Only seven US states offer legal online casinos markets. That number could grow by two in the near future.
Massachusetts and Virginia seem poised to expand their gambling portfolios to include iGaming.
Massachusetts is considering a pair of bills, Senate Bill 235 and House Bill 332, both of which would legalize online casinos. However, there is still work to be done before the legislative session ends on Nov. 19.
Likewise, two bills in Virginia, Senate Bill 827 and House Bill 2171, would bring iGaming to the Old Dominion. However, it seems unlikely that either of them will pass in 2025.
Slow to act in Massachusetts
Massachusetts’ legislative proposal would put the Massachusetts Gaming Commission (MGC) in charge of licensing and regulation of online casinos. Officials would impose a 20% tax on adjusted gaming revenue.
A maximum of 10 licenses would be available, two partners for each of the state’s three retail casinos, as well as four untethered licenses. Each license would cost $5 million initially and $5 million per renewal, which would occur every five years.
Boston-headquartered DraftKings supported the market expansion and estimated that online casinos would generate $275 million in annual tax funding.
The MGC has been scrupulous in its approach to regulating the state gaming market. It has sent several cease-and-desists orders to unlicensed operators and has also issued many fines to sportsbooks and casinos found guilty of various violations of the state’s gaming laws.
While there are nearly four months remaining until the legislative session ends on Nov. 19, state officials have been slow to act before. They needed three years to legalize retail casinos in 2011 and sportsbooks in 2022 after measures were first introduced.
Massachusetts has a strong foundation for legal gambling. According to the American Gaming Association, its market produced the 12th-highest commercial gaming revenue in May.
A straw man in Virginia
Virginia would become the southernmost state to legalize online casinos, usurping West Virginia, if their legislative efforts succeed. The state launched sports betting in 2021.
Earlier this year, HB 2171 sponsor Del. Marcus Simon saw his bill “gently tabled” with the promise for it to be revisited later.
Sen. Mamie Locke, who sponsored HB 2171’s companion, SB 827, has recommended pulling the bill until 2026.
“After introducing this bill, we have decided it requires further study on this issue.”
HB 2171 was left in General Laws on Feb. 5, where it has remained untouched. SB 827 hasn’t received any updates since it was skipped indefinitely in General Laws on Jan. 22.
The bills, if approved, would allow each of the state’s retail casinos to have up to three online casino skins, which would be taxed at 15%. Virginia has three retail casinos in operation, with ones in Norfolk and Petersburg under construction.
The general attitude from lawmakers has suggested that there is interest in legalizing iGaming, though not until there is more information available about the potential impacts, Simon said.
“I think the point in introducing this this year, though it’s a short year, is to sort of lay out a framework and give us a straw man to sort of start poking at, and I think you started poking a little bit. But I think none of the issues that you’ve raised are insurmountable. I think that working with the other stakeholders and the work group, we can get to something that’ll be probably very palatable in 2026.”