Virginia Lawmakers File HB 161 to Legalize Online Casinos

Jonathan Rodriguez

Written by: Jonathan Rodriguez

Published: Sun Jan 11, 2026, 8:00 am ET

Read Time: 3 minutes

Virginia Lawmakers File HB 161 to Legalize Online Casinos

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Virginia lawmakers have taken decisive action this week by filing House Bill 161, a measure designed to legalize US online casinos across the Commonwealth. 

The proposal aims to bring online casino gaming into a regulated market and add a significant new dimension to Virginia gambling. Legislators say the bill will modernize the state's gaming framework and increase revenue for public services.

What Would HB 161 Do If It Is Passed?

House Bill 161, pre-filed for the upcoming 2026 General Assembly session, outlines a detailed plan to permit and regulate internet-based casino games, including slots, blackjack, roulette, poker, and other popular formats.

Under the bill's provisions, licensed casino operators could launch digital platforms linked to their existing land-based facilities. Each operator may run up to three online "skins," allowing multiple brands and gaming experiences under a controlled structure.

Moreover, the Virginia Lottery Board would oversee licensing, compliance, and enforcement of online casino operations. This effectively mirrors its role in the state's sports betting market. Applicants must submit detailed background checks and financial disclosures, and pay both licensing and platform fees before launching.

HB 161 sets a 15 percent tax on adjusted gross online gaming revenue, with a portion directed to problem-gambling treatment programs. Specifically, 5 percent of taxes would fund the Problem Gambling Treatment and Support Fund. Additional revenue would support an Internet Gaming Hold Harmless Fund through 2030 to protect revenues for brick-and-mortar casinos.

Additionally, the bill also mandates responsible-gaming tools, including self-exclusion lists and spending limits. It also explicitly criminalizes unlicensed operation of online casino gaming.

Proponents argue the bill will draw gamblers away from unregulated platforms and into a safer, licensed environment. They also say revenue could help Virginia address budget shortfalls projected for fiscal 2027.

Impact on Virginia's Gambling Industry

If HB 161 becomes law, the Virginia gambling landscape could shift dramatically. Experts suggest the state will join a growing number of US online casinos markets already operating in states like New Jersey, Pennsylvania, and Michigan.

Operators that currently run mobile sports wagering platforms would likely expand into full-service online casinos, giving players seamless access to regulated games via smartphones and computers.

The introduction of online casino gaming could boost overall gaming tax revenue and create new jobs related to technology, compliance, and customer support. At the same time, critics worry about the social impacts of expanded gambling access and call for robust oversight mechanisms.

As the General Assembly session begins, lawmakers and stakeholders will debate HB 161's details and potential amendments. Its progress will be closely watched by Virginia residents, gaming operators, and national iGaming interests alike.

Jonathan Rodriguez
Jonathan Rodriguez

Jonathan is an avid basketball fan, and is often looking forward to the next upcoming NBA season when not checking players' stats during games. He also likes to keep his ears on the ground for the latest rumblings in the online casino industry.

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