New York and Virginia Revive iGaming Efforts With New Bills

State lawmakers in New York and Virginia opened the 2026 legislative year with fresh proposals to legalize and regulate online casino gaming. The measures mark a renewed attempt to expand iGaming on the East Coast after several prior efforts stalled or were withdrawn. Updated proposals address licensing frameworks, tax structures, and player safeguards, reflecting the technical and political considerations tied to online casino regulation.

 centers on Senate Bill 2614, introduced on January 7 by Senator Joseph Addabbo Jr., chair of the Senate Racing, Gaming, and Wagering Committee. The proposal authorizes interactive casino gaming and online lottery sales and lays out eligibility criteria for participation. Operators include commercial casinos, video lottery terminal facilities, tribal casinos via compact, and existing mobile sports betting operators. Licenses would be limited to one per eligible operator through a single branded skin.

Under the bill, interactive servers must be housed at licensed New York gaming facilities. The legislation sets a 30.5% tax on net gaming revenue with proceeds primarily directed to the state education fund, as well as responsible gaming initiatives. Other responsible gaming requirements include verification procedures, wagering controls, dedicated funding for problem gambling programs, and annual credit card deposit limits. Applicants must also demonstrate labor peace agreements.

The state’s Gaming Commission would be tasked with approving or denying applications within 90 days, and licenses would be valid for up to 10 years. The proposal allows for interstate gaming compacts, opening a path to multi-state poker. A companion measure, Assembly Bill A05922, was introduced in the Assembly by Carrie Woerner. Woerner additionally filed Assembly Bill A06030 to classify certain online poker titles as skill-based games, creating a separate regulatory path if broader casino legislation fails to advance.

The bill comes after a multi-year push by Addabbo, who has repeatedly sought to legalize online casinos since the rollout of mobile sports betting. Supporters argue that recent developments make 2026 a more viable year for debate. The state completed the lengthy process of awarding  to Bally’s Bronx, Resorts World New York City, and Metropolitan Park. That process had previously been cited by Gov. Kathy Hochul and other lawmakers as a prerequisite to any further gaming expansion.

sweepstakes casinos at the beginning of December, addressing an area of unregulated activity. Addabbo views regulation as a way to put player protections and taxation in place. He commented, “Signing my bill into law is not the end of the conversation, but rather a necessary step toward responsible modernization of New York’s online gaming landscape.” He added, “If online gaming is going to exist in this state, it must be legal, well-regulated, and built with strong consumer protections.”

Tax proceeds would be allocated to education via the State Lottery Fund, with $11 million per year earmarked for problem gambling education and treatment and a minimum of $25 million directed to worker training, responsible gaming education, and health programs. If enacted, New York would become the eighth U.S. state with legalized online casinos.

In Virginia, Del. Marcus Simon introduced , an internet gaming proposal under the jurisdiction of the Virginia Lottery Board. The state’s five brick-and-mortar casinos would be eligible to apply for iGaming operator licenses, each able to support up to three skins. This structure could allow up to 15 online casino platforms statewide. The bill sets a 15% tax on adjusted gross internet gaming revenue and establishes licensing fees of $500,000 per operator and $2 million per skin, with renewals every five years at half that rate. Additional provisions include age and identity verification, deposit and time limits, responsible gaming disclosures, and criminal penalties for unlicensed operations. The proposal explicitly prohibits sweepstakes-style online gambling.

Virginia debated iGaming in 2025 but did not advance legislation. Last year’s Senate Bill 827 was withdrawn by Senator Mamie Locke after she cited the need for more research. The topic resurfaced during discussions on whether to establish a Virginia Gaming Commission, where supporters argued that iGaming could complement brick-and-mortar casinos.

This year’s effort may face significant challenges. Two of the state’s five casinos remain under construction, and both Boyd Gaming and Cordish Companies expect openings in 2027. Industry observers note that strong retail performance has historically preceded iGaming legalization in other states. Cordish Companies has also opposed online gaming in other jurisdictions.

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No state has legalized online casinos since Rhode Island went live in March 2024. Concerns about employment impacts, retail cannibalization, and problem gambling have slowed expansion efforts. For legislation to progress in either New York or Virginia, proponents must address objections from labor unions, casino developers, and policymakers.

In New York, Addabbo has focused on finding that balance. In Virginia, observers view the 2026 bill as a gauge of legislative interest rather than a near-term path to implementation.

Source:

, gamblinginsider.com, 8 January 2026