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Virginia lawmakers are expected to revisit the future of sweepstakes gaming in 2027 after Senate Bill 579 (SB 579) shifted from a proposed ban to an industry study.
Introduced by Sen. Bryce E. Reeves, R-Spotsylvania, SB 579 originally sought to classify the operation, promotion and assistance of certain online sweepstakes games as illegal gambling. However, lawmakers amended the measure during the 2026 legislative session, replacing the proposed ban with a directive for the Virginia Lottery Board to convene a work group and study interactive online sweepstakes games.
The Senate Courts of Justice Committee voted 14-1 in February to carry the measure over to the 2027 legislative session. The work group must report its findings and recommendations to the relevant House and Senate committees by Dec. 1, 2026.
SB 579 shifts from ban to industry study
The original version of SB 579 took a hard line against sweepstakes casinos and other dual-currency online games.
The bill would have expanded Virginia’s definition of illegal gambling to cover operating, promoting or assisting an online sweepstakes game. It targeted dual-currency games that simulate casino-style gaming, lottery games and sports betting and award prizes based on chance.
The introduced version also proposed civil penalties ranging from $10,000 to $100,000 for each violation.
Lawmakers ultimately replaced that approach with a committee substitute directing the Virginia Lottery Board to convene a work group of relevant stakeholders, including representatives from the online sweepstakes and social gaming industries.
The study will examine the legal, economic, technological and public policy implications of interactive online sweepstakes games. It will also look at how sweepstakes are used as marketing and promotional tools, examine differences between sweepstakes games and real-money online gambling or internet gaming, and develop a definition for “online sweepstakes games.”
The work group is required to submit its findings and recommendations by Dec. 1, 2026.
The change gives Virginia lawmakers more time to determine how the rapidly evolving industry should be treated under state law rather than imposing an immediate prohibition.
What happens to sweepstakes casinos in Virginia?
For now, SB 579 does not establish a new licensing system for sweepstakes casinos or impose the penalties contained in the original version of the bill. Instead, it creates a study process that could inform future legislation.
The findings could help lawmakers determine whether to prohibit, regulate or otherwise define interactive online sweepstakes games when the General Assembly returns in 2027. However, the substitute does not require lawmakers to adopt a specific regulatory model based on the study’s findings.
That leaves the future of sweepstakes gaming in Virginia unresolved.
The issue is also unfolding as Virginia lawmakers continue to debate how the state should structure and oversee its broader gaming industry. During the 2026 session, lawmakers considered changes involving casino gaming and gaming oversight, while Gov. Abigail Spanberger said Virginia needs a more centralized and independent approach to gaming regulation when she vetoed legislation to legalize skill games.
Study results will shape Virginia’s 2027 sweepstakes debate
SB 579 represents a notable change from the approach initially proposed by Reeves. Rather than immediately classifying dual-currency sweepstakes games as illegal gambling, lawmakers opted to gather more information before deciding how the industry should be treated.
The next major development will be the Virginia Lottery Board’s study and its report, due Dec. 1.
That report could become an important part of the state’s 2027 gambling debate, when lawmakers are expected to revisit SB 579 and determine whether Virginia’s growing sweepstakes gaming market should face new restrictions, regulation or a different legal framework.
