Virginia lawmakers advanced legislation that would legalize regulated online casino gaming after a closely divided vote in the House of Delegates, keeping a long-running policy debate alive while highlighting unresolved concerns around revenue, jobs, and consumer protection.
House Bill 161 moved out of the General Laws gaming subcommittee on Feb. 3 following nearly two hours of testimony. The panel approved the measure by a 5–4 margin, sending it to the House Appropriations Committee. The proposal would legalize iGaming in Virginia while banning sweepstakes-style casino platforms.
Arguments For Regulating An Existing Market
Del. Marcus Simon, the bill’s sponsor, told subcommittee members that the proposal targets gambling activity already taking place without oversight. He said, “Casino-style gaming is happening on people’s phones in the Commonwealth of Virginia already. It’s estimated that iGaming has a $12 billion business in Virginia, and it’s completely unregulated and untaxed.”
Simon added, “What this bill is really meant to do is to bring the gaming on your phone within a legal framework that’s going to be highly regulated and include consumer protections.”
The bill outlines a framework that includes $2 million licensing fees, a 15% tax rate, funding for problem-gambling programs, restrictions on prepaid and credit card use, and a requirement for live-dealer studios located in Virginia. Simon said, “Virginia would be the first state in the nation to implement such a requirement for iGaming.”
Industry representatives voiced support during the hearing. Ken Hutcherson, speaking on behalf of Caesars Entertainment and Caesars Virginia, said, “We support this legislation.” B. Gonzalez of the Sports Betting Alliance pointed to results in other states, stating, “In Michigan and Pennsylvania, two very strong examples, the lottery’s revenue increased by 62.9% in the four years since launching iGaming.”
Henry Watkins of Evolution Gaming focused on employment, telling lawmakers, “That amendment makes sure that there are jobs and major investment in the Commonwealth between 1500 and 2,000 good-paying jobs.”
Lottery And Operator Opposition
Opponents warned that online casinos could reduce funding for public education and harm existing gaming operations. Khalid Jones, executive director of the Virginia Lottery, said, “We estimate up to $616 million over the first full five years of the program as currently constructed.”
Mark Stewart of Live Casino Virginia argued, “Igaming is a loser for the Virginia Lottery, with nearly $220 million lost annually for public education. For Virginia workers, up to 2,000 jobs lost.”
Representatives from horse racing, agribusiness, and national advocacy groups also testified against the bill. Oliver Barry of the National Association Against iGaming said online products would “cannibalize existing gaming and lottery revenue.”
Personal Testimony And Senate Movement
Several speakers raised concerns about addiction. Stacey Rendon told the panel, “I lost over $2 million to two casinos in six months.” David Nangle warned lawmakers, “Online gaming is engineered to be addictive.” He also asked, “Do you really need to put a casino in everybody’s pocket 24/7?”
The House vote followed recent movement in the Senate, where a separate proposal advanced from committee after amendments added responsible gaming provisions.
HB 161 now heads to Appropriations, where lottery transfers and fiscal projections are expected to shape potential amendments.
Source:
“Virginia iGaming Bill Advances From Subcommittee After Heated Debate Over Lottery Funding, Jobs, and Gambling Risks”, gamblinginsider.com, February 4, 2026
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