Virginia Lawmakers Revisit Online Casino Legalisation

Gambling policy is back on the agenda in Virginia as lawmakers prepare for another busy legislative session. Online casinos and regulatory structure now sit at the center of the conversation after several years of rapid market growth.

Good to Know

• Virginia lawmakers are weighing online casino legalisation and a new gaming regulator
• A bill to legalise iGaming was introduced this week
• Another proposal would create a standalone Virginia Gaming Commission

Online Casino Bill Returns to the Legislature

Marcus Simon introduced House Bill 161, a proposal that would legalise online casino gaming in Virginia. The bill marks a renewed attempt after a similar effort stalled during the previous session.

Under HB 161, online casino platforms would operate under the oversight of the Virginia Lottery Board. Existing casinos would qualify to launch up to three online skins each, with every platform carrying a $2 million license fee.

The proposal sets a 15 percent tax rate on online casino revenue. Five percent of that revenue would flow into the Problem Gambling Treatment and Support Fund.

Separate Push for a New Gambling Regulator

At the same time, Paul Krizek plans to introduce legislation to establish a Virginia Gaming Commission. The agency would consolidate oversight of an industry that has expanded quickly across the state.

Virginia currently divides gambling regulation among several bodies. The Lottery Board oversees casinos and sports betting. The Virginia Racing Commission regulates horse racing wagering. The Virginia Department of Agriculture and Consumer Services handles charitable gambling and daily fantasy sports.

Several lawmakers now argue that structure no longer fits the scale of activity in the state.

Market Growth Outpaces the Framework

Virginia approved land-based casinos in 2019 and sports betting in 2020. Since then, online sportsbooks launched statewide, and casino projects moved forward rapidly.

Three permanent casinos are already operating, while two additional temporary locations are open or preparing to open. Lawmakers involved in the process say the pace of change caught many by surprise.

During study hearings last year, Simon shared an early draft of the iCasino proposal, laying groundwork for the current bill.

Prior Bills and Study Efforts

Last session, Simon and Mamie Locke each introduced online casino legislation. Both bills were withdrawn early to allow further study.

The Joint Subcommittee to Study the Feasibility of Establishing the Virginia Gaming Commission held multiple hearings, gathering testimony from regulators, industry participants, and policy experts.

Several members concluded that broader expansion should wait until the state resolves oversight concerns.

Political Tension Around Oversight

Late last year, Virginia Public Radio reported that creating a dedicated gaming commission ranked high among legislative priorities. Former governor Glenn Youngkin attempted to include the commission in a budget proposal.

Democratic leadership, holding narrow majorities in both chambers, rejected that approach, keeping the issue alive for the 2026 session.

The Lottery Board has previously raised concerns about additional responsibilities, warning that recent expansions already stretched resources.

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