SGLA Campaigns for Modernized Regulation Instead of the Sweepstakes Casino Ban in Virginia

The Social Gaming Leadership Alliance (SGLA) is stepping up the fight for sweepstakes casino operators in Virginia.In a February 24 op-ed, the industry advocacy group argued that the state could gain roughly $30 million in annual revenue by regulating Social Plus games. 

The Eilers & Krejcik Gaming report (February 2026) argued that with $423 million in revenues and 7% in player purchase taxes, the state can realize $29.6 million in annual tax revenue.

In addition, a regulated sweepstakes casino industry will also support 2,700+ jobs in cloud hosting and digital marketing, and a positive ripple effect on other vendors and employees along the supply chain.

Virginia Remains a Key Market for Sweepstakes Casinos

Virginia’s gaming scene has been thrust into the spotlight after Delegate Marcus Simon pre-filed HB161 last January 6th. The bill targets “Social Plus games”, a category of casino-style games that operate using sweepstakes promotions to reward players with real cash or other prizes. These sites comply with sweepstakes laws, with an alternate mode of entry (AMOE), and with a no-purchase requirement.

According to Eilers & Krejcik Gaming, Virginia boasts a robust sweepstakes casino market that could benefit the state economically. In its February 2026 report, the research firm estimates that Virginia accounts for about $423 million of the total $12.5 billion in sales in 2025. It added that by removing the costs associated with players’ prizes, the total sales amount to $4 billion, with $135 million for Virginia.

Eilers & Krejcik Gaming explained that regulating instead of banning these popular platforms has an economic ripple effect. Social Plus games operators can inject up to $1.468 to the national economy, through their partnerships with marketing and cloud hosting companies and payment processors.

A Quick Look at What Modernized Regulation Can Do for Virginia

If the state decides to regulate instead of ban these sites, then Virginia can enjoy plenty of economic and legal benefits.

• Direct tax revenue generation

• Authority to audit gaming platforms for compliance

• Clearer rules for enforcing penalties against erring operators

• Ability to recommend a  framework for collecting and monitoring additional revenues from taxes

Currently, taxing player purchases on these platforms is a simple way to expand the economic benefits to the state. Eilers & Krejcik Gaming estimates that with a 7% Players’ Purchase Tax, the commonwealth of Virginia could potentially collect $29.6 million in annual tax revenue.

SGLA Urges State to Reconsider Its Plan

Virginia’s SB118 and HB161 are threatening the operations of Social Plus platforms by requiring sites to become licensed using the rules for iGaming. According to SGLA, the use of iGaming’s legalization framework is “wholly incompatible with the Social Plus industry and the economic realities of free-to-play social games”. 

The trade group urges state lawmakers to give these games more study, the same favorable attention that they have extended to sports betting, daily fantasy sports, and iGaming.

Sean Ostrow, SGLA’s Managing Director, says that the state’s legislators “face an important choice”. Mr. Ostrow issues a challenge—ban an established industry that has served the state since 2012, or introduce a sensible regulatory framework that can potentially generate over $30 million in annual taxes, in addition to supporting thousands of jobs nationally.

REFERENCES

• HB161

• Eilers & Krejcik Gaming report (February 2026)