Virginia Online Casinos

Online gambling is not yet legal in Virginia. However, preliminary discussions regarding the potential legalization of Virginia online casinos indicate that lawmakers hold a generally favorable perspective on the matter.

Currently, legal Virginia online gambling options are limited to sports betting, pari-mutuel horse racing wagering, and online lottery sales. Additionally, individuals can use sweepstakes casinos to play casino-style games with opportunities to win real cash prizes.

This report examines the prospects of legalizing online casinos in Virginia and related matters, including:

  • Frequently asked questions
  • Favorable factors and challenges for legalization efforts
  • Potential regulatory frameworks
  • Economic opportunities of a regulated Virginia online gambling market

Sweepstakes Casinos in Virginia

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Sweepstakes casinos replicate the experience of traditional online gambling while maintaining their legality through a distinct operational model.

Rather than wagering with cash, players use virtual tokens, typically called Gold Coins, and may earn sweepstakes entries, often called Sweeps Coins, which can be redeemed for cash prizes.

Players may also receive Sweeps Coins as bonuses when purchasing Gold Coins, generally at a 1:1 ratio per dollar spent. For instance, a $20 Gold Coin purchase typically provides $20 in Sweeps Coins, which can be used to play casino-style games such as:

In Summary: Sweepstakes casinos have become the default online gambling alternative for many Virginias, delivering an experience comparable to real-money casinos.

Are Sweepstakes Casinos Legal in Virginia?

Sweepstakes casinos are legal in Virginia because they operate under a sweepstakes model that distinguishes them from traditional gambling.

Their legal standing hinges on the ability for players to participate for free and without making a purchase. It’s possible to purchase Gold Coins and receive free Sweeps Coins as a bonus, but it’s not necessary to do so.

Although sweepstakes casinos comply with Virginia law, they remain unregulated. Consequently, players must exercise caution when choosing where to play and only use reputable sweepstakes casinos.

Recommended Virginia Sweepstakes Casinos

Legal Threats Facing Sweepstakes Casinos in Virginia

To date, Virginia online gambling regulators have not taken enforcement actions against sweepstakes casinos.

However, regulators in some states have issued cease-and-desist orders to sweepstakes operators, accusing them of offering online gambling under pretenses.

In others, lawmakers have proposed legislation prohibiting sweepstakes casinos and similar platforms designed to mimic gambling.

Although none of those actions have occurred in Virginia, it’s conceivable that regulators will eventually target the sweepstakes model.

Attorney General Actions

Virginia’s Attorney General has not yet moved against sweepstakes operators via actions such as cease-and-desist orders.

However, attorneys general in other states, including Michigan, Maryland, Delaware, and Connecticut, have issued such orders. These actions preview potential future developments should Virginia’s Office of the Attorney General choose to intervene.

Prominent sweepstakes casino operators have withdrawn from multiple states following these demands.

Legislative Threats

Sweepstakes casinos in Virginia face the threat of legislative action.

Historical precedent exists within the Commonwealth for targeting sweepstakes-based operations. For example, Virginia enacted SB 1738 in 2019, banning “sham sweepstakes” gaming machines.

At the time, certain storefronts permitted customers to purchase items of value in exchange for tokens used on gambling machines or to access online casino games within the premises. Lawmakers passed the bill to prohibit such operations, even if they provided mechanisms for customers to play without making a purchase.

Although SB 1738 focused on physical machines rather than online platforms, its historical context suggests potential future actions for their online equivalents (sweepstakes casinos).

Will Virginia Legalize Online Casinos?

With the rise of online gambling alternatives and neighboring states advancing toward iGaming, the key question facing Virginia is whether it will legalize online casinos.

This question came to the forefront of legislative discussions in 2025, but the outcome is still pending.

Senator Mamie Locke’s SB 827 was Virginia’s first serious attempt to legalize online casinos. Although the bill was deferred indefinitely for further study, the surrounding debate highlights the opportunities and obstacles facing future online gambling legislation in Virginia.

Factors Favoring Legalization

The success of online lottery sales and sports betting demonstrates strong consumer demand in Virginia.

Residents wager over $7 billion annually via sportsbook apps and spend roughly $3 billion online on lottery tickets. These figures indicate Virginians would embrace online casinos with similar enthusiasm.

Additionally, legalization would appeal to a younger demographic and create a significant new revenue stream for the state.

A coalition of industry advocates, gaming companies, and lawmakers actively support online casino legislation in Virginia.

Multiple casino operators already invested in Virginia support online gambling because it allows them to leverage their brands and customer loyalty beyond their physical properties.

Similarly, commercial online gambling brands are lobbying to regulate Virginia online casinos by highlighting success stories in other states.

Their lobbying efforts provide research and funding to make the case. For instance, stakeholders provided optimistic data to Virginia lawmakers on the topic during hearings for SB 827 in 2025.

The National Council of Legislators from Gaming States (NCLGS) has also contributed by developing model online gambling legislation to guide states like Virginia.

SB 827 likely drew from such models, as it resembles frameworks used elsewhere. Having model legislation and case studies from other jurisdictions at hand gives lawmakers confidence that they can safely and effectively regulate online casinos in Virginia.

In 2022, the American Gaming Association estimated that illegal offshore casinos earn $350 million in annual gross gaming revenue from Virginia residents.

Legalization could redirect this activity into a regulated market, benefiting American companies and providing the state with a substantial source of tax revenue.

Moreover, legal online casinos in Virginia would divert players from unregulated offshore operators to licensed platforms with robust consumer protection and responsible gambling mechanisms.

One of the strongest indicators that Virginia will pass legislation authorizing online casinos is its simple legislative path.

