Embodiments provide methods and systems for regulating the use of virtual reality environments provided to residents of controlled-environment facilities. In response to a request for virtual reality programs from an inmate, the privilege status of the inmate is used to determine the available virtual environments in which the inmate may participate. The participation of the inmate within a virtual reality session may be restricted based on the privilege status of the inmate. Any limitations on an inmate's participation within an approved virtual environment may be enforced by restricting the behavior of an avatar representing the inmate within the virtual environment. The privilege status of inmates may be used to enforce restrictions that prohibit contact between certain inmates or certain classifications of inmates. The participation of inmates may be restricted and terminated based on a measured physiological responses to the inmate's participation in a virtual environment.