Virginia House and Senate Pass Competing iGaming and Gambling Bills, Sending Them to Conference

The Virginia House and Senate have passed several gambling-related bills originating in the opposite chamber. Still, disagreements between lawmakers—including over online casino bills—have sent the measures to conference committee negotiations.

Both chambers introduced legislation addressing issues such as iGaming, skill games, daily fantasy sports (DFS), and the creation of a gambling regulator. However, when the bills crossed to the opposite chamber, lawmakers adopted amendments that the original chamber had later rejected.

Online Casino Bills: SB118 vs HB161

The most significant dispute centers on competing proposals to legalize online casino gaming: Senate Bill 118 (SB118) and House Bill 161 (HB161).

Both bills would authorize iGaming under the oversight of the Virginia Lottery. Both call for a $2 million platform fee plus a $500,000 initial licensing fee.

Additionally, both measures call for a 20% tax on adjusted gross revenue, along with an additional 6% “economic development fee” to fund a casino gaming “hold harmless” program designed to offset potential losses for land-based casinos.

However, the bills differ in how that fund would operate. SB118 would compensate casino operators that demonstrate revenue losses tied to iGaming, while HB161 would initially distribute equal payments to casinos through July 2032, then switch to a loss-based model.

The measures also diverge on how tax revenue would be allocated. HB161 directs 5% to the state’s problem gambling fund and 89% to the general fund through 2036, while the Senate version allocates 3% for iGaming regulation, 2% for problem gambling, and 95% for education funding.

Finally, the most significant difference is the House version’s inclusion of a reenactment clause, meaning the bill must pass the General Assembly again in 2027. That would delay the launch of iGaming until 2028 at the earliest. The Senate version called for a launch on July 1, 2027.

HB 161 sponsor, Del. Marcus Simon, suggested that the reenactment clause gives lawmakers another year to examine possible safeguards, guardrails, and other provisions to prevent problem gambling.

Simon, together with Sen. Mamie Locke, the sponsor of SB 118, is among the six lawmakers on the conference committee, charged with finding a resolution.

Other Gambling Bills Headed to Conference

The iGaming proposals are not the only gambling-related measures heading to a conference committee. Lawmakers must also reconcile differences between several other House and Senate bills.

DFS Regulation — SB129 & HB145

Both SB129 and HB145 aim to regulate DFS in Virginia. Both bills require DFS operators to obtain a state license and impose a 10% tax on revenue.

While largely similar, there are technical differences in licensing requirements and regulatory structure.

Skill Game Regulation — SB661 & HB1272

Another set of bills, SB661 and HB1272, would regulate skill game machines, which the state previously banned. In 2024, a similar scenario unfolded, but lawmakers ultimately passed a package. However, then-Governor Youngkin vetoed it.

Fairfax County Casino — SB756

One Senate bill without a direct House counterpart is SB 756, which would authorize a voter referendum on a potential casino in Fairfax County.

A similar bill passed the Senate last year but stalled in the House. Now, the House has passed the measure, but amended it to include a provision on the partnership structure, requiring a partnership with an operator that has voluntarily made commitments to the locality.

A New Gambling Regulator — SB609

Another bill heading to a conference committee is SB 609, which would reorganize all gaming oversight, including the lottery, under a new Virginia Lottery and Gaming Authority. The House conformed the bill to HB 271, which also aims to establish a new regulator.

However, the House measure creates a Virginia Gaming Authority separate from the lottery. That proposal has not yet passed the Senate.

What Happens Next

Conference committees will now attempt to reconcile the House and Senate versions of the legislation. Each committee includes three lawmakers from each chamber, including the bills’ sponsors, who negotiate a compromise bill.

If the committee reaches an agreement, both chambers must vote again on the compromise version before the legislation can move to the governor’s desk.

Lawmakers have about a week to reach an agreement, as the 2026 legislative session ends on March 14.