Virginia lawmakers weigh iGaming legalization, eye $5 billion revenue boost

Virginia lawmakers are weighing whether to legalize online gambling, with supporters pointing to as much as $5.3 billion in taxable revenue over five years, while opponents warn the state is unprepared to manage the risks.

Delegate Marcus Simon, a Fairfax Democrat, said his draft bill would require Virginia’s brick-and-mortar casinos to partner with online operators and pay licensing fees to help fund enforcement. He argued that legalization would give consumers a regulated alternative to offshore and illegal sites.

“Sort of starve the bad actors out of business by providing a legal, regulated, and taxed alternative that’s more consumer-friendly,” Simon told the Joint Subcommittee on Gaming. “This is revenue not getting accessed by the Commonwealth, we’re getting zero percent. And this doesn’t create the online gambling market. They’re already doing it.”

However, some public health experts cautioned lawmakers about potential fallout. Brianne Doura-Schawohl, a gambling and mental health consultant, said individuals with a gambling disorder are 15 times more likely to die by suicide than the general population.

Keith Whyte of Safer Gambling Strategies added that research shows iGaming carries the highest addiction risks among men aged 18 to 35. He said he’s neutral on legalizing iGaming, but noted that states like New Jersey, where it is legal, have instituted new tools that can help people avoid problem gambling.

Industry veterans offered contrasting views. Dave Rebuck, former director of New Jersey’s Division of Gaming Enforcement, said iGaming had “helped the land-based casinos” in his state and should be part of a multi-pronged strategy to reduce the illegal market. But Brooke Archambeau, speaking for the Moose Lodge, urged caution: “Virginia needs to get its own house in order before considering a new and risky form of gaming like iGaming.”

Some lawmakers across party lines have stressed the need to first establish a Virginia Gaming Commission to oversee the industry. “We need to get the VGC set up like yesterday and start enforcing the law so we can get a handle on some of these things,” said Sen. Bryce Reeves, a Republican from Spotsylvania.

Lawmakers on the joint subcommittee will convene twice more before the 2026 legislative session, with a bill to form the Virginia Gaming Commission expected to take precedence.