Virginia Gov. Glenn Yonkin revamps skills competition bill and returns legislation to Congress
Virginia Governor Glenn Younkin (R) this week signed a bill establishing a regulatory framework for the operation of federal skill games.
The governor rewrote most of the skill gaming laws. His changes focus on further limiting access to the controversial slot machines.
The bill sent to the governor by the General Assembly would allow the "Virginia Queen's" cabinet to be located in any establishment licensed by the Virginia Alcoholic Beverage Control Board. These restaurants, bars and corner shops are allowed to use up to four machines.
Truck stops with an ABC permit are limited to up to 10 locations. Lawmakers have proposed to the governor a 25% tax on the gross revenue retained by the machines.
Youngkin wants stricter rules to limit the use of the machines, which opponents claim are nothing more than cleverly designed slot machines. The governor's changes include restrictions such as a ban on gambling within 35 miles of a casino, racetrack or historic horse racing facility.
Youngkin also wants to ban skill games within a half-mile of a church or day care center. Youngkin also suggested that the state get a larger share of revenue from skill games. The governor's rewrite included a significant increase in the tax rate to 45 percent.
Commercial casinos in Virginia have progressive tax rates. The tax rate is 18% on the first $200 million in slot machine winnings, rising to 23% on annual income between $200 million and $400 million. The tax rate increases to 30% for annual game sales exceeding $400 million.
Skill game industry complains about changes
Supporters of restoring a legal framework for skill gaming in Virginia say the governor's action is essentially an effort to ban these machines and the critical revenue they provide to many small businesses.
"It's clear the governor is more concerned about protecting large foreign gaming companies than the tens of thousands of small businesses struggling to survive in his own commonwealth," said Rich Kelly, president of the Virginia Business and Entertainment Alliance.
The skill games bill revised by Youngkin barely made it to his desk. The bill failed in the House in a 51-45 vote, after gaining bipartisan support in the Senate in a 32-8 vote.
In order for the Legislature to overturn Youngkin's amendment and enact the skill games law he originally proposed, a two-thirds majority would be needed. Since that is unlikely to happen, both chambers could vote to accept Youngkin's amendment and pass the bill, or accept the partial amendment and return the measure to the governor.
The General Assembly will hold another veto meeting on April 17.
Governor’s Concern
Youngkin's office has denied accusations that he favored large casinos over small businesses when he rewrote skilled gaming laws.
The additional protections address serious concerns about the regulatory structure, tax rates, number of machines, impact on the Virginia Lottery and broader public safety implications,” said Youngkin spokesman Christian Martinez.
Youngkin's predecessor, Ralph Northam, was a proponent of the skill game. Northam supports temporarily legalizing the machines during the COVID-19 pandemic to help small businesses and raise funds for federal pandemic relief programs.
The games became illegal in 2021, but lawsuits and court orders allowed the machines to continue operating. The Virginia Supreme Court ordered the game to end last October after ruling that the injunction should not have been issued.
Read also:
- Games Industry Research: Carbon Emissions of Top Video Games
- U.S. cities with the most Swifties per capita
- Blackjack Casino Advantage: How to Beat the Odds
- Football 101: What is relegation in football?
Source: www.casino.org
