Published in Richmond Times Dispatch
Guest column | JOHN PAPPAS | January 9, 2026
As the Virginia General Assembly convenes later this month, lawmakers will once again debate how best to manage the commonwealth’s rapidly evolving gaming landscape. With new casinos opening, sports betting firmly established, and neighboring states racing ahead with digital innovation, Virginia faces an important choice: whether to modernize responsibly, or allow unregulated online gaming to continue growing in the shadows.
The reality is that Virginians are already gambling online. Today, much of that activity occurs on offshore, illegal websites that offer no age verification, no spending limits, no self-exclusion tools, and no funding for treatment or education. Prohibition does not prevent gambling; it simply pushes existing demand into unsafe and unaccountable markets.
Among the many proposals likely to surface this session, those that would authorize regulated online casino gaming, or iGaming, deserve particular attention. These bills would transform an unaccountable online market into one defined by responsibility, oversight and enforceable consumer safeguards. Done right, iGaming will strengthen Virginia’s new casino industry and generate significant, sustainable revenue for the commonwealth.
Over the past two years, Virginia policymakers have held several hearings to discuss the right approach. With a young casino industry and thousands of workers newly employed in land-based facilities, concerns about cannibalization and problem gambling deserve serious, data-driven answers. Fortunately, years of real-world evidence now exists, and they tell a very different story than the fear-based rhetoric suggests.
Regulated iGaming platforms operate under some of the most rigorous consumer-protection rules in the country. Licensed operators deploy real-time behavioral analytics to identify risky play early, empower players with customizable limits and cooling-off tools, and partner with clinician-led treatment providers to connect at-risk individuals with help quickly and confidentially. These protections continue to grow more effective as technology and oversight evolve. Help like this simply does not exist in the illegal market.
Critics often point to increases in problem-gambling helpline calls as evidence of harm. But public-health experts recognize that more calls often reflect greater awareness and access to support, not higher rates of addiction. In regulated markets, operators monitor player behavior and intervene when necessary. Where iGaming is legal, harm becomes visible, measurable and addressable through licensing and mandatory consumer protections. This is a critical improvement over the status quo.
Another common concern is that online gaming will siphon revenue and jobs from Virginia’s casinos. Again, the data says otherwise. In states where iGaming is legal, total gaming revenue has increased. According to the American Gaming Association’s latest commercial gaming revenue tracker, states with both land-based casinos and iGaming posted strong year-over-year growth in the third quarter. These include:
- Michigan (+18.2%)
- West Virginia (+16.4%)
- Pennsylvania (+11.3%)
- New Jersey (+6.6%)
- Connecticut (+24.6%).
By contrast, states with active casino industries but no iGaming saw far more modest growth, including neighboring Maryland (+0.8%), Indiana (+0.6%), Massachusetts (+3.1%), and Iowa (+2.7%). It is no coincidence that all these states are now considering iGaming legislation to strengthen their gaming markets and meet long-term revenue expectations.
Why? Because iGaming reaches different customers, at different times, with different preferences. It also serves as a powerful marketing tool to convert online players into in-person casino visitors through loyalty programs, promotions, entertainment, dining and live events. In mature markets, casinos that embrace digital gaming view it as an extension of their brand, not a competitor.
The Virginia iGaming bills under consideration reinforce this alignment. Land-based casinos would be the primary license holders for iGaming, with the ability to operate their own platforms and partner with additional online brands through revenue-sharing agreements. That structure ensures casinos remain at the center of the digital ecosystem and can continue to maximize revenue, protect jobs, and strengthen long-term investments in their communities. It is exactly why a majority of Virginia’s existing casino operators support iGaming.
Independent economic analysis shows that iGaming is sound fiscal policy. Based on projections from the Analysis Group, Virginia could generate up to $1 billion in new tax revenue over the first five years of iGaming operations at a competitive tax rate. Importantly, this revenue is additive, not a replacement for existing casino or lottery funds, as repeatedly seen in other states.
The question before lawmakers is how Virginia chooses to respond. Whether the commonwealth will regulate online gaming responsibly, protect consumers, support its casino workforce, and keep revenue in-state, or continue allowing illegal operators to profit with no oversight and no accountability.
Virginia has an opportunity to learn from other states and enact a balanced framework that reflects the realities of today’s gaming market. By focusing on iGaming this session, lawmakers can foster sustainable growth, enhance consumer protection, and ensure that Virginia’s gaming industry thrives, both on the casino floor and in the digital economy.
John Pappas serves as the state advocacy director for the iDevelopment and Economic Association.
