Virginia iGaming: What the Proposed Law Would Do

Jan 8th, 2026 2:39 PM EDT

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Virginia has joined the list of states considering the legalization of iGaming in 2026. One lawmaker is proposing a sweeping expansion of regulated gambling that would legalize online casino gaming (iGaming) statewide under the oversight of the Virginia Lottery Board. The Virginia iGaming bill, filed by Sen. Mamie E. Locke, creates a full licensing, tax, enforcement, and consumer-protection framework similar to those already in place in mature iGaming states that offer the best online casinos.

The legislative session begins Wednesday and runs through March 14. The crossover deadline is February 17.

Virginia iGaming: Who Can Offer iGaming

Only existing Virginia casino gaming operators would be eligible to launch iGaming. Each licensed casino operator could offer up to three online casino skins, either in-house or through third-party providers. Platforms can operate under distinct brands and may use a separate brand specifically for online poker, which is offered at the top online casinos.

Live dealer games are explicitly authorized, and studios may be located inside or outside Virginia, with no reciprocal agreement required.

There are five brick-and-mortar casinos in Virginia and each gets up to 3 skins in the bill. During November, retail casino gaming revenues from Virginia casinos totaled $82.4 million, the Commonwealth said.

Virginia iGaming: Licensing & Fees

The bill sets a high barrier to entry:

Internet gaming operator license:
- $500,000 initial fee
- $250,000 renewal (every 5 years)
Platform fees (per skin):
- $2 million upfront per platform
- $1 million renewal per platform
Platform provider license:
- $50,000 application fee
- Temporary licenses available for qualified operators already licensed in at least two U.S. jurisdictions

Since each casino can operate a maximum of three platforms, a fully utilized operator would pay $6 million in platform fees alone.

Virginia iGaming: Tax Structure

Virginia would impose a 15% tax on adjusted gross internet gaming revenue (AGR) — defined as wagers minus winnings and limited uncollectible receivables.

Key details:

Taxes are paid monthly
Losses can be carried forward for up to 12 months
The tax is in lieu of all other state and local taxes on iGaming revenue

Revenue Distribution

Tax revenue would be allocated as follows:

5% to the Problem Gambling Treatment and Support Fund
6% (through 2030) to a new Hold Harmless Fund designed to offset revenue losses at physical casinos
89% (through 2030) to the state’s general fund
95% to the general fund starting in 2030

Consumer Protections & Responsible Gambling

The bill includes robust safeguards:

Minimum age: 21
Mandatory identity, age, and geolocation verification
Shared wallets permitted between iGaming and sports betting
Required deposit limits, timeouts, and self-exclusion tools
Mandatory display of responsible gambling messaging and account activity statements
Prohibition on public “internet gaming kiosks” outside of casinos

Enforcement & Penalties

Virginia takes a hard line on unlicensed operators:

Operating iGaming without a license is a Class 6 felony
Tampering with software or game outcomes is a Class 5 felony
Civil penalties for illegal sweepstakes:
- Up to $100,000 for a first offense
- Up to $250,000 per violation thereafter
Explicit authority granted to regulators and the Attorney General to issue cease-and-desist orders, subpoenas, and injunctions

Notably, the bill explicitly classifies real-money sweepstakes using dual-currency systems as illegal internet gaming, closing a loophole currently exploited in many states.

Virginia iGaming: Timeline

Regulations must be finalized by September 30, 2026
Notices of intent open July 1, 2026
Operators submitting within 60 days of enactment get day-one launch access
Late applicants must wait at least six months after launch

Bottom Line

This proposal would place Virginia firmly among the most structured, tightly regulated iGaming states in the U.S. The framework favors existing casino operators, imposes meaningful upfront costs, aggressively targets sweepstakes and offshore operators, and directs most revenue to the state while providing short-term protections for brick-and-mortar casinos.

If enacted, Virginia would instantly become one of the more attractive — and expensive — iGaming markets in the country.

About the Author

Bill Speros

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Bill Speros is an award-winning journalist and editor whose career includes stops at USA Today Sports Network / Golfweek, Cox Media, ESPN, Orlando Sentinel and Denver Post.