Blow for Skill Games in Virginia After Gov. Spanberger Vetoes Legislation

Blow for Skill Games in Virginia After Gov. Spanberger Vetoes Legislation

Skill games won’t be a part of Virginia’s evolving regulated gambling industry after Governor Abigail Spanberger vetoed a bill to legalize the machines.

Before the weekend, the Governor vetoed SB 661, citing a lack of central oversight and concerns about community impact. 

“Right now, legalizing skill gaming and introducing more of these machines into our communities would strain an already fragmented system.

“Legalizing these machines at this moment would also reward operators who knowingly disregarded state law for years and set a troubling precedent for how business is conducted in Virginia.”

At a Glance: 

  • Virginia Gov. Abigail Spanberger vetoes SB 661, blocking legalization of skill gaming machines
  • Skill games were briefly legalized during the COVID-19 pandemic
  • Bill would have permitted up to 25,000 machines in convenience stores, restaurants, and truck stops
  • Gov. Spanberger calls for “centralized regulatory authority” for all gambling in VA
  • Virginia already has regulated casino gaming and sports betting

Virginia’s rapid gambling expansion outpaces state reform

In an official veto statement on SB 661, Gov. Spanberger added: 

“Senate Bill 661 would strain an already fragmented system and introduce thousands more machines without a comprehensive regulatory structure.”

The Governor also cited the lack of an overarching “centralized regulatory authority for gaming” in Virginia. Currently, Virginia’s gambling is handled by a range of competing bodies, including the Virginia Lottery and the Virginia Casino Gaming Commission.

  • Virginia Lottery: Primary regulator for state lottery, sports betting, and land-based casinos
  • Virginia Casino Gaming Commission (VCGC): Licensing, integrity, and fairness
  • Virginia Racing Commission (VRC): Pari-mutuel wagering, all horse racing

SB 661 veto a big loss for skill games manufacturers

A brief window was opened during the COVID-19 pandemic, during which skill games were allowed in Virginia. Lawmakers in the Old Dominion banned the machines in 2021, and the ban was upheld following a brief but successful legal challenge by skill game manufacturers. 

Skill game machines have the appearance of slots. However, a “skill” element is included to help manufacturers like Pace-O-Matic bypass state gaming laws. Games typically include challenges and puzzles that require some skill to complete. 

SB 661 would have allowed up to 25,000 skill games to operate legally within restaurants, truck stops, and convenience stores across Virginia. However, it’s estimated that there are still many more unregulated skill game machines across the state. 

Virginia pushes ahead with online casino expansion

Despite the blow to Virginia’s skill games suppliers, Old Dominion could be set to join other states in legalizing online casinos

Passed with a 9-6 vote, SB 118 will regulate online casinos and sweepstakes gambling in the state. The move has been endorsed by land-based casino operators in the state, who would benefit from exclusive rights to launch online.