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Governor of Virginia, Glenn Youngkin, Vetoes Skill-Gaming Bill Over Inadequate Regulatory Protections

Virginia's Governor Glenn Youngkin has rejected a bill approved by the General Assembly allowing skill gaming devices.

SymClub
May 21, 2024
2 min read
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Virginia Gov. Glenn Youngkin has vetoed legislation to authorize skill games in the commonwealth....
Virginia Gov. Glenn Youngkin has vetoed legislation to authorize skill games in the commonwealth. The governor said the statute failed to come with certain “safeguards” he sought.

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Governor of Virginia, Glenn Youngkin, Vetoes Skill-Gaming Bill Over Inadequate Regulatory Protections

Virginia's Republican Governor, Glenn Youngkin, has rejected a law passed by the state legislature which aimed to legalize skill-gaming machines and establish regulations for them.

Earlier in the year, the General Assembly voted in favor of a measure to enable small businesses to reactivate their thousands of skill-gaming devices, which had been switched off last autumn after the Virginia Supreme Court overruled a lower court's judgment on the contentious gadgets.

Youngkin significantly amended Senate Bill 212 prior to its return to the assembly. His alterations included a 35-mile ban around casinos, racetracks, or historical horse racing (HHR) facilities where the terminals would be prohibited. Additionally, he included a rule banning the games within a half-mile of any church or daycare, and heightened the legislature's suggested state tax rate on the machines' earnings from 25% to 35%.

The lawmakers refused to consent to these terms from the governor, leading the measure back to Youngkin's desk. It was not surprising that the Republican governor eventually vetoed the bill since the Assembly lacks the needed two-thirds majority support to override it.

Governor Justifies Veto

Frequently known as the "Queen of Virginia," skill games resemble casino slot machines but have a slightly different mechanism that requires the player to find a winning payline. Supporters of the machines, despite strong opposition from the state's highly regulated and taxed casino industry, claim these devices fall beyond Virginia's gambling laws due to their skill aspect.

Youngkin argued that any further expansion of gambling in the commonwealth, which recently includes the legalization of physical casinos, HHR gaming, and retail and online sports betting, should be carefully considered alongside numerous consumer protections that were absent in SB 212.

Regarding additional gaming options, Youngkin stated, "We need to proceed with a robust set of safeguards whenever we discuss additional gaming options. I sent over a package of amendments to address my concerns with the bill. Although it is frustrating that my suggestions weren't adopted, I remain open to working with the General Assembly on this matter."

Numerous legislators asserted that Youngkin's skill-gaming bill amendments resulted in a near-ban, as the church and school prohibition would have limited the machines to rural areas of the state.

Small Businesses Lose Out

Although some consider skill-gaming machines to be controversial, they have played a significant role in helping thousands of small businesses across Virginia. The money made by the machines is usually shared between the host business and the gaming manufacturer and distributor.

On top of the few thousand extra dollars a month claimed by business owners, skill games generate foot traffic to the physical businesses, resulting in higher overall sales.

Sen. Aaron Rouse (D-Virginia Beach), the author of SB 212, stated that he would present a new skill-gaming bill during the Assembly's special session kicked off last week. Despite his disappointment with Youngkin's rejection, Rouse recognized the governor's "good faith effort" to potentially find a compromise.

Del. Terry Kilgore (R-Scott) also holds an optimistic view on the possibility of a resolution.

"We and the governor are going to try to come up with a solution to aid our small business owners," Kilgore said.

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Source: www.casino.org

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