Feb. 13. Although there are small issues to iron out in conference committee, the general expectation is that the legislation will be delivered to Spanberger in 2026.

SB756 adds Fairfax County to the list of places where residents may hold a local referendum on whether to allow land-based casino gaming. Should that referendum take place and succeed, municipal leaders would determine a site for the casino and select an operational partner.

A veto from Spanberger is still a possibility, and SB756 did not pass either chamber of the Assembly with a veto-proof margin. However, SB756’s progression despite community opposition is further proof of the stranglehold that land-based gaming has on decision makers in Virginia.

Local opposition to Fairfax County casino ambitions

Spanberger’s inaction toward or signature on SB756 could set Fairfax County up to vote on a casino. That doesn’t mean such an election will happen in 2026 or ever, though.

In Virginia, as in many other U.S. states, elections are locally administered in cooperation with state agencies. Furthermore, the current text of SB756 does not compel a casino referendum in Fairfax County, but rather merely enables such action.

According to Drew Wilder of NBC Washington, Fairfax County Board Chairman Jeff McKay has expressed that the board may not place a question on the ballot related to the casino issue because he believes the terms of SB756 are not favorable enough to the county. McKay wants to see the county get a bigger share of the tax revenue, at least 50%. SB756 as currently composed would give Fairfax County a 30% share.

This local opposition is nothing recent to the advancement of SB756, either. The Fairfax County Board issued a resolution against the introduction of a casino in December 2025 and two citizens groups have formed to reinforce that opposition.

Meanwhile, sentiments in Virginia on iGaming have been more divided.

Casino operators divided on iGaming in Virginia

Stakeholders in Virginia concerned with the regulation of online casinos have expressed divergent sentiments on the matter. During legislative hearings on HB161 and the Senate companion SB118, those divisions became clear.

Representatives from Caesars Entertainment have testified in support of HB161, for example, while the same for The Cordish Companies have spoke in opposition to the bill. Both of those companies operate physical casinos in Virginia.

Arguments from The Cordish Companies have included concerns over iGaming taking revenue away from physical gaming enterprises. However, Caesars emphasized the need for regulation while unlicensed websites available to Virginians lack consumer protections.

The progress of a bill enabling a vote on a casino that nobody in the local area seems to want while legislation enabling iGaming that has some support in Virginia is mired down is a clear tea leaf for anyone to read. It’s also perplexing unless you follow the money.

Casinos, iGaming, Blockbuster, movie theaters, and streaming

Cannibalization has been an effective argument against iGaming expansion in the U.S. regardless of data suggesting that land-based casinos in states where regulated online casinos operate have not suffered significant losses of revenues since the advent of iGaming in those states. Virginia could soon become another example of the potency of that argument.

While proponents of those claims have lauded the protections of jobs as secondary issues, for lawmakers, it comes down to tax revenue. If job protection was truly the issue, then it’s curious why legislators haven’t applied similar protections to other segments of the entertainment industry.

Lawmakers didn’t file bills to ban the rental of DVDs through the United States Postal Service while Blockbuster stores closed and laid off staff by the thousands. There has been no great outcry in state houses to protect brick-and-mortar businesses amid the rise of streaming platforms even as physical movie theaters report record losses, lay off staff, and shutter locations.

That isn’t an apples-to-apples comparison, though, despite the entertainment industry ties. Blockbuster never contributed nearly $200 million to Virginia’s coffers in a year alongside more than $60 million to municipal governments during the same period. Virginia’s casinos accomplished that in 2025.

Even movie theater giants like AMC don’t have the lobbying budgets of physical casino operators, either. OpenSecrets states that campaign donations and lobbying by the gaming industry in the U.S. neared $50 million in 2024.

That’s why the gaming segment of the entertainment industry gets consideration and protections that few other aspects receive. While film and television productions get tax credits, gambling helps to cover the costs of those credits. That includes online casinos.

Data from iGaming states paint a definite picture

Leaders in other states, and to be fair, proponents of iGaming in Virginia understand the assignment. Regulators from New Jersey and Pennsylvania have publicly stated that legal online casinos in their states do not significantly negatively impact revenue at the physical casinos in their states.

Backing up those statements is hard data from the two states. Slot play at land-based casinos in Pennsylvania reached a record level in 2025, although the increase from 2024 was less than a percentage point.

Table game play did decrease year-over-year modestly in Pennsylvania at brick-and-mortar casinos as did sports wagering revenue. However, revenue at licensed physical video gaming terminals in Pennsylvania also showed a minimal increase.

Online casinos showed the greatest growth year-over-year of any gaming vertical in Pennsylvania for 2025, signaling that consumer preferences have shifted. Because Pennsylvania takes a broad approach to gambling, though, it was still able to capture record tax revenues of nearly $2.8 billion from all forms of gambling.

New Jersey experienced similar results in 2025. According to Matthew Fazelpoor of NJBiz, New Jersey Casino Control Commission Chairman James Plousis attributed record gaming tax revenues of over $1 billion to both online and physical gaming during 2025.

Atlantic City casinos collectively posted record revenues in 2025 from a combination of slots, sports wagering, and table games. Just like in Pennsylvania, growth in the iGaming segment outpaced increases in winnings at land-based casinos during 2025 in New Jersey, but New Jersey captured tax revenue from the entire spectrum.

The bottom line for online casino proponents in Virginia

To date, legislators have mostly been unwilling to risk the funds received from physical casinos, even if adding iGaming could actually result in a net gain. It’s the classic “bird in hand is worth two in the bush” effect.

It’s also hard to get a politician to understand that online casinos could operate alongside brick-and-mortar casinos, as companies like Caesars have argued, when they have campaign donations making it convenient for them to fail to grasp that concept.

All the data refuting cannibalization claims out of states like New Jersey and Pennsylvania have failed to move decision makers in Virginia off their preference for land-based gaming. Even if voters in Fairfax County defeat a casino referendum to signal that the population is content with in-person gaming at its current level, it’s going to take a Herculean lift in Richmond to legalize online casinos anytime soon.

For the foreseeable future, Virginia leaders are too enamored with land-based casinos to envision a broader future. That demonstrates how the path to expanding regulated iGaming in the U.S. is fraught with challenges.

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