Skill-based games, or gray market machines, popular in Virginia had gotten legislative support but when the bill reached Virginia Governor Glenn Youngkin’s desk he took a red pen to much of it, making the law far more restrictive.
Making Amends
The ubiquitous skill games, aka “gray machines,” that dot Virginia’s truck stops, barrooms and convenience stores have hovered between the legal and illegal realm for several years. The Slot-style gaming machines are decried by casino operators who state the obvious when they claim there is virtually no difference between “skill games” and other forms of gambling, like slot machines.
Although the small businesses that house these games have a vested interest in their survival and naturally supported the measure that was recently passed by the legislature to get them sanctioned by the state, Governor Youngkin had a different idea. Once the bill reached his desk, he took a metaphorical hatchet to it and made several amendments that wouldn’t go over well with its supporters.
Youngkin’s Changes
Some of the most notable changes to the bill include raising the tax on gray machine revenue from 25% to 35% and mandating that the machines pay out a minimum of 80% to the customers using them.
The maximum payout on a single pull would be $500 but there will be far fewer of these machines if the governor has his way. According to reports, his amendments also included the exclusion of the gray machines within a half-mile radius of churches, daycares, and houses of worship.
It would also prohibit the skill machines from operating within 35 miles of a casino, horse track or “historical horse racing” parlor. He would also transfer governance of the machines from the Virginia Alcoholic Beverage Control Authority to the Virginia Lottery and put a cap of 20,000 machines throughout the state, while the bill he received had no such limit. Youngkin’s amendments would also grant local governments the authority to ban the machines from their jurisdictions.
Waiting for Blowback
Governor Youngkin’s amendments to the gray machine bill were sweeping to be sure. The bill in its original form allowed up to four machines at any convenience store, restaurant or any establishment that holds a liquor license, while truck stops could house up to 10 machines at any one location.
However, Younkin slashed those numbers to only three machines allowed at establishments that sold lottery tickets which would eliminate many of the restaurants and bars that currently house them, while truck stops would be limited to seven machines.
Supporters and Detractors
Virginians Against Neighborhood Slot Machines, a coalition that includes casino groups and operators, applauded Governor Youngkin for the “extensive … time and effort” he expended in amending the bill and taking a “more thoughtful approach” than those who crafted the bill which “would have led to an unprecedented expansion of gambling in Virginia.”
However, Senator Aaron R. Rouse, the sponsor of the bill, spoke about the conference call with the governor and his team on Saturday that ultimately required a second call on Sunday.
“Two hours into the first phone call, I said: ‘Hold on. I expected amendments, but you’re rewriting the bill — on a phone call,’” Rouse said. “This is too important to be doing this on the fly at the 11th hour. … They basically wanted to rewrite the bill in five hours, something that took 60 days.”
Legislators will reconvene on April 17th and would need a two-thirds majority to override a veto, which is highly unlikely in a divided House and Senate. However, all the legislature needs is a simple majority to reject the governor’s amendments but if the bill is returned to him in its original form then the governor can sign it or veto it, and if he does veto the bill the General Assembly would not be able to override him.
