Virginia lawmakers are making another attempt to legalize online casinos. While previous attempts to introduce iGaming failed to gain traction, this newest effort may gain the necessary momentum to succeed. An earlier proposal for a dedicated gambling regulator could also benefit from these discussions, aligning Virginia with neighboring states.
Operators May Face Steep Market Entry Fees
House Bill 161 (HB 161), prefiled by Delegate Marcus Simon ahead of the 2026 legislative session, would allow real-money online casino games throughout the state. The plan comes at a time when Virginia is still evaluating its gambling landscape following the rapid success of regulated sports betting, which launched in 2021 and quickly evolved into a reliable source of state revenue.
HB 161 primarily aims to allow licensed land-based casino operators to offer internet gaming under the supervision of the Virginia Lottery Board. Online slots, table games, poker, and live dealer products would all be allowed. According to the proposed legislation, each operator may manage up to three online platforms, with separate branding requirements and an additional poker-only brand.
The bill outlines a tightly controlled market. Operators would face steep entry costs, including a $500,000 license fee for a five-year term, in addition to multi-million-dollar platform-specific fees. iGaming supporters argue that these hurdles ensure only well-capitalized and experienced companies enter the space, reducing regulatory risk while maximizing tax stability.
Legalized iGaming Could Provide Significant Revenue for the State
According to the proposed legislation, online casinos would face a 15% tax on their adjusted gross gaming revenue, with dedicated funding streams. 5% will go to the treatment and support of problem gambling, while a temporary fund will compensate brick-and-mortar casinos for any revenue shifts attributed to online play through 2030. Regulatory standards would align closely with existing sports betting rules, reflecting lessons learned from other states.
Beyond revenue, the bill takes a firm stance against unlicensed gambling. Paid sweepstakes would become illegal unless operated by licensed iGaming providers. Violations could result in potential felony charges for unlicensed operators and daily fines for continued violations. Tampering with gaming software would also lead to criminal consequences.
According to industry experts, just five years of legal online casinos can generate more than $5 billion in taxable gaming revenue. Legislators are also considering a standalone Virginia Gaming Commission, which would consolidate oversight of all types of gambling. However, community advocates remain apprehensive, cautioning that the negative societal impact of iGaming could outpace safe gambling efforts.