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Committee backs internet gaming authorization with 20% tax and funding for problem-gambling supports

House Appropriations Committee · February 13, 2026

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Summary

The committee reported House Bill 161 with an appropriation substitute that authorizes internet gaming and imposes a 20% tax on adjusted gross internet gaming revenue; 5% of collected tax revenue would be deposited into a problem-gambling treatment and support fund until 2037. The bill reported 14–8.

House Bill 161, presented by Delegate Simon, was reported out of committee with an appropriation substitute that would authorize internet gaming in the Commonwealth and establish a tax and earmark structure for revenue.

Under the substitute described in the committee record, internet gaming operators would be subject to a 20% tax on adjusted gross Internet gaming revenue. Five percent of the taxed amount would be deposited in a problem-gambling treatment and support fund through 2037. The transcript records the substitute language and the committee vote to report the bill, 14–8.

The committee’s action forwards the bill to the next stage of consideration. The transcript does not provide detailed revenue estimates, licensing structure, enforcement details or an effective date; those details would be developed during floor consideration, fiscal-impact review, and potential conference with other stakeholders.