Virginia legislators clash over gambling expansion plans

Article by : Charles Perrin Feb 2, 2024

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Virginia legislators have found themselves dueling over plans to expand gambling in the state which would see the introduction of “gray machines”.

These arcade-style games which bear more than a striking resemblance to traditional slots, have been backed by different gambling companies, who are thinking about the bottom lines.

Policymakers are currently grappling with the idea of how to effectively incorporate these gambling machines into a wide range of establishments, including truck shops, restaurants, and convenience stores.

Currently, skill-based games are prohibited in Virginia due to a ban that was originally enacted in 2020.

But a new bill championed by Sen. Aaron Rouse and co-sponsored by Sen. Louise Lucas, could overturn the status quo and provide a clear regulatory framework for the slot-like machines.

Under the suggested plan, Virginia’s ABC (Alcohol Beverage Control Community) would be responsible for overseeing and monitoring the machines.

The measure would see a give-terminal limit enforced in ABC-licensed establishments like restaurants and a 10-terminal limit in truck stops.

Skill games revenues under Rouse’s proposal would be taxed at 15%, and he has estimated the bill could generate around $200 million annually in revenue for the state.

So far, only a handful of states have legalized gaming machines in the manner that Virginia is considering, and this could be a seismic moment.

Indeed, Virginia has welcomed new forms of gambling in recent years, including casinos and historical horse racing, and supporters feel it is only fair that smaller enterprises can claim a fair slice of the pie.

Conversely, there has been another bill put forward by Democratic Sen. Jeremy McPike, who is trying to regulate skill games and slot-like video terminals under the realm of the Virginia Lottery Board.

McPike is also pushing for a higher tax rate of 34%, but his bill stipulates that it would empower local governments to discard such machines if deemed necessary.

While there have been some legislative maneuveurs and grandstanding, some critics are worried that expanding gambling could lead to a rise in crime rates and other associated social problems.

McPike’s bill has yet to receive a hearing, although he conceded recently that it is a “little stalled”.

The skills game debate has raged on for several years, but it will be fascinating to see how the next chapter unfolds.