Virginia Governor vetoes bill on skill gaming machines citing regulatory concerns

Virginia Governor Abigail Spanberger has vetoed legislation that would have legalized electronic skill gaming devices in the Commonwealth, citing gaps in oversight and the absence of a unified regulatory framework.

The decision, announced on Friday, April 10, halts Senate Bill 661, which sought to permit the operation of such machines across Virginia. The governor stated that the current system lacks a centralized, independent authority to oversee all forms of legal gaming, raising concerns about enforcement and consumer protection.

“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,” said Governor Abigail Spanberger.

“Right now, legalizing skill gaming and introducing more of these machines into our communities would strain an already fragmented system. 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.

“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.”

The governor’s veto statement, issued under Article V, Section 6 of the Constitution of Virginia, emphasized that the expansion of gaming in the state over the past decade has exceeded the government’s ability to ensure consistent enforcement, public safety oversight, and comprehensive evaluation of its social and economic effects.

She noted that the proposed legislation would introduce thousands of additional machines without a comprehensive regulatory structure, further straining an already fragmented system. Without a single entity responsible for regulating all gaming activities, the state would be unable to ensure compliance, prevent illicit activity, or assess and respond to potential harms.

Data collected by the Virginia Alcoholic Beverage Control Authority during a period when skill gaming devices were legally permitted between 2020 and 2021 was cited as evidence of uneven impacts.

According to the data, machines were disproportionately located in communities with higher poverty rates, lower levels of educational attainment, and higher proportions of Black and Hispanic residents compared to the broader state population.

The same data also recorded millions of dollars in wagers and payouts during that period, with funds flowing out of affected communities. The governor stated that, without a regulatory body in place to evaluate and mitigate these impacts, the state is not positioned to expand gaming through the legalization of such devices.

The administration has consistently supported the creation of a centralized regulatory authority. In February, Secretary of Agriculture and Forestry Katie Frazier conveyed this position during testimony before the ABC and Gaming Subcommittee, calling for a single, dedicated entity responsible for overseeing existing legalized gaming in Virginia.

The veto follows a separate decision a day earlier in which the governor vetoed legislation that would require the Fairfax County Board of Supervisors to call a referendum vote on a casino in Tysons Corner. Citing the Board’s explicit opposition, the Governor said the bill would set a precedent against local decision-making on gambling.

“Local governing boards should lead on proposed casino development, as has happened in every locality that now has a casino,” said Governor Abigail Spanberger. “But in Fairfax County, the Board of Supervisors has explicitly opposed this legislation, and an overwhelming majority of the General Assembly members who represent Fairfax voted against it.”