Virginia Revives Ban on Slot-Like Skill Games

Article by : Erik Gibbs Oct 16, 2023

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Virginia’s ban on electronic skill games has been reinstated following the Virginia Supreme Court’s decision to lift a lower court’s injunction that had permitted these slot machine-like games to remain in truck stops and convenience stores.

A panel of three Supreme Court justices determined that the claim made by certain truck stop and convenience store operators, suggesting that the skill game ban violated the free speech protections outlined in the Virginia Constitution, was unlikely to prevail on its merits.

Skill games are electronic consoles resembling slot machines, but their payouts are not solely dependent on chance. Instead, they typically require a minor action from the player, such as pressing the right button, to achieve a win.

Notably, the statute that prohibits skill games, initially established in 2020 and reinforced in 2022, does not encompass narratives or analogous forms of expression when delineating the types of games to be banned.

The judicial order, delivered by Justices Stephen McCullough, Teresa Chafin and Wesley Russell, exclusively focuses on regulating conduct.

Virginia business owners have initiated a coalition in favor of supporting skill games. According to the court’s ruling, the statutory framework does not explicitly forbid video games from encompassing similar themes and messages.

Instead, it specifically targets the capability of truck stops and convenience stores to provide customers with the opportunity to place bets on game outcomes, effectively prohibiting gambling-related conduct.

Determining the boundary between free expression and conduct can sometimes pose challenges; however, this matter becomes notably straightforward when regulating gambling activities, as emphasized by the court.

Before the 2021 prohibition, Virginia had implemented a $1,200 monthly tax per machine, with an anticipated annual tax revenue of $130 million.

Senate Minority Leader Tommy Norment, a vocal critic of these devices, expressed on Friday that it was long overdue to discontinue these machines, which, in his view, have failed to make any contributions to the public good. Nevertheless, the legal challenge against the ban persists.

State Senator Bill Stanley, representing Hermie Sadler in his truck stop’s case against the skill games ban, noted that the recent revocation of the injunction, which had been in place for almost two years, is unfortunate and, in their view, incorrect.

Stanley expressed confidence that their compelling case will lead to victory when it goes to court in December.

Pace-o-Matic, a company involved in skill games, mentioned that its legal team is currently reviewing the court’s opinion and evaluating the next steps to take.