Virginia Explained: The never-ending battle over skill games

After Senate’s friendly approach, House pushes tougher rules on slots-like devices

By: Graham Moomaw - February 5, 2024 12:05 am

A Richmond convenience store has a row of disabled Queen of Virginia skill games with a sign instructing patrons to contact state lawmakers to help legalize them. (Graham Moumeau/The Virginia Mercury)

No matter how many attempts Virginia makes to ban so-called skill games, they never seem to last long.

Over the past five years, the skill gaming industry, led by Georgia-based Pace O'Matic, has defeated numerous efforts to outlaw the slot-like gaming machines that are installed in convenience stores, bars and truck stops across the state.

After operating unregulated and untaxed for nearly two years due to ongoing litigation, the machines stopped working late last year after the Virginia Supreme Court ruled that the state Legislature's 2021 decision to ban the machines was a valid exercise of the legislature's power to restrict gambling. In court, the industry argued that the ban was an overreach and business-destroying attempt to curb video games that superficially resemble slots but technically should not be considered gambling.

Skill game advocates are not admitting defeat, and the industry is lobbying the General Assembly to bring back the machines under a new tax and regulatory framework.

Backed by a strong bipartisan group of lawmakers and many business owners who feel the state is cruelly stripping them of a revenue source they rely on, the proposal seems likely to pass in the coming weeks.

So far, the legislative debate has focused not so much on whether vending machines should be allowed, but on how strictly they should be regulated if they are allowed.

The Senate has a five-page bill with lighter rules favored by the industry, and a group of senators, mostly pro-skill games, has refused to hear the Senate bill in the committee that normally regulates gambling. A 71-page alternative was introduced in the House on Friday, which takes a tougher regulatory stance, particularly requiring local approval before the industry can reopen machines in certain cities and counties.

Over the next month or so, these competing bills must be resolved into one that can pass both houses of Congress and win the approval of Governor Glenn Youngkin, who has voiced his support for skill games in the past.

Specifics include:

Who’s for the machines?

Several organizations represented by gas station owners and restaurant owners have supported the bill, and the first hearing has flooded skill game supporters wearing yellow shirts supporting the cause.

The support emphasizes that many of the affected convenience stores are immigrant, trying to overcome the ban on the American Dream.

Kunar Kumar, a proposal for Virginia Asian American Store Owners Association, said Kunar Kumar, a prohibition of skill games, "This closes the future of SMEs. It's a thing. "

Rich Kelly, the owner of the Hard Times Cafe in Virginia, said that when COVID-19 became popular, the profits of skill games have supported many businesses.

"What will happen now that the game is banned? Kelly is currently led a group called Virginia Merchant and Amusements Coalition.

At a press conference that began a new movement that demands taxation and regulations on game consoles, Senator Timmy French (selected by Woodstock), surrounded by other skills game promotion members. (Graham Moomaw/Virginia Mercury)

O. Matic, which has Queen of Virginia, which is said to be about half of the skill game market in Virginia, is also deeply involved in this initiative. The company's lobbyist explained the details of the bill at the committee's hearing, and earlier this month, the company cooperated with a press conference that emphasized the voice of small and mediu m-sized business owners.

The petition of SMEs seems to be the biggest factor in moving the general meeting to withdraw the ban.

At the House of Representatives hearing on Friday, the House of Representatives Marcus Simon, a member of the Fairfax, appealed to withdraw the ban. Representative Marcus Simon (selected by Fairfax) is concerned about the game machine, but in 2020, the state has been allowed to set up a game machine for one year in order to fund the COVID-19 rescue fund. He told the person, "I sympathize a lot."

"When the situation was bad, when we were in a bad situation, we gave them a gaming machine and received the money. I used it. I used it." And now we, we, we I don't need it before the division, so I can't get them before. "

The main framework is to struggle for small citizens, but pac e-matic has a state political influence as a major donor to both the Republican and the Democratic Party.

According to the Virginia Public Access Project, which tracks funds, the company has donated more than $ 1 million to Virginia politicians. The compan y-related PAC, Va Operators for Skill, has donated $ 800, 000. In addition, several executives of the company are donating in Virginia. Charlott e-based President Paul Galdane and CEO have donated about $ 200, 000.

The two parties' political leaders and the two councils have accepted donations related to the company, as well as the members who have submitted a skill game legalization bill.

