The city of Virginia Beach, Virginia has announced it will soon enforce the state’s ban on electronic so-called skill games beginning in late November. The city put owners and operators of the slot-like skill games on notice that after the 30-day grace period expires, those found operating the machines, or even playing them, will face criminal charges that could result in fines and jail time.
The Virginia General Assembly enacted a law in 2020 that declared the skill games to be illegal gambling devices. Then-Governor Ralph Northam gave the operators a grade period of one year, using revenues from the machines to recover from losses due to Covid-19 shutdowns. In 2021, the ban went back into effect.
Attorneys for the operators—bars, gas stations, convenience stores and other small businesses—secured an injunction from Emporia Circuit Court, in a lawsuit challenging the skill game ban, that allowed the machines to continue operating while appeals were filed. On October 13, the Virginia Supreme Court vacated the injunction, reinstituting the ban.
“Although at times it is difficult to determine where a particular activity falls on the speech/conduct continuum, no such difficulty is present when the activity being regulated is gambling,” read the court’s decision. “We long have viewed gambling as conduct that may be heavily regulated and even banned by the commonwealth as an exercise of its police powers.”
In consideration of the ruling, the Virginia Beach Police Department, in partnership with the Virginia Beach Commonwealth’s Attorney and City Attorney’s Office, announced that enforcement of the illegal gambling code with respect to skill games will resume on November 26, according to a press release from the Commonwealth’s Attorney office.
Under the statute, people found operating a skill game may be subject to a civil penalty of $25,000 per gambling device, seizure of the devices, and costs associated with the investigation and lawsuit. That includes attorney fees.
Virginia criminal statutes also will now apply to skill games. Illegally possessing gambling devices is a Class 1 misdemeanor, subject to punishment of up to one year in jail, a $2,500 fine, or both. Running an illegal gambling operation in Virginia is a Class 6 felony punishable by up to five years in prison and/or a $2,500 fine.
Playing the illegal skill games will now be a Class 3 misdemeanor, with a potential fine of up to $500.
Virginia Code §18.2-325(6) defines a skill game as follows:
“Skill game means an electronic, computerized, or mechanical contrivance, terminal, machine, or other device that requires the insertion of a coin, currency, ticket, token, or similar object to operate, activate, or play a game, the outcome of which is determined by any element of skill of the player and that may deliver or entitle the person playing or operating the device to receive cash or cash equivalents, gift cards, vouchers, billets, tickets, tokens, or electronic credits to be exchanged for cash; or cash equivalents whether the payoff is made automatically from the device or manually… It does not include any amusement device.”
