A measure defining illegal gambling unanimously passed both houses of
the Virginia legislature and not awaits Governor Ralph Northam’s signature to take effect July 1. State Senator Bryce Reeves, sponsor of the bill, said it “clarifies the existing code for prosecution of illegal gambling by specifically declaring illegal the so called ‘sham sweepstakes’ machines.” Reeves added the measure is “designed to make it easier for law enforcement to go after and prosecute these types of machines and establishments.”
Reeves said he introduced the bill because sweepstakes-style gambling is a “real and significant problem for charitable organizations and bingo operators in Virginia.” Last month, Virginia Charitable Gaming Council spokesman Chris Petersen told lawmakers sweepstakes businesses “tarnish the reputation” of charitable gaming. “The sweepstakes games are really just illegal gaming. You purchase something and then you get to gamble because you purchased a vape, or a pack of gum. They’re not sweepstakes,” he said. In addition, an American Legion member said sweepstakes stores take patrons away from legal bingo games.
Internet cafes began appearing in 2010 after Virginia’s legislature updated its gambling statute to allow certain games and contests if they met outlined requirements, but that provision has since been repealed. The sweepstakes businesses sell customers a product, such as phone cards or internet time, in exchange for credits customers can use to play online games of chance or promotional “sweepstakes.”
Virginia Beach law enforcement periodically has raided sweepstakes businesses and seized machines and cash, taking the owners to court. The city’s former Commonwealth Attorney Harvey Bryant said the businesses “were proliferating and multiplying rapidly, and the police department was getting complaints.” In Chesapeake, sweepstakes businesses were banned last year but officials have been fighting some establishments over zoning violations. Two were ordered to close by a Chesapeake judge; the owners said they were offering gaming similar traditional slot machines. The cases will be heard in April.
