Virginia lawmakers have introduced HB 161, a bill that could potentially ban online sweepstakes games in the Old Dominion.
In fact, HB 161 is a wide-ranging bill that would effectively legalize iGaming for the first time in the Old Dominion, at the same time as banning sweeps sites such as WOW Vegas and McLuck. The vast majority of sweepstakes casinos do indeed operate in Virginia currently.
Introduced by Delegate Marcus Simon, HB 161 represents the reigniting of the conversation around internet gambling in VA. The state currently allows sports betting and retail casinos, but has never permitted regulated online casino gaming.
Similar bills were filed last year but were eventually shelved. There was also the formation of the Joint Subcommittee to Study the Feasibility of Establishing the Virginia Gaming Commission in 2023. So HB 161 looks to push forward an idea that’s been in the air for a while.
Goals of Virginia’s HB 161
The proposal would simultaneously expand legal gambling and remove sweepstakes casinos to clear the way, so to speak. In fact, sweepstakes gaming is the only incompatible format named specifically in the bill.
HB 161 outlines a system whereby operators would apply to the state and pay a license fee in the hopes of being granted a license. It also details how taxes would be collected and used – in part – to further the work of the state’s Problem Gambling Treatment and Support Fund.
In building such a system, it’s logical to remove competing alternatives, of which the sweepstakes model is certainly one. Therefore, HB 161 defines sweepstakes as a game:
“in which a prize or prize equivalent is awarded, either directly or indirectly through means such as a dual currency system of payment”
The bill then goes on to designate the format as “illegal internet gaming”.
Potential Fines for Sweepstakes Gaming in VA
In terms of penalties, HB 161 suggests fines of up to $100,000 for the first offense and up to $250,000 for the second and each further offense. It also adds “Each day that such violation continues shall be deemed a separate offense.” This would clearly open the door to rapidly building financial punishments for any sweepstakes operators in violation.
Supporters of the bill will be hoping sentiment has shifted since last year when similar bills eventually fizzled out.
In terms of its chances for passing, this kind of proposal represents a much bigger shift than the more focused anti-sweeps bills we saw find success in states like California and New York last year. And it should be remembered that bigger bills often face more resistance.
That being said, many of the anti-sweepstakes bills being debated this year go beyond a single issue – HB 161 is one of a building trend in 2026. Lawmakers and observers will be watching closely as it begins its journey through the House, starting with consideration by the Committee on General Laws.
Author: Jon Ridehalgh
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