Since Virginia's legal gambling options have grown significantly in recent years, some Richmond lawmakers feel that the state needs to establish a gaming commission to oversee casinos, sports betting, and slot-like historical horse racing (HHR) machines.

A joint panel was formed by the Virginia General Assembly in 2023 to investigate the viability of creating the Virginia Gaming Commission.  In the majority of states that permit nonlottery commercial gambling, such as casinos and sports betting, organizations that are adept at overseeing these types of games of chance are established to control their operations and safeguard the general public.

Sports betting, which also includes mobile sportsbooks, and casinos are under the jurisdiction of the Virginia Lottery Board.

Less than ten years ago, the commonwealth was still one of the states with the strictest gaming laws.  The state passed legislation in 2020 that authorized up to five casino licenses and legalized HHRs at horse racetracks and off-track betting establishments in 2018.  The 2020 law also established licenses for online and retail sportsbooks. 

Testimony from iGaming 

The main responsibility of the joint subcommittee is to advise the legislature on whether or not to enact legislation creating a state gaming regulating body.  Some people think the lottery lacks the manpower and financial resources necessary to keep an eye on the quickly growing state gaming industry.

Additionally, the panel is hearing on potential new gaming forms, which will probably emphasize the necessity of a state body that is exclusively responsible for overseeing casino gambling.  The subject of the subcommittee's Tuesday meeting in Richmond was iGaming.

Legalizing online casinos would aid in the defeat of overseas casino websites that still serve players in Virginia, Del. Marcus Simon (D-Falls Church), who sponsored a swiftly failed online casino bill earlier this year, told the subcommittee.  Controversial sweepstakes casinos may likewise suffer from legal, regulated iGaming platforms.

Simon emphasized that there is no tax benefit to the widespread illicit online gambling that occurs in Virginia.

"We’re not creating a new category here with iGaming — or the idea that we’re going to create the opportunity to gamble on your phone. That ability already exists,” Simon said.

“My goal is to bring it under a regulated umbrella where we can have some oversight and some of the revenue,” Simon said.

The iGaming industry in New Jersey has been "complementary" to the casinos in Atlantic City, according to testimony from David Rebuck, the former longtime director of the New Jersey Division of Gaming Enforcement (NJDGE).

Experts in problem gambling discussed whether legal iGaming benefits or harms gamblers.

Former National Council on Problem Gambling executive director Keith Whyte, who left the nonprofit in January to lead his own consulting business, Safer Gambling Strategies, stated that he is neither in favor of nor against Virginia legalizing iGaming.  However, he stated that states that are thinking about allowing online casinos should mandate that operators give players resources for responsible gambling, including as time and money limitations.  That's exactly what New Jersey has done, he argues.

Compared to offshore, unregulated gambling organizations, regulated internet gambling frequently offers users more responsible gaming resources.  Internet casino products are "dangerous," according to Brianne Doura-Schawohl, a consultant who advises on gambling policy and is against iGaming.

The state shouldn't approve unlawful offshore gaming just because it occurs, according to Doura-Schawohl, who compared it to illegal drugs.

"Today, you heard exhaustive talking points about the big, bad illegal market. Let me tell you about another big, bad illegal market — illicit drugs. Americans spend $2.7 trillion annually on illicit drug use. Forgive me, but to the best of my knowledge, I am not appearing in any state house talking about how the state can get a portion of that revenue,” Doura-Schawohl said.

“This is a public health issue, and the federal government is doing nothing,” she continued.

The recommendations of the subcommittee

On Tuesday, none of the gaming companies gave testimony.  Caesars, Cordish, Boyd, Rush Street, and Hard Rock are some of Virginia's casino operators.

The National Association Against iGaming includes Cordish as a member.  Legislation pertaining to internet casinos has received comparatively positive feedback from the others.

By November 30, 2025, the subcommittee is expected to report to the General Assembly on its suggestions about the creation of a gaming commission and potential verticals for expansion that may be advantageous to the public and the state.