Who’s against the machines?

Skill game support has long been argued that the opposition to skill games is due to the desire to eliminate games that competing with the conventional slot machines in Virginia.

The casino industry also has a large political donation in Virginia and opposes the bill submitted to Congress in 2024. VirginianSagainstneIgHBORHOOTMACHINES casino support organizations have rebelled in the industry's "inaccurate and false claims" and are developing an ant i-skill game campaign.

"In reality, these games are fertilized by huge companies, exploiting and looting from the vulnerable in the local community," said Virginia, who opposes nearby slot machines, opposes the bill. I mention it inside.

The representatives of the horse racing industry and charity gaming industry in Virginia, which provide gambling machines such as slots, are opposed to skill games.

Representatives in the casino industry argue that their concerns are not limited to private interests.

Chris Kaik, a senior vice chairman of American gaming associations, said Virginia's members of Virginia that security, consumer protection, age confirmation protocol, gamblin g-addicted patients would expose more funds. He interviewed an interview that he seems to be passing through the serious problems of how to ask the casin o-elimination list to prevent casinos and the skills game industry. 。 Psyche says that maximizing the profitability of small and mediu m-sized businesses is not a policy concern. According to the Virginia Public Access Project, which tracks funds, the company has donated more than $ 1 million to Virginia politicians. The compan y-related PAC, Va Operators for Skill, has donated $ 800, 000. In addition, several executives of the company are donating in Virginia. Charlott e-based President Paul Galdane and CEO have donated about $ 200, 000.

The two parties' political leaders and the two councils have accepted donations related to the company, as well as the members who have submitted a skill game legalization bill.

Skill game support has long been argued that the opposition to skill games is due to the desire to eliminate games that competing with the conventional slot machines in Virginia.

Is it gambling?

The casino industry also has a large political donation in Virginia and opposes the bill submitted to Congress in 2024. VirginianSagainstneIgHBORHOOTMACHINES casino support organizations have rebelled in the industry's "inaccurate and false claims" and are developing an ant i-skill game campaign.

"In reality, these games are fertilized by huge companies, exploiting and looting from the vulnerable in the local community," said Virginia, who opposes nearby slot machines, opposes the bill. I mention it inside.

The representatives of the horse racing industry and charity gaming industry in Virginia, which provide gambling machines such as slots, are opposed to skill games.

Representatives in the casino industry argue that their concerns are not limited to private interests.

Chris Kaik, a senior vice chairman of American gaming associations, said Virginia's members of Virginia that security, consumer protection, age confirmation protocol, gamblin g-addicted patients would expose more funds. He interviewed an interview that he seems to be passing through the serious problems of how to ask the casin o-elimination list to prevent casinos and the skills game industry. 。 Psyche says that maximizing the profitability of small and mediu m-sized businesses is not a policy concern. According to the Virginia Public Access Project, which tracks funds, the company has donated more than $ 1 million to Virginia politicians. The compan y-related PAC, Va Operators for Skill, has donated $ 800, 000. In addition, several executives of the company are donating in Virginia. Charlott e-based President Paul Galdane and CEO have donated about $ 200, 000.

The two parties' political leaders and the two councils have accepted donations related to the company, as well as the members who have submitted a skill game legalization bill.

Skill game support has long been argued that the opposition to skill games is due to the desire to eliminate games that competing with the conventional slot machines in Virginia.

The casino industry also has a large political donation in Virginia and opposes the bill submitted to Congress in 2024. VirginianSagainstneIgHBORHOOTMACHINES casino support organizations have rebelled in the industry's "inaccurate and false claims" and are developing an ant i-skill game campaign.

"In reality, these games are fertilized by huge companies, exploiting and looting from the vulnerable in the local community," said Virginia, who opposes nearby slot machines, opposes the bill. I mention it inside.

The representatives of the horse racing industry and charity gaming industry in Virginia, which provide gambling machines such as slots, are opposed to skill games.

Representatives in the casino industry argue that their concerns are not limited to private interests.

Chris Kaik, a senior vice chairman of American gaming associations, said Virginia's members of Virginia that security, consumer protection, age confirmation protocol, gamblin g-addicted patients would expose more funds. He interviewed an interview that he seems to be passing through the serious problems of how to ask the casin o-elimination list to prevent casinos and the skills game industry. 。 Psyche says that maximizing the profitability of small and mediu m-sized businesses is not a policy concern.

