Virginia Online Casino House Bill Adds Two-Year Session Approval For Legalization
By Drew Ellis
Published:
It’s a good news-bad news kind of update when it comes to Virginia online casino legalization.
Last week, the Virginia House of Delegates had HB 161, which would legalize online casinos, pass through the General Laws Committee and on to the Appropriations Committee.
While advancement of the bill is the good news, the bad news is that it was amended to include a stipulation that it would need to pass through full Virginia legislature in 2026 and 2027 to become law.
That development puts a big speed bump in the path of VA online casinos becoming legalized this year. Although, a Senate bill is also making its way through that has not required a two-year voting stipulation.
House Bill Matches Senate Bill In Details
Just like the proposed Senate Bill, HB 161 will also impose a 15% tax on online casino operator’s adjusted gross revenue.
Each of Virginia’s three land-based casinos would be allowed to offer up to three online casino licenses to different operators. Two retail casinos opening later in 2026 would also be eligible to issue three licenses.
The land-based casinos would have to pay a $2 million platform fee, while each online operator would have a $500,000 licensing fee.
These licenses would be for five years, with each casino being able to renew at half the cost.
Tax revenue from iGaming would largely go to the Virginia General Fund. A Problem Gambling Treatment and Support Fund would receive 5% of the revenue. An Internet Gaming Hold Harmless Fund would receive 6% of the revenue until Jan. 1, 2030.
The Virginia General Fund would get 89% of the revenue until 2030, when it would then receive that additional 6%.
Adding in the additional year of passage through both the Virginia House and Virginia Senate is the real difference between these two bills.
Should HB 161 pass through the Appropriations Committee, it would then advance to the full House floor.
Progress in House and Senate Provide Optimism
The Virginia Senate also has been considering an iGaming bill, SB 118. After initially getting a losing vote in the General Laws and Technology subcommittee, it passed after adding in more responsible gambling specifications. The bill then also passed through the main committee to be advanced to the Finance and Appropriations Committee.
While there’s positive movement in both the state House and Senate, the House’s decision to add in another year of passage is likely to be a big factor.
It’s unlikely the Senate is going to try and force the issue for passage in 2026 if the House is unified on wanting two-years of debate.
Online casino legalization has been a hot topic of debate as is. The additional tax revenue would be a big boost for Virginia, but concerns over gambling addiction and gambling-related crime carry a lot of weight with influential legislators.
Legislation was also brought forward in 2025, but got pushed back to this year in hopes of gathering more information on the subject.
Positive steps have been made this year already, so it seems like Virginia could be well on its way to eventually legalizing online casinos. However, the time to get to the destination may be a little longer than some hoped.
Until then, West Virginia online casinos will have to be a suitable alternative for Virginia residents.
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.
