Virginia’s two iGaming legalization proposals – which include provisions affecting sweepstakes casinos – have been consolidated into a single bill and given a reenactment clause, meaning they cannot take effect until 2028 at the earliest.
We reported last week how SB 118 and HB 161 had passed their respective chambers with very similar wording, and the next step was to reconcile any differences between them to push one version through.
Then yesterday, the House General Laws Committee met and adopted SB 118 as the primary bill, but replaced its wording with that of HB 161.
The amended language now includes a reenactment procedure and a requirement that all regulations be implemented “by January 1, 2028.” The original wording had proposed January 1, 2027.
Two-Session Reenactment Pushes Virginia Online Gambling Launch Back
Bills usually only require passage in one legislative session, but for those with major implications – like the legalization of online gambling across the state – Virginia lawmakers can insist that they must pass again in the following session too.
Therefore, if these proposals pass this year, they must also pass again in 2027.
“6. That the provisions of this act shall not become effective unless reenacted by the 2027 Session of the General Assembly.”
While this is a step closer to the legalization of iGaming in the Old Dominion, the new system being proposed has essentially been delayed by a year, at least.
Virginia Sweepstakes Casinos Likely Unaffected… For Now
Sweepstakes operators in Virginia are probably feeling a mix of relief and uncertainty – the long-term outlook could mean eventual closure here, but the reenactment clause likely gives them at least another year to operate before any new restrictions take effect.
The reconciling of SB 118 included the addition of various clauses around labor peace agreements, tax revenue distributions, and other issues, but the wording around sweepstakes casinos remained unchanged.
The format would still be classed as “illegal internet gaming” under the new legislation, and violations would be subject to fines of up to $100,000 for a first offence and up to $250,000 for subsequent offences. On the other hand, Virginia’s current land-based casinos would be offered the chance to launch three online gambling platforms each, paying a $500,000 licensing fee and a platform fee of $2m in the process.
For now, sweepstakes operators in Virginia can likely continue their operations thanks to the reenactment delay. Also, with the Virginia legislative session closing on March 14, it’s unlikely there will be another anti-sweeps bill anytime soon.
However, SB 118 could pass this session, then again in 2027, and that would ultimately change the online gaming landscape in VA in a drastic way.
Author: Alex Windsor
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