"Do people want more money? Of course they do. If we were just concerned with increasing revenue for small businesses, we could allow convenience stores to engage in highly regulated activities like loan sharking, selling prescription drugs, engaging in adult entertainment and selling firearms.

The socially conservative Family Foundation has told lawmakers that Virginia already has too much gambling and shouldn't allow more, even if skill games are regulated as strictly as casinos.

Under current law, skill games are considered a form of illegal gambling. Some Virginians who call the state's gambling addiction hotline say they are being harassed by skill games. Some say the games are causing addiction. Like other gambling bills recently passed in Virginia, the skill games bill would set aside funds to combat gambling addiction. And skill game advocates agree that kids shouldn't be allowed to play the machines.

But the industry and its supporters insist it's not gambling.

"Unlike gambling, skilled players can win every time they play the game," said a text message sent to a Richmond-area cellphone recently, urging the recipient to tell their local legislator to vote in favor of skill games.

When asked last week whether she considered skill games a form of gambling, Sen. Louise Lucas (D-Portsmouth) said the label itself meant they were different from machines found in casinos.

"Yes, they are," said Lucas, a leading sponsor of the bill to legalize skill games. "It's right in the title."

Virginia Commonwealth University professor Caroline Hawley, one of the state's leading experts on problem gambling, says that from the perspective of problem gambling, there's "really no difference" between skill games and slot machines. Skill games are routinely among the top three behaviors callers identify when seeking help at the state's problem gambling hotline, she says. From a harm reduction perspective, Hawley says the claim that skill games aren't gambling and that you can win every time is "very misleading." "Do people want more money? Of course they do. If we were just concerned with increasing revenue for small businesses, we could allow convenience stores to engage in highly regulated activities like loan sharking, selling prescription drugs, engaging in adult entertainment and selling firearms.

The socially conservative Family Foundation has told lawmakers that Virginia already has too much gambling and shouldn't allow more, even if skill games are regulated as strictly as casinos.

Under current law, skill games are considered a form of illegal gambling. Some Virginians who call the state's gambling addiction hotline say they are being harassed by skill games. Some say the games are causing addiction. Like other gambling bills recently passed in Virginia, the skill games bill would set aside funds to combat gambling addiction. And skill game advocates agree that kids shouldn't be allowed to play the machines.

But the industry and its supporters insist it's not gambling.

How much money is involved?

"Unlike gambling, skilled players can win every time they play the game," said a text message sent to a Richmond-area cellphone recently, urging recipients to tell their local legislators to vote in favor of skill games.

When asked last week whether she considered skill games a form of gambling, Sen. Louise Lucas (D-Portsmouth) said the label itself meant they were different from machines found in casinos.

"Yes, they are," said Lucas, a leading sponsor of the bill to legalize skill games. "It's right in the title."

Virginia Commonwealth University professor Caroline Hawley, one of the state's leading experts on problem gambling, says that from the perspective of problem gambling, there's "really no difference" between skill games and slot machines. Skill games are routinely among the top three behaviors callers identify when seeking help at the state's problem gambling hotline, she says. From a harm reduction perspective, the claim that skill games aren't gambling and that you can win every time is "very misleading," Hawley said. "Do people want more money? Of course they do. If we were just concerned with increasing revenue for small businesses, we could allow convenience stores to engage in highly regulated activities like loan sharking, selling prescription drugs, engaging in adult entertainment and selling firearms.

The socially conservative Family Foundation has told lawmakers that Virginia already has too much gambling and shouldn't allow more, even if skill games are regulated as strictly as casinos.

Under current law, skill games are considered a form of illegal gambling. Some Virginians who call the state's gambling addiction hotline say they are being harassed by skill games. Some say the games are causing addiction. Like other gambling bills recently passed in Virginia, the skill games bill would set aside funds to combat gambling addiction. And skill game advocates agree that kids shouldn't be allowed to play the machines.

What are the other differences between the House and Senate bills?

But the industry and its supporters insist it's not gambling.

"Unlike gambling, skilled players can win every time they play the game," said a text message sent to a Richmond-area cellphone recently, urging the recipient to tell their local legislator to vote in favor of skill games.

