The Virginia Senate voted 24-15 this week to pass legislation that would legalize skill games. Senate Bill 661, called the Virginia Small Business Economic Development Act, now moves forward in the legislative process.
Skill games are slot-like machines that some say helped small businesses survive the COVID-19 pandemic. The machines split revenue between game developers, distributors, and the businesses that host them. However, critics argue they spread gambling to every corner and cause addiction and crime.
Virginia temporarily allowed skill games during the pandemic to help bars and restaurants earn extra income. That permission ended in June 2021. A court battle followed, with an injunction keeping the games running. However, the state Supreme Court ruled them illegal in October 2023.
Senator Aaron Rouse of Virginia Beach introduced SB661 to create proper rules for these machines. The bill would put the Virginia Alcoholic Beverage Control (ABC) Authority in charge of regulation.
Under the bill, operators would pay an $800 monthly tax per machine. The money would go to the Virginia Small Business Economic Development Fund. From there, 75% flows to the state’s General Fund. Local communities would receive 15%. The ABC would keep 6% for regulatory costs. In addition, 2% would support problem gambling treatment, 1% would fund state police gaming enforcement, and 1% would help local law enforcement.
The bill caps wagers at $5 per play. Winnings would be limited to $5,000 per single play. Distributors would need to pay $250,000 annually for a license. Host businesses would pay $1,000 per year, while truck stops would pay $2,500.
Governor Abigail Spanberger has concerns about expanding gambling further. Virginia has already added commercial casinos, sports betting, and historical horse racing machines since 2020. Her appointed secretary testified that the governor wants a single gaming commission with clear authority before adding more gambling formats.
SB661 would limit Virginia to 35,000 skill game machines. Before the ban, estimates suggested around 90,000 unregulated machines operated across the state. The bill now faces further legislative steps before potentially reaching the governor’s desk.
