Virginia Lawmakers Again Considering iGaming Legislation

• For the second year in a row, a Virginia lawmaker has introduced an iGaming bill
• Del. Marcus B. Simon (D-13) pre-filed HB 161 to legalize iGaming
• Virginia’s legislative session begins on Wednesday, Jan. 14

Virginia lawmakers will once again have an iGaming bill to consider in 2026.

Del. Marcus B. Simon (D-13) this week pre-filed HB 161, a bill to legalize iGaming and allow each of the state’s land-based casinos to potentially offer the new form of gaming through operator partnerships.

If approved, Virginia iGaming will be regulated by the Virginia Lottery Board.

Second Year in a Row for iGaming

Simon’s legislation will allow each of the state’s current three land-based casinos to offer iGaming through partnerships with online iGaming operators. Casino gaming operators will be able to partner with up to three iGaming operators to conduct iGaming in the state through an initial $2 million platform fee. Additionally, approved iGaming operators will be required to pay a $500,000 initial licensing fee.

Two new brick-and-mortar casinos are slated to open in the state in 2026 and will be eligible to offer iGaming if approved.

Licenses will be valid for five years, upon which both casino gaming operators and iGaming operators will be able to renew licenses at half their initial fee ($1 million for a casino gaming operator and $250,000 for an iGaming operator).

The bill authorizes the state’s iGaming tax rate at 15% of an operator’s adjusted gross gaming revenue. The legislation earmarks 5% of revenues allocated to the state’s Problem Gambling Treatment Fund, 6% allocated to the iGaming Hold Harmless Fund until Jan. 1, 2030, and the remaining 89% before Jan. 1, 2030, and 95% after Jan. 1, 2030, allocated to Virginia’s general fund.

It is the second year in Virginia for lawmakers to consider an iGaming bill. In January 2025, Sen. Mamie E. Locke (D-23) pre-filed SB 827 to legalize iGaming in the Old Dominion state. The bill allowed for the state’s brick-and-mortar casinos to apply for an iGaming license and partner with up to three online casino operators.

However, Locke pulled the bill back later in the month, noting that more research was needed on the topic.

Bill Sets Civil Penalties for Unlawful iGaming

The bill also sets civil penalties for individuals operating unlicensed iGaming and sweepstakes in the state. The legislation notes the following will be unlawful:

“Except if conducted by a licensed internet gaming operator, offering or conducting a sweepstakes in which a person present in the Commonwealth may participate by paying or proffering something of value, including an entry fee for the opportunity to win or receive cash or a cash equivalent, shall constitute illegal internet gaming in violation of this section, and shall subject the operator or sponsor, or any officer, employee, or agent of the operator or sponsor, to civil liability under this section.”

Any person or operator who violates this law may be liable for a civil penalty of not more than $100,000 for the first offense, $250,000 for the second and each subsequent offense. Each day in which a violation occurs will be considered as a separate offense.