Virginia is attempting to make iGaming, online casinos legal in 2026
As some states across the United States see massive revenue from iGaming activity and taxes on online casinos, the state of Virginia is looking to get in on the action by potentially making online gambling legal.
Del. Marcus Simon has introduced House Bill 161, which aims to authorize and regulate online gambling and gaming with oversight by the Virginia Lottery Board. This follows a similar but rocky path for such legislation in 2025, where the state failed to legalize online casino play.
Virginia’s HB161 aims to legalize iGaming
HB161 outlines how Virginia envisions a regulated, legal gambling scene in the state. While the state has made similar attempts before, House Bill 161 could potentially be the difference-maker.
Virginia’s five licensed brick-and-mortar casinos would be eligible to apply for and obtain an internet gaming operator license under new regulations. Each casino can offer up to three online platforms, which means there would be as many as 15 total legal online casinos in the state of Virginia.
The initial fee for opening an online casino would be $500,000. Then, each individual casino must pay a $2 million fee. This means each operator could pay up to $6.5 million up front if it were to open the maximum three platforms. Renewing this license would cost $250,000 every five years for the licensee and $1 million for each casino. There would also be a 15% tax on adjusted gross revenue, with 5% going to the Problem Gambling Treatment and Support Fund.
On the consumer side, House Bill 161 aims to protect Virginia residents by requiring age and identity verification. There will also be deposit and time limits applied to players. The participating online casinos must also have responsible gambling disclosures.
Under HB161, unlicensed iGaming operations would be eligible for criminal penalties. Sweepstakes casinos currently available for play in Virginia would then be banned from the state as traditional casino play was made legal.
Will Virginia’s HB161 pass?
Virginia has been attempting to legalize gambling for a while, but it’s been quite the challenge, a challenge that HB161 will also face in the state.
Last year, Simon proposed HB2171, but it was very quickly set aside. The General Law subcommittee for the Virginia Alcoholic Beverage Control Authority worried iGaming would cannibalize the state’s iLottery, a massive internal revenue source. Between 2022 and 2023, the Virginia iLottery generated $2 billion for the state.
Simon argued that the state could generate upward of $5.3 billion in additional revenue over a five-year period with the legalization of online casinos.
Also in 2025, Senator Mamie Locke pre-filed Senate Bill 827, but it was withdrawn at the start of 2026 with “deeper research” being the reason.
While the Joint Subcommittee to Study the Feasibility of Establishing the Virginia Gaming Commission felt that iGaming would be of benefit to brick-and-mortar casinos along with Simon, Virginia’s casinos are not well-established. Two of the state’s five casinos are currently under construction and won’t fully open until 2027. With the brick-and-mortar locations having a shaky foundation, it may be difficult to fight for iGaming legalization at this early stage.
With clashing interests across the state, it could be quite difficult for Virginia to join those states that currently offer legal gambling. Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia are the only US to currently offer online gambling with real money.
Indiana was working on legalizing online gambling but paused the process going into 2026.
Featured image credit: Richmond Region Tourism
Olivia has worked in media ever since graduating from college, with her coverage ranging from traditional newspaper reporting to digital coverage of all things gaming, online betting, and nerd culture. She has traveled around the world pursuing that coverage, from the far coasts of the United States to the busy downtown core of Tokyo, Japan. Olivia’s favorite games include Overwatch and Super Smash Smash Bros, and she has been published at Esports Illustrated, Inven Global, EsportsInsider, Upcomer, and elsewhere.
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