Confusion Reigns as Virginia Legislature Votes to Legalize Skill Gaming Machines by Mistake

Did lobbyists for the Virginia’s skill games industry just hoodwink state lawmakers into greenlighting the legality of their machines for another year? Some people in Richmond think so.

Virginia skill gaming
Gov. Ralph Northam proposed licensing and taxing skill gaming machines for a year to help establish a COVID-19 fund. (Image: Zach Gibson/Getty)

Last year, Gov. Ralph Northam came up with a plan to tax and regulate the slot-like terminals that had become ubiquitous in convenience stores and truck stops across the state, but which occupied a gray area of the law.

The idea was that making the machines legal for just one year would help shore up finances for struggling businesses, while tax revenues generated would be paid into a COVID-19 fund. Desperate times, desperate measures.

Pulling the Plug

Since the plan came into effect last July, the machines have raised more than $70 million for the fund. But now lawmakers want the fun to stop. A bill to extend the licensing of the machines for another year failed to make it out of committee. That means, come July 1, 2021, it will be time to pull the plug.

Or will it? The Virginia Mercury reports that a bill ostensibly designed to make it easier to prosecute illegal gambling may have tricked lawmakers into voting to extend skill-gaming licensing for another year.

After stipulating illegal gambling operators should be subject to a fine of up to $25,000, the bill lists those exempted from the penalty. It states that “any organization or person that conducted bingo, network bingo, instant bingo, pull tabs, seal cards, raffles, duck races, Texas Hold’em poker tournaments, or regulated gaming […] on or before February 1, 2021, may continue such activities only at those locations until June 30, 2022.”

The bill was passed emphatically last month by both chambers. And since skill games machines were “regulated gaming” on February 1, 2021, it looks like they just got a stay of execution.

Cue confusion.

Backer Denies Conspiracy

The bill’s main sponsor, Del. Don Scott (D-Portsmouth), assured the Mercury that it was not his intention to extend skill gaming. But even he admitted the language is open to interpretation.

“The way that I constructed the language was in consultation with a lot of the charitable people. And that was my intent, to make sure they would not be impacted,” he said. “If people are interpreting it another way, that’s on them.”

And if it is a conspiracy by the skill-gaming industry, it was a nice try, but it’s still doomed to fail. The bill currently sits atop Northam’s desk awaiting sign-off. You may remember, he’s the guy who came up with the idea of limiting the machines’ licenses to 12 months in the first place.

“Governor Northam expects skill games to end as of July 1, 2021. That has been his consistent position, and it hasn’t changed,” said Alena Yarmosky, a spokesperson for the Governor’s Office. “The governor’s action on this legislation will reflect that stance.”

Philip Conneller
Philip Conneller Senior Reporter

In Philip Conneller’s eight years with Casino.org, he has covered the gaming industry from Las Vegas to Macau and everything in between. He currently focuses his coverage on gaming law, white-collar crime, global money laundering, tribal gaming, politics, and regulation.

Philip was the original features editor for poker’s Bluff Magazine and editor for Bluff Europe, which he helped launch. His writing has also been featured in ESPN, Forbes, Time Out, The Sun, and The Daily Star, as well as iGaming Business, eGaming Review, and numerous other industry news and tech websites.

His news stories for Casino.org/news have been linked by The Washington Post, The Daily Mail, People Magazine, and Jimmy Fallon's Tonight Show, among many others.

Philip once won $20,000 with 7-2 off-suit. He has been reprimanded for unwittingly playing Elton John’s piano on two separate occasions on both sides of the Atlantic.

He became a writer because he is a lousy pianist.

Philip lives outside London with his wife and children, where he spends his time agonizing about Arsenal FC.

Contact Philip at philip.conneller@casino.org.

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  • M
    Melissa April 2, 2021
    Why does the small business that try to make a honest living always get the short in of the stick. Making large gambling casinos on… Why does the small business that try to make a honest living always get the short in of the stick. Making large gambling casinos on Va is legal. (the one coming to Danville Va) but a stand up of fish table will become illegal July 1 2021. If you are paying your taxes on the machines what's the harm. This for some is a way of dealing with all the stress of covid-19, unemployment, lack of jobs etc...... Sometimes its not so much winning money but the relationships that are built with one another at the table. The governor really needs to rethink his position.
    Reply
  • R
    ROB March 27, 2021
    Sounds like the people want a new governor .
    Reply

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