Virginia's Online Poker Bill Fails as Senate and House Can't Agree

Virginia's attempt to legalize online gaming and poker has come to a halt as the legislative session concluded without a final agreement between the Senate and House. Both chambers passed bills legalizing online gaming and poker, but key differences in tax and revenue structures prevented a consensus.

Key Differences in Bills

The Senate's bill, SB118, proposed distributing licenses to the state's brick-and-mortar casinos, which could partner with online operators. Licenses would be granted for five years at a cost of $500,000, with a $250,000 renewal fee. Each operator would be allowed three platforms (skins) with a $2 million fee for each. The industry would be taxed at 20% of gross revenue with another 6% as an “economic development fee” directed to a “hold harmless fund” for live casinos. The bill allocated 95% of revenue to state education, 3% to the Gaming Regulatory Fund, and 2% to the Problem Gambling Treatment and Support Fund.

The House bill, HB161, proposed a similar structure but with different revenue allocations. It directed 5% of revenue to the Problem Gambling Treatment and Support Fund, 6% to the Internet Lottery hold harmless fund, and 89% to the general fund through Jan. 1, 2037. After that, 95% of revenue would go to the general fund. The National Association Against iGaming (NAAiG), an industry group made up of regional casino operators, opposed the legislation, citing risks to families and communities. The group worked throughout the session, meeting with policymakers and community leaders to oppose the legislation.