Virginia proposes consolidation of gaming oversight under new commission

Virginia’s gaming industry generated over $1.1 billion in revenue last year, prompting state lawmakers and Governor Glenn Youngkin to push for a unified regulatory body to oversee its expanding scope. The proposed Virginia Gaming Commission (VGC) aims to consolidate oversight of casinos, sports betting, online gaming, charitable gaming, bingo, horse racing, and historic horse racing under a single authority.

During his State of the Commonwealth Address, Youngkin emphasized the need for comprehensive regulation, urging legislators to prioritize a streamlined approach over piecemeal bills. “Let’s focus our efforts this session on building a world-class regulatory body and not on one-off bills pushed by special interest groups,” he was quoted as saying in a Radio IQ report.

The creation of the VGC began with a study in 2022, which led to consulting firm Guidehouse conducting analyses and holding discussions. Final recommendations and bills to establish the commission are being proposed during the current legislative session.

The VGC would oversee most forms of gambling in Virginia, except for the Virginia Lottery, which would remain separate. “Lottery is productive, and it’s in the best interest of Lottery to focus on that alone. But long-term consolidation could be looked at in the future, other states are going that way,” Brad Hood from Guidehouse explained during a recent presentation to senators.

In addition to regulation and oversight, the VGC would report to the legislature, recommend policy changes, and address problem gambling. Separate executive committees for horse racing and charitable gaming would continue to operate, while the existing Horse Racing Commission board would retain responsibility for non-gaming matters.

However, enforcement remains a contentious issue. Senator Aaron Rouse raised concerns about how violations of the Virginia Gaming Act would be handled. Hood clarified that the VGC would focus on compliance and creating regulations, while enforcement would fall to local law enforcement and the Virginia State Police.

The Senate version of the bill, sponsored by Senator Bryce Reeves, is set for its first hearing this month. If approved, the VGC would mark a significant shift in how gaming is regulated in Virginia.