Virginia Lawmakers Renew Efforts to Legalize Online Casino Gaming
New Legislative Push for Online Casinos in Virginia
Virginia legislators are once again working to legalize online casino gaming within the state. Although previous attempts to introduce internet gambling failed to make progress, this latest proposal shows promise for moving forward. Alongside the iGaming initiative, lawmakers are also considering establishing a dedicated gambling regulatory body to align Virginia’s gaming laws with those of neighboring states.
Details of House Bill 161 and Market Entry Requirements
House Bill 161 (HB 161), introduced by Delegate Marcus Simon for the 2026 legislative session, proposes to authorize real-money online casino games across Virginia. This effort comes as the state continues to assess its gaming environment following the swift success of regulated sports betting, which launched in 2021 and quickly became a significant source of revenue for Virginia.
The bill would permit licensed land-based casino operators to extend their offerings to internet gaming under the oversight of the Virginia Lottery Board. Allowed online games would include slots, table games, poker, and live dealer options. Each operator could run up to three separate online platforms with distinct branding, plus an additional exclusive poker brand.
The legislation envisions a tightly regulated market with substantial entry costs. Operators would be required to pay a $500,000 license fee valid for five years, along with multi-million dollar fees for each platform they operate. Proponents assert these financial requirements will limit participation to well-funded and experienced companies, thereby enhancing regulatory oversight and ensuring stable tax revenues.
Potential Revenue and Regulatory Measures Included in the Bill
The proposed law sets a 15% tax rate on the adjusted gross gaming revenue generated by online casinos. A portion of these funds, 5%, would be directed toward problem gambling treatment and support services. Additionally, a temporary fund would reimburse physical casinos for any revenue losses caused by the growth of online gaming, with these protections extending through 2030. The bill aims to adopt regulatory standards similar to those used for sports betting, informed by lessons learned from other states’ experiences.
Beyond revenue generation, the bill strongly targets unlicensed gambling operations. Paid sweepstakes games would be prohibited unless run by licensed iGaming providers, with violations punishable by felony charges for unlicensed operators and daily fines for ongoing non-compliance. Tampering with gaming software would also be met with criminal penalties.
Industry experts estimate that legal online casinos could generate over $5 billion in taxable revenue within five years. Lawmakers are also exploring the creation of a Virginia Gaming Commission to consolidate oversight of all gambling activities. However, some community groups have voiced concerns over the potential social risks of legalized iGaming, emphasizing the need for robust safe gambling measures to mitigate negative impacts.
