Virginia Committee Mulling Formation of Gaming Commission Hears About iGaming

Posted on: August 20, 2025, 09:35h. 

Last updated on: August 20, 2025, 01:05h.

  • Virginia lawmakers continue to review the merits of forming a gaming commission
  • Legal gambling has expanded significantly in the commonwealth in recent years
  • This week, a special joint subcommittee heard about the pros and cons of iGaming

Legal forms of gambling in Virginia have expanded greatly in recent years, which has some lawmakers in Richmond believing the state must create a gaming commission to properly regulate casinos, sports betting, and slot-like historical horse racing (HHRs) machines.

Virginia gaming subcommittee iGaming
David Rebuck, a veteran gaming regulator, testifies before a subcommittee in Virginia considering whether the state should form a gaming commission. The Virginia Lottery Board currently regulates casinos and sports betting in the commonwealth. (Image: Virginia General Assembly)

In 2023, the Virginia General Assembly established a joint subcommittee to study the feasibility of establishing the Virginia Gaming Commission. In most states where nonlottery commercial gambling is allowed, examples being casinos and sports betting, agencies skilled in regulating such games of chance are formed to govern their operations and protect the public.

Virginia has tasked the Virginia Lottery Board with overseeing casinos and sports betting, the latter of which additionally includes mobile sportsbooks.

It was less than a decade ago that the commonwealth remained among the most restrictive states when it came to gambling. The state legalized HHRs at horse racetracks and off-track betting facilities in 2018, and created up to five casino licenses through legislation in 2020. The 2020 statute additionally created retail and online sportsbook licenses. 

iGaming Testimony 

The joint subcommittee’s primary task is to recommend to the legislature whether it should pass a bill to initiate a state gaming regulatory agency. Some believe the lottery is ill-equipped in terms of staffing and funding to monitor the rapidly expanding state gaming market.

The subcommittee is also hearing about possible new forms of gambling, which would likely further stress the need for a state agency solely tasked with governing casino gambling. iGaming was the focus during the subcommittee’s Tuesday meeting in Richmond.

Del. Marcus Simon (D-Falls Church), who sponsored a quickly defeated online casino bill earlier this year, told the subcommittee that legalizing online casinos would help defeat offshore casino websites that continue to cater to players in Virginia. Legal, regulated iGaming platforms could also hurt controversial sweepstakes casinos.

Simon highlighted the fact that illegal online gambling, which is rampant in Virginia, provides no tax benefit.

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.

David Rebuck, the former longtime director of the New Jersey Division of Gaming Enforcement (NJDGE), testified that New Jersey’s iGaming market has been “complementary” to the casinos in Atlantic City.

Problem gambling experts shared their opinions on whether legal iGaming hurts or helps players.

Keith Whyte, the former executive director of the National Council on Problem Gambling, who departed the nonprofit in January to head his own consulting firm, Safer Gambling Strategies, said he doesn’t support or oppose Virginia legalizing iGaming. But, he said, in states that are considering online casinos, they should require operators to provide players with responsible gaming tools like time and budget limits. He says New Jersey has done just that.

Regulated online gambling often provides players with more responsible gaming tools than offshore, unregulated gambling outfits. Brianne Doura-Schawohl, a consultant who provides advice on gambling policy and opposes iGaming, called internet casino products “dangerous.”

Doura-Schawohl likened illegal offshore gambling to illicit drugs — just because it’s happening doesn’t mean the state should legalize.

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.

Subcommittee Recommendations

None of the casino firms testified on Tuesday. Virginia’s casino gaming operators include Hard Rock, Rush Street, Caesars, Cordish, and Boyd.

Cordish is part of the National Association Against iGaming. The others have been relatively supportive of online casino legislation.

The subcommittee is to make its recommendations to the General Assembly on whether to form a gaming commission and which possible expansion verticals could benefit the state and the public by Nov. 30, 2025.