Legislation to legalize, tax skill games in Virginia heads to governor

Virginia lawmakers passed legislation Friday that would legalize skill games, the slots-like betting machines that proliferated in businesses around the state before an on-again, off-again ban took effect.

If signed by GOP Gov. Glenn Youngkin, the bill would tax and regulate the devices, which are also known as gray machines because of the murky area of the law in which they previously operated.

The legislation was supported by a well-organized coalition that involved skill game developer Pace-O-Matic and business owners who have hosted the games and shared in their profits. Even critics said they were moved by the testimony of the business owners, many of them first-generation Americans, who said the machines had been a lifeline for their establishments, especially during the pandemic.

“For years, thousands of small businesses throughout the Commonwealth have come to rely on the supplemental, sustainable revenue provided by skill games. This victory will solidify their presence in Virginia and give thousands of small business owners peace of mind knowing they can keep their doors open, create jobs, and support their local communities," said Rich Kelly, a restaurateur and president of the Virginia Merchants and Amusement Coalition, which formed to advocate for legalization of the machines.

The arcade-style games, which other states are also grappling with, look similar to slot machines but involve an element of skill, according to their manufacturers.

Opponents of legalizing them said doing so would represent a massive expansion of gambling in Virginia, which they argued could result in harm for children, low-income people and those struggling with gambling addiction.

Legalization was also opposed by other players