Virginia legislators in Richmond are still researching the possibility of creating a commonwealth agency tasked with overseeing commercial gambling.

In recent years, Virginia has significantly increased its gambling options, opening up to five physical casinos with sports betting, live dealer table games, and slot machines. In addition, Virginia is currently the location of parimutuel wagering establishments that offer online sports betting in addition to historical horse racing machines that resemble slots.

The Virginia Lottery is in charge of managing retail and mobile sports betting, casino operations, and lottery games. Horse racing, parimutuel wagering, and HHR gaming are all governed by the Virginia Racing Commission.

The possibility of creating a commercial gambling regulatory body called the Virginia gambling Commission is still being investigated by a joint subcommittee of the Virginia General Assembly. The organization would oversee parimutuel establishments, internet sports betting, casino gambling, and HHR wagering. Only the lottery would now be governed by the Virginia Lottery.

It is anticipated that in January, the joint panel will present its recommendations to the General Assembly.

Consultant Suggests Establishment 

Brianne Doura-Schawohl, a consultant with her boutique Doura-Schawohl Consulting, LLC, suggested to the bipartisan panel that funds be set aside for the creation of the Virginia Gaming Commission during the joint subcommittee meeting on Wednesday. According to Doura-Schawohl, the best organization to safeguard consumers, regulate operators, and make sure the negative effects of more gaming on society are kept to a minimum is a central gaming regulatory body.

According to Doura-Schawohl, Virginia is required to set aside a portion of its gaming levy for the study, mitigation, treatment, and rehabilitation of problem gambling.

"The most comprehensive model to mitigate risk and reduce harm is a bifurcated approach between the state health agency and one central gaming regulatory agency,” Doura-Schawohl said. “The regulatory should be empowered to require and enforce stringent consumer protection provisions as part of licensure.”

With the opening of retail casino resorts throughout the commonwealth, Virginia—once one of the states with the fewest gaming restrictions—is set to grow into a major player in the US casino market.

The first permanent casino to open in Virginia was Rivers Casino Portsmouth in January 2023. Bigger casino resorts in Bristol and Danville will open soon.

Before the year ends, Caesars Entertainment intends to open Caesars Virginia, a $750 million integrated resort in Danville. The $550 million Hard Rock Hotel & Casino Bristol is scheduled to open in the fall or winter, according to Hard Rock International.

This November, voters in Petersburg will determine whether to approve a $1.4 billion mixed-use development that includes an integrated resort casino. Additionally, the Pamunkey Indian Tribe is still pushing ahead with its $500 million or more casino proposal near Norfolk.

Churchill's Reluctance

Churchill Downs, Inc., which is developing The Rose Gaming Resort, a $460 million project in Dumfries, and runs the HHR machines in Virginia, is against the planned Virginia Gaming Commission's inclusion of parimutuel wagering regulation.

Churchill, which also owns and runs the Colonial Downs Racetrack in New Kent, claims that payouts to horsemen have decreased in other jurisdictions where parimutuel wagering laws were transferred from a racing commission to a gaming commission. The Kentucky-based corporation made reference to Michigan, where the Michigan Gaming Control Board and the Michigan Racing Commission amalgamated in 1997.

"Michigan’s once vibrant thoroughbred industry went from running over 1,000 races for $9 million in purses (2003) to ceasing thoroughbred racing,” Churchill’s presentation to the joint subcommittee detailed. “In 2003, there were 375 thoroughbreds foaled in Michigan and in 2022 there were four.”

The horse racing business in Michigan came to an end earlier this year with the closure of Northville Downs, the state's last racetrack.

“Given the nuances of parimutuel wagering, live horse racing, simulcast wagering, and advanced deposit wagering, Churchill Downs believes the oversight of historical and live horse racing should remain at the Virginia Racing Commission,” the company concluded.