Virginia could soon allow legal online casinos and poker if a new bill moves forward in the state legislature. House Bill 161, or HB 161, was prefiled on January 6 and is set to be officially introduced on January 14. The bill marks one of the most comprehensive expansion attempts of the Commonwealth’s gambling framework since the launch of legal sports betting.

If approved, HB 161 would let regulated online casinos operate while tightening rules on online sweepstakes. Games like slots, table games, poker, and live dealer options streamed from licensed studios could be offered online. These studios could be located in Virginia or other states, giving players more choices.

Only Licensed Operators Can Offer Online Games

The bill says only licensed land-based casinos can offer online gaming. Each operator could run up to three online platforms, each needing a separate license and substantial upfront fees. A single operator license would cost $500,000 for five years, while each platform would need a $2 million notice-of-intent fee and a $1 million renewal fee.

Each platform could use one brand, with an extra brand allowed for poker. To keep play safe, the bill follows rules similar to sports betting, including geolocation checks, ID verification, and a minimum age of 21.

Taxes and Funds Explained

HB 161 proposes a 15 percent tax on adjusted gross gaming revenue, paid every month. Of that, 5 percent would go to the Problem Gambling Treatment and Support Fund, while most of the rest would go to Virginia’s general fund. Until 2030, six percent would be put into a new Internet Gaming Hold Harmless Fund to cover revenue losses claimed by brick-and-mortar casinos because of online gaming.

Sweepstakes Rules and Penalties

The bill also cracks down on online sweepstakes. “Any sweepstakes that allow Virginia participants to exchange something of value for a chance at cash or a cash equivalent would be deemed illegal online gaming if conducted without a licence.” Penalties start at $100,000 for a first offense and can reach $250,000 for repeat violations.

If the bill is approved, the Lottery Board would finalize the regulations by September 30, 2026. Operators could start submitting notices of intent from July 1, 2026, giving them time to prepare platforms and ensure compliance with all safety rules. The process is designed to give both regulators and operators clarity before online casino gaming goes live.

Previous attempts to legalize online casinos in Virginia have mostly failed due to regulatory challenges and concerns over problem gambling. HB 161 is the first fully drafted effort to bring regulated online casino gaming to the state, and it sets detailed rules for licensing, taxation, and enforcement that could shape the future of gambling in Virginia.