Virginia Gaming License

Types of Licenses for Gambling in Virginia

The Virginia Lottery Board issues four categories of licenses, each tied to a specific role in the sports betting market. Which license you need depends on what you sell and to whom.

Online Sports Betting Operator Permit

The primary license for any company offering a sports wagering app or website in Virginia. Initial permit fee is $250,000 (non-refundable), plus $50,000 per principal for background checks (also non-refundable). Renewal runs $200,000 every 3 years. Tax: 15% of Adjusted Gross Revenue. The state caps these permits at 12 statewide.

Prohibited wagers: youth sports, single-game bets on Virginia college sports, proposition bets on any college sports, subjective awards (MVP, Heisman, Cy Young) and amateur draft results.

Supplier Permits

Required for companies providing sports betting platforms, software, odds data, marketing services, or payment processing to licensed Virginia operators. A supplier cannot apply without a signed contract or Certification of Business Relationship with a licensed Virginia operator — the contract comes before the application.

Platform Suppliers (the wagering software and betting engine): $10,000 non-refundable application fee + $115,000 refundable background deposit = $125,000 upfront. Non-Platform Suppliers (data, odds, marketing, payment processing): $5,000 non-refundable + $45,000 refundable = $50,000 upfront. Renewal for both: $50,000 every 3 years.

Principal / Key Manager License

Required for anyone owning 5% or more of a licensed entity, or holding executive authority (CEO, CFO, and equivalent roles). Background check fee: $50,000 per person, non-refundable.

Required Documents for the Virginia Sports Betting License

For each principal (owner, director, or anyone with 5%+ ownership) and key manager:

• Passport;

• Bank reference letter;

• Reference letter from a lawyer or accountant;

• Utility bill;

• CV.

Your personal documents are your responsibility. Everything else is ours. MyGamingLicense handles company registration, proof of financial stability, criminal record processing, KYC and AML policies, responsible gambling policies, organizational charts, and business plan drafting. We've completed 120+ licenses with 0 rejections.

How a Virginia License Application Works

Step 1: Consultation and Roadmap (1 to 7 days)

We review your project together: business model, ownership structure, the jurisdictions where your principals are based, and your target launch date. You receive a written summary of the roadmap and a fixed-fee offer before we start.

Step 2: Company Formation in Virginia (2 to 4 weeks)

Virginia requires a registered entity in the state before any license application moves forward. We register your company, handle notarization of formation documents, and prepare everything the Lottery Board will request: operating agreements, organizational charts, business plan, KYC and AML policies, responsible gambling policies.

Step 3: Application Submission and Review (4 to 6 months)

The Virginia Lottery only accepts applications through its official online portal. We submit the complete application and manage every regulator follow-up request in real time. Most delays in Virginia come from slow responses to Lottery Board questions. Operators who handle this themselves lose weeks on requests we answer in hours.

Step 4: Approval and License Issuance

The Lottery Board issues its determination. On approval, your permit is issued and operations can begin. MGL stays available through go-live and into the post-license relationship.

How to Register a Company in Virginia for iGaming

Virginia requires a registered entity in the state before you can apply for a sports betting permit. The process runs through the State Corporation Commission (SCC) and takes 1 to 5 business days for the formation filing itself, plus additional time for federal and state tax registrations.

Choose Your Entity Type

Most operators register as a Limited Liability Company (LLC). It protects personal assets and uses a simple tax structure. Operators raising capital or planning institutional investment typically choose a Corporation (Inc.) instead.

Name Your Business

Your name must be distinct from any existing Virginia entity and include a designator: "LLC," "L.C.," "Inc.," or "Corporation." Check availability through the SCC Name Check tool. You can reserve a name for 120 days for $10.

Appoint a Registered Agent

Virginia law requires an agent with a physical state address, available during business hours to receive legal documents. Use a professional registered agent service. A missed legal notice is a compliance failure.

File Formation Documents

File with the Virginia State Corporation Commission (SCC) through their online Clerk's Information System (CIS). LLCs file Articles of Organization for $100. Corporations file Articles of Incorporation for $75 minimum. SCC processes filings within 1 to 5 business days.

Post-Formation Requirements

Once the entity exists, you need an Employer Identification Number (EIN) from the IRS to open a US business bank account. Within 90 days of formation, file a Beneficial Ownership Information (BOI) report with FinCEN — a 2024 federal requirement under the Corporate Transparency Act.

Tax and Local Registration

Register with the Virginia Department of Taxation via Form R-1 to get your state tax ID. Most Virginia cities and counties require a Business Professional and Occupational License (BPOL); fees scale with projected gross receipts.

Annual Maintenance

LLCs pay $50 per year, due by the last day of the anniversary month. Corporations pay $100 minimum per year and file an Annual Report. Being "In Good Standing" with the SCC is a prerequisite for your gambling license. If your entity lapses, your application stops.

Fees & Taxes of the Virginia Gaming License

Virginia separates licensing costs into two distinct buckets: what you pay upfront to enter the market, and what you owe on revenue once operating. The 15% AGR rate is among the lowest in regulated US states.

Initial Licensing Fees

Taxes

Renewing Virginia Sports Betting License

Virginia licenses are not permanent. Operator and supplier permits run for 3 years and require active renewal. The renewal is not a formality: the Lottery Board runs a fresh background check and suitability review each cycle. Submit your renewal application at least 60 days before expiration. Late submission results in immediate license termination.

Gambling Regulations in Virginia

Virginia runs one of the more tightly regulated sports betting markets in the US. Compliance failures can trigger fines, suspension, or permit revocation — these requirements need to be wired into your platform and operations from day one.

Age requirement.

21+ for sports betting.

Identity verification.

Operators must use geolocation and ID verification to confirm players are physically within Virginia borders and meet the age requirement before every session.

Self-exclusion.

The Virginia Lottery's Voluntary Exclusion Program (VEP) lets bettors ban themselves for 2 years, 5 years, or a lifetime. Licensed operators are legally required to prevent these individuals from wagering. This is not optional.

Supplier business relationship rule.

A supplier cannot apply for a permit without a signed contract or Certification of Business Relationship with a licensed Virginia operator. The contract comes before the application.

Monthly reporting.

Licensed operators submit wagering activity reports to the Virginia Lottery Board each month.

What Happens After You're Licensed

Post-license is where most operator problems surface: banking that gets pulled six months in, PSP relationships that fail under volume, compliance audits that catch undocumented changes. MGL stays in the relationship through year two and beyond. That's why our second-year retention runs at 96%.

For Virginia specifically, post-license support runs through the US partner firm with MGL coordinating. Post-license obligations include: monthly wagering activity reports to the Virginia Lottery Board, geolocation compliance, Voluntary Exclusion Program enforcement, and permit renewal every 3 years at $200,000.

Virginia vs Other Markets

Pennsylvania and Illinois charge $10 to $20 million to enter. Virginia is $250,000 with a 15% tax rate and $800 million in monthly handle. Anjouan is under $25,000 with 0% tax and global reach excluding restricted markets. The hard 12-permit cap is the constraint that makes Virginia entry harder than the headline fee suggests.

The Anjouan economics are why most MGL clients land there. See the Anjouan license →

Comparison with Other Licenses

Compare the Virginia sports betting license with other major US jurisdictions.

Pennsylvania and Illinois charge $10–20M to enter. Virginia is $250,000 with a 15% tax rate and $800M in monthly handle. The hard permit cap is the constraint and the reason early entry matters.