A lawsuit has been filed by a former NASCAR driver who is now a state senator, aiming to halt the upcoming implementation of the ban on “electronic skill games” in Virginia.
From July 1 onwards, electronic skill games will be prohibited in all establishments except family entertainment centers, as per Senate Bill 971.
A lawsuit was filed on Monday by Senator Bill Stanley, representing Hermie Sadler, a former NASCAR driver and broadcaster. Hermie Sadler, a 52-year-old resident of Virginia, is also the owner of the Sadler Travel Plaza in Emporia, along with other retail stores in the state.
Sadler, a small business owner in Virginia, like many others, has heavily depended on electronic skill games to stay afloat during the challenging times of the COVID-19 pandemic. These machines are found in around 2,000 convenience stores, restaurants, bars, truck stops, and marinas across the state. Unfortunately, due to the forthcoming ban on July 1, regulators will soon discontinue the use of these machines, depriving businesses like Sadler’s of a crucial source of income.
Unconstitutional to ban electronic skill games?
In Greensville County Circuit Court, Stanley initiated legal proceedings by filing a lawsuit. The defendants named in the lawsuit are Gov. Ralph Northam, Attorney General Mark Herring, and the Virginia Alcoholic Beverage Control Authority.
On Monday, Stanley and Sadler conducted a press conference outside the Capitol in Richmond, expressing their viewpoint on the ban. They argued that the ban is unconstitutional, rendering it unenforceable. Additionally, they criticized the ban for unfairly discriminating against retail locations and small businesses that do not target families in their marketing efforts.
According to Stanley’s statement during the press conference,
We made a mistake in the General Assembly. By targeting skill games and deeming them inappropriate, they unfairly singled out small business owners. However, skill games are not indecent; in fact, they are the very foundation that has enabled these small businesses to flourish during the challenging times of the pandemic.
In the wake of the coronavirus-induced business closures in early 2020, the Virginia General Assembly opted to prohibit skill games rather than implementing regulatory measures and taxation. Nonetheless, they initially granted a one-year respite before ultimately regulating and taxing skill games in Virginia.
According to Queen of Virginia Skill & Entertainment, the unofficial audition turned out to be very profitable. This gave operators the hope that the temporary exemption would become a permanent one. However, the governor’s office had consistently stated that Northam would support the ban as scheduled.
Skills games shut out as VA expands gambling
What exactly are electronic skill games? They encompass a wide range of forms and offer diverse gameplay options.
The operators of these machines had been functioning in a legal gray zone, navigating between games of skill that were allowed and games of chance that were prohibited. The machine operators argue that their games require player skill, making them within the bounds of the law. However, certain lawmakers and critics argue that the level of skill required and its impact on the game outcomes are often insignificant.
Nevertheless, it is important to note that not all forms of gambling are being avoided by the state. In fact, Virginia’s sports betting market was successfully launched earlier this year and has emerged as one of the most thriving in the nation. Furthermore, four cities in Virginia are currently making preparations for the establishment of new casino-resorts, with the potential for Richmond to join them in the future.
Furthermore, the Virginia Lottery has broadened its horizons by introducing fresh games and venturing into online sales. The revival of live horse racing has taken place, and the historical horse racing presence of Rosie’s Gaming Emporiums is spreading across the state.
Sadler, a NASCAR veteran who has participated in all levels of the sport from 1992 to 2019, is questioning the lack of backing for electronic skill games. He is curious as to why these games, which generate $750,000 in yearly net profits for his small businesses, do not receive any support.
In the press release that announced his lawsuit, he explicitly mentioned:
The legalization of various forms of gambling, such as sports betting, horse racing, slot machines, and casino gambling, has been approved by both the legislature and executive branch in Virginia. However, it is surprising that Virginia has decided to deem skill games, which have been legally played in the state for many years, as “undesirable” and intends to outlaw them. This decision is unjust and, frankly, violates the principles of the constitution.
Legislators have already made the decision, according to Northam.