When asked last week whether she considered skill games a form of gambling, Sen. Louise Lucas (D-Portsmouth) said the label itself meant they were different from machines found in casinos.

"Yes, they are," said Lucas, a leading sponsor of the bill to legalize skill games. "It's right in the title."

Virginia Commonwealth University professor Caroline Hawley, one of the state's leading experts on problem gambling, says that from the perspective of problem gambling, there's "really no difference" between skill games and slot machines. Skill games are routinely among the top three behaviors callers identify when seeking help at the state's problem gambling hotline, she says. From a harm reduction perspective, the claim that skill games aren't gambling and that you can win every time is "very misleading," Hawley said.

"The chairman of the Virginia Gambling Administration Council and the Gambling, Virginia, which is operated by state funds, and Holy, the director of partnership for health, says," I'm not gambling. When telling the people, they will not think of the problem they have. "

The state law defines gambling as betting on games, contests, events, etc. to win valuable things if the result is "uncertain or accidental problem".

Senator Jeremy McPike (Prince William elected) has submitted an alternative bill to provide more strict regulations on a wide range of electronic games held at convenience stores and restaurants, but the gambling hotline data is skill game game. He said that he was convinced that it was a form of gambling.

"From my point of view, the skill game is the same as a slot." Put money, press the button. Press the button. Win or lose.

There are several types of skill games. The most famous Queen of Virginia is a similar version of the slot, featuring a nin e-square symbol grid produced by a machine for each play. The goal is to align the thir d-side patterns running horizontally, vertical, or diagonally. Unlike the slot, the player needs to touch the screen to connect the pattern, and usually selects one square as a "wild" symbol to complete one or more lines, or moves the symbol up and down to complete the line. Let me do it.

Screenshot of Pace-O-MATIC game. (Pace-O-MATIC)

Like slots, the more money you bet, the more likely you are to pay out. The most expensive symbol, the highest prize, is the lowest, and the lowest symbol is the most common. Some of the symbols can only get dividends, which are less than the bet.

Sorry people believe that there is an obvious disconnection between the industry's promise to always win, and the mathematical reality that the machine can only generate profits by losing players, but at least one person. I believe he mastered what he describes as a loophole.

Jeffthehokie has released a series of ho w-to video that describes a system that trains his brain with memory and will bring a stable victory to players who are willing to sit on the Queen of Virginia machine for hours.

The game allows players to win back losses if they can successfully remember and repeat a 20-step pattern displayed on the screen.

JeffTheHokie's YouTube channel suggests that most players will avoid the memory game because it's designed to be as boring as possible (there are multiple 15-second breaks that slow down the game) but JeffTheHokie says that by stopping the regular game and spending around eight minutes playing the memory game after a losing spin, a trained player betting at the $5 level can keep chasing the jackpot without fear of losing $5. The only limit, he says, is "fatigue."

" When a skeptical viewer pointed out to JeffTheHokie that his system might not be worth the effort for those who can't treat the machines as a full-time endeavor, JeffTheHokie wrote in the comments section under his video, "This is the difference between a slot machine that takes your money or one that can cancel all of your losses."

State senator wants Frankfort utility to sell its internet service; utility questions why

Draft bill requires local elected officials to make decision on internet service

By: Liam Niemeyer - December 8, 2023 5:00 am

JeffTheHokie continued that while others might blow hundreds of dollars on luck plays, his method can win hundreds, or even thousands, of dollars in a single session.

"A lot of the time (about half the time) I break even, but I never lose," he said.

JeffTheHokie's YouTube page does not list any contact information, so we were unable to contact him for this article. But his videos have attracted enough attention that he made a cameo appearance in court documents discussing the prevalence of theoretically perfect players. Gambling consultants, in a report prepared by the Virginia Attorney General's office to defend the ban, argued that the fact that the industry hasn't been bankrupted by JeffTheHokie or others like him shows that most players aren't spending countless hours at machines just to win $5 repeatedly.

Skill game advocates argue that how players use a machine has little to do with the technical setup, and that exceptional players can keep winning nonstop by perfecting a multi-layered, time-consuming process.

Pace-O-Matic representatives denied that memory games with their many breaks were intentionally monotonous.

