Virginia Lawmakers Delay iGaming Launch to 2028

Virginia’s push to legalize online casinos moved forward this week, but lawmakers added a major condition that significantly slows the launch timeline. The House General Laws Committee advanced Senate Bill 118 only after adopting a substitute that matches House Bill 161, requiring the measure to be reenacted in two separate sessions before it can take effect.

This means the earliest possible iGaming launch date in Virginia is now 2028, a full year later than the Senate’s original proposal which had set July 2027 as the start date. The change was adopted quickly by voice vote without extended debate, and the bill was then sent to Appropriations for further review.

The amendment aligns SB 118 with HB 161, both carrying the same reenactment language. Under the House-aligned version, the bill will not become effective unless reenacted by the 2027 General Assembly. If enacted, it directs the Virginia Lottery Board to begin receiving notices of intent on July 1, 2027, and to promulgate regulations by January 1, 2028.

Under the notice-of-intent provision, operators that submit within 60 days of enactment must be given an equal opportunity to launch on the same day. Applicants who miss the 60-day window must wait at least six months after the Commonwealth’s initial iGaming launch before commencing operations.

Several other changes come with the House substitute. The tax revenue distribution has been rewritten: instead of directing post-tax revenue primarily toward education, the updated bill splits the allocation differently. Five percent goes to the Problem Gambling Treatment and Support Fund, 6% flows into a new Internet Lottery Hold Harmless Fund until 2037, and the remaining 89% is directed to the general fund.

The substitute also introduces a per-platform fee structure and requires labor peace agreements as a condition for licensing. The responsible gaming hotline reference was also changed from 1-800-GAMBLER to 1-800-MY-RESET.