Virginia Latest to Introduce Sweepstakes Casinos Ban
Add Virginia to the growing list of states that want to prohibit sweepstakes casinos.
Prefiled and introduced by Virginia Del. Marcus Simon (D – District 13) on Jan. 6, the seven-page iGaming House Bill No. 161 (HB161) will be offered to the state’s House of Delegates on Wednesday. Besides allowing online casino gaming, the bill would prohibit any form of sweepstakes gaming in the state that is not conducted by an internet gaming operator licensed in the Old Dominion State.
If approved and signed into law, anyone that is caught violating the new law would be subject to “a civil penalty of not more than $100,000 for the first offense and not more than $250,000 for the second and each subsequent offense. Each day that such violation continues shall be deemed a separate offense.”
Virginia is the fifth state to propose a sweepstakes casinos ban in this year’s new legislative sessions, joining Florida, Indiana, Maine, and Mississippi. Other states could follow suit.
HB161, along with HB271, are two bills introduced this month to revive the prospects of iGaming within the state.
Simon’s bill would authorize internet gaming regulated by the Virginia Lottery Board (VLB), allowing licensed casino gaming operators (tied to Virginia’s land-based casino projects) to offer online platforms (up to three per operator, with potential of 15 total).
Approved operators would pay an initial licensing fee of $500,000 and a renewal fee of $250,000. In addition, the state would levy a 15% tax on adjusted gross internet gaming revenue. That new tax revenue would be directed to problem gambling funds and other state priorities.
HB 271, which was prefiled on Friday and also will be introduced Wednesday, would establish the Virginia Gaming Commission (VGC) as an independent regulator to oversee all forms of gaming. The proposed commission would also oversee the state lottery and horse racing, which already have state agencies regulating them. The lottery board currently oversees sports betting and casino gaming. This would be a companion to HB161.
Eight States Legal
Eight states have legalized iGaming: Connecticut, Delaware, Maine, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia.
Last week, Maine became the most recent state to legalize online casinos after Governor Janet Mills announced she will allow LD 1164, “An Act to Create Economic Opportunities for the Wabanaki Nations Through Internet Gaming,” to become law.
Online casinos will not be immediately available to access in the Pine Tree State as the next step toward official launch will be regulation.
The Maine Gambling Control Unit (MGCU) will draft rules governing licensing, platform standards, responsible gaming, and partnerships with tribal operators. Once established, tribes can start the process of selecting commercial iGaming partners and apply for licenses.
The process could take months, meaning a launch will inevitably happen later this year or early 2027.
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