Senator Bryce Reeves, a Republican from Spotsylvania County, expressed frustration over the lack of progress, attributing the stall to political maneuvering rather than policy concerns.
“We’re letting the bad players — the illegal games — keep operating without oversight, without paying taxes, without any regulation,”
Reeves told Radio IQ.
Delegate Paul Krizek, a Democrat, acknowledged the challenges but maintained that the move to include the commission within the budget was necessary to keep discussions alive.
“Well, we’ll see if it’s a good idea if we get it through,”
he said.
“And if it goes to the Governor, then it was a good idea. And if it doesn’t, then it’s a bad idea.”
The VGC was designed to consolidate regulatory efforts under one entity, ensuring better oversight of gambling operations and tax revenue allocation. Existing agencies, such as the Virginia Department of Agriculture and Consumer Services (VDAC), lack the resources to handle the state’s rapidly expanding gambling industry. The delay has also raised concerns about the integrity of certain betting practices, such as outright bets, which some lawmakers fear could lead to match-fixing.
Online Casino Legalization on the Horizon?
As regulatory uncertainty persists, lawmakers are also considering the legalization of Virginia online casino gambling. Senator Mamie Locke pre-filed Senate Bill 827, which, if passed, would allow online casinos to operate under the oversight of the Virginia Lottery Board.
The bill proposes a 15% tax on online casino revenue, with 2.5% allocated to responsible gambling initiatives and the remaining 97.5% directed to the state’s general fund. Virginia’s four licensed casino operators — Caesars Virginia, Golden Eagle Corp., Hard Rock Bristol, and Rivers Casino Portsmouth — would be allowed to offer up to three online casino skins each.
Virginia already has a thriving sports betting industry, having legalized the practice in 2020. Since its launch in January 2021, sportsbooks have handled $19.2 billion in wagers, generating $1.9 billion in revenue and contributing $224.2 million in tax revenue to the state. However, the online casino expansion faces hurdles, as similar legislative efforts in other states have struggled to gain traction.
Sports Betting Revenue Declines Amid Policy Uncertainty
While regulatory discussions continue, the Virginia sports betting market experienced a significant revenue dip in December. Adjusted gross revenue (AGR) for the month fell 23.4% year-over-year to $43.9 million, well below the previous year’s $57.2 million. The sharp drop also marked a 45.5% decline from November’s record $80.6 million.
Despite this, player spending remained strong. The total betting handle for December reached $734.4 million, a 16% increase from the previous year and the second-highest monthly total on record. However, the state’s hold rate dropped to 5.98%, with $684.8 million paid out in winnings.
Virginia collected $6.6 million in sports betting taxes for the month, significantly lower than the record $12.1 million generated in November. Of the tax revenue, $6.4 million was allocated to the General Fund, while $164,958 went to the Problem Gambling Treatment and Support Fund.
As Virginia navigates these regulatory and financial challenges, the gambling industry’s future remains in flux. Whether the state strengthens oversight with the VGC, legalizes online casinos, or continues its current trajectory, lawmakers will need to balance growth with responsible regulation to ensure long-term stability.