Skill game advocates say their proposed regulatory scheme would generate up to $200 million in new tax revenue per year to be shared between state and local governments through a 15% tax on gross revenue from gaming machines. This would bring the total industry revenue to around $1. 3 billion per year.

The exact amount of revenue would depend on how states regulate gaming machines. The industry-backed bill would allow up to five machines per establishment in restaurants and convenience stores licensed by the Virginia Department of Alcoholic Beverage Control, and up to 10 machines at truck stops.

The bill also does not include a cap on the total number of gaming machines allowed statewide. Without this cap, casino lobbyists argue that as many as 90, 000 machines could be allowed in Virginia, based on the number of ABC licensees. During 2020-2021, when skill games were under lighter ABC oversight, ABC data showed just over 10, 000 machines were licensed statewide.

Lawmakers are also considering capping bets and payouts on gaming machines. The industry-backed Senate bill would cap bets at $5 and payouts at $5, 000.

An alternative bill that received initial House approval would have lower stakes, limiting bets to $1 or less and a maximum payout of $500 per play.

The House bill, authored by Rep. Paul Krizek (D-Alexandria), would also limit the number of gaming machines that can be installed at each store, limiting truck stops to five and convenience stores to two. Krizek's bill would also set a tax rate on gaming machines at 30 percent, double the rate of the Senate bill.

Krizek's bill would instead have ABC regulate the machines, handing that responsibility to the Virginia Lottery, which already regulates casinos and sports betting.

The Senate bill aims to have the machines up and running by July 1, while the House bill projects Jan. 1, 2025, a more reasonable start date, given the bureaucratic work required to get a new regulatory regime in place.

Krizek, who co-chairs a General Assembly subcommittee broadly examining whether states should have one gambling authority rather than dispersing it among multiple departments, noted that as the son of immigrant parents, he understands the "work ethic" of newcomers looking to make it in America.

"This country is a great country. If you work hard, you can walk for a long time. But I am suffering from the scale of such devices.

Clisick gave a long time a long time on his bill, a "stronger" regulation function of his bill.

A growing — and potentially valuable — broadband business

The House of Representatives' bills that Mr. Clisque has won is prohibited from the local government to pass the ordinance, or that the lottery is licensed to a skill game, unless voters are approved by voting residents. There is no such requirement in the Senate bill.

The Senate bill does not clearly define a protocol to prevent access to minors and gambling addictions to the access aircraft. The House of Representatives bills require more clearly disclosing information on gambling addiction in skill games, and are eligible for voluntary exclusion programs that already exist in other gambling.

The lower house is obliged to confirm that age confirmation is stricter and that it is 21 years old or older before issuing cards that can be used for skill games. In the lower house plan, a business that allows minors to play is a crime. The Senate's proposal requires a sticker that cannot be played under the age of 21 on the game machine, but does not specifically indicate how the rules will be enforced.

In the current Senate bill, the skill game industry depends on sel f-reporting the revenue, but the modified House of Representatives bills require the "central monitoring system", and the regulatory authorities have a lot of money through the game. You will directly monitor whether it is flowing.

Representatives of Representatives Care Koiner (Chesterfield selection), for example, to prevent it from being installed in a narrow space of convenience stores, for example, hindering the compliance with the disabled law. He asked if the lower house bill could be enhanced in other ways, such as having an upper limit on the number that could be installed in.

The House of Representatives Gambling Small Committee approved Clisick's bill 6 to 0.

• At the Friday meeting, some tensions ran a little tension due to dramatically rewriting industria l-friendly bills. Cliff Haze (Democratic Party, selected in Che Sapik). Cliff Hayes, the selection of Chosapik, who submitted this bill before correcting the bill, said that after seeing the new version of the bill about 24 hours before the hearing, he told the supporters that he would not attend. Ta.
• "Hayes told Clisk," "Those people are not here to say their claims."
• Clisik did not know that skill game supporters were told to be absent from the late afternoon to the evening, but the "very poor" restrictions in the initial bill. He said that it was important to fix it.

"Don't call a relative is what you have decided on your own." The biggest venue at the general meeting is to have you gather. We are going to go as much as we need. That opportunity. I don't want to be told that I didn't give it. "

On Friday night, the Corporate Union, which supports skills games, issued a statement, and the members said to the bill of the bill that they would continue to commit.

