Paid for by Virginians Against Neighborhood Slot Machines
THE ISSUE
WHAT ARE “SKILL” GAMES?
“Skill” games are slot-like gambling machines that operate in easily accessible places such as bars, corner stores, grocery stores, gas stations and truck stops. Supporters of “skill” games argue they shouldn’t count as a form of gambling, because, to them, these machines involve a certain level of “skill.” Experts disagree, however. Dr. Carolyn Hawley, president of the Virginia Council on Problem Gambling, argues there’s “really no difference” between skill games and slot machines. According to Hawley, “skill games are routinely among the top three activities callers identify when they seek help from the state’s gambling addiction hotline.”
THE PROBLEMS WITH
“SKILL” GAMES
TARGETS LOW INCOME COMMUNITIES
There are numerous problems with “skill” games, but first and foremost, they are predatory. When operational, 70 percent of “skill” game machines in Virginia were located in lower-income zip codes. In other states where “skill” games are operational, such as Pennsylvania and Illinois, the locations of these machines follow a similar pattern. In fact, a 2019 ProPublica report analyzing demographic data on where similar slot-like gaming machines were concentrated in Illinois found that “as the average income level of a community decreases, the average number of machines increases.”
INCREASES CRIME
In 2022, Virginia’s Joint Legislative Audit and Review Commission (JLARC) released a report on “skill” games that found that these games “create public safety risks,” and that “Commonwealth’s attorneys from multiple localities reported that crimes such as assault and robbery have increased at establishments with [these] machines.” Businesses hosting “skill” games have seen upticks in crime. The presence of cash and frequent disputes over winnings have led to theft, robberies and even violent confrontations.
TemptS Problem Gamblers
Unlike casinos and other regulated forms of gambling, “skill” game machines are easily accessible, with lax security and oversight. For problem gamblers the temptation of these games may be difficult to avoid. A “skill” game lobbyist during a 2024 hearing admitted that it would be challenging for the industry to implement enforcement of Virginia’s voluntary problem gambling exclusion list: “[T]hat would be a challenge; I don’t know how we would enforce that.”
PROVIDES EASY ACCESS TO MINORS
Given that these devices are located in easy-to-access locations and on street corners across the Commonwealth, it is easy to see how minors can access these games. These machines provide a slippery slope and could easily lead to minors getting hooked on gambling. The “skill” game industry also seems uncommitted to enforcing ID verification to play these games. During a 2024 hearing, when asked by a Virginia state senator if there is an ID check required to play these games a “skill” game lobbyist answered: “Not necessarily, no.”
POSES A NEGLIGIBLE ECONOMIC IMPACT
The societal costs of “skill” games far outweigh any revenue they may generate. The increased availability of skill games could lead to higher rates of gambling addiction, financial instability for families, and greater demand for social services to address these problems. As state delegates and senators have pointed out, the economic benefit of these slot-like machines is negligible. Delegate Paul Krizek and Senator Adam Ebbin said it well in their Oct. 31, 2023 editorial in the Richmond Times-Dispatch: “[A]ny economic benefits are typically concentrated in the hands of a few out-of-state operators, with little benefit trickling down to local communities.”
DOES NOT ALLOW LOCAL INPUT
When the state passed legislation to enable casino gambling in the Commonwealth, it ensured local residents had a say in the matter. Each jurisdiction had to hold a local referendum vote on whether they wanted to allow casino gambling in their community. Proponents of “skill” games have included no such measures in legislation to legalize these machines in Virginia.
ARE “SKILL” GAMES LEGAL?
No. In 2020 and 2022, the Virginia General Assembly passed legislation banning “skill” games machines in the Commonwealth. However, operators of these machines sued the state to keep them on, delaying the legislature’s ban from going into effect.
In October 2023, however, Virginia’s Supreme Court upheld the ban and ruled that “skill” games machines were illegal. Despite this, the shady out-of-state operators behind these machines decided to circumvent the law and continue operating them.
In fact, in FY21, approximately 13,000 skill machines were counted in Lottery-licensed convenience stores across the Commonwealth.
WHO’S BEHIND THESE MACHINES?
Despite recent claims, the skill game industry has historically operated in legal gray areas and avoided meaningful regulation for years. Their sudden willingness to be regulated often comes as a reaction to increased scrutiny and pressure from lawmakers, not because they have a genuine interest in consumer protection.
This shift in stance may be a strategic move to avoid stricter regulation or an outright ban. By appearing cooperative, they may hope to maintain their market presence while dodging the more robust regulatory frameworks applied to traditional gambling industries.
If the industry truly wanted to be regulated, why did they spend years operating in a way that avoided taxation and consumer safeguards?
THE BOTTOM LINE
Virginia should not reward shady, out-of-state operators who rely on questionable, if not borderline deceitful tactics, to run a business in our state. Now, more than ever, it is critical Virginia legislators show that the Commonwealth takes its laws seriously and won’t allow shady out-of-state gaming companies to try to sneak their way into our regulated gaming market.