Opponents of HB 161 and SB 118 have claimed these proposals to legalize and regulate iGaming in Virginia would unleash an addiction crisis and bring about economic destruction. Nothing could be further from the truth.
The reality is that these legislative bills would put Virginia at the vanguard of responsible gaming by mandating the most robust consumer protections in the nation. Furthermore, the bills would capture an estimated $300 million per year in tax revenue from an industry that is currently illegal, unregulated and growing fast, and it would generate new jobs while protecting existing jobs.
You don’t have to take my word for it. The data from other states’ experience proves it. And the text of the legislation spells out clear provisions that ensure consumers are protected and that the commonwealth of Virginia benefits.
Some land-based casino interests selfishly claim that online gaming will cannibalize their brick-and-mortar revenue. Others, including faith-based groups, argue that further legalization increases public health risks.
Let’s address each concern:
First, the cannibalization claim simply is not borne out by evidence. Look at any state where online casino gaming is already legal — states such as Michigan, Pennsylvania and New Jersey. In each of these states, brick-and-mortar casinos are not shrinking. They are growing.
Pennsylvania’s brick-and-mortar properties continue to generate billions in annual revenue while iGaming grows alongside them. Michigan has seen similar trends, with retail and online gaming operating in parallel and expanding overall market growth.
In fact, the independent gaming regulators who oversaw iGaming implementation in Connecticut, Michigan, New Jersey and Pennsylvania all have testified to this positive effect.
In practice, iGaming and brick-and-mortar casinos serve complimentary purposes. iGaming allows casinos to cross-promote their retail facilities with online products, driving engagement and economic growth in both channels.
Many of the loudest brick-and-mortar casino critics of iGaming won’t tell you that they too offer iGaming products in states where it is legal, or that they have added major casino facilities and square footage since iGaming markets launched. They also won’t acknowledge that HB 161 and SB 118 are projected to create 1,200 jobs or how this legislation will generate hundreds of millions of dollars in revenue annually for important Virginia priorities.
Most troubling, the self-interested casino opponents of iGaming ignore the reality that Virginia residents are already playing casino games and slots online — with shady, unregulated offshore casinos that can refuse to pay out jackpots, leave customers completely unprotected from scams and do little to prevent minors from logging on.
Which brings us to the second false argument claiming increased public health risks.
We respect that some Americans have deeply held beliefs about gambling. But public policy cannot be built on the assumption that prohibiting legal options eliminates demand and minimizes health risks.
Online casino gaming is already widely available. It is just not regulated in many states, Virginia included.
Today, offshore illegal operators and so-called “sweepstakes casinos” aggressively market to American consumers. It is such a grave threat that nearly one-fourth of all states have taken some legal enforcement actions against these operators.
Sadly, they operate outside U.S. regulatory oversight, do not pay state taxes and offer none of the consumer protections required in regulated markets. The American Gaming Association has estimated that Americans wager $466 billion annually through illegal and unregulated gaming channels.
Prohibition does not stop gambling. It does not prevent harm to citizens. It simply pushes consumers into the shadows and, worse, fails those needing help.
In states where it is authorized and legal, operators must adhere to
- Strict licensing requirements
- Age and identity verification standards that permit access to only individuals aged 21+
- Anti-money laundering protocols, and
- Responsible gaming mandates.
As a result, research consistently shows that problem gambling rates remain low and are stable in jurisdictions with legal online options.
Finally, public opinion reflects a mature understanding of gaming as mainstream entertainment. A 2024 national survey found that 71 percent of likely voters support legal casino gaming. That support spans party lines and demographic groups.
In the end, these proposals in the legislature are not about encouraging anyone to gamble. Legalization is about acknowledging that adults already have access to online casino games — and ensuring that access occurs within a transparent, regulated, tax-paying framework.
HB 118 and SB 161 create guardrails. They provide funding for responsible gaming programs. The proposals enable enforcement against illegal operators and provide consumer recourse if something goes wrong. And they generate meaningful revenue that can be directed to education, public safety or other priorities determined by lawmakers.
The choice before policymakers is not whether online casino gaming exists. It does. The real question is whether it will operate in the light of day — regulated, taxed and accountable — or continue to flourish in the shadows.
We can have personal or self-interested beliefs regarding the expansion of legal gambling. But public policy must be grounded in evidence and consumer protection.
HB 161 and SB 118 recognize Virginia’s current gaming environment and that guardrails are needed to protect consumers, collect tax revenue from platform operators and facilitate job creation.
And that is the responsible path forward.
Joe Maloney is president of the Sports Betting Alliance, which advocates for legal, regulated online sports betting and online gaming in the U.S. More: sportsbettingalliance.org.