Virginia latest state to enact iGaming law, opposition likely

Posted: January 7, 2025, 01:47 pm.

Last updated: 7 January 2025, 02:09 pm.

Virginia is the latest state to see a statute to authorize online casino gambling in its capital.

It's the start of a new year, and as state legislatures gather for their 2025 sessions, gaming is once again front and center in many capitals. Virginia has joined Maryland in filing an iGaming bill before the General Assembly convenes.

On New Year's Eve, State Senator Mamie Locke (D-Portsmouth) introduced Senate Bill 827. The legislation will officially become proposed law when the Virginia General Assembly meets on Wednesday.

Each license will cost $1 million every five years. The bill proposes to impose a 15% tax on gross revenues from online casino websites and apps.

expected opposition

Locke's effort to introduce online casino gambling will likely receive a negative response. Cordish Companies, which last secured development rights for a casino resort in Petersburg, has been steadfast in its opposition to iGaming in markets across the country where it operates.

Last month, Cordish general counsel Mark Stewart testified before lawmakers in Louisiana that “iGaming means less foot traffic at casinos. Less foot traffic means less revenue. “Less revenue means less reinvestment.”

Cordish, which operates online casinos in Pennsylvania, where it runs two brick-and-mortar casinos, has also expressed opposition to iGaming in Maryland. During consideration of a House bill last year to expand gambling to the Internet in the state, Stewart testified that iGaming is a jobs killer and brings “more financial pain than gain” to the state.

“Online gambling is very different from in-person casino gaming. In Maryland casinos, the rules and casino procedures are designed to create a pause in the action and make patrons think twice before placing the next bet, Stewart said.

Patrons must travel to the casino. Credit cards cannot be used. Staff are trained to identify and intervene with problem gambling. Patrons are not allowed to gamble while drunk or under the influence. Security guards prevent underage individuals from accessing gaming. Online gambling lacks many of these protections, Stewart concluded.

MGM Resorts, although not directly investing in Virginia, will likely oppose the iGaming push as well. Last year, MGM lobbied heavily against gaming expansion in Virginia, particularly in the northern affluent area that is near the company's MGM National Harbor in Oxon Hill, MD.

In 2024, MGM spent approximately $755K on political activities in Virginia. This lobbying was against efforts to establish a regulatory environment for controversial skill games and a legislative effort to allow a casino in Fairfax County.

Too fast for iGaming?

While many casino operators, including Boyd & Caesars, have expressed support for iGaming and argued that online casinos are “additive” to their overall in-person operations, Virginia's commercial casino industry is still relatively young, with little curbing their enthusiasm. It may take. Commonwealth for online casinos at this time.

Only three of the five permanent resorts are open. Portsmouth Rivers opened in January 2023, Hard Rock Bristol in November 2024, and Caesars Virginia opened last month.