Virginia is for lovers, but lawmakers are saying it’s not for sweepstakes casino players.
Recently introduced by Marcus Simon, the delegate for Virginia’s 13th district, House Bill 161 seeks to prohibit sweepstakes gaming in the state, unless 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,” reads the bill.
Anyone caught violating this new law would be subject to “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.”
Virginia takes aim at dual currency with HB161
HB161 is part of Virginia’s efforts to bring regulated iGaming to the state.
Within the text of HB161, Virginia defines sweepstakes as “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.”
Many of these sweeps bills have targeted the use of dual currency. Virginia’s bill seems no different, which means we’ll likely hear news of cease-and-desist letters flying out of the state’s Attorney General’s office.
Virginia becomes the 5th state to propose a ban on sweepstakes casinos in the 2026 legislative session, joining Maine, Indiana, Florida and Mississippi. Virginia's proposed sweeps ban is part of the iGaming bill introduced earlier this week. HB 161: https://t.co/SsJ5rUHZs1 pic.twitter.com/QtxWrtkgC9
— Daniel Wallach (@WALLACHLEGAL) January 11, 2026
iGaming bill focuses on brick-and-mortar licenses
One might think that this would open up a pathway for current games to continue operating in Virginia. Not so. According to HB161, only Virginia’s licensed brick-and-mortar casino operators will be eligible for licenses, with each offering up to three iGaming platforms (currently, the state has five approved casino projects, per 500 Nations).
But these games won’t come cheap. The tribal operations will have to pay a $500,000 application fee (renewal after five years is halved to $250k).
On top of that, each “notice of intent ”requires a $2 million “platform fee,” which goes to the Internet Gaming Platform Fee Holding Fund (basically, paying $2mil for every gaming skin; that fee is also halved to $1m per each renewal).
These fees are for “funding start-up costs and other costs associated with the implementation and creation of a gaming commission or other such combined gaming agency. Expenditures and disbursements from the Fund shall be made by the State Treasurer on warrants issued by the Comptroller upon written request signed by the Director.”
Assuming all five casinos opt for three iGames, Virginia is looking at $32.5 million, and that’s before the proposed 15% tax on adjusted gross internet gaming revenue.
States continue to push forward with bills on sweepstakes
Though we’re less than two weeks into 2026, we’re seeing a major crackdown on sweepstakes casinos, with Virginia joining Mississippi, Florida, Indiana, and Maine in introducing bans in their legislative sessions.
Massachusetts, Illinois, Ohio, Maryland, and Arkansas are also debating whether to allow legalized casino gambling in their states.
Ohio and Massachusetts are considering bills introduced in 2025; while Massachusetts’s HB4431 has a March 16 deadline, Ohio’s HB298 is currently in legislative limbo.
Illinois will likely enact its ban. Tora Tora Casino notified its users in the state that it was shutting down on Jan. 10. Evolution, the vendor behind many popular sweepstakes casino titles, quietly pulled its games from the Illinois market, suggesting that action is underway.
“The Illinois Gaming Board (IGB) works to maintain the integrity and safety of Illinois gambling,” a spokesperson for the board told Sweepsy. “Unlicensed sweepstakes operators and other forms of illegal gambling are not welcome in Illinois.”
And, if HB161 is passed, sweepstake casinos won’t be welcomed in Virginia.
