Virginia Gaming License
Virginia issues no single gaming license. In practice a Virginia gaming license means one of several separate permissions. This page covers one of them, the online sports betting operator permit granted by the Virginia Lottery. Casino, charitable gaming and horse racing sit with different regulators. Budget $250,000 at issuance, $50,000 per principal, and four to six months.
| Regulator | Virginia Lottery |
|---|---|
| Product on this page | Online sports betting operator permit |
| Issuance fee | $250,000, nonrefundable, due before the permit is granted |
| Principal fee | $50,000 per principal, nonrefundable |
| Permit term | 3 years |
| Renewal fee | $200,000, application due 60 days before expiry |
| Taxation | 15% of adjusted gross revenue |
| Permit cap | 12 permits, casino and franchise permits excluded |
| Timeline | 4 to 6 months |
| Online casino | Not licensed in Virginia |
| Source | Va. Code §58.1-4032, §58.1-4033, §58.1-4037; 11VAC5-70; Virginia Lottery |
What is a Virginia gaming license?
A Virginia gaming license is not one document. For an online operator the relevant permission is the sports betting operator permit, granted by the Virginia Lottery under Va. Code §58.1-4032. The Virginia Lottery has granted these permits since January 2021, and each one covers online and mobile wagering from players inside Virginia.
Two other permissions carry similar names and cause most of the confusion. A casino facility license covers a physical casino in one of Virginia's five host cities, and online operators cannot apply for it. Historical horse racing licenses sit with the Virginia Racing Commission.
Neither of those permissions allows sports betting, and a Virginia sports betting permit allows neither casino play nor horse racing. Anyone searching for a Virginia casino license as an online operator is searching for a product Virginia does not sell.
Who regulates gambling in Virginia?
Three bodies regulate gambling in Virginia, and each one covers different products. The Virginia Lottery regulates the state lottery, online sports betting, casino gaming and daily fantasy sports. The Virginia Racing Commission regulates live horse racing and historical horse racing. The Virginia Department of Agriculture and Consumer Services regulates charitable gaming such as bingo and raffles.
Virginia Lottery: state lottery, online sports betting, casino gaming, daily fantasy sports.
Virginia Racing Commission: live horse racing and historical horse racing.
Virginia Department of Agriculture and Consumer Services (VDACS): charitable bingo, raffles and poker run by non-profits.
Permits are issued by the Director of the Virginia Lottery. The Virginia Lottery Board writes the regulations the Director applies, which is why both names appear across the statute and the rulebook.
What types of gambling licenses are available in Virginia?
Virginia licenses roles, not one market. Taking bets online requires an operator permit. Supplying the platform, data, marketing or payments requires a supplier permit. Every owner at 5% or above requires a principal license. Casino facility and horse racing licenses are separate products, and online casino is not licensed in Virginia at all.
| License | Who needs it | Regulator |
|---|---|---|
| Online sports betting operator permit | Companies taking bets from players inside Virginia | Virginia Lottery |
| Supplier permit | Platform, software, data, marketing and payment vendors | Virginia Lottery |
| Principal license | Owners of 5% or more, and anyone in a managerial capacity | Virginia Lottery |
| Casino facility license | Land-based casinos in the five host cities | Virginia Lottery |
| Charitable gaming permit | Non-profits running bingo, raffles and poker | VDACS |
| Historical horse racing license | Racing venues and historical horse racing venues | Virginia Racing Commission |
Search traffic for a Virginia casino license usually lands on the Virginia sports betting permit by mistake. The two are separate applications with separate fees, and no Virginia sports betting permit authorizes casino play. A Virginia sportsbook license is the same product under a different name: the online sports betting operator permit.
Who can apply for a Virginia sports betting license?
Any company can apply, including a foreign-owned one. Virginia sets no residency test and no local ownership quota for sports betting permits. What Virginia does require is a company registered with the Virginia State Corporation Commission and a registered agent at a physical address in the state. Every 5% owner files a separate principal application.
Foreign ownership up to 100% is accepted. The barrier is disclosure rather than nationality. Every principal submits identity documents and consents to a background investigation. The Virginia Lottery bills further investigation costs when a review runs past the $50,000 deposit. Va. Code §58.1-4030 defines a principal broadly. The definition covers anyone holding 5% or more of the pecuniary interest or the voting rights. It also reaches anyone employed in a managerial capacity for the platform. Virginia issues no separate key manager license, because managers already sit inside that definition.
How it works
How do you get a Virginia sports betting license?
Navigating the gaming license process can be complex. Here's a streamlined guide to each step.
Getting a Virginia sports betting license takes four to six months end to end. The route runs through five stages: scoping, forming a Virginia entity, filing the permit application with principal disclosures, the background investigation, and issuance. The $250,000 issuance fee falls due at the end, before the Virginia Lottery grants the permit.
What are the requirements for a Virginia sports betting license?
Virginia asks for three things: a registered Virginia entity, a fully disclosed ownership chain, and a compliance stack that works on day one. Every owner at 5% or above files a principal application. The company files corporate documents, proof of funds, a business plan, and anti-money laundering, know your customer and responsible gambling policies.
