Virginia (VA) online casinos key takeaways:

• Online casinos are not legal in Virginia at the moment, but that could change this year.
• Two 2026 bills—SB118 and HB161—would authorize “internet gaming.”
• The Virginia Lottery Board would regulate online casinos such as DraftKings and FanDuel.
• SB118 moved forward on Jan. 28, 2026, to Senate Finance & Appropriations.
• The companion bills pitch a 15% tax on operator revenue, far lower than other jurisdictions.
• 5% of online-casino tax revenue for Virginia’s Problem Gambling Fund.
• Research consistently shows online casinos are a high-risk and addictive gambling format.
• Virginia would be the ninth state to legalize online casinos, following Maine.
• Mississippi was another state to consider online casinos in 2026.
• States such as Michigan and Pennsylvania have seen surges in harm following legalization.

Amid a backdrop of gambling harm, Virginia opened the door to sports betting apps, where half of users chase losses, according to recent surveys. Before addressing the rise of at-risk and problem sports gambling, some lawmakers in Richmond seek to expand online gambling by legalizing online casinos.

These efforts would let Virginians access digital slots, roulette, blackjack, live dealer games, and poker 24/7 on their phones, computers, and other mobile devices.

Supporters recklessly refer to online casino gambling as “iGaming,” potentially misleading residents.

The online casino business model has been widely criticized for its harmful impact. Studies indicate that online gambling platforms generate the lion’s share of their revenue from people with gambling problems. Furthermore, research has shown that nearly all online gamblers lose money in the long run, while many believe in gambling-related myths.

Are Online Casinos Legal in Virginia Right Now?

No. Virginia law prohibits all digital casino gambling, except for sports betting.

If you search on Google for online casinos in Virginia, you will see numerous gambling content sites promote online casinos for Virginians. These are illegal gambling sites, many of them offshore.

The 2026 Virginia proposals would change state law by authorizing internet casino games under the lottery’s oversight. 

So-called online casino consumer protection would be enacted, but research shows that the safeguards in the proposals would be ineffective at a population level. So-called “responsible gambling” puts the onus on the user of a fundamentally addictive product.

What Virginia’s 2026 Online Casino Bills Would Do

Two bills are driving the current push:

• SB118 (Senate Bill 118)
• HB161 (House Bill 161)

The companion bills share core features. They would allow existing casino operators to run up to three online casino platforms each, with required fees, and would impose a tax on revenue. So-called addiction safeguards would place the burden on the user and not align with research showing that voluntary betting controls are ineffective.

The proposals currently differ in the specifics of payment methods allowed and certain fund allocations. Despite the nuances, the proposals represent a singular effort to legalize online casinos.

VA SB118

• Authorize “internet gaming” and place regulation under the Virginia Lottery Board.
• Allow a casino operator to offer up to three Virginia online casinos, each with a $2 million platform fee and a $1 million renewal, in alignment with HB161.
• Create an operator license with an initial fee of $500,000 and a renewal fee of $250,000.
• Impose a 15% tax on “adjusted gross internet gaming revenue.”
• Allocate tax revenue: 5% to the Problem Gambling Fund; 6% to a Hold Harmless Fund until Jan. 1, 2030; the rest to the Virginia General Fund.
• Crack down on “sweepstakes” casino operators, creating civil penalties (up to $100,000 for a first offense and $250,000 for subsequent offenses, with each day potentially counting separately).
• Implementation: Regulations by Sept. 30, 2026; intent notices begin July 1, 2026.

VA HB161

• Allows up to three platforms per brick-and-mortar operator, each with $2 million in platform fees and $1 million in renewal fees.
• $500,000 initial license fee and $250,000 renewal.
• Sets a 15% tax rate on adjusted gross revenues.
• Unlike SB118, HB161 explicitly allows online casino accounts to be funded with credit or debit cards. This feature is notable because these payment methods are commonly linked to addiction risks and greater financial harm.

