Virginia Lawmakers Renew Push to Legalise Online Casino Gaming
Summary
Delegate Marcus Simon has prefiled House Bill 161 (HB 161) for the 2026 session to legalise real‑money online casino gaming in Virginia. The proposal would let licensed land‑based casino operators run internet gaming — including slots, table games, poker and live dealer products — under the supervision of the Virginia Lottery Board. Operators could operate up to three online platforms plus an additional poker‑only brand.
The bill sets steep market entry costs (a $500,000 licence for five years plus multimillion‑dollar platform fees) and a 15% tax on adjusted gross gaming revenue. Of that tax, 5% is earmarked for problem‑gambling treatment and support, and a temporary fund would compensate brick‑and‑mortar casinos for revenue shifts from online play through 2030. The legislation would also criminalise many unlicensed operations, banning paid sweepstakes unless run by licensed providers and exposing violators to felony charges and daily fines. Lawmakers are also discussing a standalone Virginia Gaming Commission to consolidate oversight.
Key Points
- HB 161 (Delegate Marcus Simon) seeks to legalise iGaming under the Virginia Lottery Board.
- Licensed land operators may run up to three online platforms plus a poker‑only brand.
- Entry barriers include a $500,000 five‑year licence and additional multimillion‑dollar platform fees to ensure well‑capitalised entrants.
- Online gaming would be taxed at 15% of adjusted gross gaming revenue; 5% of tax revenue goes to problem‑gambling services.
- A temporary compensation fund would protect brick‑and‑mortar casinos from revenue shifts through 2030.
- Paid sweepstakes would be illegal unless run by licensed providers; unlicensed activity could incur felony charges and daily fines.
- Industry estimates suggest legal online casinos could generate more than $5 billion in taxable revenue over five years.
- Legislators are considering creating a Virginia Gaming Commission to centralise gambling oversight.
Context and relevance
This effort follows the rapid growth and revenue success of regulated sports betting in Virginia since its 2021 launch. HB 161 mirrors trends in other US states that have legalised iGaming while attempting to protect state revenue and public safety. The combination of high licence fees and tight regulation aims to limit the market to established operators, reduce regulatory risk and stabilise tax income. Community groups remain cautious, warning that availability of online games could intensify gambling‑related harm despite earmarked funding for treatment.
Why should I read this?
If you work in gaming, finance, regulation or local government — this matters. The bill shapes who can enter Virginia’s online market, how much operators will pay, where tax money will go, and how enforcement will be handled. Short version: big fees, a chunky tax split, and real penalties for unlicensed sites. Read the detail if you care about market access, revenue forecasts or consumer protections — we’ve saved you the time and pulled the bits that change the game.