Virginia Lawmakers Move to Create Independent Gaming Regulator
Virginia legislators have approved a bill to create an independent gaming regulator while rejecting proposals to legalize online casinos and to formally regulate skill games.
LISTEN TO THIS ARTICLE:The General Assembly’s subcommittee advanced Senate Bill 195, a measure to establish a standalone Virginia Gaming Commission, consolidating earlier proposals and absorbing provisions of SB 558. Lawmakers described the new agency as a priority for the state amid expanding gaming activity and cross-border market pressures from neighboring Maryland and other jurisdictions.
Related: Virginia Lawmakers Address Possibility of Online Casinos, New Gaming Regulator
New Regulator Clears Key Hurdle
SB 195 passed the Senate subcommittee by a wide margin and would separate regulatory authority for gaming into an independent body with enhanced enforcement and licensing powers. Supporters argue the change will provide clearer oversight as the commonwealth confronts a growing mix of commercial casinos, sports wagering, and fantasy contests.
Senate proponents noted the bill is intended to modernize oversight and close gaps in enforcement. Michael Lang, an independent gaming policy consultant based in Richmond, welcomed the measure but urged caution. "Creating a dedicated regulator is the single most important step Virginia can take to safeguard consumers and ensure consistent enforcement across all gaming verticals", Lang said. "But structure matters: the commission must be funded and staffed to act independently, and its mandate should include clear requirements for addiction prevention, data sharing, and transparent rulemaking."
Alongside the regulator bill, SB 756 – a proposal to authorize a casino in Fairfax County – moved to the Finance Committee. Backers framed the Fairfax proposal as a way to keep gaming revenue in-state and stem patron leakage to Maryland. If the measure ultimately clears the legislature, the question would be referred to voters in a county referendum.
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Online Casinos and Skill Games Stall
Despite consensus on the need for regulatory reform, the panel rejected two high-profile measures aimed at expanding gambling options. SB 118, which would have legalized online casino gaming in Virginia, failed to advance after subcommittee members raised concerns about missing consumer-protection measures and voluntary-play safeguards.
Lawmakers cited an absence of robust safer-gambling frameworks in the version before them. Proponents argued regulation would capture revenue currently flowing to unregulated markets, but opponents warned that the bill lacked sufficient controls on marketing, deposit limits, and data-driven targeting.
Separately, SB 661, intended to bring Virginia’s controversial skill games sector into a regulated framework, did not clear the subcommittee. Skill games have been a persistent headache for state regulators and localities, with previous attempts at regulation encountering political resistance; a similar prior bill was vetoed by the governor.
SB 129 moved forward unanimously. That bill tightens sports-betting rules to clearly delineate the line between daily fantasy sports and traditional sports wagering. Under the measure, fantasy-sports operators would face a $50,000 registration fee and a 10% tax on revenue before offering products in Virginia.
A separate House proposal to legalize online casino gaming remains under consideration in the lower chamber. Observers expect renewed debate as lawmakers refine consumer protections and revenue-sharing arrangements.
What Comes Next in Virginia
With the creation of an independent regulator now advancing, the next legislative steps will focus on drafting implementing language, appropriating operational funding, and defining enforcement authority. If the Fairfax casino measure survives the Finance Committee and both legislative chambers, it would go to local voters, potentially reshaping the Commonwealth’s local gaming economy.
Stakeholders – including municipal leaders, operators, and advocacy groups — are likely to intensify lobbying as the session progresses. "The coming weeks will be decisive: legislators must translate the broad mandate for regulation into detailed rules that protect consumers while allowing legitimate businesses to operate", Lang said. "That balance will determine whether Virginia can modernize its gaming market without unintended harms."
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