Legislation that is currently under consideration may soon bring changes to Virginia casinos, potentially lifting the ban on electronic skill games.
Sen. Bill Stanley and former NASCAR driver Hermie Sadler filed a lawsuit over a year ago to challenge Virginia’s ban, which has resulted in the state’s online sports betting and the potential establishment of five casinos since July 2021.
At present, two cities in Virginia are engaged in a battle to provide their residents with the opportunity to vote on casino proposals. However, the progress of any casino plans has been halted due to the ongoing lawsuit filed by Stanley in the Emporia circuit court.
Take a glimpse into the most recent updates regarding the ban.
Electronic skill games decision puts casino talks in Petersburg, Richmond on hold
A competition is underway between Petersburg and Richmond to determine which residents will have the opportunity to vote on casino plans first. Unfortunately, HB 1373, the legislation that would have allowed Petersburg to proceed while preventing a second vote in Richmond, was unsuccessful following a vote by the Senate Finance and Appropriations Committee earlier this month.
What connection does this have to Stanley’s lawsuit?
According to House Appropriations Chairman Barry Knight, there is a possibility of adjusting the state budget to revive the Petersburg plans. However, this matter will be put on hold until the resolution of Stanley’s case.
Knight stated in an interview with the Times-Dispatch that until a resolution is reached regarding the electronic skill game lawsuit, the current stance is to pause all activities – including the postponement of referendums for both Petersburg and Richmond.
Knight argues that electronic skill games are perceived by casinos as a threat to their economic stability.
One Virginia lawmaker doubts his bill to lift the ban will pass in 2025
House Majority Leader Terry Kilgore has expressed doubts about the passage of his bill due to the ongoing and extensive debate surrounding electronic skill games. The bill, known as HB 2295, aims to legalize these skill games until at least July 2025. If passed, it would reinstate the industry regulations that were put in place by Virginia during the pandemic.
In an interview with ABC 8 News in Virginia, Kilgore stated that his bill had been rendered inactive. Additionally, he expressed skepticism regarding the possibility of its revival during the legislative and budgeting procedures.
He stated that there is support, but the ongoing lawsuit in the court system has raised concerns among certain individuals regarding legislation at this time.
What are electronic skill games and why are they banned in Virginia?
The games are commonly known as gray machines due to the delicate balance they maintain.
Despite their resemblance to traditional slot machines in appearance and payout mechanics, there is ongoing debate about the involvement of skill rather than sheer luck.
Places such as gas stations or truck stops usually have electronic skill games available.
Rather than regulating and taxing these machines, the Virginia General Assembly decided to prohibit them entirely in 2020 during the COVID-19 pandemic. However, before implementing the ban, the assembly granted these machines a one-year reprieve, essentially conducting a trial period.
While the reprieve was in effect, the games flourished as Queen of Virginia Skill & Entertainment successfully operated nearly 6,000 machines within the state. Within the initial month of the reprieve, the company managed to generate an impressive sum of over $6.8 million, with a significant portion of these funds allocated towards supporting pandemic relief efforts.
How a former NASCAR driver got involved in the lawsuit
During the pandemic, Sadler found himself among the numerous business owners facing challenges. He is the proprietor of the Sadler Travel Plaza located in Emporia, along with several other retail establishments in the vicinity.
During the pandemic, Sadler’s travel plaza heavily relied on a variety of electronic skill games to generate revenue. However, the ban imposed by Virginia abruptly halted this lucrative source of income.
In addition, there were others who expressed their dissatisfaction with the ban. The Asian American Business Owners Association took action by filing a complaint with attorney general Mark Herring, arguing that the ban exhibits unfair discrimination towards minority groups.
Stanley, Sadler’s lawsuit claims General Assembly’s ban ‘was wrong’
Why did Virginia not proceed with legalizing the industry despite its ability to generate revenue during a time of economic downturn? Nevertheless, Governor Ralph Northam remained committed to his initial decision of prohibiting the games.
Stanley expressed in a 2021 statement that the actions taken in the General Assembly were erroneous. He criticized the targeting of small businessmen due to the perceived impropriety of skill games, asserting that these games are in fact essential for the prosperity of these businesses amidst the challenges posed by the pandemic.
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