Virginia eyes unified gaming regulation with creation of gaming commission

Anchal Verma January 23, 2025

SiGMA news

Virginia is on the brink of a major regulatory overhaul in its gambling industry. With both long-standing and newly legalised forms of gaming thriving, the state is considering consolidating oversight through the proposed Virginia Gaming Commission (VGC). This move aims to streamline regulation and ensure a robust framework for the industry’s growth.

Vision for better oversight

The idea of the VGC was first introduced in 2022, following a study highlighting the need for a unified regulatory body. Since then, the consultancy firm Guidehouse has been examining the feasibility of this proposal. According to the draft legislation in place today, the VGC would regulate all types of gaming in the state except for the Virginia Lottery, which lawmakers think should be separate at least for now.

Governor Glenn Youngkin is a strong advocate for the commission, envisioning it as a world-class regulator. While the VGC would take charge of regulating the sector, addressing violations, and recommending legal updates, the executive committees for horse racing and charitable gaming will remain intact. The existing Horse Racing Commission will continue managing non-gambling aspects of the industry.

Compliance over enforcement

A key focus of the VGC would be ensuring compliance with state regulations. However, enforcement would largely fall under the jurisdiction of local police departments. Guidehouse’s Brad Hood emphasised this distinction, stating that the VGC’s primary role would be regulatory compliance, leaving enforcement to law enforcement agencies.

The state Senate recently held its first hearing on the bill, and further discussions are expected to shape the commission’s structure and responsibilities.

Revamping casino tax distribution

Parallel to these VGC debates, changes to casino tax allocations are also on the cards of Virginia legislators. Delegate Mike Cherry has submitted House Bill 2232 to set up the Tri-Cities Improvement Commission (T-CIC).

The T-CIC would be tasked with distributing Petersburg’s share of casino tax revenue among surrounding areas, including Hopewell, Colonial Heights, Dinwiddie County, and Prince George County. The goal is to ensure that the benefits of gaming revenue reach the broader community.

Currently, Virginia takes an 18–30 percent share of casino revenues, depending on a property’s financial performance. Six per cent of this taxed amount is retained by the host city, but the new bill could alter this distribution model, ensuring a more equitable spread of funds for local development.

Unified future for Virginia gaming

The proposed changes therefore herald a transformative period for Virginia’s gaming industry. The establishment of the VGC will ease regulation procedures but mainly comprise the state’s commitment to the responsible and transparent gaming environment.