An appointee of Gov. Glenn Youngkin, Gee has led the Lottery since last summer but is in the process of transitioning to a new role in the Youngkin administration as secretary of the commonwealth.

Virginia’s still-under-construction casino industry also appears to be outperforming expectations in its early stages, according to Lottery figures, even though several of the casinos are operating in temporary locations while their bigger facilities are being built.

The temporary Hard Rock Casino in Bristol, which opened in July 2022, saw $157 million in net gambling revenue in its first year of operation, ahead of the $130 million the state study projected for a fully established casino. That produced almost $26 million in tax money split between local governments and a state fund dedicated to school construction and upgrades.

“It’s impossible to know if this activity will continue at this rate,” Gee said. “But it’s an impressive start by all measures.”

Rivers Casino Portsmouth, which opened in January and was projected to generate $167 million in annual gambling revenue, had already seen $120 million in net revenue by June, when the state’s budget year ends. The Portsmouth facility produced roughly $17.9 million in tax revenue.

The most recently opened temporary Caesars casino in Danville saw $31 million in gambling revenue in May and June alone. The 2019 state study projected a Danville casino would produce $190 million in annual gambling revenue.

“I would collectively say that all three are performing a little better than expected,” Gee said.

Another casino is in the works for Norfolk, and voters in Richmond are being asked to approve a casino project for a second time this fall after an initial ballot referendum failed in 2021.

Noting the more than $8 million the Richmond casino developer is putting behind the campaign to get voters to say yes to the project, Sen. Tommy Norment, R-James City, said Tuesday that he fears the state will inevitably see bigger problems with gambling addiction that will cost more money for behavioral health officials to address.

“I would be interested in what the per-individual cost is of this intervention,” Norment said.

As Virginia has expanded gambling, policymakers have established rules setting aside some of the revenue to assist people who develop gambling problems. In fiscal year 2023, nearly $2.6 million was allocated to problem gambling resources, with much of the money going to local community services boards that already handle addiction and other mental health issues.

At Tuesday’s meeting, Virginia Department of Behavioral Health and Developmental Services Commissioner Nelson Smith said the state believes roughly 2% of Virginia’s population could be impacted by problem gambling.

“There’s probably a lot more Virginians that are out there that are not seeking help,” Smith said.