Virginia lawmakers moved closer to approving online casino gambling this month after advancing companion bills in both chambers, though sharp political divisions remain. House Bill 161 and Senate Bill 118 would establish a regulated iGaming market overseen by the Virginia Lottery and seek to limit unlicensed gambling activity.
HB 161 passed the General Laws Gaming Subcommittee by a 5–4 vote before clearing the full General Laws Committee 12–8 in early February. The bill now heads to the Appropriations Committee. In the Senate, SB 118 regained momentum after amendments addressing responsible gaming concerns and advanced from committee by a 9–6 vote. It now awaits review by the Finance Committee.
Supporters argue the legislation responds to the scale of unregulated online casino activity already occurring in Virginia. Lawmakers backing the bills estimate the illegal market generates about $12 billion annually. Del. Marcus Simon, sponsor of HB 161, said regulation offers a practical response. “The best way to combat the illegal operators is to create a legal alternative for them, bring it in and then have everybody subject to the regulations,” Simon said.
Structure Of The Proposed Market
HB 161 would allow Virginia’s five land-based casinos to operate up to three online casino platforms each, creating a cap of 15 statewide. The Virginia Lottery would regulate the market and levy a 15% tax on gross gaming revenue. Operators would also pay a $500,000 licensing fee and a $2 million platform fee.
The bill also targets sweepstakes gaming. It would prohibit such activity unless the operator holds an iGaming license, aiming to move players away from unregulated platforms and into systems with state oversight.
Emphasis On Player Protections
Both HB 161 and SB 118 include detailed responsible gambling requirements. Operators would need to track player behavior and intervene when activity suggests potential harm, including issuing warnings, restricting accounts, or closing them in extreme cases. The bills would also ban prepaid cards as a payment option, while maintaining the existing prohibition on credit card funding.
Lawmakers supporting the bills say these provisions aim to prevent the unchecked gambling seen in the illegal market. They also point to job creation tied to the requirement that live dealer studios operate within Virginia, a move expected to generate hundreds of in-state positions.
Ongoing Opposition
Proponents argue legalized online casinos could mirror the fiscal gains seen after sports betting launched in Virginia, delivering new tax revenue while formalizing an activity already taking place. Supporters also say regulation would give state agencies tools to monitor compliance and protect players.
Opposition remains firm among some casino operators and lawmakers. Critics warn that online casinos could reduce foot traffic at physical venues and threaten existing jobs. Representatives for Live! Casino Virginia raised concerns during legislative hearings. “Please don’t put a casino on every phone, in every pocket, in every car, even in middle schools,” said Mark Stewart, speaking on behalf of the casino.
With both measures still facing committee votes, the outcome remains uncertain, leaving Virginia’s iGaming future unresolved.
Source:
“Virginia Moves Closer to Legalizing Online Casinos, Despite Political Divisions”, news.worldcasinodirectory.com, February 6, 2026
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