Virginia lawmakers are preparing to revisit online casino legalization as part of a wider review of gambling policy planned for the 2026 legislative session. The renewed discussion combines two efforts: authorizing internet-based casino gaming and restructuring gambling oversight through a centralized regulatory body.
Delegate Marcus Simon has introduced House Bill 161, which would legalize online casino gaming and assign regulatory authority to the Virginia Lottery Board. In parallel, Delegate Paul Krizek is developing legislation to create a Virginia Gaming Commission that would consolidate oversight currently split among multiple agencies. Both proposals follow several years of expansion across Virginia’s gambling market.
Fragmented Oversight Under Review
Virginia approved land-based casinos in 2019 and legalized sports betting in 2020. Since then, gambling activity has expanded to include three permanent casinos, two temporary facilities, historical horse racing terminals, live racing at Colonial Downs, charitable gaming, electronic pull tabs, daily fantasy sports, and online sports wagering. Regulation is divided among the Virginia Lottery Board, the Virginia Racing Commission, and the Department of Agriculture and Consumer Services.
Krizek has argued that the existing structure creates overlap and inconsistency. “The creation of a Virginia Gaming Commission is not about building more bureaucracy, it’s about promoting smarter government,” he said. “A unified commission would streamline oversight by bringing all gaming under one roof, with consistent standards and enforcement. It would strengthen consumer confidence by ensuring transparency and fairness across all gaming platforms. The creation of the VGC will support economic opportunity in the commonwealth by establishing clear rules that help small businesses, labor unions, women and minority-owned firms, and local workers to compete on a level playing field.”
Details of House Bill 161
HB 161 was pre-filed for the 2026 General Assembly session. The bill would allow licensed casino operators to offer online games such as slots, blackjack, roulette, baccarat, and poker, and it explicitly legalizes online poker. The Lottery Board would also gain authority to enter multistate internet gaming agreements that comply with state and federal law.
Each casino could operate up to three online platforms. The proposal sets a $500,000 initial licensing fee for a five-year license, with $250,000 required for renewal. Operators would pay a $2 million fee per platform, along with a $50,000 application fee.
The bill establishes a 15% tax on adjusted gross online casino revenue. Five percent would support the Problem Gambling Treatment and Support Fund, while 6% would be directed to the Internet Gaming Hold Harmless Fund through 2030.
Enforcement And Past Concerns
HB 161 includes penalties for unlicensed activity, including fines up to $25,000 for individuals and up to $1 million for corporations. It also prohibits unlicensed sweepstakes-style casino games that offer “something of value.”
A similar proposal introduced in 2024 failed amid concerns about potential impacts on Virginia’s iLottery program, which generated $2 billion in handle between July 2022 and June 2023. Simon has since estimated that online casinos could generate up to $5.3 billion in new taxable revenue over five years.
Seven states currently permit online casino gaming. Whether Virginia joins them will depend on legislative action during the 2026 session.
Source:
“Virginia Lawmakers Revisit Online Casino Plans for 2026”, news.worldcasinodirectory.com, January 9, 2026
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