Amendment would effectively prohibit most small businesses from having skill games in stores
Includes video report
By Kate Northrop
Hundreds of Virginia Lottery retailers across the state participated in a boycott of ticket sales on Monday to protest an amendment to a bill that regulates skill games.
Virginia lottery players may have had difficulty buying tickets Monday, since hundreds of licensed Virginia Lottery retailers halted ticket sales to voice their frustrations with the government's increased regulations on skill games in the state.
For many convenience stores, inflation, rising costs, and competition from nearby small businesses and big chain stores alike mean that lottery ticket sales are crucial to keep bringing customers in. However, several store owners said earlier this week, skill games make up a decent chunk of revenue and help keep their doors open.
Now, with amendments to Senate Bill 212 that further regulate the sale of skill games, retailers are coming together to voice their frustrations that make it nearly impossible to house skill game machines in-store and therefore take away a substantial source of income.
The Virginia Merchants and Amusement Coalition (VA MAC) called on "Governor Youngkin and members of the General Assembly to reverse the Governor's amendments and keep the original version of SB 212, the skill game regulation bill, in place."
Amendments to the bill, which were issued in a notice from the Office of Attorney General on Oct. 13, 2023, include a 35% tax rate for businesses that operate skill games. It also bans skill games within a half-mile of a casino or other gaming establishment, as well as gaming machines within a half-mile of any daycare, school, and place of worship. Cities and counties can also individually vote to ban the machines.
"This additional revenue is very helpful for small businesses like mine," Krunel Patel, the owner of a convenience store in Varina, told WTVR CBS 6. "It's going to hurt a lot of stores. It is going to take away a chunk of stores — literally, like, a majority of the stores in the state of Virginia — and they won't be able to compete and survive."
By shutting off the lottery terminals, retailers participating in the boycott are hoping to demonstrate "the economic impact that the closing of convenience stores will have on the Virginia Lottery and the tax revenue they generate."
"We want to show how it could impact them if we are not in business," Patel continued. "I might have to cut back on staff if these machines are not back on. I don't know what I would do, but I will have to survive somehow. It's going to be tough, but we will have to fight."
A spokesperson for Governor Youngkin issued a statement that reads, "The Governor supports small business owners having access to skill games and his proposed legislative amendments, stemming from discussions with a bipartisan group of members and dozens of outside stakeholders, would establish an important regulatory framework, enhance consumer and public safety protections, and grant localities and Virginians a voice."
However, some customers are voicing their support for skill games and are anxiously awaiting their return, Teresa Lambert, a convenience store cashier, told WSLS 10 News.
"Sales are down, [customers] see that," Lambert explained. "We have a lot of regulars around here, and they're anxious for the skill games to come back."
To her surprise, she did not see any pushback from customers in response to the boycott of ticket sales on Monday.
Not only did stores halt ticket sales on Monday, but some retailers participated in a complete store closure on Tuesday between 3:50 and 4:50 pm, too.
Zahid Hussain, a father of four, owns three gas station convenience stores in the Richmond area. The hour-long store closure that took place on Tuesday is more "symbolic" than anything and is another way to demonstrate the potential for retailers shutting down for good if skill games do not make a return.
While he felt bad for turning lottery players away, he said it's nothing personal against the Virginia Lottery — he's merely looking to grab the government's attention, which owns and operates the Lottery.
"We knocked the door off the Governor's," Hussein told WWBT 12 On Your Side. "We request him. We beg him. He didn't listen."
Dharmendra Patel, who owns nine convenience stores, stressed to WSLS 10 News that all he wishes for is for the regulations to be reversed and the skill games bill to revert to its original standing.
"At least give us a fair opportunity," Patel said. "We are not asking to open a mini-casino or game room or anything like that. It came down to a slap on our face with all these amendments that made it impossible to have skill games really anywhere in Virginia."
VIDEO: Watch the report
Why on Earth would the state need to keep skills games a half-mile away from a church??
I don't get the church part but I was in a non chain convenience store last year and it had a large slot machine type machine. A guy playing was in a manic state playing over and over. It was sad.
