For Social Gaming Leadership Alliance (SGLA), Virginia’s best path for the sweepstakes casino industry is “modernized regulation”, backed by sensible taxation. In its recent press release, SGLA cited a recent Eilers & Krejcik’s economic modelling that could unlock up to $30 million in state revenues, while strengthening player protection.

According to Eilers & Krejcik, the additional revenue stream is possible by introducing annual license/registration fees and player purchases tax. These are paid by operators based out-of-state, and excludes the state’s other companies operating withining the industry’s supply chain.

Keeping an Eye on Potential Revenues: License Fees and Player Purchase Taxes

Virginia’s sweepstakes ban bills, SB118 and HB161, have already advanced in both chambers with bi-partisan support. Although these bills are on track for approval, sweepstakes casino operators aren’t alone in their fight for legitimacy.

The Social Gaming Leadership Alliance (SGLA), an advocacy group, is leading a campaign to keep sweepstakes casino games available to players.  It recently partnered with Eilers & Krejcik to identify possible economic benefits if the state pursues regulation, instead of full ban.

In its February 2026 Report, the research firm found two revenue streams:license fees and tax on player purchases.

• License/registration fees. Licensing directly benefits the state in terms of revenues and it allows better auditing and regulation of these platforms. Eilers & Krejcik estimates that Virginia could add $4 to $5 million annual, using a simplistic methodology.

• Tax on players’ purchases. According to the firm, players’ purchases amounted to $423 million in 2025, or roughly 3.4% of the total US market. Assuming a sales tax rate of 7% (in areas like Williamsburg and York County), the commonwealth could potentially earn $29.6 million in annual taxes.

SGLA Urges Virginia: Regulate, Instead of a Complete Ban

SGLA, in a press release published February 24th, called on Virginia to reconsider its sweepstakes casino ban. The group urged legislators to give the industry a chance, the same opportunity it extended to sports betting, daily fantasy sports, and iGaming. The trade group also cited a nationwide survey where 84% of Americans favor modernizing laws to tax and regulate social games, like the popular slots and tablegames of sweepstakes casinos.

Sean Ostrow, the group’s Managing Director, says that the state’s legislature faces an important test. “Lawmakers can effectively ban an established Social Plus industry that has operated in Virginia since 2012, or they can implement a thoughtful regulatory framework that protects consumers and generates more than $30 million in new annual revenue for the Commonwealth”, says Ostrow.

Tthe 2026 legislative session scheduled to adjourn in mid-March and no unified bill ready for the governor’s approval, this agenda is deemed pending and delayed until 2028 or later.

REFERENCES

• Eilers & Krejcik February 2026 Report