After poker ‘disaster,’ watchdog suggests stripping Va. Charitable Gaming Board of some powers

A new report from Virginia’s watchdog agency suggests limiting the Virginia Charitable Gaming Board’s regulatory powers after concluding the board’s chairman failed to properly recuse himself from writing rules for Texas Hold ‘Em poker tournaments he stood to benefit from.

The 59-page report, delivered to legislators and Gov. Ralph Northam’s administration Wednesday, identified major problems with the state’s failed effort to legalize and regulate charitable poker. The regulations written by the industry board, the report said, “damage the integrity of the charitable gaming program” by explicitly allowing conflicts of interest and minimizing the involvement of charities.

“This appears to provide for the creation of poker halls in Virginia,” the Office of the Inspector General (OSIG) wrote, adding the “low level of involvement required by the charity” could make it difficult for regulators to track where poker profits are going.

Chuck Lessin, a homebuilder now operating his own poker room at his Richmond sports bar and bingo hall, played a key role in the development of those regulations as chairman of the Charitable Gaming Board. He disclosed his personal interest in the outcome, but state investigators say that wasn’t enough and he should’ve recused himself entirely.

“Board members not properly recusing themselves in accordance to both the code and their approved bylaws damages the integrity of the board and the overall commonwealth’s charitable gaming oversight,” the agency wrote.

In a written response to the Mercury, Lessin called the watchdog report “BS” and “outrageous.” He said OSIG wasn’t instructed to do a deep dive into the poker regulations and insisted he was not legally required to recuse himself.

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The Virginia Mercury is a new, nonpartisan, nonprofit news organization covering Virginia government and policy.

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