Virginia iGaming Survives Re-Votes, While Sweepstakes Casinos Face Direct Ban

Virginia’s push to legalize online casinos hit a roadblock on February 17 and 18, 2026. Nevertheless, it made an unexpected comeback. Though two bills initially failed, they were revived through reconsideration just hours later.

On February 17, SB 118 narrowly missed passing in the Senate by one vote; however, it passed 19 to 17 after three senators changed their votes to abstain. The next day, the House rejected HB 161 by a vote of 49 to 46. Then, they brought it back to the floor, where it passed 67 to 30 before the crossover deadline.

While the dramatic turnaround grabbed headlines, it is the bills themselves that will change the game. Both bills aim to legalize online casino gaming in Virginia and ban unlicensed internet gaming, which puts sweepstakes casinos in a tough spot. Until now, these casinos have operated in a regulatory gray area, a situation that the new laws could change.

The revived bills are moving forward, and the language regarding sweepstakes could have a significant impact on the market.

Why There Are Two Bills in the First Place

The state of Virginia is taking a two-pronged approach to online casino bills. One is in the Senate, and the other is in the House.

The Senate has SB 118 and the House has HB 161. These two bills are moving forward simultaneously, but they are not identical. That’s why each passed in its respective chamber and is now heading to a conference committee, where lawmakers will resolve the differences between them. Once the differences are resolved, the final bill can be sent to the governor.

As it turns out, however, both bills agree on one key issue: sweepstakes.

Both bills prohibit unlicensed internet gaming. They also broadly define sweepstakes. They both also include mechanisms for enforcing these rules.

Thus, despite their differing timelines and funding details, they treat sweepstakes casinos the same.

A Sweepstakes Casino Ban Sits In Both Bills

Both bills address sweepstakes directly in two separate parts of the statute: the definitions section and the enforcement section.

Definition: SB 118 – § 58.1-4100

Sweepstakes” means a promotional, advertising, or marketing event, contest, or game, whether played online or in person, in which a prize or prize equivalent is awarded, either directly or indirectly through means such as a dual currency system of payment, as determined by the Board, that allows a participant to exchange the currency for a prize or prize equivalent.

Prohibition and Civil Penalties: SB 118 – § 58.1-4155

Subsection A:

Except if conducted by a licensed internet gaming operator, offering or conducting a sweepstakes in which a person present in the Commonwealth may participate by paying or proffering something of value, including an entry fee for the opportunity to win or receive cash or a cash equivalent, shall constitute illegal internet gaming in violation of this section, and shall subject the operator or sponsor, or any officer, employee, or agent of the operator or sponsor, to civil liability under this section.

Subsection B:

Any person who violates this section shall, in addition to any other sanctions authorized by law, be liable for a civil penalty of not more than $100,000 for the first offense and not more than $250,000 for the second and each subsequent offense. Each day that such violation continues shall be deemed a separate offense.

Definition: HB 161 – § 58.1-4100

Sweepstakes” means a promotional, advertising, or marketing event, contest, or game, whether played online or in person, in which a prize or prize equivalent is awarded, either directly or indirectly through means such as a dual currency system of payment, as determined by the Board, that allows a participant to exchange the currency for a prize or prize equivalent.

Prohibition and Civil Penalties: HB 161 – § 58.1-4155

Subsection A:

Except if conducted by a licensed internet gaming operator, offering or conducting a sweepstakes in which a person present in the Commonwealth may participate by paying or proffering something of value, including an entry fee for the opportunity to win or receive cash or a cash equivalent, shall constitute illegal internet gaming in violation of this section, and shall subject the operator or sponsor, or any officer, employee, or agent of the operator or sponsor, to civil liability under this section.

Subsection B:

Any person who violates this section shall, in addition to any other sanctions authorized by law, be liable for a civil penalty of not more than $100,000 for the first offense and not more than $250,000 for the second and each subsequent offense. Each day that such violation continues shall be deemed a separate offense.

Where SB 118 And HB 161 Align Aside From The Sweepstakes Ban

For the most part, the Senate and House proposals have the same core structure for regulating online casino gaming.

Here are the main points from both proposals:

• Full online casino gaming gets the green light, including slots, table games, poker, and live dealer internet games.
• Casino operators must pay a substantial $500,000 licensing fee, plus an additional $2 million for each platform they offer.
• The Virginia Lottery Board will oversee online gaming, including licensing and enforcement. They will also shut down any unlicensed operators.
• Each licensed casino gaming operator can offer up to three online gaming platforms, potentially creating a statewide market of up to 15 platforms across Virginia’s five casinos.

The main differences between SB 118 and HB 161 lie in taxation rates and certain expansion provisions, though not in the organization of the market itself.

The Exact Timeline Depends On Which Version Survives

Both chambers have advanced their versions of the bills, but there’s still no launch date. The two bills outline different timelines that will need to be worked out.

According to SB 118, the Virginia Lottery Director would begin accepting notices of intent on July 1, 2026. The board must create and announce the rules by September 30, 2026. These dates demonstrate that changes to the organization will begin in 2026.

HB 161 suggests a more gradual approach. It says that July 1, 2027, is the start date for accepting notices of intent. Also, the bill needs to be reenacted by the 2027 session of the General Assembly before it can take effect. In practice, this means we won’t see the full rollout until 2028.

Why the Governor Remains a Key Variable

Even if the conference committee passes a unified version, the Governor still has to sign it. There’s still a chance he’ll veto it, and the Senate’s 19-vote margin wouldn’t be enough to override it.

Just because it passed in both chambers doesn’t mean it’s a done deal. The executive branch still has to sign the bill.

Sources & References

• Hart, J. (2026, February 18). Charlottesville delegation split on I-gaming legislation that passed GA after first being rejected. Cville: Right Now. Link
• iDevelopment & Economic Association. (2026, February 6). VA HB 161 passes committee; SB 118 awaits Senate Finance hearing. Link
• LegiScan. (2026). Roll call vote: Virginia Senate Bill 118 (2026 regular session). Link
• Virginia General Assembly. (2026). HB161: Virginia Lottery; internet gaming authorized, definitions, effective clause. Virginia Legislative Information System. Link