(The Center Square) – Virginia lawmakers on Tuesday weighed whether to create a statewide gaming commission and set rules for internet casino play, or iGaming, a market that presentation materials said could bring in $5.3 billion in taxable revenue over five years.
The Joint Subcommittee to Study the Feasibility of Establishing the Virginia Gaming Commission opened a series of meetings with presentations focused on iGaming. Members said they will meet again later this year to review casinos and then discuss the commission itself.
iGaming allows people to play slots, poker, blackjack and roulette on a phone or computer. Documents given to lawmakers estimated Virginians spent $16 billion in 2024 on unregulated online casino play. Supporters said creating a legal market could move play to regulated platforms, add consumer protections and generate tax revenue that could also fund problem gambling services.
Much of the discussion focused on House Bill 2171, introduced earlier this year. The bill would have authorized iGaming under the Virginia Lottery Board, set a 15% tax on revenue, and directed 2.5% of collections to the commonwealth’s Problem Gambling Treatment and Support Fund. It also set up licensing fees and consumer safeguards, including age and identity checks and player limits. The bill failed in committee, but lawmakers used it as a starting point for Tuesday’s review.
Del. Marcus Simon, who carried the bill, said the Lottery was written in because the Gaming Commission does not yet exist. He told colleagues a future bill would shift oversight to the new commission once it is created, with temporary licenses through the Lottery in the meantime.
The proposal also outlined a licensing structure. Casino operators would face a $1 million application fee, with the renewal options ranging from $1 million per year to $8 million for a five-year license. Platform providers, such as companies offering the apps, would pay a separate $50,000 license fee for five years.
Dave Rebuck, former director of New Jersey’s Division of Gaming Enforcement, told lawmakers that iGaming has complemented land-based casinos rather than hurting them.
Brianne Doura-Schawohl, a Fairfax resident and gambling policy consultant, warned lawmakers about the risks of expanding gaming. She said studies show that living within 50 miles of a casino doubles a person’s risk for problem gambling, and that the risk climbs even higher within 10 miles.
Lawmakers said they plan to continue the review this year, with the goal of producing recommendations for the 2026 session.