From each principal, as Virginia defines the term:
Passport.
Bank reference letter.
Reference letter from a lawyer or accountant.
Proof of address, such as a utility bill.
CV.
Source of funds evidence.
From the company:
Virginia entity documents and a registered agent.
Ownership chart down to every beneficial owner.
Business plan and financial projections.
AML, KYC and responsible gambling policies.
Platform, geolocation and player-account documentation.
Reserve and insurance arrangements under 11VAC5-70-140.
Requirements do not stop at approval. Virginia sets a minimum age of 21 under Va. Code §58.1-4040. Permit holders must confirm by geolocation that every player sits inside Virginia. Permit holders must also block anyone enrolled in the Virginia Lottery's Voluntary Exclusion Program, which runs for two years, five years or life. Credit cards can fund a betting account. Va. Code §58.1-4034(7) lists automated clearing house payments, credit cards, debit cards and wire transfers among the permitted funding methods. The real restriction sits in 11VAC5-80-130, which bars a permit holder from extending credit to a sports bettor. That is a limit on lending to the player, not on funding an account by card.
Principals supply personal documents. MGL prepares the rest: entity formation, corporate documentation, policies, the business plan, and the correspondence with the Virginia Lottery.
How much does a Virginia sports betting license cost?
Virginia state fees start at $300,000: a $250,000 issuance fee plus $50,000 for one principal. Every further principal adds $50,000. Renewal costs $200,000 every three years. Suppliers pay less, at $125,000 upfront for platform suppliers and $50,000 for everyone else, with most of that sum refundable.
| Fee | Amount | Refundable | Source |
|---|---|---|---|
| Operator permit issuance | $250,000 | No | Va. Code §58.1-4032; 11VAC5-70-50 U |
| Principal application | $50,000 per principal | No | 11VAC5-70-60 E |
| Operator permit renewal | $200,000 every 3 years | No | Va. Code §58.1-4033; 11VAC5-70-50 W |
| Platform supplier application | $125,000 ($10,000 fee plus $115,000 deposit) | Deposit refundable | 11VAC5-70-70 E |
| Other supplier application | $50,000 ($5,000 fee plus $45,000 deposit) | Deposit refundable | 11VAC5-70-70 G |
| Supplier renewal | $50,000 every 3 years | No | 11VAC5-70-70 I |
No fee is due when the application goes in. The Virginia Lottery states that the $250,000 falls due before the permit is awarded. The money follows a decision instead of buying a place in the queue. MGL fees sit outside these figures and are quoted per project.
What taxes apply to Virginia sports betting?
Virginia taxes sports betting at 15% of adjusted gross revenue. Payment is monthly and falls due by the twentieth day of the following month under Va. Code §58.1-4037. A month of negative revenue can be carried forward and deducted for up to twelve months. Of the tax collected, 2.5% funds the Problem Gambling Treatment and Support Fund.
The remaining 97.5% goes to the general fund under Va. Code §58.1-4038. Casino gaming runs on a different scale, at 18%, 23% and 30% of adjusted gross receipts by bracket under Va. Code §58.1-4124. That scale has nothing to do with a Virginia sports betting permit.
Reporting runs on two clocks. The tax return and the payment are monthly. A separate wagering report, covering total wagers, adjusted gross revenue and total payout for the prior calendar year, is due by 15 January under 11VAC5-70-250.
Can you offer online casino (iGaming) with a Virginia license?
No. Virginia does not license online casino games, and a Virginia sports betting permit covers wagering on sporting events only. The 2026 General Assembly session came closest yet: HB 161 passed the House and SB 118 passed the Senate. Neither chamber accepted the other's bill, and the conference committee failed to agree.
That session adjourned sine die on 14 March 2026 with no internet gaming law on the books. Both bills carried a reenactment clause requiring a fresh vote in the 2027 session, so the collapse in conference cost the timetable little. The question returns to the 2027 General Assembly either way. Until a bill passes, the only real-money online product a private operator can run in Virginia is a sports bet under a Virginia Lottery permit.
Operators whose model depends on casino should compare markets on the gambling license hub instead of waiting on the Virginia legislature.
How many sports betting permits are available in Virginia?
Virginia caps sports betting permits at 12. The cap is not absolute. Three kinds of permit sit outside the count under Va. Code §58.1-4032: a major league sports franchise, a sports facility operator, and a casino gaming operator. The Virginia Lottery currently lists 11 approved permit holders.
Several of those 11 hold casino-linked or franchise-linked permits and therefore do not consume one of the 12 slots, so headroom remains for independent applicants. That headroom is finite. Once the 12 are taken, the Virginia Lottery accepts no new operator applications until a holder exits or the General Assembly raises the cap. Statute also sets a floor of four permits.
How does Virginia compare with other US sports betting markets?
