Virginia Legislature Files Bill to Legalize Online Casinos Ahead of 2026 Session
Virginia legislators have introduced HB 161, a bill to legalize online casino gambling in the state, establish a regulatory structure, and direct tax revenue.
A bipartisan group of Virginia lawmakers has formally filed legislation to authorize online casino gaming in the Commonwealth, marking a major step toward expanding the state’s regulated gambling market beyond sports betting and retail casinos.
The bill, HB 161, was pre-filed for the 2026 General Assembly session and outlines a comprehensive framework for online casino licensing, taxation, and regulation.
The bill’s sponsors say it could boost state revenue, enhance consumer protections by bringing players into a regulated environment, and make Virginia more competitive with neighboring states that already offer online casino play.
What HB 161 Proposes
House Bill 161 would allow licensed online casinos to offer popular games, including slots, table games (like blackjack and roulette), and other real-money digital gambling, subject to strict regulatory oversight.
Key components of the bill include:
- Licensing: The bill establishes an application process and eligibility requirements for online casino operators, including background checks and financial disclosures.
- Regulatory oversight: The Virginia Lottery Board would be empowered to administer the online casino market, set compliance standards, and enforce responsible-gaming safeguards.
- Taxation: Online casino revenue would be subject to state taxes, though exact tax rates and uses of revenue are to be defined within bill language and committee discussions.
- Player protections: HB 161 includes provisions for responsible gaming tools, such as self-exclusion lists and spending limits, mirroring current standards in regulated mobile sports wagering.
In contrast to the state’s existing mobile sports-betting law, which imposes strict geolocation and consumer protections, the online casino bill would create a parallel digital marketplace for casino games that are currently illegal in Virginia.
Legislative Context and Motivations
Virginia legalized mobile sports betting in 2021, and the market has since grown significantly, with multiple operators offering regulated wagering statewide. Proponents of the online casino bill argue that the next logical step is to build a comprehensive iGaming ecosystem that includes virtual slots and table games.
Supporters point to several motivations:
- Economic development: Bringing online casino providers into the regulated fold may stimulate job growth, technology investment and market differentiation.
- Tax revenue: New online gaming taxes could fund state priorities such as education, infrastructure or gambling addiction programs.
- Competition with other states: Neighboring regions have already embraced online casinos and sports betting; Virginia risks losing revenue and customers without a comparable platform.
Nevertheless, the bill faces potential pushback from some factions, including groups concerned about the social impacts of gambling expansion and legislators wary of broad iGaming approval without further study or oversight.
Next Steps in the Process
HB 161 was pre-filed ahead of the 2026 legislative session and will be assigned to relevant committees, likely those overseeing finance, gaming, and commerce, for review and potential amendment once the session begins.
During committee hearings and floor debates, lawmakers will weigh testimony from stakeholders including industry representatives, problem-gambling advocates, business interests and local governments.
The bill may be refined before advancing to votes in the House and Senate.
If passed, the legislation would move to the governor’s desk for signature and ultimately require implementation plans from the Virginia Lottery Board before online casino operations could launch.
Potential Impact for Virginia Players and Operators
If enacted, HB 161 could transform Virginia’s gaming landscape:
- Consumers would be able to play regulated casino games online from their smartphones or computers.
- Operators already licensed for sports betting might seek online casino licenses to expand their offerings.
- Regulators would need to build oversight mechanisms for digital gaming in addition to existing sports betting systems.
Industry observers see such a move as part of a broader trend in U.S. states increasingly embracing iGaming as part of regulated gambling portfolios.
A New Frontier for Virginia Gaming
The introduction of HB 161 signals a growing appetite among Virginia lawmakers to embrace digital casino gaming in a regulated, consumer-focused environment.
As the 2026 legislative session unfolds, the bill’s progress will be closely watched by gaming operators, policymakers, and advocacy groups alike.
Whether Virginia ultimately approves online casinos could reshape how residents access and engage with gambling entertainment, while also setting the stage for the state’s competitive stance in the expanding national iGaming marketplace.
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