Fighting for Virginia’s Small Businesses

Skill games were previously operating under a temporary injunction and regulated from 2020-2021. That injunction was recently reversed. However, Senate Bill 212,  legislation to regulate and tax skill games, has passed the Virginia General Assembly with bipartisan support. The bill now awaits a signature from Governor Youngkin.  VA MAC is a member of a large skill game coalition, representing thousands of small businesses, urging the Governor to sign this bill into law.

In addition to supporting struggling small businesses, regulating skill games will benefit the Commonwealth by producing an estimated $200 million or more annually in additional tax revenue. Regulation would also give law enforcement the framework they need to properly identify illegal gambling devices and crack down on bad actors.

Skill games support small businesses by providing additional revenue to supplement their traditional income base. For many businesses, skill games have made it possible to recover from the pandemic and stay afloat in a tough economy. Revenue from skill games is used to pay bills, make location updates, provide employee benefits, offer competitive wages, support charitable causes, and more.

 Yes. In Wyoming, Georgia, and the District of Columbia, skill games are regulated and taxed. In Pennsylvania, skill games have been ruled games of predominant skill by numerous Pennsylvania courts including the Commonwealth Court of Pennsylvania with statewide jurisdiction. In Virginia, legislation to regulate and tax skill games has passed the General Assembly and now awaits the Governor’s signature.

No. Independent economic studies have concluded that skill games do not negatively impact lottery sales. Dr. Peter Zaleski, a partner at Meadows Metrics and an economics professor at Villanova University, has conducted exhaustive studies which found that in states where skill games operate, state lotteries have actually seen increased profits. In fact, the Virginia lottery has continued to break sales records for the past 5 years, including its highest-ever sales for the 2022 fiscal year.

These companies want a monopoly on entertainment. Although skill games are proven to have no negative impact on these companies, they will not rest until they are able to cut out any perceived competition. A ban on skill games puts the profits of large gambling companies over the needs of Virginia’s small businesses.