Virginia sits mid-table on cost and near the bottom on tax. Entry costs $250,000 against $10 million in Pennsylvania and $20 million in Illinois. The 15% Virginia rate undercuts Pennsylvania at 36%, Illinois on its 20% to 40% scale, and New Jersey at 19.75%. Colorado alone taxes lower, at 10%.
| Virginia | New Jersey | Pennsylvania | Colorado | Illinois | |
|---|---|---|---|---|---|
| State entry fee | $250,000 | $100,000 | $10,000,000 | $125,000 | $20,000,000 |
| Tax on online sports betting | 15% AGR | 19.75% plus 1.25% levy | 36% | 10% | 20% to 40% plus per-wager fee |
| Typical time to permit | 4 to 6 months | 3 to 6 months | 6 to 12 months | 2 to 4 months | 6 to 12 months |
| Permit cap | 12, with exclusions | None | None | None | None |
| Land-based partner required | No | Yes | Yes | Yes | No |
| Online casino licensed | No | Yes | Yes | No | No |
One line in that table matters more than the fee. Virginia does not require a land-based partner. New Jersey, Pennsylvania and Colorado all tether online sports betting to a casino or racetrack licensee. An operator there buys access as well as a license. Virginia and Illinois let a company apply on its own, and Illinois charges eighty times more to do it.
Advantages of the Virginia sports betting license
Virginia offers a large regulated market at one of the lowest tax rates in US sports betting. The 15% rate on adjusted gross revenue undercuts almost every peer state. Entry runs $250,000 rather than the millions Pennsylvania and Illinois charge, no land-based partner is required, and foreign ownership faces no cap.
Competitive tax: 15% of adjusted gross revenue, against 36% in Pennsylvania and up to 40% in Illinois.
Real volume: monthly handle ran between $574.6 million and $687.9 million across the first half of 2026, per Virginia Lottery monthly reports.
Settled rules: permits have been granted since January 2021, and the regulations are in force rather than in draft.
No land-based tether: a company applies directly, without buying into a casino or racetrack.
Open to foreign owners: no residency or local ownership requirement, only a Virginia entity and full disclosure.
Disadvantages of the Virginia sports betting license
Virginia costs more and takes longer than any offshore route, and the market is capped. Twelve operator permits are available to independent applicants, the Virginia Lottery screens every principal in depth, and the process runs four to six months. Online casino is not licensed, which limits a Virginia permit to one product line.
Hard cap: 12 permits for independent applicants, and no new applications once they are taken.
Cost of entry: $250,000 at issuance plus $50,000 per principal, none of it refundable.
No casino vertical: internet gaming failed in the 2026 session and cannot return before 2027.
Renewal is a re-examination: $200,000 every three years with a fresh background investigation.
Open-ended investigation costs: the Virginia Lottery bills above the $50,000 deposit when a principal's review runs long.
Why choose MGL
MGL builds Virginia files around what the Virginia Lottery actually reviews: the suitability of every principal and the completeness of the package. MGL forms the Virginia entity, prepares the corporate and compliance documents, files through the Lottery's online system, and answers regulator questions in hours. MGL has completed 300+ licenses.
The 12-permit cap raises the price of a weak application. A file that comes back for revisions loses months against a limited number of slots. The work goes into disclosure quality before submission rather than after.
MGL delivers Virginia engagements with a US partner firm and stays through go live, renewal and the second-year compliance cycle. Second-year retention across MGL clients runs at 96%.
FAQ
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An operator permit lets a company take bets from players in Virginia through its own app or website. A supplier permit covers platform, software, data and payment vendors that serve those operators. Platform suppliers pay $125,000 upfront, and $115,000 of that is a refundable deposit.
No. Virginia requires a company registered with the State Corporation Commission and a registered agent at a physical Virginia address. No office, no local staff and no local director are required for a Virginia sports betting permit.
Incomplete files, undisclosed beneficial owners, unexplained source of funds and thin compliance documentation. Suitability problems in a principal's history are the hardest to fix. Slow answers to Virginia Lottery follow-up questions add weeks that never come back.
Four to six months from first consultation to permit issuance, assuming every principal document arrives verified before submission. The Virginia Lottery's background investigation sets the pace, and no adviser can compress the regulator's own cycle.
Monthly tax returns at 15% of adjusted gross revenue, due by the twentieth of the following month. An annual wagering report by 15 January. Geolocation and self-exclusion enforcement. Renewal every three years at $200,000 with a fresh background investigation.
Online sports betting is legal in Virginia and has been licensed since January 2021. Online casino and online poker are not licensed, and the 2026 internet gaming bills died in conference. Sweepstakes and social casino products are a separate category that no Virginia Lottery permit covers.
Va. Code §58.1-4039 bans bets on youth sports, proposition bets on college sports, and bets on Virginia college sports. Regulation 11VAC5-70-170 adds proposition bets on injuries, unsportsmanlike conduct and officiating calls. The Virginia Lottery's authorized bets list also excludes subjective awards and drafts.
Yes. Virginia sets no residency or local ownership requirement. A foreign-owned group forms a Virginia entity, appoints a registered agent, and files a principal application for every 5% owner. MGL handles formation and filing with a US partner firm.
There is no federal licence. Each state decides for itself, and most of them license neither online casino nor betting.
US gambling licensing, state by stateWhere a licence exists, where only betting is allowed, and what to run in the restOverviewSend us your ownership chart. Within a week you will know whether your principals clear Virginia suitability, what the state fees total, and how long the file takes.