Using dual theories embedded into a larger unphysical Hilbert space along entanglement cuts, we study the entanglement structure of Z_{2} lattice gauge theory in (2+1) spacetime dimensions. We demonstrate Li and Haldane's conjecture, and show consistency of the entanglement Hamiltonian with the Bisognano-Wichmann theorem. Studying nonequilibrium dynamics after a quench, we provide an extensive description of thermalization in Z_{2} gauge theory which proceeds in a characteristic sequence: Maximization of the Schmidt rank and spreading of level repulsion at early times, self-similar evolution with scaling coefficients α=0.8±0.2 and β=0.0±0.1 at intermediate times, and finally thermal saturation of the von Neumann entropy.