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Virginia Republican Governor Glenn Youngkin remains reluctant to legalize skill-game machines, calling on lawmakers to instead pass a bill this session to create a gaming commission before any further expansion is considered.
In October 2023, the Supreme Court of Virginia overruled a lower court injunction and reinstated the state’s ban on unregulated skill-game machines that had become ubiquitous in convenience stores, truck stops and other venues across the state.
Currently, the machines, mostly operating under the “Queen of Virginia” brand and manufactured by Pace-O-Matic, have been turned off, but there have been reports of new so-called pre-reveal machines, or no chance games, being operated in defiance of the ban.
On Monday (January 20), the Virginia Senate took the first step in 2025 to consider legislation to reverse the ban, after a similar effort came close to approval last year.
Under Senate Bill 1323, sponsored by Republican Senator Christie Craig, each electronic gaming device would pay a $1,200 monthly tax, with convenience stores licensed to sell lottery products limited to three machines, and truck stops allowed to have seven terminals.
The bill would cap the total number of machines at 30,000 and require the Virginia Lottery Board to approve regulations for skill games by June 30, 2026, with the Virginia Alcoholic Beverage Control Authority allowed to issue provisional registrations until the rules are finalized.
Craig told the Gaming Subcommittee of the Senate Committee on General Law and Technology that the issue of regulating skill games was “not new to anyone on this committee”.
“This is not an industry bill,” Craig said. “This is just a compromise that I’ve been talking to people across the commonwealth that want to see illegal gaming legalized.”
Craig estimated her proposal would generate $36m a month, or over $400m annually, in tax revenue.
The arguments made by supporters and opponents during Monday’s committee hearing were similar to those expressed last year prior to the General Assembly passing Senate Bill 212. In the end, Youngkin vetoed that bill, which would have reversed the ban and made skill-game machines a regulated industry.
“These small businesses are looking for a regulatory framework that would allow for supplemental, sustainable income. This bill does it,” said Brian Moran, a lobbyist for the Virginia Amusement Coalition, which represents 1,500 gas stations and convenience stores.
Scott Johnson, a lobbyist for the Hard Rock Hotel and Casino in Bristol, said the gaming industry continues to oppose to the bill.
Johnson reminded lawmakers that casino operators have invested more than $1bn in their properties and made an investment in the state. Currently, there are 3,900 slot machines in Virginia's licensed casinos, compared with the 30,000 skill games proposed under Craig’s bill.
Based on his recent comments, Governor Youngkin has not softened his opposition to any proposal that regulates a new form of gaming before first establishing a gaming commission to oversee all gambling in Virginia.
In an interview with WTKR-TV, Youngkin stressed that “creating a world class leading gaming commission has to be our top priority”.
“I think if we preempt that with one-off bills in order to address a particular sector of the gaming industry, we are undermining our ability to get a great gaming commission established.”
Youngkin expressed frustration with the “special interest groups that have demonstrated that they really don’t respect the laws in Virginia, and therefore I’m not interested in progressing any of those kinds of bills”.
Josh Humphries, the governor’s director of legislative affairs, on Monday reiterated Youngkin's position that “the Virginia Gaming Commission should be stood up before any new gaming is authorized in the commonwealth”.
“Allow the agency … to make decisions moving forward,” Humphries told the Senate committee.
After taking testimony and questions on SB 1323, Senator Jeremy McPike, a Democrat and chair of the subcommittee, called for a motion to advance the bill. Republican Senator Bryce Reeves made a motion but there was not a second, so the subcommittee did not vote on the measure.
“There is not a second to this bill,” McPike said. “It will be heard in full [committee] without a second.”
“I’ll be back. See you next year,” Craig replied.
While SB 1323 lacked support, the subcommittee did advance a 334-page substitute to Senate Bill 1287 that establishes the Virginia Gaming Commission. Reeves, who introduced the bill, said it was a product of a two-year process.
Among the amendments, Reeves proposed to increase the number of commissioners from nine to 11 and require the commission to partner with local law enforcement to “combat illegal gambling”.
“We support the concept,” said Humphries, adding that the administration would take a look at the substitute bill.
Both bills are listed on the General Laws and Technology Committee agenda for Wednesday (January 22).
Other gaming bills to be considered by the committee are Senate Bill 863 to increase the minimum age required to participate in fantasy sports from 18 to 21, as well as Senate Bill 982 to make Fairfax County, in northern Virginia, eligible for a casino referendum.
Also on Monday, the Senate committee deferred action on a further bill to authorize internet gaming in Virginia. The bill's sponsor said senators had determined the measure requires further study before being reconsidered in the 2026 session.
