Virginia legislators are preparing to revisit gambling policy in the 2026 session, with online casino legalisation and the creation of a dedicated gambling regulator emerging as parallel priorities. New bills introduced this week signal a renewed effort to modernise oversight of a gambling market that has expanded rapidly over the past five years.
Delegate Marcus Simon has introduced HB 161, a proposal that would legalise online casino gaming in the commonwealth. Separately, Delegate Paul Krizek is preparing legislation to establish a Virginia Gaming Commission, aimed at consolidating regulatory authority currently split across multiple state bodies.
Fragmented oversight under pressure
Virginia’s gambling framework has evolved in stages. Lawmakers authorised land-based casinos in 2019 and sports betting in 2020, paving the way for retail casinos and online sportsbooks to launch statewide. At present, casinos and sports betting fall under the Virginia Lottery Board, while horse racing wagering is overseen by the Virginia Racing Commission. Charitable gambling and daily fantasy sports are regulated separately by the Virginia Department of Agriculture and Consumer Services.
Lawmakers have increasingly argued that this fragmented structure is no longer fit for purpose. In 2025, a Joint Subcommittee studying the feasibility of a Virginia Gaming Commission held multiple hearings, laying the groundwork for renewed legislative action this year.
Efforts to create a standalone regulator have previously stalled. Former governor Glenn Youngkin sought to establish a gaming commission through the state budget last year, but Democratic leadership, holding narrow majorities in both chambers, rejected the proposal.
Industry growth fuels calls for reform
Krizek said the scale and pace of Virginia’s gambling expansion has exceeded expectations. The state now has three permanent casinos, with two additional temporary facilities operating or preparing to open, and further locations under consideration.
Beyond casinos, the market includes historical horse racing terminals, live racing at Colonial Downs, hundreds of charitable bingo halls, thousands of electronic pull-tab machines, online sports betting, and daily fantasy sports. According to Krizek, regulation by multiple agencies has resulted in overlapping rules, inconsistent standards, and administrative inefficiencies.
He argued that a single gaming commission would streamline oversight, improve enforcement consistency, and strengthen consumer confidence, while also supporting responsible gambling initiatives and preparing the state for future products such as online casinos.
Online casino proposal returns
HB 161 marks the return of the online casino debate after similar bills were withdrawn last year to allow for further study. Under Simon’s proposal, the Virginia Lottery Board would regulate online casino gaming, despite previous concerns from the board that it is already stretched by recent market expansions.
The bill would allow each land-based casino to operate up to three online casino skins, with a licence fee of US$2 million per platform. A 15% tax rate on online casino revenue is proposed, with 5% of proceeds earmarked for the Problem Gambling Treatment and Support Fund.
What it means for the market
For operators, Virginia represents a potentially attractive new online casino market, combining an established sports betting base with a growing retail casino footprint. The proposed three-skin model and moderate tax rate could support competition, but uncertainty around long-term regulatory structure remains a key consideration.
For regulators and lawmakers, the parallel push for online casino legalisation and a unified gaming commission reflects a recognition that further expansion may be difficult to manage under the current fragmented system. Many legislators have signalled that creating a single regulator could be a prerequisite for approving new gambling verticals.
For players and communities, the outcome could determine how quickly Virginia moves toward a more comprehensive gambling framework, including stronger consumer protections and more coordinated responsible gambling efforts.
With lawmakers set to debate both proposals during the 2026 session, Virginia is shaping up as one of the more closely watched US jurisdictions this year, as it weighs whether to consolidate oversight before opening the door to its next phase of gambling expansion.