Virginia lawmakers have approved legislation authorizing online casino gaming in the Commonwealth, marking the latest step in the state’s gradual expansion of regulated gambling.
House Bill 161, introduced by Delegate Marcus B Simon, passed the House by a 67-30 vote during the 2026 regular session.
The bill places oversight of internet gaming under the Virginia Lottery Board and allows existing casino gaming operators to apply for licenses.
Operators seeking to launch online platforms must submit a notice of intent for each offering, with up to three platforms permitted.
Each platform requires a $2m fee deposited into an Internet Gaming Platform Fee Holding Fund intended to finance start-up costs and the creation of a gaming commission. A further $500,000 licensing fee is required upon application approval.
The legislation sets a 15% tax on adjusted gross internet gaming revenue. 5% will go to the Problem Gambling Treatment and Support Fund, while 6% will be directed to the Internet Gaming Hold Harmless Fund until January 1 2030. Remaining proceeds will flow to the state’s general fund.
Lawmakers have framed the measure as both a regulatory and fiscal initiative, aimed at formalizing online play already accessible through offshore platforms while generating public funding.
Supporters have argued regulation could create additional state revenue and consumer protections, while critics warn online gambling could affect land-based casino performance.
In January 2026, the Senate General Laws and Technology Gaming subcommittee rejected SB 118, a separate proposal to legalize iGaming. That measure would have allowed up to 15 operators to partner with Virginia’s five retail casinos but fell short of the votes needed to advance, although lawmakers indicated amendments could be reconsidered.
Virginia’s retail casino market continues to expand, with Live! Casino Virginia opening a temporary facility in Petersburg in January 2026
