Skill Game Industry As Bad Actors

New Year, Same Story…

This week, an ex-executive for the “skill” game manufacturer, Pace-O-Matic, was charged with racketeering after accepting more than half a million dollars in kickbacks to “quash complaints about illegal slot machines.” And, just last year, this same executive was investigated by the IRS’ Criminal Investigation branch resulting in the seizure of more than $400,000 from his accounts.

But this isn’t the first instance where the manufacturer behind Virginia’s “skill” games has demonstrated a pattern of questionable actions.

To recap, the “skill” game industry…

Targeted cash-poor Virginians by placing 70 percent of games in low-income neighborhoods, when legal;
Failed to support regulation and reasonable consumer protections such as proximity to schools restrictions;
After an unsuccessful attempt to legalize the machines, designed a new game to circumvent Virginia law on a technicality; and
Sued the Attorney General and the Henrico Commonwealth’s Attorney for upholding Virginia law against these dangerous machines.

The Details:

These games have historically targeted Virginia’s economically disadvantaged communities: Data shows, when legal in Virginia, the “skill” game industry targeted low-income communities, placing 70 percent of their games in communities where the average household income fell below the state median.

Furthermore, experts have repeatedly stated that the ever-present nature of these games poses a direct threat to youth and problem gamblers. The National Council on Problem Gambling says “the potential long-term risks associated with underage gambling exposure cannot be understated,” and agrees with Virginia’s Council on Problem Gambling that the rollout of these games “undercuts the ability of self-exclusion to serve as a tool for those in [problem gambling] recovery in Virginia.”

Despite these concerns, “skill” game proponents failed to support reasonable regulations and consumer protections – such as proximity restrictions around schools – during attempts to legalize the games last year. Even though they had previously touted staunch support for regulation and taxation.

Following Governor Youngkin’s decision to uphold the 2020 ban on these machines, the game manufacturer unveiled a new device and reactivated operations in a blatant attempt to circumvent the law – prioritizing profits over people.

This action prompted disapproval from lawmakers at all levels, including a legal opinion from Attorney General Miyares who confirmed that these new games were in fact illegal, and a statement of distrust from Governor Youngkin that stated, “I believe that my willingness to reach any kind of agreement today, as a result of the events…has become a very tall mountain to climb.”

Then, when one locality began enforcing Virginia code, manufacturers brought a lawsuit against both the Virginia Attorney General and the Henrico County Commonwealth’s Attorney, calling their actions to uphold the law, “harassment.”

When out-of-state companies demonstrate their bad faith intentions, we ought to believe them. Any attempt to legalize so-called “skill” gaming in Virginia now would only serve to reward bad behavior.

As the 2025 legislative session kicks-off, Virginians Against Neighborhood Slot Machines encourages legislators to reject any attempt to line Virginia’s main streets with dangerous gambling devices and keep bad actors from doing business in our great Commonwealth.

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