Virginia Moves to Ban Sweepstakes Casinos Amid iGaming Push

Virginia is taking decisive action against sweepstakes casinos, positioning itself alongside other states seeking to regulate the rapidly expanding dual-currency gaming model nationwide.

A newly introduced bill, HB 161, would prohibit sweepstakes gaming unless it is operated by a licensed internet gaming provider within the state. The measure was filed by Del. Marcus Simon and is scheduled for consideration by the House of Delegates this session.

The bill outlines steep civil penalties for violators (unlicensed operators), including fines of up to $100,000 for a first offense and up to $250,000 for subsequent violations. Supporters argue that the legislation is needed to close loopholes that have allowed sweepstakes casinos to operate without the same oversight required of traditional gambling businesses. The proposal arrives as several states, including California, New York, and New Jersey, have already passed similar bans in the past year.

HB 161 serves a dual purpose: it both bans unlicensed sweepstakes operators and establishes a framework for regulated online casino gaming in Virginia. If the bill passes, the Virginia Lottery Board would oversee this new iGaming market, mirroring its existing role in overseeing sports betting.

Online Casinos in the U.S. – The Alternative

Slots Reel IconWhile Virginia debates whether to extend the legalization of online gambling sites, many Americans continue to rely on 18-and-up online casinos for real‑money gambling. These sites operate from international jurisdictions and legally accept U.S. players because they are not subject to federal or individual state gambling laws.

Offshore casinos typically offer a full suite of gaming options, including slots, blackjack, roulette, live‑dealer tables, and specialty games. They also offer a variety of payment methods, including credit cards and cryptocurrency. In recent years, their popularity has grown in states where online casino gaming remains illegal or unregulated.

As more gambling states consider legalizing online casinos, the divide between regulated domestic platforms and offshore alternatives is becoming a central issue in U.S. gambling policy.

Casinos in Virginia – A Growing Domestic Market

Virginia’s casino industry is young, but the state has quickly embraced brick-and-mortar gaming. New casinos have opened in Bristol, Portsmouth, and Danville, with more projects underway. These venues offer slots, table games, sportsbooks, restaurants, and live entertainment.

If HB 161 passes, Virginia’s casinos could launch digital platforms, growing both the regulated gaming market and state revenues, mirroring the success of other states. Local officials and casino operators want to expand gaming but stress the need for clear rules and consumer protections, which the new bill addresses.