Virginia iGaming Regulation Progresses With House Bill 161 Introduction

2025 was a quiet year for iGaming regulation in the US. Several states introduced anti-sweepstakes bills, and Missouri legalized online sports betting at the beginning of December. 

However, Rhode Island remains the most recent state to regulate online casinos. It passed the required legislation in 2023, and online RI casinos launched in March 2024. 

Several states mooted the idea of regulation, including New York and, crucially, Virginia, but none progressed beyond the early stages of discussion.

Senator Mamie Locke introduced Senate Bill 827 at the start of the year. She withdrew the proposal by the end of the month, stating that further investigation was needed into the proposed changes. 

Bill Fundamentals

This year, Del. Marcus Simon has put forward House Bill 161 with the same aim of regulating iGaming in Virginia. 

Under the bill, the state’s five licensed casinos would be permitted to apply for licenses, with each allowed up to 3 skins, potentially resulting in 15 online platforms. 

Each licensee would be required to pay $500,000, with each skin paying an initial license fee of $2 million. 

The licenses would need to be renewed every five years, for $250,000 to the licensee and $1 million per skin. 

Furthermore, a 15% tax would be applied to adjusted gross gaming revenue, and licensees would need to meet the usual customer age and verification requirements.

Overcoming Obstacles

The bill also moves to ban sweepstakes casinos. Currently, there are no sweepstakes casino restrictions in Virginia, and this is often seen as a precursor to the regulation of online casinos.

Another precursor to industry regulation is the establishment of a retail casino industry. On that front, Virginia is only really partway there. 

The state passed a law in 2020 allowing the licensing of five casinos. All five licenses have been awarded, but only three of the five casinos are built and operational. 

The two remaining venues are not expected to open until at least 2027, and this may prevent legislation from moving forward. 

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As such, this year’s push is seen by some parties as a way to test the water. 

If the bill passes, it will also legalize online poker, with Virginia added to the Multi-State Internet Gaming Agreement. 

The agreement was initially established by Nevada and Delaware in 2014, with New Jersey (2017), Michigan (2022), West Virginia (2023), and Pennsylvania (2025) joining later. 

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It enables players from these states to face off against one another in player pools, greatly increasing the number of players that can compete at online tournaments and tables. 

Membership increases liquidity in the market. 

The increased competition and pool sizes enable poker sites and tournament organizers to offer larger pots and more tournament options.