That’s because Virginia does not have a Constitutional prohibition against gambling expansion. In many states, legalizing online casinos requires constitutional amendments and voter approval via statewide referendums, processes that introduce uncertainty and delays.

Notably, Virginia did not need constitutional amendments to legalize land-based casinos and online sports betting.

Should lawmakers reach a consensus on regulating online gambling, they can achieve it via the standard legislative process.

Additionally, Virginia does not have complex tribal issues to consider. Issues surrounding tribal sovereignty and gaming compacts (which often include substantial revenue payments to the state) have caused years-long delays in other states.

Legalization Challenges

Some of Virginia’s most vigorous opposition to online gambling comes from casino operators themselves.

For example, the Cordish Companies, the company responsible for Petersburg’s $1.4 billion casino project, has consistently opposed legalizing online gambling in Virginia, Louisiana, Maryland, and other states, citing potential revenue loss.

The Virginia Lottery has also raised concerns about revenue impacts. In a fiscal analysis of SB 827, the Lottery noted:

  • The Virginia Online Lottery has been a massive success, now accounting for over half of all lottery sales
  • Data in other states has shown that annual lottery growth is higher in states with iLottery only compared to states with both iLottery and iGaming
  • The Virginia Lottery anticipates that legal online casinos will reduce net revenue for the Commonwealth by negatively impacting online lottery sales and casino gaming taxes

The governor’s office and some lawmakers have expressed reluctance to expand legal gambling in the Commonwealth.

For instance, Governor Youngkin opposed reauthorizing skill gaming machines, citing a need for stronger oversight and indicating a preference for curbing unregulated gambling over expanding legal gambling indiscriminately.

Additionally, lawmakers shelved Virginia’s 2025 online casino bill to allow further study and consideration of a unified gambling regulatory body.

Virginia’s fragmented gambling regulatory framework poses a unique challenge.

Unlike most states with a single gaming commission, Virginia distributes oversight across multiple agencies:

Before launching online casinos, Virginia would need to ensure that the designated regulator, likely the Lottery Board under SB 827, has the capacity, expertise, and funding to oversee a sophisticated iGaming industry.

The Lottery has estimated that SB 827’s proposed $1 million license fee would not fully cover regulatory costs, potentially requiring additional funding from gambling tax revenue or operator fees.

Additionally, crafting regulations from scratch (covering everything from game testing to reserve auditing) is a non-trivial task. In states with online gambling, regulatory rulemaking has taken months or longer.

This means significant homework and consensus-building are required before a bill regulating Virginia online casinos can comfortably pass, which is an obstacle in itself.

Consolidating Virginia’s regulatory approach has become a legislative priority. The governor’s office and numerous lawmakers have suggested that the legislature prioritize the creation of a consolidated gaming commission to streamline oversight.

In 2025, the governor urged the legislature to focus on “building a world-class regulatory body” rather than “one-off bills pushed by special interest groups.”

Although the governor has not directly addressed recent Virginia online gambling efforts, these efforts appear to be secondary to broader regulatory reforms.

How Virginia May Regulate Online Casinos

Lawmakers can draw inspiration from other states’ experiences, past Virginia proposals, and model legislation from the National Council of Legislators from Gaming States (NCLGS).

One recent Virginia online gambling proposal (SB 827, 2025) provides a potential framework:

  • Regulator: The Virginia Lottery Board would regulate online gambling, aligning with its role in overseeing sports betting and casinos. Alternatively, a new Virginia Gaming Commission could emerge from recent efforts to streamline regulation
  • Eligible Licensees: Licensed brick-and-mortar casinos could apply for Virginia online gambling licenses
  • Three Skins: Each licensee could partner with up to three commercial brands (e.g., BetMGM Online Casino, Bet365 Casino) to operate distinct online casino platforms (“skins”)
  • Licensing Fees: A $1 million initial licensing fee for a five-year term
  • Taxes: A 15% tax on gross gaming revenue

Virginia Online Gambling Market Potential

The Virginia online gambling market has massive economic and tax revenue potential. Multiple firms have estimated that annual gross gaming revenue (GGR) will approach $1.5 billion.

Third-Party Market Forecasts

A 2024 Analysis Group study projected that Virginia online casinos could generate $745 million in GGR in their first year, increasing to $1.33 billion after five years.

Similarly, Vixio GamingCompliance’s 2024 iGaming study estimated $1.44 billion in GGR at market maturity.

Market Potential Scaled for Population

The above projections predate 2024’s record-breaking figures in multiple states. For instance, New Jersey (pop. 9.5 million) and Michigan (pop. 10.1 million) each saw roughly $2.4 billion in operator GGR.

Virginia’s population (8.8 million) is roughly 92% of New Jersey’s and 87% of Michigan’s. If the Virginia online gambling market achieves just 80% of these states’ performances, it could reach annual GGR of $1.9 billion after five years.

Potential Virginia Online Gambling Tax Revenue

Depending on the tax rate, Virginia could earn between $199.5 million and $665 million in tax revenue annually.

Market Estimate
(Annual GGR)		Tax Revenue
(Under a 15% rate)		Tax Revenue
(Under a 35% rate)
$1.33 billion$199.5 million$465.5 million
$1.44 billion$216 million$504 million
$1.9 million$285 million$665 million

Note: These figures are based on the above projections and discount any impacts tax rates may have on the actual market size.

Virginia Online Gambling FAQ

No. Virginia has not yet legalized online casinos, but sweepstakes casinos serve as the closest alternative.

Sweepstakes casinos are legal in Virginia, but increasing regulatory scrutiny could eventually lead to the state demanding operators to cease serving residents.

Most sweepstakes casinos in Virginia require customers to be at least 18 or 21.

Past proposals suggest the Virginia Lottery Board, although lawmakers may establish a new dedicated gambling regulatory agency.