Virginia Gov. Glenn Youngkin speaks to reporters in Richmond on Monday, the day he wouldn’t sign skill game legislation without major revisions. (Image: Katie King/The Virginian-Pilot/TNS/Alamy)

Virginia Gov. Glenn Youngkin proposed a series of tough regulations on “skill games” Monday night, amending a bill that the General Assembly passed a week earlier.

On March 1, the General Assembly voted to repeal a state ban on skill games, which are similar to slot machines.

Youngkin has since expressed significant reservations about the decision. The Republican made it clear just how strong his objections were on Monday, when he sent a heavily modified bill back to the legislature.

Amendments Restrict Placement, Allow Local Voters to Ban Machines

With Youngkin’s amendments, local citizens would now be able to vote to ban skill game machines in their communities. The games would not be allowed near schools, day care centers, and houses of worship. The amended bill also places restrictions on how close machines can be placed to existing gambling facilities like horse racing tracks and casinos, allows for a maximum of 20,000 skill games in Virginia, and raises the tax rate on gross receipts from 25 percent to 35 percent. 

The original bill had been pushed by the Virginia Merchants and Amusements Coalition, which included a wide range of convenience store and gas station owners. Some legislators who supported the initial bill vowed to fight the changes proposed by the governor.

“My cosponsors, our bipartisan coalition, and I will work together to make sure the harmful provisions put into place by Governor Youngkin do not advance, and we will do everything possible to make the interests of small businesses – not casinos or massive out-of-state corporations – a priority,” Senator Aaron Rouse (D-Virginia Beach) said in a press release. 

However, opponents of skill games say it is exactly those out-of-state corporations that will benefit from their legalization. Pace-O-Matic, a skill game company based in Georgia, has made over $1 million in campaign contributions to Virginia politicians since 2018 and has lobbied for skill games to be legalized in Virginia, according to Virginia Mercury.

“It’s the wealthy out-of-state corporations behind these machines who stand to benefit, preying on vulnerable communities and perpetuating cycles of poverty and despair,” a group of Virginia pastors named Faith Wins America wrote in a letter to Youngkin after the bill was passed.

Virginia Skill Games Sitting in Legal Limbo 

Skill games closely resemble slot machines, and use many of the same mechanics. However, they also include some skill elements – such as memory games – in bonus rounds, which proponents say make them legally distinct from traditional forms of gambling. 

Virginia lawmakers initially outlawed skill games in 2020. The ban took effect in 2021, despite a lawsuit against the state that attempted to keep the games running. 

Youngkin’s amendments to the bill would also significantly slow down the pace at which skill games could return to convenience stores and truck stops across the state. 

The bill that passed in March would have allowed the Virginia Alcoholic Beverage Control Authority to have temporary oversight for the machines beginning on July 1. Youngkin is proposing to put the machines under the purview of the Virginia Lottery, which wouldn’t even begin accepting applications for skill game operators until January 1, 2025.

While proponents are opposed to most of these changes, the protected areas for existing casinos and race tracks have drawn the most ire from stakeholders in skill games.

“In another effort to protect out-of-state gambling interests, [Governor Youngkin] effectively banned skill games by banning skill games within a 35-mile radius of all gaming establishments,” Virginia Merchants and Amusements Coalition president Rich Kelly told reporters.

Casinos are already operating in Bristol, Danville, and Portsmouth. Efforts are also underway to open casinos in the cities of Norfolk and Petersburg, though Richmond has been removed as a potential casino site. 

The General Assembly will debate the amended bill next Wednesday, April 17. If lawmakers return a bill to Youngkin, he can then choose to sign or veto the legislation at that time.