Connect with us

State News

Virginia Supreme Court Reinstates Ban on Slots-Like Skill Games

Published

on

In a surprise order Friday, the Supreme Court of Virginia overruled a lower court and reinstated the state’s ban on slots-like skill machines, saying a lawsuit challenging the ban on free speech grounds is unlikely to succeed.

A restaurant on Main Street in Richmond around the corner from Capitol Square advertises Queen of Virginia Skill, a subsidiary of Georgia-based software maker Pace-O-Matic, which has won ABC approval and argues its games are the only legal varieties in Virginia. (Ned Oliver / Virginia Mercury)

The high court was reviewing the propriety of a lower court’s longstanding injunction that has been preventing the state from enforcing a ban on the machines that took effect in the summer of 2021. Because the General Assembly has repeatedly taken action to modify the specifics of that ban, the Supreme Court ruled it had jurisdiction to review the matter even though the lawsuit still hasn’t gone to trial yet in Greensville Circuit Court.

Looking at the merits of the case, the Supreme Court ruled the lower court “abused its discretion” by ruling that the skill-game industry is likely to succeed in its claims that its games are a protected form of free speech.

“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. 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,” the Supreme Court said in an order from Justices Stephen R. McCullough, Teresa M. Chafin, and Wesley G. Russell Jr.

Games that allow people to bet money and win cash have popped up around the state, including in this Richmond corner store. Manufacturers say they’re games of skill, not chance. (Ned Oliver/Virginia Mercury)

The lawsuit against the ban, brought by Southside Virginia truck stop owner Hermie Sadler in conjunction with major skill-game company Pace-O-Matic, is set to go to trial this December in Greensville. As the litigation has played out, state and local officials have been frustrated by their inability to tax and regulate games that resemble slots but involve a small element of skill that has made them difficult to classify under the state’s gambling rules.

Since the lower court issued an injunction in late 2021, the machines, a common sight in convenience stores and sports bars, have been operating with no regulatory oversight.

By lifting the injunction, the Supreme Court’s ruling puts the state ban back in effect, but it’s unclear whether it will be immediately enforced, given the pending status of the lawsuit.

“Our attorneys are currently reviewing the opinion and assessing the next steps,” said Christina Freundlich, a spokesperson for Pace-O-Matic, which operates the prominent Queen of Virginia skill game franchise.

The office of Attorney General Jason Miyares, which had asked the Supreme Court for the review, applauded the Supreme Court’s order indicating the law is constitutionally valid.

“Virginia has regulated gambling for centuries, and the skill games law is an ordinary exercise of the General Assembly’s authority to protect the public from dangerous gambling devices,” said Miyares spokeswoman Victoria LaCivita. “The law is now in effect, and commonwealth’s attorneys are free to enforce it.”

In its order, the Supreme Court justices said the state is not seeking to restrict the visuals or messages of the games but the “promise (and the ultimate execution) of a payout if the game ends in a particular fashion.”

“If criminalizing promises of monetary winnings as determined by the outcome of a game violated free speech rights, the Commonwealth would be unable to prohibit unregulated bookmakers from taking bets on sporting events or citizens from running private ‘numbers’ games because such activities involve the same basic premise,” a footnote in the court’s order said.

 

by Graham Moomaw, Virginia Mercury


Virginia Mercury is part of States Newsroom, a network of news bureaus supported by grants and a coalition of donors as a 501c(3) public charity. Virginia Mercury maintains editorial independence. Contact Editor Sarah Vogelsong for questions: info@virginiamercury.com. Follow Virginia Mercury on Facebook and Twitter.

Front Royal, VA
81°
Cloudy
6:25 am8:09 pm EDT
Feels like: 86°F
Wind: 2mph NE
Humidity: 74%
Pressure: 30.02"Hg
UV index: 0
SatSunMon
86°F / 72°F
84°F / 72°F
90°F / 66°F
Local News5 hours ago

Virginia School Board to Appeal Federal Court Order to Remove Confederate School Names

Historically Speaking5 hours ago

Historic Travels: Pierre’s Hole, Idaho

Business Growth Series10 hours ago

Business Growth Series: Give More Value, Get More Customers

State News10 hours ago

Lowdown from Loudoun: Virginia Official Shares Data Center Tips with Maryland Audience

Jefferson Forum11 hours ago

The SCC Must Judge Dominion’s Future, Not the Governor’s Office

Legal Notices12 hours ago

ORDER OF PUBLICATION: In the Circuit Court for Warren County, Virginia

Interesting Things to Know13 hours ago

When the Warehouse Robot Speaks Your Language

Food13 hours ago

Butterflied Roast Chicken Delivers Crispy Skin and Juicy Meat

Scott's Turn1 day ago

The Hidden Cost of Empty Storefronts

National News1 day ago

DOJ Targets 3 More States in Effort to Axe In-State Tuition for Immigrants

State News1 day ago

Program Connects Deployed Service Members with Foster Homes for Pets

Local Government1 day ago

Warren County Celebrates First Customer Connection Through All Points Broadband Expansion

State News1 day ago

Dominion Asks SCC to Recover an Additional $922 Million for Fuel Costs Over Multiple Years

Local Government1 day ago

Aging in Place: County Planning Commission Considers an Option for the Elderly

State News1 day ago

Virginia’s Vaccine Recommendations, Requirements Won’t Change After Trump Order, Officials Say

National News1 day ago

Trump Administration Urges Supreme Court to Rule Soon on Limiting Vote-by-Mail in Midterms

State News1 day ago

Virginia Resident Seeks Answers from State Education Superintendent Over Genocide Definition

Local News1 day ago

Foster Families Needed Across Northern Shenandoah Valley to Keep Children Close to Home

Local Government1 day ago

Data Center Debate Draws Crowd as Residents Demand Transparency, Local Control

Community Events1 day ago

Blue Ridge Arts Council Wraps Up 37th Gazebo Gatherings Season with Ryan Jewel Concert

EDA in Focus2 days ago

$1.65-Million Auction Dent Put in $10-Million Debt to First Bank & Trust on ITFederal Developmental Loan to FR-WC EDA

Opinion2 days ago

Where Motive and Opportunity Align on Zoning Code

State News2 days ago

What Candidates Have Planned for Virginia’s Coast Could Decide a Key Congressional Race

Community Events2 days ago

This Week’s Showtimes at Royal Cinemas as of August 14th

State News2 days ago

Lt. Gov. Hashmi Hits the Road to Hear from Virginians on Dominion-NextEra Merger