The subcommittee voted 8-0 to report House Bill 2498, a broad measure to create an independent Virginia Gaming Commission (VGC) to oversee and regulate legalized gaming in the Commonwealth, excluding the Virginia Lottery.

Delegate Kreesick, who served as vice chair of the joint subcommittee that studied the idea, told the panel the VGC is intended to centralize regulation across disparate gaming activities — sports betting, fantasy sports, horse-racing wagering, historical horse-racing machines, iLottery and other emerging forms — and to enable a coordinated statewide problem-gambling strategy. He described a transitional body to be formed within the Virginia Lottery that would consolidate into a standalone commission over one to two years. Kreesick and witnesses said the consolidated body would improve coordination with law enforcement, including the Virginia State Police Office of Gaming Enforcement.

Industry witnesses — including representatives for Bristol Casino, sportsbooks (Sports Betting Alliance), distributed gaming firms and other casino stakeholders — testified in favor of the bill, praising its potential to promote operator integrity and player protections. Veterans’ groups and other organizations also expressed support.

Racing industry representatives, including Jeb Hannam of the Virginia Equine Alliance and Cliff Williamson of the Virginia Agribusiness Council, said they support the concept in principle but warned that the bill’s original language risked severing the regulatory and financial link between historical horse-racing machines and racetrack operations. Hannam said the racing commission’s traditional role overseeing pari-mutuel wagering should be preserved and expressed concern that the bill, as drafted, would leave racing representatives without voting authority on the new commission and could threaten the long-term viability of Virginia’s racing industry.

The committee adopted a substitute before reporting the bill and recorded an 8-0 vote to refer HB 2498 to the Appropriations Committee with the substitute. The transcript records supportive testimony from casino and sportsbook stakeholders alongside cautionary remarks from the racing sector.