With the deadline looming, Virginia lawmakers seeking to legalize iGaming (and subsequently, ban sweepstakes casinos) are coming together to settle their differences, specifically in two competing bills.
As we know by now, Virginia introduced two bills during the 2026 legislative session — Senate Bill 118, filed by Sen. Mamie Locke, and House Bill 161, sponsored by Del. Marcus Simon — that would launch online casinos and ban sweeps casinos.
At first glance, you’d find that these bills are nearly identical in their language. They define sweepstakes casinos as “illegal internet gaming” 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.”
However, subtle differences have turned out to be a hurdle for both bills.
On March 4, an amended version of SB118 passed the House (70-29) while an amended version of HB161 passed the Senate (21-17).
But, that same day, the House unanimously rejected the Senate’s modified version of HB161, and the Senate did the same with the House’s modifications to SB118.
Now, three members from each chamber have been selected for a conference committee to try to come up with a compromise version of the bill. If that happens, then each chamber will then vote on the compromise version. If both approve, the legislation will pass.
The Virginia lawmakers are working with a hard deadline. The 2026 legislative session adjourns on March 14. However, bills can be carried over into the 2027 session.
SB118 vs. HB161: The differences
So, what’s the issue that has the legislature divided? Money.
The bills would allow Virginia five brick-and-mortar casinos to offer up to three gaming platforms at the cost of a $2 million platform fee along with a $500,000 initial licensing fee. The bills would also implement a 20% tax on adjusted gross revenue and a 6% development fee to fund a program that would offset potential losses for these casinos.
This is where the bills differ: SB118 would compensate retail operators who show they suffered a loss due to iGaming’s legalization; HB161 would distribute equal payments to each of the five casinos until 2032, then switch to the loss-based model of SB118.
HB161 would also direct 5% of the tax revenue generated by iGaming to Virginia’s problem gambling fund, with 89% going to their general fund; SB118 allocated 3% for iGaming regulation, 2% for combatting gambling addiction, and 95% for education funding.
A delayed timeline for any sweeps action
Initially, another major difference between the two bills was that HB161 includes a reenactment clause requiring the Virginia legislature to pass the bill again next year, during the 2027 session, before it can become law.
At first, HB161 set a Jan. 1, 2028, deadline for the Virginia Lottery Board to implement all necessary changes to properly regulate iGaming. SB118, on the other hand, set the deadline for the first day of January 2027. But after the bills were reconciled, SB118 is moving forward as the primary bill, with the reenactment clause and the 2028 regulatory deadline from HB161.
So, this means that iGaming wouldn’t be operational until 2028. Sweepstakes casinos would be safe until then, theoretically.
Who is part of the conference committee?
Following the rejections of each bill, the Senate requested a conference committee to resolve the differences between the two pieces of legislation and potentially propose a single negotiated settlement. The committee includes State Senators Jeremy McPike, Mamie Locke, and Todd Pillion, along with Delegates Paul Krizek, Marcus Simon, and Terry Austin.
HB161 was initially defeated in the House by a 46-49 vote, but was later successfully voted for reconsideration. The second vote went in the bill’s favor, 67-30. Similarly, SB118 was rejected with its first vote (19-20), brought up for reconsideration, and narrowly passed with a 19-17 vote.
