Virginia lawmakers have taken a significant step toward expanding the state’s regulated gambling market with the introduction of House Bill 161, a proposal that would legalize online casino gaming and online poker. Pre-filed for consideration during the 2026 General Assembly session, the bill reflects both fiscal pressures within the state and a broader national shift toward regulated digital gambling.

If enacted, HB 161 would authorize a wide range of online casino games, including digital slots, blackjack, roulette, and other traditional table offerings. The legislation would place oversight authority with the Virginia Lottery Board, extending its regulatory responsibilities beyond sports betting into a full-scale iGaming framework.

A Structured Regulatory Approach

House Bill 161 outlines a comprehensive licensing and compliance structure designed to mirror regulatory models already in place in neighboring states. Operators would be required to undergo background checks, submit detailed financial disclosures, and comply with ongoing monitoring by regulators. The bill also emphasizes consumer protection, mandating responsible gambling tools such as self-exclusion programs, deposit limits, and spending controls.

The legislation arrives as Virginia faces mounting fiscal challenges, including a projected budget shortfall approaching $1 billion in 2027. Supporters argue that legal online casino gaming could provide a new and reliable source of tax revenue without raising existing taxes. While revenue estimates have not yet been formally released, experiences in states such as New Jersey, Pennsylvania, and Michigan suggest iGaming can generate hundreds of millions of dollars annually once markets mature.

A notable component of HB 161 is the inclusion of online poker. The bill would allow Virginia to join the Multi-State Internet Gaming Agreement (MSIGA), enabling shared player pools with participating states. Interstate liquidity has become a critical factor in sustaining online poker ecosystems, improving game variety and prize pools while increasing operator viability.

For Virginia players, MSIGA participation would mean access to larger tournaments and broader competition. For operators, it would reduce the limitations of a single-state market, potentially accelerating adoption and revenue generation compared to stand-alone poker platforms.

Industry Expansion and Oversight Challenges

Licensed gaming companies—many of which already operate sports betting platforms in Virginia—would be positioned to expand into online casino offerings. This could lead to increased competition, diversified products, and cross-platform integration between sports wagering and casino gaming.

However, regulators would face the challenge of building and scaling oversight mechanisms for a more complex digital gambling environment. The expansion could require additional staffing, technical infrastructure, and enforcement resources, but it may also generate new jobs and attract technology and compliance investments into the state.

Virginia’s proposal aligns with a broader national trend toward the expansion of regulated online gambling. Since the Supreme Court’s 2018 decision to overturn the federal sports betting ban, states have steadily broadened legal gambling frameworks, with online casinos increasingly viewed as a logical next step.

As of now, a limited but growing number of U.S. states have legalized online casino gaming. Legislative efforts in 2025 and 2026 are expected to intensify as states confront budget gaps, competition from neighboring jurisdictions, and continued consumer demand for digital entertainment options. By 2026, industry analysts expect U.S. iGaming markets to become more standardized, with clearer regulatory best practices and stronger consumer protection requirements. States entering the market later, such as Virginia, may benefit from established regulatory models and proven technologies, reducing early-stage risks.

Interstate collaboration—particularly for online poker—is also likely to expand, creating larger, more stable player networks. At the same time, responsible gambling measures are expected to become more sophisticated, incorporating real-time monitoring, behavioral analytics, and tighter advertising controls.

From a market perspective, consolidation among operators may continue, favoring companies with established technology platforms, compliance expertise, and multi-state footprints. For states, the emphasis will likely shift from initial legalization debates to fine-tuning tax rates, enforcement strategies, and long-term revenue sustainability.

 

House Bill 161 reflects a growing recognition among lawmakers that regulated online casino gaming can provide consumer protections while generating meaningful tax revenue for states facing budget pressure.

An Early but Pivotal Step

House Bill 161 represents an early stage in Virginia’s consideration of online casino legalization, and its ultimate fate will depend on legislative negotiations, public policy debates, and fiscal priorities during the 2026 session. Still, its introduction signals growing acceptance of iGaming as a regulated revenue source rather than an unregulated risk.

As lawmakers weigh the potential economic benefits against regulatory and social considerations, Virginia’s decision could place it among a new wave of states reshaping the U.S. iGaming landscape heading into 2026 and beyond.