SB 118 Virginia Senate · 2026 Regular Session

Virginia Lottery; casinos, internet gaming authorized, penalties, delayed effective date.

Summary

Virginia Lottery; casinos; internet gaming authorized; penalties. Authorizes internet gaming in the Commonwealth to be regulated by the Virginia Lottery Board. The bill permits the Board to issue an internet gaming operator license to a casino gaming operator that submits an application on forms approved by the Board, meets certain qualifications, and pays an initial licensing fee of $500,000. The tax rate is set at 20 percent of an internet gaming operator's adjusted gross internet gaming revenue with three percent allocated to the Gaming Regulatory Fund, two percent allocated to the Problem Gambling Treatment and Support Fund, and 95 percent allocated to the Modern Public Education Fund.

Issues: ✓ Budget & Taxes

Bill status failed 4 of 5 stages cleared

Introduction

Jan 2026

Committee Review

Mar 2026

Senate Passage

Feb 2026

House of Delegates Passage

Mar 2026

Governor

Introduced Jan 5, 2026 Last action Mar 14, 2026

Maddy AI version diff · 4 comparisons

What changed between versions

Gaming Subcommittee Substitute → Finance and Appropriations Substitute · 8 edits

MODERATE

The bill was amended to shift oversight from the General Laws committee to the Finance and Appropriations committee, raising the internet gaming tax from 15% to 20% and adding a new 6% fee to create a fund for casino operators. The changes also allow operators to offer a fourth platform if they partner with a qualified entertainment company, expand consumer protections, and adjust the timeline for when internet gaming can begin.

Scope change

The bill now applies to casino operators in specific eligible host cities and introduces new definitions for 'Qualified entertainment company' and 'Qualified internet gaming entity'.

ELIGIBILITY

Internet gaming operator licenses are now restricted to casino operators located in specific eligible host cities.

A new category called 'Qualified entertainment company' was added, allowing operators to offer a fourth internet gaming platform if they contract with such a company.

FISCAL

The tax on internet gaming revenue was increased from 15% to 20%, and a new 6% fee was added to fund a Casino Gaming Hold Harmless Fund.

The Internet Gaming Hold Harmless Fund was replaced by a Modern Public Education Fund, while a new Casino Gaming Hold Harmless Fund was created to support existing casinos.

REQUIREMENT

The requirement for operators to commit 25% of promotional free play spend to in-person casino gaming was changed to allow redemption on the internet platform as well.

New consumer protection requirements were added, including detailed problem gambling prevention programs and specific rules for account controls.

TIMELINE

The date for accepting notices of intent and the start of internet gaming operations was delayed from July 1, 2026, to July 1, 2027.

DEFINITION

The definition of 'Internet gaming supplier' was updated to reference the Department instead of the Commission.

Floor votes · Senate Feb 11, 2026 · House of Delegates Mar 4, 2026

How they voted

39–0

Passed

Total votes 39

Feb 11, 2026

D Democratic20

20 Yea

100% Yea

R Republican19

19 Yea

100% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 4, 2026

Committee

House requested conference committee

lower

Mar 4, 2026

Lower · Passed

Passed House with substitute (70-Y 29-N 0-A)

lower

Feb 27, 2026

Lower · Passed

Reported from Appropriations (17-Y 4-N)

lower

Feb 25, 2026

Committee

Assigned HAPP sub: Commerce Agriculture & Natural Resources

lower

Feb 24, 2026

Lower · Passed

Reported from General Laws with substitute and referred to Appropriations (16-Y 4-N)

lower

Feb 24, 2026

Lower · Passed

House committee offered

lower

Feb 19, 2026

Committee

Referred to Committee on General Laws

lower

Feb 16, 2026

Upper · Passed

Passed Senate

upper

Feb 16, 2026

Upper · Passed

Read third time and passed Senate (19-Y 17-N 0-A)

upper

Feb 16, 2026

Upper · Passed

Reconsideration of Passed by for the day agreed to (36-Y 0-N 0-A)

upper

Feb 16, 2026

Upper · Passed

Passed by for the day

upper

Feb 13, 2026

Upper · Passed

Passed by for the day

upper

Feb 11, 2026

Upper · Passed

Passed by for the day Block Vote (Voice Vote)

upper

Feb 10, 2026

Upper · Passed

Reported from Finance and Appropriations with substitute (8-Y 6-N 1-A)

upper

Jan 28, 2026

Upper · Passed

Reported from General Laws and Technology with substitute and rereferred to Finance and Appropriations (9-Y 6-N)

upper

Jan 28, 2026

Upper · Passed

Senate committee offered

upper

Jan 23, 2026

Upper · Passed

Senate subcommittee offered

upper

Jan 23, 2026

Committee

Assigned GL&T sub: Gaming

upper

Jan 5, 2026

Committee

Referred to Committee on General Laws and Technology

upper

1 primary · 0 co-sponsors