After a quiet year on the iGaming legislation front, two states are starting 2026 on the front foot. Both New York and Virginia are debating the introduction of new bills that would introduce online casino regulation, following Maine being one step closer to being the eighth US state to legalize online casinos in 2026.
New York iGaming proposals
New York had a busy year in gaming regulation, eventually agreeing to the provision of three new NYC casino licenses. And, with the protracted bidding process now at an end, attention has turned to online casinos.
State Senator Joseph Addabbo Jr, a long-term proponent of regulation, introduced Senate Bill 2614 on January 7.
Under the terms of the Bill, New York’s existing commercial casinos and video lottery facilities, as well as tribal casinos and mobile sports betting providers, would be eligible to apply for a single license each.
The bill proposes a tax rate of 30.5% on net gaming revenue, and it includes a provision for the Empire State to introduce interstate gaming compacts, which could see it joining a multi-state online poker framework.
Currently, Delaware, Michigan, Nevada, New Jersey, Pennsylvania and West Virginia enable online play between states.
Therefore, Carrie Woerner also introduced Assembly Bill A05922, calling for the same measures, to ensure discussion in both chambers.
Although Addabbo has seen similar motions fail in the past, the signs are more positive this time around.
Gov. Kathy Hochul previously stated that iGaming would not be considered until the new physical casino licenses were granted, and Addabbo’s anti-sweepstakes bill, signed in December, was also viewed as a precursor to online casino regulation.
Virginia online casino bills
Meanwhile, in Virginia, Del. Marcus Simon raised similar proposals in House Bill 161. Under the proposals, the Virginia Lottery Board would oversee new internet gaming laws.
Each of the Old Dominion’s existing five retail casinos would be able to apply for licenses, with each license permitting three online casino skins.
Tax would be set at 15% of adjusted gross revenue with license application fees of $500,000 for each licensee and $2m for each skin. The Bill also goes on to propose a ban on sweepstakes casinos.
Despite hopes that Virginia would pass legislation last year, proposals were shelved in January after Senator Mamie Locke withdrew Senate Bill 827, demanding greater research into the topic.
Virginia only regulated retail casinos in 2020. Five licenses were subsequently granted, but only three of the five casinos have completed construction, with the two remaining venues not likely to open before 2027.
As such, 2026 may be too early for iGaming regulation to proceed in Virginia, but this year’s bill could test the water for future attempts.
2025 was a quiet year for iGaming legislation. Only seven states currently have regulated online casinos – Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia; with Maine being the next state to legalize.
In contrast, nearly 40 states have regulated online sports betting.
As well as New York and Virginia, a handful of other states are being tipped for regulatory movement. Massachusetts and Illinois are among the other front-runners, as well as Maine, to be the next US states to legalize online casinos in 2026.
