Virginia

VA business owners launch coalition supporting skill games


A group of small-business owners formed a coalition to advocate for the legalization of skill games in the commonwealth.

“We want to reach out to legislators and say, ‘Hey we want the skill games to continue,’” said Rich Kelly, president of the Virginia Merchants and Amusement Coalition. “They have been an integral part of our recovery from COVID, and they have not damaged the community.”

Skill games are similar to slot machines, but winners are not determined solely on luck; users have to slightly interact with the game.

Virginia has gone back and forth in recent years on whether the games are allowed — with a court order currently allowing only some grandfathered establishments to operate them.

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Some who oppose the games argue that they are harmful to the state’s fledgling casino industry and the Virginia Lottery, the profits of which support K-12 education.

But Kelly, owner of Hard Times Café, which has locations throughout Northern Virginia, said the pandemic and inflation have created many challenges for the business community. He said skill games have been a useful resource.

“The profits from the games helped keep stores alive,” he said. “If we didn’t have the games, we wouldn’t still be in business.”

Skill games provide location partners with 40% of profits, according to a Thursday news release from the coalition.

Kelly said the coalition, which consists of more than two dozen bars, restaurants and convenience stores, also views the issue as a win for the community because when the games are legal and regulated, it brings in significant tax dollars.

The coalition’s release added that the group supports law enforcement efforts to combat illegal gaming.

“Regulating and taxing legal skill games will also help law enforcement better identify bad actors and put a stop to illegal gaming operations,” it states. “These entities harm our communities and jeopardize the success of legitimate establishments.”

The legality of skill games has been in flux for years.

The General Assembly passed legislation outlawing the games in 2020. Del. David Bulova, who was among the opponents of the games, asked a House subcommittee to consider if it was wise to allow a system of “mini gambling parlors in every corner of the commonwealth.”

“I hope you will think our policies need to be more thoughtful than that,” the Democrat from Fairfax said.

Although the legislation passed, then-Gov. Ralph Northam delayed the ban to help the state raise money for a COVID-19 relief fund.

The ban went into effect in 2021, until state Sen. Bill Stanley, an attorney, filed a lawsuit on behalf of client Hermie Sadler, alleging it violated small businesses’ constitutional rights to free speech.

Sadler, a former NASCAR driver, owns a variety of small businesses that offer skill games.

The court then issued a temporary injunction allowing skill games that were already registered to continue operating as the lawsuit progresses. The trial was recently slated for December.

During this year’s legislative session, House Majority Leader Terry Kilgore introduced a bill that would have legalized and regulated the games. The measure died in a committee.

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