Where the Bills Stand in 2026

Legislation can move quickly and become complicated. Here’s the latest summary:

• SB118: Reported from Senate General Laws & Technology with a committee substitute and re-referred to Senate Finance & Appropriations after a controversial 9–6 vote.
• HB161: Introduced and assigned to a House General Laws subcommittee as of Jan. 21.

‘Regulated’ VA Online Casinos Wouldn’t Be Safe

If Virginia legalizes online casinos, it would be regulating a product linked to addiction, not a harmless pastime. Critics argue that states with online casinos are barely regulating the product, as addiction rates have soared following legalization.

A 2024 meta-analysis (68 countries, 380 samples) found gambling addiction rates were highest for online casino and slots gambling (15.8%).

Online casinos have built-in harm accelerants:

• Rapid, continuous gambling play (especially slots-style games)
• Dark nudges (phone push notifications and personalized promotional offers)
• Nearly frictionless payments (e.g., credit/debit cards and Venmo)
• Data-driven, AI-powered retention aimed at keeping people gambling
• Normalization through mainstream product placements and advertisements

Betting industry lobbyists have tried to force similar harms on residents in states like Ohio and Indiana. New York and Maryland have also been home to online casino bills in recent years.

‘Problem Gambling Funding’ is Not Protection

Both bills point to a boost in funding for problem gambling. SB118, for example, directs 5% of online casino tax revenue to Virginia’s Problem Gambling Treatment and Support Fund.

Earmarking funds after harm addresses effects, not prevention. This is likened to selling more cigarettes to fund lung cancer clinics and calling that responsible.

Virginia is better off not putting its stamp of approval on harmful online casino products.

‘Sweepstakes’ Crackdown Doubles as Political Cover

SB118 includes a section targeting sweepstakes casino platforms (e.g., Sportzino and Fliff) and threatens civil penalties, similar to California’s recent sweepstakes casino ban.

This approach may appeal politically: It allows lawmakers to claim they are addressing the gray/black market while also authorizing a larger, state-sanctioned online casino market.

Virginians should carefully evaluate policymaker statements and decide for themselves whether they are being lied to or misled.

If VA Legalizes Online Casinos, How Soon Before Launch?

SB118 sets a timetable: Virginia Lottery Board regulations by Sept. 30, 2026; notice from companies seeking to operate Virginia online casinos starts July 1, 2026. Launch depends on filing windows.

In practice, the start would depend on whether a bill passes both chambers, is signed by the governor, and how quickly regulations and licensing are finalized. At the earliest, Virginia online casinos wouldn’t launch until the fourth quarter.

The key point: The online casino framework is designed to move quickly once enacted.

Help in VA if You’re Worried About Your Gambling

If you (or someone you know or love) feels pulled toward casino-style gambling—especially predatory online platforms—get support to quit gambling sooner rather than later. Find a replacement for gambling.

Virginia resources include the state problem gambling helpline (1-888-532-3500) and 1-800-GAMBLER, a routing used by many states/resources.

Frequently Asked Questions

Are online casinos legal in Virginia?

No. Virginia has not legalized “internet gaming” (online casinos). SB118 and HB161 are 2026 proposals that would authorize it under Virginia Lottery Board regulation.

What is SB118 in Virginia?

SB118 is a 2026 Senate bill that would authorize online casino gambling, set a 15% tax, allow up to three branded platforms per casino operator, and create licensing/fee structures.

How would Virginia tax online casinos under the 2026 bills?

The introduced framework sets a 15% tax on adjusted gross internet gaming revenue. SB118 also directs 5% of tax revenue to the Problem Gambling Treatment and Support Fund and 6% to a hold-harmless fund until 2030.

Why are online casino games considered high-risk?

Large-scale research syntheses find problem gambling rates are highest among online casino/slots gamblers compared with other gambling activities, reflecting how these games are designed and consumed.