New York, Virginia Lawmakers Revive Online Casino Push With New Bills
Lawmakers in New York and Virginia have reopened the debate over online casino gaming, starting the 2026 legislative year with fresh proposals to legalize and regulate iGaming.
The measures aim to expand regulated online gambling while addressing concerns over taxation, consumer protections and the impact on existing retail casinos.
⏳ 7 mins read
📖 Published: January 8th, 2026
✍️ Updated: January 8th, 2026
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New York, Virginia Lawmakers Revive iGaming Push With New Bills
State lawmakers in New York and Virginia kicked off the 2026 legislative year by reintroducing proposals to legalize and regulate online casino gaming, signaling a renewed push for iGaming expansion in two major East Coast markets.
Updated on 8 January 2026
New York Renews iGaming Debate With Addabbo-Led Senate Bill
What New York’s iGaming Bill Proposes
On January 7, State Senator Joseph Addabbo Jr., chair of the Senate Racing, Gaming, and Wagering Committee, introduced Senate Bill 2614. The bill authorizes and regulates online casinos and online lottery sales.
Key provisions include:
- Eligible Operators: Commercial casinos, video lottery terminal facilities, tribal casinos via compact, and existing mobile sports betting operators
- Licensing Structure: One interactive gaming license per eligible operator, with a single branded skin
- Server Location: Interactive gaming servers must be housed at licensed New York gaming facilities
- Tax Rate: 30.5% of net gaming revenue, with proceeds directed primarily to the state education fund
- Responsible Gaming: Mandatory player protections, including account verification, wagering controls, and dedicated funding for problem gambling programs
- Payment Restrictions: Annual credit card deposit limits per operator
- Labor Requirements: Applicants must demonstrate labor peace agreements as part of licensure
The bill also authorizes the Gaming Commission to adopt rules governing interstate gaming compacts, laying the groundwork for potential multi-state online poker.
A companion measure, Assembly Bill A05922, was introduced in the Assembly by Carrie Woerner, ensuring parallel consideration in both chambers.
Addabbo’s New Push in a Multi-Year Strategy
Addabbo has been New York’s champion for the legalization of online casinos. He has introduced iGaming bills in the past several years following the state’s rollout of mobile sports betting.
Addabbo has previously said that significant developments in 2025 place the state “better positioned” to have serious discussions about iGaming in 2026.
Last month, the state finalized the long process of selecting downstate retail casinos, awarding licenses to Bally’s Bronx, Resorts World New York City, and Metropolitan Park (backed by Hard Rock International and Mets owner Steve Cohen).
The retail casino licenses were seen as a significant obstacle to iGaming chances. Gov. Kathy Hochul and other lawmakers had previously suggested that no additional gaming expansion would be considered until the downstate licensing process was complete.
In addition to the casino licenses, another major development was an Addabbo-sponsored bill that bans sweepstakes casinos, which was signed into law at the beginning of December.
With sweepstakes platforms pushed out of the market and New York having already completed the politically sensitive process of awarding three downstate casino licenses, two major obstacles to iGaming legalization are now largely resolved.
There’s still opposition from labor unions, which played a central role in previous efforts that failed to gain traction. Those groups have raised concerns about job losses and cannibalization of the retail casino workforce. Addabbo has long stated that he wants to find a solution, with the labor agreement provision being one possibility.
Separate Assembly Bill Targets Online Poker
In addition to supporting the broader iGaming effort, Woerner also introduced Assembly Bill A06030, which addresses online poker.
That proposal would classify certain online poker games as games of skill. Doing so would exclude them from existing gambling prohibitions and establish a regulatory framework distinct from house-banked casino games.
The bill serves as a complementary or fallback path for limited online gaming expansion if broader iGaming legislation stalls. Last year, Addabbo introduced a similar Senate-side poker bill, which also failed to gain traction.
Virginia Introduces Comprehensive Internet Gaming Framework
What Virginia’s HB161 Would Do
In Virginia, Del. Marcus Simon introduced House Bill 161, a comprehensive proposal that would authorize and regulate internet gaming under the jurisdiction of the Virginia Lottery Board.
Key provisions of HB161 include:
- Licensing: Each of Virginia’s five licensed brick-and-mortar casinos can obtain an internet gaming operator license. Each casino can offer up to three skins (or online platforms), totaling up to 15 online casinos.
- Taxation: A 15% tax on adjusted gross internet gaming revenue
- Licensing fees: The licensee must pay an initial fee of $500,000. Each skin must pay $2 million initial fee. Renewals are every five years at half that rate ($250,000 for the licensee and $1 million for each skin).
- Consumer Protections: Age and identity verification, deposit and time limits, and responsible gaming disclosures
- Enforcement: Criminal penalties for unlicensed internet gaming operations
- Sweepstakes Ban: Explicit prohibition on unlicensed sweepstakes-style gaming platforms
Notably, the bill assigns oversight to the Virginia Lottery Board. That approach comes as lawmakers separately debate whether to create a centralized Virginia Gaming Commission to oversee gambling statewide.
Virginia’s Prior Gaming Expansion Sets the Stage
Virginia’s proposal to legalize iGaming comes after efforts in 2025 died early on. Last year, Senator Mamie Locke pre-filed Senate Bill 827, only to withdraw it at the end of January. She cited the need for deeper research as the reason.
The topic of iGaming was also revisited during meetings of the Joint Subcommittee to Study the Feasibility of Establishing the Virginia Gaming Commission. While the priority of the discussions was the creation of a Virginia Gaming Commission, supporters pitched iGaming as a natural complement to brick-and-mortar casinos.
This year’s effort will likely face an uphill battle. For one, the retail casino industry has yet to establish itself. Two of the five casinos are currently under construction, with one scheduled to open a temporary facility in November and the other later this month. Both developers, Boyd Gaming and Cordish Companies, estimate an opening in 2027.
Historically, a well-established retail casino sector has been key to the chances of legalizing iGaming. Additionally, Cordish Companies has emerged as one of the most significant opponents of online gaming, having declared against it in several other states.
Will iGaming Come to More East Coast States?
Online casino legalization has stalled significantly in the past few years. The last state to go live was Rhode Island in March 2024.
In multiple states, lawmakers have been reluctant to move forward amid concerns about the potential employment and revenue impact on the retail casino sector. Another primary concern is gambling addiction.
For either proposal in New York and Virginia to advance, proponents must find a solution to please critics, such as casino operators and labor unions.
In New York, Addabbo has been very outspoken about finding that balance, and industry observers will closely watch developments. In Virginia, the 2026 proposal may function more as a test of legislative appetite for iGaming than a near-term path to legalization.
