Virginia Gov. Abigail Spanberger does not agree with all of the state General Assembly’s approved ideas for expanding the gambling market.
On April 10, the day after she vetoed a bill that would have brought a new brick-and-mortar casino development to Fairfax County, she also rejected legislation to formally legalize and regulate physical skill gaming machines in the Old Dominion.
In a press release explaining why she vetoed Senate Bill 661, Spanberger noted her concern over the lack of a centralized, independent entity to regulate all legal gaming.
“The absence of a centralized regulatory authority for gaming creates gaps in oversight that threaten the Commonwealth of Virginia’s ability to provide consistent enforcement, prevent illicit activity, and protect all consumers,” wrote Spanberger. “Right now, legalizing skill gaming and introducing more of these machines into our communities would strain an already fragmented system.”
Bill passed General Assembly after changes
SB 661 would have formally authorized skill gaming machines, the slot-style machines often found in convenience stores and other retail or hospitality locations. It would have allowed for up to 25,000 skill gaming machines to be installed at various locations across the state and taxed them at 25% of their gross profits.
Proponents of legalizing skill gaming, such as bill sponsor Sen. Aaron Rouse, argued that such machines are already present across the state, just without the benefit of tight regulation.
The legislation was approved by the Senate in mid-February and by the House in early March, although not without numerous amendments and a committee substitute that required lawmakers from both chambers to hash things out in conference session last month.
However, in her veto statement, Spanberger expressed concerns that legalizing these machines would “reward operators who knowingly disregarded state law for years and set a troubling precedent for how business is conducted in Virginia.” She also cited data that suggested that when skill games were previously legal in Virginia from 2020 to 2021, they tended to be disproportionately located in lower-income, higher-poverty and higher-minority areas of the state.
Bills to overhaul gaming regulation stalled
Multiple bills to establish a new Virginia Gaming Commission faltered this year, leaving Virginia to continue with its existing patchwork approach to regulating various forms of gambling.
This, too, was a primary concern for Spanberger about the idea of authorizing skill gaming machines.
“The rapid expansion of gaming in Virginia over the last decade has outpaced the Commonwealth’s ability to provide consistent enforcement, robust public safety oversight, and meaningful assessments of the potential impacts or harms of gaming in all its forms,” she wrote. “Senate Bill 661 would strain an already fragmented system and introduce thousands more machines without a comprehensive regulatory structure.
“In the absence of a single, independent, and dedicated entity responsible for regulating all forms of gaming, Virginia is not positioned to ensure compliance, prevent illicit activity, protect consumers, or evaluate and respond to community impacts or harms. Without an entity in place to evaluate and mitigate social, economic, and public impacts, the Commonwealth is not positioned to expand gaming and legalize electronic skill gaming devices.”
Spanberger did say that she remains committed to working with the General Assembly on future gaming regulation.
Spanberger vetoes casino bill after iCasino efforts die
The day before her statement on the skill gaming bill, Spanberger also vetoed the Fairfax County land-based casino bill that had been passed by both chambers of the General Assembly.
“While this legislation only affects Fairfax County, it would set a precedent that could be used to bring casino referendums to other localities where the local governing boards may similarly oppose such efforts,” wrote Spanberger of her decision to veto SB 756.
Other gambling-related bills made it through the Virginia legislature this spring, including a ban on credit cards for online sports betting and bills to regulate and tax peer-to-peer daily fantasy sports.
One thing that stalled before it even reached Spanberger’s desk was the idea of legalizing online casino. A long process ultimately ended without approval despite both chambers passing bills to authorize iGaming, as representatives from the Senate and the House of Delegates could not agree on the details in conference session before the state’s legislative session ended for the year on March 14.
