Skill Games Halted Again as Spanberger Issues Veto

Governor Abigail Spanberger has vetoed a bill that would have legalized skill gaming machines across Virginia, saying the state is not ready to safely expand gambling.

In a statement released in Richmond, Spanberger said Virginia still lacks a strong, centralized system to oversee all forms of legal gaming. Without that structure in place, she warned, adding more machines could create gaps in enforcement and put communities at risk.

“The absence of a centralized regulatory authority for gaming creates gaps in oversight that threaten the Commonwealth of Virginia’s ability to provide consistent enforcement, prevent illicit activity, and protect all consumers,” Spanberger said.

Skill games, often found in convenience stores and small businesses, had a brief period of legal operation in Virginia between 2020 and 2021. During that time, data collected by the Virginia Alcoholic Beverage Control Authority showed the machines were more commonly located in areas with higher poverty rates, lower levels of education, and larger minority populations.

Spanberger pointed to those findings as part of her decision. She said expanding skill gaming now could deepen existing inequalities and place a heavier burden on communities already facing challenges.

She also raised concerns about businesses that continued to operate skill machines even after they were no longer legal. According to the governor, approving the bill would reward those actions and send the wrong message.

“Legalizing these machines at this moment would also reward operators who knowingly disregarded state law for years and set a troubling precedent for how business is conducted in Virginia,” she said.

The veto comes as Virginia has steadily expanded legalized gambling over the past decade, including casinos, sports betting, and other gaming options. With that growth, state leaders have debated how best to regulate the industry and ensure consumer protection.

Spanberger has consistently supported the creation of a single agency to oversee all gaming activity. Earlier this year, Secretary of Agriculture and Forestry Katie Frazier echoed that position while speaking before a state subcommittee, calling for “a single, dedicated entity responsible for regulating and enforcing existing legalized gaming in Virginia.”

The governor’s action signals that broader changes to the state’s gaming oversight system may come before any new forms of gambling are approved.

This veto also follows another recent decision by Spanberger involving gaming. Just one day earlier, she rejected a bill that would have required Fairfax County to hold a referendum on a proposed casino in Tysons Corner. Together, the moves show a cautious approach to expanding gambling in the state.

For now, skill gaming machines will remain illegal in Virginia. Lawmakers may revisit the issue in future sessions, but any new proposal will likely need to address concerns about regulation, enforcement, and community impact.

Spanberger said she is open to continued discussions with the General Assembly. However, she made it clear that any future changes must focus on protecting residents and ensuring fair oversight.

“Moving forward, I will continue to engage in discussions with the General Assembly about how to make sure any expansion of legal gaming in Virginia prioritizes the well-being of all our communities,” she said.

The Governor’s official veto statement for Senate Bill 661: 

Pursuant to Article V, Section 6 of the Constitution of Virginia, I veto Senate Bill 661, which would legalize electronic skill gaming devices in the Commonwealth of Virginia.  

The rapid expansion of gaming in Virginia over the last decade has outpaced the Commonwealth’s ability to provide consistent enforcement, robust public safety oversight, and meaningful assessments of the potential impacts or harms of gaming in all its forms.  

Senate Bill 661 would strain an already fragmented system and introduce thousands more machines without a comprehensive regulatory structure. In the absence of a single, independent, and dedicated entity responsible for regulating all forms of gaming, Virginia is not positioned to ensure compliance, prevent illicit activity, protect consumers, or evaluate and respond to community impacts or harms.  

There is already data to demonstrate the ways in which an unregulated process harms communities. Notably, when electronic skill gaming devices were legal in the Commonwealth between 2020 and 2021, the Virginia Alcoholic Beverage Control Authority collected data on device placement, wagers, and awards. The data clearly show that devices were disproportionately located in communities where higher percentages of the population live below the poverty line, communities with lower rates of educational attainment, and communities where higher percentages of the population are Black and Hispanic. The data enumerate the millions of dollars in wagers made, resulting in millions of dollars flowing out of these communities, but without an entity in place to evaluate and mitigate social, economic, and public impacts, the Commonwealth is not positioned to expand gaming and legalize electronic skill gaming devices.  

I remain committed to working with the General Assembly to ensure that any future approach to gaming expansion prioritizes consumer protection, public safety, public health, and the economic and social well-being of all our communities. 

Accordingly, I veto this bill.