Virginia Lawmaker Pushes For HB161 to Ban Unlicensed Sweepstakes Casinos

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Virginia joins the early rush of states prepping drafts and polishing bills to regulate sweepstakes casino games in January 2026. 

Indiana opened its debate to ban sweepstakes casinos last January 6th, and Massachusetts recently eyed March 16th as the reporting date.

Now, Virginia joins the conversations with the filing of House Bill 161- Virginia Lottery; Internet gaming authorized, penalties. 

Introduced by Virginia Delegate Marcus Simon, HB 161 aims to overhaul the state’s online gambling framework on two counts: one, legalizing and regulating iGaming and two, banning sweepstakes casino games, unless they’re operated by licensed gaming companies.

Virginia Pushes for Full Regulation

Virginia’s latest efforts to regulate gaming come in the form of HB 161, as introduced and pre-filed by Marcus Simon. The bill aims to amend and reenact §§ 58.1-4100 and 58.1-4102 of the state code, relating to definitions and the powers and duties of the Board, and the addition of an article on casinos, internet gaming, and penalties. 

Specifically, Simon’s bill boasts the following highlights:

• Internet gaming shall be regulated by the Virginia Lottery Board

• An operator that intends to run internet gaming must submit a notice of intent to the Director ofthe  Virginia Lottery; one (1) notice of intent for every platform, up to three (3)

• Payment of a $2 million platform fee, which shall be deposited into the Gaming Platform Fee Holding Fund

• Applicants shall pay $500,000 ass initially licensing fee

• Tax rate set at 15% of the adjusted gross internet gaming revenue

• Of the total possible revenues, five percent is allocated to the Problem Gambling Treatment and Support Fund, six percent for the Internet Gaming Hold Harmless Fund, and the rest to the state’s general fund.

Get Licensed, Or Face the Penalties and Consequences

Virginia’s HB 161 primarily targets sweepstakes gaming, and it’s deemed illegal unless it’s offered by a licensed and state-regulated operator. Failure to comply would result in a penalty of up to $100k on the first offense and up o $250 for subsequent offenses. The bill adds that enforcement authority lies in the hands of the state’s police, the Attorney General, and the Virginia Lottery Board.

The state’s HB 161 is an interesting piece of legislation as it combines both iGaming (online casino games) and sweepstakes casino.

Unlike other states, Virginia is pivoting to the regulation and formal legalization of online casino gaming. This move perfectly alights the recent policy directions in other states, such as Indiana, Florida, and Maine, where legislators are looking to restrict players’ access to sweepstakes casino games.

Can Virginia's HB161 Offers a Win-Win Solution?

A careful reading of the bill’s language reveals a win-win solution for stakeholders. A licensed gaming industry could generate tax revenues, which could support responsible gambling efforts. 

Players are protected, too, since they can now play at platforms that are fully regulated, with stronger oversight.

Finally, operators can benefit too through continuous operations, provided they comply with the regulatory requirements.

REFERENCES

• HB 161