House subcommittee advances internet-gaming tax substitute and moves to create independent Virginia Gaming Commission
February 14, 2026 | 2026 Legislature VA, Virginia
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A House subcommittee on General Government and Capital Outlay on Feb. 20 advanced several gaming-related measures, most notably adopting a substitute to legalize and tax internet gaming and reporting a bill to create an independent Virginia Gaming Commission.
The committee adopted a substitute for House Bill 161, introduced from Delegate Simon, that would authorize internet gaming and place regulation with the Virginia Lottery Board. Under the committee substitute, the bill would impose a 20% tax on an internet gaming operator's adjusted gross internet-gaming revenue and direct 5% of that tax revenue to a problem-gambling treatment and support fund. The subcommittee adopted the substitute and, after a roll call, the bill passed as substituted, 5 to 2.
Separately, the panel reported House Bill 271, described in the hearing as establishing the Virginia Gaming Commission as an independent agency of the Commonwealth to consolidate gaming oversight and regulatory activities previously split among VDACS, the Racing Commission and the Lottery. That bill was reported to the full committee by a recorded vote of 7 to 0.
The subcommittee also reported House Bill 12 72, the "skill games" bill from Delegate Hayes, as substituted. The substitute trims a previously considered 40% gross-profits tax to 30% and directs one-sixth of collections to the gaming regulatory fund. Fifteen percent of the remainder after that transfer would be distributed to host localities, with any remaining revenue deposited into the general fund; the bill reported 6 to 1.
Clerk announcements at the end of each item recorded the roll-call results for each bill. The committee concluded its session and adjourned.
Votes at a glance
• House Bill 161 (internet gaming) — Adopted substitute; passed 5–2 as substituted.
• House Bill 271 (Virginia Gaming Commission) — Reported 7–0.
• House Bill 12 72 (skill games) — Reported as substituted 6–1.
What happens next
Reported bills move to the next step in the House process; bills reported "as substituted" will advance with the committee's changes. The committee adjourned and named General Government and Capital Outlay as the next committee.
The committee adopted a substitute for House Bill 161, introduced from Delegate Simon, that would authorize internet gaming and place regulation with the Virginia Lottery Board. Under the committee substitute, the bill would impose a 20% tax on an internet gaming operator's adjusted gross internet-gaming revenue and direct 5% of that tax revenue to a problem-gambling treatment and support fund. The subcommittee adopted the substitute and, after a roll call, the bill passed as substituted, 5 to 2.
Separately, the panel reported House Bill 271, described in the hearing as establishing the Virginia Gaming Commission as an independent agency of the Commonwealth to consolidate gaming oversight and regulatory activities previously split among VDACS, the Racing Commission and the Lottery. That bill was reported to the full committee by a recorded vote of 7 to 0.
The subcommittee also reported House Bill 12 72, the "skill games" bill from Delegate Hayes, as substituted. The substitute trims a previously considered 40% gross-profits tax to 30% and directs one-sixth of collections to the gaming regulatory fund. Fifteen percent of the remainder after that transfer would be distributed to host localities, with any remaining revenue deposited into the general fund; the bill reported 6 to 1.
Clerk announcements at the end of each item recorded the roll-call results for each bill. The committee concluded its session and adjourned.
Votes at a glance
• House Bill 161 (internet gaming) — Adopted substitute; passed 5–2 as substituted.
• House Bill 271 (Virginia Gaming Commission) — Reported 7–0.
• House Bill 12 72 (skill games) — Reported as substituted 6–1.
What happens next
Reported bills move to the next step in the House process; bills reported "as substituted" will advance with the committee's changes. The committee adjourned and named General Government and Capital Outlay as the next committee.
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