Virginia Skill Gaming Ban Debated, But VGT Opponents Want Casinos First
Posted on: August 17, 2021, 02:50h.
Last updated on: August 17, 2021, 03:14h.
Virginia skill gaming machines officially became illegal in the commonwealth on July 1, 2021.
The ban on the terminals came after the state allowed the controversial devices to operate legally for a little more than a one-year period amid the COVID-19 pandemic. The temporary allowance of skill gaming was to help brick-and-mortar businesses, including convenience stores, bars and restaurants, and truck stops offset revenue losses caused by the coronavirus.
Those same small business owners are now reporting a severe reduction in overall revenue, as their skill gaming terminals are turned off.
“Sales have dropped,” Keyur Patel, owner of the Virginia Food Mart in Richmond, recently told WRIC. Patel explains that the customers who were lured into the store to play the machines ended up also purchasing snacks and beverages.
Patel claims his store’s revenue has dropped 25-30 percent since the skill games were powered down. One state lawmaker believes he has a solution — more gaming.
VGT Effort
Video gaming terminals, or VGTs, mimic the operations of a traditional slot machine. They’re taxed and highly regulated.
Seven states currently permit VGTs outside of casinos — Illinois, Louisiana, Oregon, Pennsylvania, South Dakota, West Virginia, and Georgia. Virginia Sen. John Bell (D-Prince William County) wants his home state to become the eighth.
Bell has proposed allowing small businesses in Virginia to place a small complement of VGTs into their establishments.
After visiting Illinois and meeting with business owners who have VGTs and state officials and gaming regulators, Bell reported to the Senate Committee on Laws and Technology that VGTs are vastly different than the divisive skill gaming machines.
It’s a game of chance. You have to be 21 to play, and it’s very regulated,” Bell explained of Illinois’ requirement that VGTs be housed in an area partitioned off from the rest of the business.
Conversely, Virginia skill gaming machines were open to anyone 18 and older, and went unregulated and untaxed prior to the 2020 law. From April 2020 through July 2021, small business paid the state $1,200 per skill gaming terminal. Businesses, manufacturers, and distributors split the profits.
“What are we going to do for all those small businesses that had grey machines and lost that revenue? This is a way to help them out,” Bell opined.
Bell’s proposal, however, didn’t gain much traction during the 2021 legislative session. But the state politician says he plans to reintroduce the matter in January 2022.
VGT Casino Impact
Not everyone is on board with Bell’s VGT mission. Some say the state should first proceed with the four commercial land-based casinos already in the works. A fifth could come by way of Richmond.
The American Gaming Association reveals that VGTs can damper gaming revenue at brick-and-mortar casinos.
“Commercial casinos in Illinois have reported a decline in revenue from electronic gaming devices each year since video gaming terminals were launched at bars, truck stops, and other convenience locations starting in 2012,” the AGA explains.
VGTs were also quicker to bounce back from the pandemic than casinos.
“While Illinois commercial casinos saw revenue fall precipitously in 2020, VGT electronic gaming devices in?bars and other convenience locations reported a record?quarterly revenue total in the third quarter once?bars and?restaurants were permitted to reopen,” the AGA adds.
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Last Comments ( 14 )
Why should the casinos have a monopoly on gambling. Doesn't the SEC regulate businesses so there are no monopolies. What makes the casinos have the right to make money protected by the state. Many small businesses rely on the business created by the queen machines. State government overreach is screwing these small businesses. My opinion there are people receiving payoffs to favor the casinos!
The problem with gambling terminals in convenience stores is that they are too convenient. These terminals have caused havoc in mostly minority communities. Many people have walked into a store to pick up bread, milk , eggs and other essentials. They have $20.00 on them. They rationalize that they can turn that $20 into may e $30 or even $40. They play the $20.00 and of course they lose. And walk out with nothing. Too convenient. At least with a casino, one has to physically go to that casino to gamble. The ONLY people making money regarding these terminals are the convenience store owner, that quite frankly doesn't give a damn about the surrounding community. Minority communities have been turned up side down and are suffering tremendously due to these games, as more and more individuals fall victim to the addiction. I enjoy playing but I avoid convenience stores for that reason. They have no place in a convenience store.
People want them back.. in my area we need everyone who played and it was entertaining. People should mind their business on how others choose to spend their money .... Addiction is addiction and if they aren't spending it gambling then they will spend it on food clothes or drugs/ alcohol. Let's be real and it is better to play in the store grab some snacks and continue with the day. Casinos are way different and not as much fun personally.so the opinions from people who never played they really should stay out of it ..
What about the people who became addicted to the video lottery gambling machines? Are they doomed to spend their hard-earned money until they are totally broke? I guess they just have to stay out of any establishment where the machines are?
I hate when it's said that Q of VA skill games were "unregulated", "grey" (operating within a grey area of the law), and other such MISLEADING statements. Q of Va games were proven in a court of law to be skill based and not chance and therefore not illegal by existing (before 2021) VA law. Additionally to call them "unregulated" would be a flat out lie, as a retail owner who hosted the games let me assure you that there were regulations imposed by the state some of which were; 1. Abc license was required (originally i believe it was on sale licensees only but expanded to include convenience stores later) 2 limited # machines per license and further restricted on sales volume 3 30% of what stayed in the game was PAID to entities other than us, (location), and our games provider,(operator), primarily VA ABC. So,please stop perpetuating the idea that the state did not benefit from the games prior to the "covid tax".
Bring the queen skill game back . I want to enjoy my life in my community.
I think the Queen Machines should be allowed to be played in Virginia ! This is a form of entertainment ! I really enjoyed playing the Queen Machines ! I think it is fun to play & I miss playing these machines ! I feel if you allowed them in the first place they should be turned back on again ! Thank You ! Please allow the return of these machines ! These machines help businesses as well ! Please do the right thing & turn them back on !
I think it’s not right that they get to take out skill machines in favor of games of chance. That’s pure hypocrisy right there. I don’t want your crummy VGTs. I want the skill games that I enjoyed playing and they pay off better than casino games do anyway. This should be a citizens right to choose, not someone else. You’re not our parents, so stop acting like you don’t have to consult us first. We put you guys where you are and can take that away.
Why do people get to decide what's best for everyone? Bring the queen machines back I don't want to go to a casino. I like that neighborhood feeling. The machines helped a lot of businesses but the rich don't care they have nothing to worry about. All these old fools need to retire and stop trying to ruin everything for the little man
Please allow the skilled machines to be legal again. Virginia doesn't have a lot going on especially in Augusta county va where I reside. It allow people to have something positive to do and maybe win some money, businesses to make more money and for more people to be employed. Seems to me that Va rather have people drinking alcohol or using drugs and getting in trouble rather than enjoying life.
Please reverse the ban. Some people prefer a smaller venue versus a big casino. It also helps small businesses. We really need to start looking at ways to promote small businesses and stop giving all the benefits to the bigger corporations. Soon we will just see rich or poor. No middle class at all. This is one small way to help. Casinos offer so many other things so they can share just a little. I am not saying small businesses can’t survive without them but why should they have to? I worked with small businesses for over 20 years. I would rather deal with them over a big chain any day. Customer service has been lost in most corporations. You feel like you are being passed like a potato and that is if you even get to talk to someone.
Virginia Skill Games created jobs and entertainment for the People who enjoy to play. Please reverse the Ban*
Bring back the skills machines in convenience stores and truck stops and sports bars
If a retail business can't survive without these machines, the problem isn't the lack of machines. The problem is simply a bad business model.