Virginia House Committee Advances SB 118, Delays iGaming to 2028 With Two-Session Requirement
Virginia’s Senate-passed online casino bill cleared a House committee after lawmakers aligned it with the House version, pushing any potential iGaming launch to 2028.
Virginia’s push to legalize online casinos moved forward this week after the House General Laws Committee advanced Senate Bill 118 by adopting a substitute to conform the bill to House Bill 161 — including a two-session reenactment requirement before it can take effect.
The amendment pushes the possible launch to 2028 and aligns SB 118 with HB 161, which contains the same reenactment language. The substitute was adopted by voice vote without substantive discussion, then reported and referred to Appropriations.
During the same meeting, the committee also advanced several other Senate gambling bills. Those include legislation to regulate skill games and daily fantasy sports, a Fairfax County casino referendum, and legislation laying the groundwork for a new gambling regulator.
House Replaces Launch Timeline With Two-Session Enactment
The version of SB 118 passed by the Senate established a delayed implementation structure that would have allowed online casinos to launch in July 2027, following regulatory rulemaking by the Virginia Lottery.
By adopting a substitute to conform the bill to House Bill 161, the committee removed the automatic July 1, 2027, effective date. 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. It must also promulgate regulations by January 1, 2028.
Under the notice-of-intent provision carried from HB 161, 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.
The fiscal impact clause was also revised to require a specified appropriation estimate for incarceration impacts, replacing earlier language stating that such costs “cannot be determined.”
What Else Changes in SB 118
Because the committee adopted the House substitute version, SB 118 now reflects the structural provisions already embedded in HB 161, including:
- New “notice of intent” + per-platform fee structure. The House’s version requires a casino operator to file a separate notice of intent for each internet gaming platform.
- Labor peace agreements as a licensing condition. It requires written evidence that applicants and certain contractors have entered into signed labor peace agreements.
- Tax revenue distribution rewritten. The House-aligned version shifts the post-tax allocation away from the Senate’s education-focused framework. Instead, it directs 5% to the Problem Gambling Treatment and Support Fund. Then (until Jan. 1, 2037), it allocates 6% to a new Internet Lottery Hold Harmless Fund and 89% to the general fund, with 95% going to the general fund starting in 2037.
- New fund earmarked for a future gaming commission. The substitute creates an Internet Gaming Platform Fee Holding Fund. It specifies it is to be used for “start-up costs” and other expenses tied to creating a “gaming commission or other such combined gaming agency.”
- Responsible-gaming hotline language updated. The helpline reference changes from 1-800-GAMBLER in the Senate version to 1-800-MY-RESET in the House substitute.
Committee Advances Additional Gambling-Related Bills
In addition to SB 118, the committee advanced several other gaming-related Senate bills — each reported with substitute language.
- The committee conformed SB 661, regulating skill game machines, to House Bill 1272. After an initial vote, members reconsidered the motion and ultimately advanced the bill with a substitute.
- Likewise, the committee voted to conform SB 129, addressing DFS regulation, to House Bill 145. It referred it to Appropriations.
- Another conformed bill was SB 609, which reorganizes all gaming oversight under the Virginia Lottery and Gaming Authority, aligning it with House Bill 271. The committee noted that the Senate bill creates a “mega authority”. In contrast, the House bill creates the Virginia Gaming Authority, separate from the lottery. The committee noted it expects a conference committee to address differences.
- SB 756, authorizing a casino referendum in Fairfax County, was also reported with substitute language. The substitute clarifies the partnership structure, requiring a partnership with an operator that has voluntarily made commitments to the locality.
The House General Laws Committee reported all four measures with substitute language. That reflects the House’s broader effort to align the Senate gaming package with House versions ahead of floor consideration.
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