Virginia Moves Toward Unified Oversight of Gambling Industry
A newly formed legislative subcommittee is considering a proposal to establish the Virginia Gaming Commission, a centralized state agency tasked with regulating most forms of gambling. The proposal follows a 2022 report by the Joint Legislative Audit & Review Commission (JLARC), which recommended consolidating regulatory powers to address the challenges of a fast-growing industry.
The Scope of the Virginia Gaming Commission
The proposed Virginia Gaming Commission would take over the regulation of online gambling, charity gaming, bingo, horse racing, fantasy contests, and the state’s licensed casinos.
This would include oversight of Rosie’s Gaming Emporium, which operates gaming machines adjacent to horse racing venues. The one exception would be the Virginia Lottery, which would remain independent, continuing to regulate its operations separately.
Guidehouse, a consulting firm advising on the plan, described the commission as an “efficient, cost-effective and strong regulator” capable of addressing new forms of gaming and improving transparency and accountability in the state’s gambling sector.
Challenges of the Current System
At present, Virginia’s gambling oversight is fragmented among several agencies. The Virginia Lottery oversees sports betting and casino development, while the Virginia Racing Commission regulates live horse racing and Rosie’s Gaming Emporium. Meanwhile, the Virginia Department of Agriculture and Consumer Services oversees charitable gaming, including bingo and electronic pull tabs.
The JLARC report found that some agencies, such as the Virginia Racing Commission, lack the resources to fulfill their regulatory responsibilities effectively. A consolidated gaming commission would address these issues, providing a consistent approach to enforcement and regulation across the state’s rapidly evolving gaming landscape.
The creation of the Virginia Gaming Commission is seen as a necessary response to the state’s changing gaming industry. By bringing oversight under one roof, the state aims to better regulate new gaming formats, such as internet and electronic gaming, and ensure a uniform approach to problem gambling and public accountability.
In addition to improving regulatory efficiency, the commission would serve as a centralized point of contact for stakeholders, including law enforcement, legislators, and the gaming industry. This would help ensure that concerns about integrity and compliance are addressed more effectively.
If the proposal moves forward, the Virginia General Assembly is expected to consider the necessary legislative changes in its 2025 session, with the Virginia Gaming Commission potentially becoming operational by July 2025. Lawmakers may also revisit the idea of bringing the Virginia Lottery under the commission’s oversight in the future, further consolidating the state’s gaming regulatory framework.
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