Maybe people are bargaining with God in Church for a big win and then go nearby to a retailer?
You should see what it looks like in an actual casino. That guy x 1000. No need to punish a small business and reward a giant business by ensuring their monopoly. Just my opinion.
Add that to my long list of why I have no interest in casinos. I do not want to see sad people gambling their life away vs playing for fun and entertainment.
Casinos are not close and convenient for most people. People with gambling issues are being enticed daily with a poor economy and inflation. I think it was meant to be protective of the general public. I am not a big brother fan but people seem to get easily addicted to those machines. The store owner can still sell lottery tickets. I know a lot of people who think these machines are bad news.
So gambling with the lottery is OK, but gambling with a skill game is not? Many times I have seen people scratch games at the counter, buy more, scratch more, buy more, etc. I don't see any distinction between that and pressing buttons on a screen repeatedly. Seeing a distinction between those two things is where I think it turns from a logical debate into a debate on personal choices and of opinion. That's where I draw the line. I don't like arbitrarily preventing people from making choices in their life based on my personal opinions of what kind of gambling is "bad" vs. what is acceptable. In fact, the button-pusher might have better odds of winning for all I know. Preventing that will force a gambler into spending money on a game with worse odds. i.e., the laws of unintended consequences, all set into motion by a morality decision made by some government official.
Let's be crystal clear about what's happening here. The government is protecting a revenue source (the lottery). The whole thing about "schools and churches" is a way to achieve that goal.
Any government lottery official reading this would not be happy with me, but although I am a big supporter of the lottery, I am not a shill for the lottery.
First they tried banning skill games. That did not work, so they are now trying to limit where they can be played to the point of banning them for all practical purposes.
If the people of a state decide they want to ban skill games, then ban them through legislation, openly and with transparency. If the people do not want to do that, then neither should their representatives in the government.
How am I wrong about this?
An opinion Todd. We all have opinions and I live in the state. It is an amendment to a senate bill so it is legislative.
We can buy lottery tickets online here and the vending machines are in grocery stores so the store owners are pushing their luck here. The store owners are free to protest of course but with all the convenience style stores close together, I really doubt too many are hurting financially. It is a we want even more money as store owners.
"The average convenience store gross profit margin sits around $450,000. " 2022
It is an issue of the type of gambling. Casino type gambling.
I agree that all opinions are valid, which is why I also added that what I wrote is my opinion. The part that I believe is fact is the state's motivation.
"It also bans skill games within a half-mile of a casino or other gaming establishment, as well as gaming machines within a half-mile of any daycare, school, and place of worship."
It's like death by a thousand tiny cuts. Most of these restrictions are arbitrary and meaningless. Youngkin is just trying to make it as hard as possible to operate one while making it seem like he's thoughtfully protecting the public from arcane dangers nobody thought of. Might as well add that they have to be installed on a south facing wall by a guy named "Mike" on a Tuesday between 3:05 and 4:05 pm. If a toddler escapes from a daycare, is the kid going to toddle half a mile to a skill machine? I think escaped toddlers face much bigger dangers. I can only understand restricting them from being near high schools where students are allowed off campus for lunch.
"35% tax rate for businesses that operate skill games "
Follow the money. The State wants to steal 35% of the proceeds from every skill game played. It's about excessive State greed and power, yet again.
It is good they are going to regulate it. If you decide to play skill games in any other state, there is no protections from you being cheated. The owner could set the machine to have a 0% return to player and you would never know it. This bill is not a punishment but rather a way to offer players the same protections that casinos have. Regulating cost money, hence the fees.
No disagreement from me that the government needs to regulate all forms of gambling in the state. 35% seems monumentally excessive however. That's a case of trying to protect the lottery, rather than a logical fee. So I agree on the regulation, but I think the fee should be smaller. (Incidentally I think they take too large of a cut on the lottery too, so you can see where my mind is at on these things.)
Fair point, the fee should be the same as charged to traditional casinos.