Virginia iGaming Bill Would Fund Formation of Gaming Commission
Posted on: January 12, 2026, 12:40h.
Last updated on: January 12, 2026, 01:02h.
- An iGaming bill in Virginia has been prefiled
- Virginia’s 2026 session begins on Wednesday
- Several gaming bills are expected, including legislation to permit a casino in Northern Virginia
Prefiled legislation in Virginia would authorize online casinos and use iGaming licensing fees to establish the formation of a state gaming regulatory body.
Virginia Rep. Marcus Simon (D-Falls Church) is behind House Bill 161. The statute proposes allowing the five casino licensees to partner with iGaming platforms to conduct online slot and table game operations within the commonwealth.
Each online casino license would require a one-time upfront fee of $2 million. The initial licensing revenue would be allocated to the Internet Gaming Platform Fee Holding Fund for the purpose of financing startup costs associated with the implementation of a gaming commission.
In 2023, the Virginia General Assembly established a joint subcommittee to study the feasibility of establishing a gaming commission. Currently, the Virginia Lottery Board oversees the lottery, casinos, and retail and mobile sports gambling. The Virginia Racing Commission governs horse racing, parimutuel wagering, and slot-like historical horse racing (HHR) machines.
Rapid Gaming Expansion
It was less than a decade ago that Virginia had few forms of gambling outside of the lottery and parimutuel wagering. That began changing in 2018 when lawmakers agreed to authorize HHR gaming in a deal to save the Colonial Downs Racetrack.
Two years later, Virginia authorized sports betting and as many as five land-based commercial casinos.
The 2026 legislative session, set to begin on Wednesday, will see a slew of gaming bills considered. Along with Simon’s iGaming bill, legislation to allow a casino in Fairfax County is expected. Bills regarding controversial skill gaming machines, sports betting tax hikes, and possible legislation on prediction markets and online sweepstakes casinos could also be filed.
Simon’s iGaming statute follows a similar bill he authored last year. His draft complemented Sen. Mamie Locke’s (D-Portsmouth) Senate Bill 827, which was tabled after lawmakers determined that the Virginia Lottery Board would be ill-equipped to govern additional forms of casino gambling.
Even if we wanted to pass this right now, it would be a failure because they (the Virginia Lottery Board) would not be able to handle it. It would be too much,” Del. Paul Krizek (D-Alexandria) said at the time.
Krizek has prefiled a 2026 bill to create a state gaming commission and initiate a study to evaluate the “legal, economic, technological, and public-policy implications of prediction markets.”
Gov. Glenn Youngkin (R) has supported the formation of a gaming commission. His successor, Governor-elect Abigail Spanberger (D), who will take office on January 17, hasn’t revealed her gaming positions. Spanberger received more than $2 million in campaign support from the Sports Betting Alliance, a group that lobbies for legal, regulated online sports betting and casino gambling.
Major Tax Revenue Generator
Proponents of allowing a casino in Northern Virginia by way of Tysons in Fairfax County say the state’s tax benefit would be considerable — possibly more than the five other casinos combined. That’s why, though local officials, including the Fairfax County Board of Supervisors, are opposed to a casino, state lawmakers could end up forcing Fairfax County residents to consider a casino through a countywide ballot referendum.
Simon’s iGaming bill could perhaps lessen support for a land-based casino in Fairfax, as online casino revenue would also be significant for Richmond. Online gambling presents much better margins for operators than does sports betting.
Simon suggests that the state take 15% of each online casino’s gross revenue, or the money after winnings are paid. In New Jersey, iGaming revenue totaled almost $2.2 billion through 11 months of 2025.
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