SB 579 — Illegal gambling; online sweepstakes games, civil penalty.

+OFFERED 2027FOR SESSIONCONSIDERATION 2/11/2026 + INTRODUCED+ + + + 26101625D+ I+ + + SENATE BILL NO.

579 Offered+ January+ 14,AMENDMENT 2026IN NTHE NATURE OF A BILLSUBSTITUTE to+ amend+ and+ reenact(Proposed §§by 18.2-325the andSenate 18.2-334Committee for Courts of theJustice Code+ of+ Virginiaon and________________) + + (Patron Prior to amendSubstitute—Senator theReeves) Code+ ofA BILL to direct the Virginia byLottery addingBoard ato sectionconvene numbereda 18.2-326.1,work relatinggroup to illegalstudy gambling;interactive online sweepstakes games;

onlinereport. sweepstakes T games;

civilBe penalty.it enacted by the General Assembly of Virginia:

R1. ————— O Patron—Reeves D ————— Referred to Committee for Courts of Justice U ————— Be it enacted by the General Assembly of Virginia:

C§ 1.

That §§the 18.2-325Virginia andLottery 18.2-334Board ofshall theconvene Codea work group of Virginiarelevant arestakeholders, amendedincluding andrepresentatives reenactedfrom the online sweepstakes and thatsocial games industry, to study the Codelegal, Eeconomic, technological, and public policy implications of Virginiainteractive isonline amendedsweepstakes bygames addingand ato sectionreport numberedits 18.2-326.1findings asand follows:any recommendations resulting from such study.

§In 18.2-325.conducting such study, the work group shall (i) review the ways in which sweepstakes have been used as a marketing and promotional tool for online and retail businesses, including online social games and licensed casino operators;

Definitions.(ii) determine and identify any differences between online sweepstakes games and real-money gambling or internet gaming;

D(iii) 1.develop a definition for "online sweepstakes games";

Asand used(iv) inconduct thisany article,other unlessrelevant theresearch contextas requiresnecessary. a different meaning:

"GamblingThe device"work meansgroup (i)shall anyreport device,its machine,findings paraphernalia,and equipment,recommendations orby otherDecember thing,1, including2026 books,to records,the Chairs of the Senate Committees on General Laws and otherTechnology papers,and thatfor isCourts actuallyof usedJustice inand anthe illegalHouse gamblingCommittees operationon orGeneral activity;Laws and for Courts of Justice.

(ii) any machine, apparatus, implement, instrument, contrivance, board, or other thing, or electronic or video version thereof, including those dependent upon the insertion of a coin or other object for their operation, that operates, either completely automatically or with the aid of some physical act by the player or operator, in such a manner that, depending upon elements of chance, it may eject something of value or determine the prize or other thing of value to which the player is entitled, provided, however, that the return to the user of nothing more than additional chances or the right to use such machine is not deemed something of value within the meaning of this definition, and provided further that machines that only sell, or entitle the user to 24 obtain, items of merchandise of equivalent value that may differ from each other in composition, size, shape, 9 or color shall not be deemed gambling devices within the meaning of this definition;

and (iii) skill games.

Such devices are no less gambling devices if they indicate beforehand the definite result of one or more operations but not all the operations, nor are they any less a gambling device because, apart from their use or adaptability as such, they may also sell or deliver something of value on a basis other than chance.

"Illegal gambling" means the making, placing, or receipt of any bet or wager in the Commonwealth of money or other consideration or thing of value, made in exchange for a chance to win a prize, stake, or other consideration or thing of value, dependent upon the result of any game, contest, or any other event the outcome of which is uncertain or a matter of chance, whether such game, contest, or event occurs or is to occur inside or outside the limits of the Commonwealth.

For the purposes of this subdivision definition and notwithstanding any provision in this section to the :

35 contrary, the making, placing, or receipt of any bet or wager of money or other consideration or thing of 36 value shall include includes the purchase of a product, Internet internet access, or other thing made in 37 exchange for a chance to win a prize, stake, or other consideration or thing of value by means of the operation 38 of a gambling device as described in subdivision 3 b, clause (ii) of the definition of "gambling device," 39 regardless of whether the chance to win such prize, stake, or other consideration or thing of value may be offered in the absence of a purchase.

"Illegal gambling" also means the (i) playing or offering for play of any skill game;

(ii) operating, conducting, or promoting of any online sweepstakes game;

and (iii) supporting or assisting in the operating, conducting, or promoting of any online sweepstakes game.

2.

"Interstate gambling" means the conduct of an enterprise for profit that engages in the purchase or sale within the Commonwealth of any interest in a lottery of another state or country whether or not such interest is an actual lottery ticket, receipt, contingent promise to pay, order to purchase, or other record of such interest.

3.

"Gambling device" includes:

a.

Any device, machine, paraphernalia, equipment, or other thing, including books, records, and other papers, which are actually used in an illegal gambling operation or activity;

b.

Any machine, apparatus, implement, instrument, contrivance, board, or other thing, or electronic or video versions thereof, including but not limited to those dependent upon the insertion of a coin or other object for their operation, which operates, either completely automatically or with the aid of some physical act by the player or operator, in such a manner that, depending upon elements of chance, it may eject something of value or determine the prize or other thing of value to which the player is entitled, provided, however, that the return to the user of nothing more than additional chances or the right to use such machine is not deemed something of value within the meaning of this subsection;

and provided further, that machines that only sell, or entitle the user to, items of merchandise of equivalent value that may differ from each other SB579 2 of 2 in composition, size, shape, or color, shall not be deemed gambling devices within the meaning of this subsection;

and c.

Skill games.

Such devices are no less gambling devices if they indicate beforehand the definite result of one or more operations but not all the operations.

Nor are they any less a gambling device because, apart from their use or adaptability as such, they may also sell or deliver something of value on a basis other than chance.

4."Online sweepstakes game" means any game, contest, or promotion in which a prize is awarded based on chance that (i) is available on the internet and accessible on a mobile phone, computer, or similar device;

(ii) utilizes a dual currency system of payment allowing the player to exchange the currency for any prize, award, cash, or cash equivalent;

and (iii) simulates casino-style gaming, including slot machines, video poker, table games, lottery games, and sports betting.

"Operator" includes any person, firm, or association of persons, who conducts, finances, manages, supervises, directs, or owns all or part of an illegal gambling enterprise, activity, or operation.

5.

"Skill" means the knowledge, dexterity, or any other ability or expertise of a natural person.