Virginia Senate Passes SB 118 to Legalize Online Casinos

Jonathan Rodriguez

Written by: Jonathan Rodriguez

Published: Thu Feb 19, 2026, 7:00 am ET

Read Time: 3 minutes

Virginia Senate Passes SB 118 to Legalize Online Casinos

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Lawmakers in Virginia have approved legislation to legalize online casino gaming across the state. The passage of SB 118 marks a major shift in Virginia gambling policy. 

Supporters argue the bill will modernize the market and generate new tax revenue. Opponents continue to raise concerns about consumer protections and market saturation.

Still, the Senate vote signals growing momentum for regulated US online casinos in the Commonwealth.

SB 118 Clears the Senate After Dramatic Revote

The Virginia Senate passed SB 118 after a tense reconsideration vote. The measure initially passed 20-19. However, lawmakers later revisited the decision.

Senator Schuyler VanValkenburg, who first voted against the bill, called for a reconsideration vote. His motion reopened debate on the proposal.

During the second vote, the bill passed 19-17. Notably, VanValkenburg declined to vote during the revote. Two other senators who initially voted no also declined to vote. Those lawmakers were Bill DeSteph and Stella Pekarsky. Their decisions shifted the final outcome in favor of legalization.

Supporters say the bill creates a regulated framework for online casino operators. The legislation would allow existing land-based casino operators to partner with digital platforms. As a result, Virginia would join a small but growing list of states offering full iGaming.

The Senate approval follows a previous failed attempt to advance similar legislation. This time, sponsors worked to address concerns and secure additional support.

Impact on Virginia Gambling Market and Implementation Timeline

If fully enacted, SB 118 would significantly expand Virginia gambling options. However, the measure will not take effect immediately.

Under the bill's current language, online casino operations would launch on July 1, 2027. Lawmakers structured the delayed rollout to allow regulators time to draft rules. The bill also still needs to pass the legislature again next year before implementation.

Tax rates remain a key point of discussion. The Senate version proposes a 20% tax rate on adjusted gross revenue. Meanwhile, Delegate Marcus Simon introduced companion legislation in the House with a 15% tax rate.

Financial projections presented during committee review suggest strong revenue potential. Estimates show the state could collect $343 million during the first fiscal year after implementation. Annual revenue could exceed $1 billion by fiscal year 2032. Additionally, net iGaming revenue could reach $3.56 billion by fiscal year 2031 once the market matures.

If those projections hold, Virginia gambling revenue would expand substantially. The added income could support education, infrastructure, and responsible gaming programs.

HB 161 Also Advances in the House

In parallel, the House advanced its companion measure, HB 161. Like the Senate bill, the House proposal required reconsideration.

Lawmakers ultimately passed HB 161 by a 67-30 vote following the revote. The strong margin signals growing bipartisan interest in regulating US online casinos within the state.

Now, both chambers must reconcile differences between the two bills. Negotiations will likely focus on tax rates and regulatory structure.

If lawmakers reach agreement, Virginia could soon become one of the largest regulated iGaming markets in the United States.

Jonathan Rodriguez
Jonathan Rodriguez

Jonathan is an avid basketball fan, and is often looking forward to the next upcoming NBA season when not checking players' stats during games. He also likes to keep his ears on the ground for the latest rumblings in the online casino industry.

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