Virginia’s Skill Game Ban Faces Setback

A Virginia judge has ruled that a new version of the “Queen of Virginia” skill game, manufactured by Pace-O-Matic (POM), does not violate the state’s 2020 ban on unregulated slot-like devices. The ruling could allow the controversial machines to continue operating in Virginia, despite ongoing legal efforts to curb their presence.

The case revolves around a decision made by Hanover County District Court Judge Hugh McConnell, who ruled Wednesday that the altered version of the Queen of Virginia game—dubbed Queen of Virginia Skill 2 (QVS2)—does not fall under the state's law banning skill-based devices. The law, passed in 2020, prohibits games that require players to insert coins, tickets, or tokens to activate play. The new QVS2 machines, however, operate under a distinct system. Instead of requiring the insertion of coins or tickets, players now pay cash directly to the operator to “unlock” the machine for play.

The modification, although seemingly minor, was enough to convince Judge McConnell that the QVS2 game does not meet the legal definition of a banned “skill game.” The judge dismissed a misdemeanor charge against a convenience store owner who had been accused of operating the banned machines, finding that the law's specific language exempted the modified devices.

While the machines themselves remain unchanged in terms of gameplay, with players able to deposit more money if they lose or collect cash winnings if they win, the ruling has sparked heated debate. State officials, including Governor Glenn Youngkin and Attorney General Jason Miyares, have argued that POM is exploiting a loophole in the law, effectively sidestepping its intent. They have suggested that POM’s actions reflect a breach of trust, with Youngkin accusing the company of failing to engage in good-faith discussions about potential legalization.

A History of Legal Back-and-Forth

Virginia's legal battle over skill games has been marked by a series of twists and turns. In 2020, as the pandemic raged, Governor Youngkin allowed a one-year delay in the enforcement of the ban, acknowledging that small businesses were relying on the machines for revenue during the crisis. This temporary reprieve, however, did little to assuage the concerns of law enforcement and the regulated casino industry, who view the games as illegal slot machines.

The ban was ultimately reinstated in 2023 after a Virginia Supreme Court decision, which upheld the constitutionality of the prohibition. Despite this, small business owners and the gaming industry have continued to push back. In 2024, Youngkin vetoed a bill that would have legalized skill games, despite strong support for the move among some lawmakers. The veto came after lawmakers rejected Youngkin’s proposal for stricter regulations on the games.

In the wake of the court ruling on QVS2, Virginia Attorney General Miyares issued a memorandum to prosecutors and law enforcement agencies, signaling that the altered machines should still be considered illegal. The memo described POM’s modification as an attempt to circumvent the ban, calling it a “tweak” that was largely inconsequential in the broader legal and regulatory context.

A “Loophole” or Legal Gray Area?

While POM and some lawmakers have praised the court’s decision, others are concerned about the implications it has for the future of Virginia's gaming landscape. State Senator Bill Stanley, a long-time proponent of legalizing skill games, expressed his support for the ruling. In a statement to The Daily Progress, Stanley argued that the decision was a win for small business owners and a blow to what he termed “government overreach” by the casino industry, which has lobbied to exclude small businesses from the gaming sector.

“This ruling is a victory for the little guy, who has been unfairly excluded from the gaming industry by the larger casino interests,” Stanley said. His comments reflect the ongoing tension between small businesses that rely on skill games as a revenue stream and the casino lobby that views the machines as illegal gambling devices, unfair competition to state-regulated casinos.

On the other hand, critics of the decision argue that it creates a dangerous precedent for the gaming industry in Virginia. By exploiting what many see as a narrow loophole, POM’s strategy highlights the ambiguity in the law, which Judge McConnell himself acknowledged in his ruling. The judge pointed out that the state's definition of skill games was too vague, leaving business owners without clear guidance on which games are legal and which are not.

This legal gray area has left Virginia lawmakers in a difficult position, trying to balance the interests of small businesses, the gaming industry, and public safety. While some advocate for a complete ban on unregulated gambling machines, others, like Senator Stanley, see legalization as a potential path forward, albeit with stricter regulations.

 

This ruling is a victory for the little guy, who has been unfairly excluded from the gaming industry by the larger casino interests.

Moving Forward

As Virginia grapples with the implications of this ruling, the future of skill games in the state remains uncertain. While the decision allows POM to continue operating its modified machines, it is likely to spur further legal challenges. Governor Youngkin and other state officials may push for new legislation or legal clarification to close what they view as a loophole. In the meantime, small business owners and proponents of legalization will continue to make their case for a re-examination of the state's gaming laws.

For now, though, POM’s modified Queen of Virginia Skill 2 game remains a legal, though controversial, fixture in Virginia’s gaming landscape. Whether it marks the beginning of a new chapter for skill games in the state or simply a temporary legal reprieve will depend on how lawmakers and courts respond in the coming months.