Deliver the morning headline to the receiving box

An opposition sign of Senator Gex Williams established by the Frankfort Plant Committee. (Kentucky Lantern photographed: Liam Neemeyer)

Frankfor t-Last month, on his way to his office at the State Council, a member of the Senator Gex Williams took out his mobile phone and showed a picture of a building board that appeared a few weeks ago on Frankfort.

"OUR COMMUNITY Is Not For Sale is not a sale), along with the logo of the city's public works, Frankfort Plant Board, and Public Access TV Channel logo on the signboards you often go to. The word is displayed in a thick white font.

"I want you to put my name on the poster board there," said Williams, jokingly expanding his photos with his finger.

The sign is a bigger work for a bill that Williams will submit during the session next month. The Frankfort Plant Committee (FPB) claims that Williams is trying to sell electricity communication services (cable, landline phone, and growing broadband services) to private companies. 。

"Why an outsider from Boon County try to take customer management from this community? FPB is asking on the website.

Senator Gex Williams, who spoke at the Legal Committee's hearing in November. (Kentucky Lantern photographed: Liam Neemeyer)

Williams, a Republican from Verona, was elected last year to represent the newly created 20th Senate District, which stretches from Frankfort and Franklin counties up through Gallatin, Carroll and Owen counties, into southwestern Kenton and southern Boone counties. Williams served in the House of Representatives in the 1990s before losing a 1998 election to the U. S. House of Representatives, defeating Democrat Teresa Burton, a former Franklin County judge and administrator.

Williams says his goal is to "restrain" the FPB, which he calls an "out-of-control" government agency that is not sufficiently accountable to city officials. He also wants to encourage, but not force, the Frankfort City Commission to sell FPB's communications assets and invest the proceeds in developing downtown Frankfort.

He says citizen criticism of FPB's Internet service and utilities in general, combined with his desire to bring economic development to downtown Frankfort, are what motivated him to introduce the bill.

In his office, Williams noted that an FPB webpage opposing his bill encourages customers to call Frankfort city commissioners.

"They're not threatening me, they're threatening them," Williams said.

Williams shared a draft of the bill with The Lantern and plans to speak about it at a hearing of the Frankfort City Commission and the Frankfort Plant Commission early next week.

FPB Chairman John Cubain said he has seen Williams' proposed bill but doesn't want to comment until FPB's legal counsel has reviewed it. Still, Cubain said he sees the effort as interfering with the operation of a utility that doesn't need repairs and could threaten community-owned property.

Williams' conversations with local officials and a column he wrote in a Frankfort newspaper have fueled speculation about his motives and left at least some local elected officials skeptical of FPB's sale of its telecommunications division.

City Commissioner Kyle Thompson said he couldn't imagine the commission "wanting to take up an issue where essentially half the community is going to show up with axes and torches."

The Frankfort Plant Commission is one of 12 municipal utilities that provide internet service in Kentucky, according to the Kentucky League of Cities. Frankfort is the only one of the 12 municipalities affected by Williams' proposal that was created under a 1940s law.

Skepticism by some local officials

The FPB has invested millions of dollars in the expansion of the broadband services in Frankfort and Franklin County, especially the NEXTBAND, optical fiber Internet services. Last year, the FPB received a subsidy worth $ 8 million from the state and built an optical fiber cable Internet connection to at least 884 households in Franklin County.

Williams' draft requires the FPB Board of Directors to independent evaluation of "public works" other than electricity and water services, although it could be changed.

This bill asks the Frankfort City Committee to vote for either two options, "transfer" or sell the appraised public works from FPB to the city by December 31, 2024. It's a thing. It is unknown whether the FPB telecommunications staff will operate such services, even if the FPB is transferred from the FPB to the city government.

Williams would ultimately ask the City Committee to decide what to do with telecommunications services.

The bill is as follows:

Before paying various expenses, the FPB is obliged to get the approval of the city committee;

Make the city committee managing the surplus revenue created by FPB;

The FPB is obliged to pay the tax to the city, school districts, and county.

According to Williams, the state parliament has been working to regulate sem i-government agencies and government agencies that provide limited services, called Spge, in the past. FPB enters the category.

Williams claims that the FPB is operated by the "Board of Directors that has not been selected in the election" and can determine the operation of surplus and bonds by operation without obtaining the city's approval.