New Virginia Bill Looks To Legalize iGaming And Ban Sweeps

Virginia legislators are seeking to achieve a rare gaming double in one bill: legalizing internet casino gaming while also banning sweepstakes casinos.

The Senate bill (SB 118) pre-filed last week by state Sen. Mamie Locke and a counterpart bill from Delegate Marcus Simon in the House (HB 161) would tax adjusted gross operator revenue at 15%, the same rate the Old Dominion has for sports betting. It is the second straight session Locke has filed legislation looking to legalize iGaming, but in January 2025 she pulled her bill before it could be heard by a Senate subcommittee, citing a need to do more research.

The decision to include language for banning sweepstakes operators has Locke and Simon looking to further the momentum gathered in statehouses across the country last year. Six states passed bills making sweeps illegal, most notably California, New York, and New Jersey.

What’s new in Locke’s bill

The first notable difference in this year’s bill is that the cost of submitting an application has doubled to $2 million for one internet gaming platform, and renewal would cost $1 million. The initial iCasino operator license costs $500,000 and is good for five years.

Locke retained the ability for each gaming operator to have a maximum of three online “skins,” and an online casino operator can have a distinct second brand to offer poker. Virginia currently has three brick-and-mortar casinos in operation, with Cordish Company’s Live! Casino expected to open in Petersburg later this month. Cordish, though, has been a longstanding opponent of iGaming, citing cannibalization concerns.

The state senator reduced the minimum for internet casino operator eligibility in applying to offer iGaming from operating in at least three other states to two. Hard Rock is a beneficiary of that change among operators following its December launch in Michigan, having only been licensed previously in New Jersey.

England-based bet365, which already offers mobile sports betting in Virginia, is also currently live with regulated iCasino in only two states: New Jersey and Pennsylvania.

Locke also doubled her proposed allotment of tax revenue earmarked to the state’s Problem Gaming Treatment and Support Fund to 5%. From the passage of the bill until 2030, 6% of receipts would be directed to the Internet Gaming Hold Harmless Fund, which would address cannibalization concerns.

In an OpEd for the Richmond Times-Dispatch published Friday, John Pappas, the state advocacy director for the iDevelopment and Economic Association, wrote in regard to the new legislation, “Virginia has an opportunity to learn from other states and enact a balanced framework that reflects the realities of today’s gaming market. By focusing on iGaming this session, lawmakers can foster sustainable growth, enhance consumer protection, and ensure that Virginia’s gaming industry thrives, both on the casino floor and in the digital economy.”

The sweeps language

The text regarding online sweepstakes gaming is comprised of three paragraphs defining that sweepstakes play can only be “conducted by a licensed gaming operator,” otherwise it “shall constitute illegal internet gaming in violation of this section.”

The fines are heavy for violators: a maximum civil penalty of $100,000 for the first offense and $250,000 for each offense thereafter. Additionally, the text notes that “Each day that such violation continues shall be deemed a separate offense.”

Locke’s bill would give subpoena power to the Virginia Lottery Board, the state’s attorney general, and the Department of the State Police, as well as granting authority to investigate violations, conduct hearings, and issue cease-and-desist offers.