Virginia Bill Aims To Create Statewide Gambling Commission

Virginia’s 2026 legislative session is already shaping up to be a major one for gambling legislation.

Last week, a bill was pre-filed to legalize online casino while banning sweepstakes gaming. On the heels of that, Delegate Paul Krizek has pre-filed House Bill 271, a sweeping proposal that would create a new Virginia Gaming Commission and shift nearly all state oversight of legal gambling (excluding the lottery) under one roof.

HB 271 is built around a simple idea: Virginia’s current gaming oversight system is spread across too many agencies. As it stands, the Virginia Lottery regulates casinos and sports betting, the Department of Agriculture and Consumer Services (VDACS) handles charitable gaming and fantasy sports, and the Virginia Racing Commission oversees horse racing. The bill claims this patchwork no longer works as the gambling world in Virginia continues to expand.

Under HB 271, the regulatory responsibilities would be consolidated into a single independent agency, known as the Virginia Gaming Commission (VGC). The new commission would not sit within the executive, legislative, or judicial branch, and its structure is intentionally designed to operate at arm’s length from shifting political leadership. A 10-member board would govern the agency, with nine non-legislative citizens appointed by the governor from lists provided by General Assembly committee chairs. The bill requires specific expertise among board members, including backgrounds in criminal investigations, accounting, and problem gambling.

The commission would be led by a commissioner appointed by the governor, supported by a deputy commissioner, a director of regulatory affairs, a chief operating officer, and dedicated departments covering audits, external affairs, and responsible gambling. The bill also calls for regulations to be fully in place by Jan. 1, 2028, setting a two-year window for the transition.

HB 271 also outlines how the state would transfer employees and resources from existing agencies into the new commission. All gaming-related duties currently handled by the lottery, VDACS, and the racing commission would move to the VGC, along with the corresponding staff. The bill establishes a dedicated special fund to support the commission’s work, made up of fees, fines, and other gaming-related revenue.

Penalties and more

The bill also spells out penalties the new commission could enforce. Individuals found messing with gaming devices or software could face fines up to $50,000, while businesses could see penalties up to $200,000. Unauthorized online casino machines inside a business could lead to fines up to $100,000 and potential license suspensions. Misuse of state-protected branding, including the “Virginia is for Bettors” phrase, could carry fines up to $50,000.

HB 271 is not Krizek’s first attempt to consolidate gaming oversight. A similar measure surfaced in 2023 but did not advance out of the House Appropriations Committee. The underlying approach remains the same: Bring the state’s expanding mix of gambling under a single, dedicated regulator.

While HB 271 does not itself legalize online casino gaming, the bill is clearly positioned to prepare the state for that possibility. A separate measure, HB 161, proposes to legalize online slots, blackjack, and roulette. HB 271 creates the regulatory foundation that would be needed if lawmakers choose to move forward.

If passed, the Virginia Gaming Commission would become the central authority for virtually all legal gambling in the state, marking the most significant restructuring of Virginia gaming oversight in decades.