Virginia iGaming Legislation Introduced, Will VA Online Casinos Exist In 2026?
By Drew Ellis
Published:
Virginia could be making steps toward becoming the next state to legalize online casinos.
This week Del. Marcus B. Simon pre-filed HB 161 in the State House. The bill calls for Virginia to legalize iGaming while having the industry regulated by the Virginia Lottery Board.
This makes the second consecutive year that legislation has been introduced in Virginia to legalize online casinos. An effort last year was short lived, as Sen. Mamie E. Locke pre-filed a bill then withdrew it weeks later over belief more research was needed.
This year’s bill has a comprehensive layout for what iGaming in Virginia would be, while establishing penalties for unlicensed iGaming and sweepstakes casinos in the state.
Currently, if Virginia residents wanted to seek out iGaming, they would have to visit their neighboring state and use West Virginia online casinos.
What VA Online Casino Bill Includes
The current HB 161 would allow for each of the Virginia’s land-based casinos to offer online casino gaming through partnerships with online operators. That includes the offering of slots and table games, as well as live dealer games.
Each casino would be able to issue up to three operator licenses after providing a $2 million platform fee. Each of the online casino operators would be subject to a $500,000 license fee. Currently, Virginia has three land-based casinos that would be eligible, but two more retail casinos are set to open in 2026 and would also be eligible under the current bill.
The bill’s tax rate is listed at 15% of each operator’s adjusted gross revenue. That allows operators to deduct any promotions from their gross revenue before determining the tax amount due.
Of the yearly tax revenue collected, 5% would go toward Problem Gambling Treatment and Support Fund. Until January 2030, an additional 6% would be sent to the Internet Gaming Hold Harmless Fund. That would leave 89% of tax revenue to the Virginia General Fund, with that growing to 95% starting in 2030.
Along with the iGaming establishment, HB 161 establishes punishments for operating illegal online gambling and sweepstakes gaming in Virginia. A fine of no greater than $100,000 would be issued for a first offense, then up to $250,000 for any following offense.
Tax Revenue Could Help Bill Progress
Virginia legalized online sports betting in 2021 and the market has seen steady growth since. Recent months have seen new revenue records for the online sportsbooks, which have also generated record tax revenue.
In November, Virginia generated over $14 million in tax revenue from its online sportsbooks. Tax revenue from online casinos have far outweighed sports betting in the seven states where iGaming is legal.
Looking at West Virginia, which also has a 15% tax rate on iGaming, the state has brought in well over $1 million a week from iGaming revenue. In the most recent weekly data from the West Virginia Lottery, online casino tax revenue was $1.4 million.
Virginia’s population is more than four times greater than West Virginia. In fact, Virginia has a comparative population to iGaming states like New Jersey and Michigan. New Jersey is approaching $500 million in tax revenue from online casinos for 2025 with a 19.75% rate. Michigan will generate over $750 million in tax revenue for 2025 through iGaming for state and local entities with an ranging rate of 20-28% based on revenue totals.
While Virginia would not likely contend with these numbers upon launch, it does provide a glimpse of the potential for the state’s online casino market.
Will Virginia Online Casinos Launch in 2026?
The Virginia legislative sessions get started on Wednesday, Jan. 14. From there, HB 161 will be assigned to a committee for review and potential amendments.
Hearings will be held to allow those in favor and those against the legislation to state their claims. Gambling expansion always has plenty of opposition to deal with.
Should the bill ultimately reach a vote in the House and Senate, they would have to pass it on to the desk of newly elected Gov. Abigail Spanberger. Spanberger would have to sign the bill to make it a law and begin the plans for an official launch of online casinos in Virginia.
The whole process could take a while, so don’t hold your breath if looking for Virginia iGaming anytime in 2026.
Drew Ellis has experience covering the gambling industries in North America and around the world. Decades of media experience provide him with the background to handle the complexities of different gambling laws and policies around the United States and North America. Ellis has primarily focused on online and retail casino news since 2021. Prior to working in the gambling industry, Ellis spent over 20 years in the newspaper industry, covering sports and the gambling. His work for The Mt. Pleasant Morning Sun and The Oakland Press was recognized with awards by the Associated Press and other media organizations. Drew has also contributed to the Detroit Free Press and the Associated Press.
