Study Shows Gambling Machines Prey on Low-Income Communities, Threaten Critical Revenue Streams

Richmond, VA – A newly released report from Mangum Economics exposes the alarming impact of so-called “skill” games in Virginia, revealing their disproportionate concentration in low-income communities and their harmful economic consequences. The findings add to previous research conducted by Freedom Virginia, which demonstrated a direct correlation between household income and the prevalence of convenience store slot machines.

According to this new report, the highest rates of “skill” gambling are found in some of Virginia’s most economically disadvantaged neighborhoods:

  • Virginia Beach (23462) – This zip code accounts for 21.5% of the city’s total “skill” wagers while having the lowest household income, the largest Black population, and the second-highest poverty rate in the city.
  • Richmond (23223 & 23224) – These areas make up 63.3% of Richmond’s “skill” wagers and have the city’s lowest incomes, second and third largest Black populations, and second-highest poverty rates.
  • Fairfax County (22041) – This area represents 15.5% of the county’s total “skill” wagers and has the highest poverty rate in Fairfax.

“Skill” Games Would Drain Revenue from Virginia’s Economy

The report also highlights how these gambling machines are cannibalizing critical state revenues. In Illinois, where these types of devices were legalized in 2009, the promised financial benefits failed to materialize. Instead, it took eight years to meet initial revenue projections, while casino-driven revenue—much of which supplied critical public education funding — declined by nearly $70 million. As a result, Illinois’s Education Assistance Fund suffered a 22% drop in revenue.

Myth vs. Reality: Convenience Stores Do Not Need “Skill” Games

Advocates of convenience store gambling argue these machines are essential to business sustainability, but the data tells a different story. Nationally, convenience store revenue has surged by $30 billion between 2019 and 2023—demonstrating that the industry is thriving without relying on dangerous neighborhood slot machines to stay afloat.

An Unnecessary Risk for Virginians

“This report makes it clear: so-called “skill” games are an unnecessary risk that disproportionately impact Virginia’s most vulnerable communities,” said Nick Larson, spokesman for Virginians Against Neighborhood Slot Machines. “These machines are not just a financial drain on our economy but also a predatory force targeting low-income families. Virginia cannot afford to follow in the footsteps other states that have legalized these dangerous devices and sacrifice critical funding for schools, public services and put our most vulnerable at risk.”

For more information, you may access the full Mangum Economics report here.

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