Bill > HB1272

This bill establishes the Virginia Small Business Economic Development Act, creating a regulatory and taxation framework for skill game machines, which are defined as electronic devices requiring consideration for play where the outcome is determined by player skill and can award cash prizes. The Virginia Alcoholic Beverage Control Authority (ABC) will oversee the regulation and taxation of these machines, with the Virginia Lottery Board (the Board) also playing a role in their regulation and oversight. Distributors of these machines will be required to register and will face a monthly gaming tax of $800 per machine. The bill outlines licensing requirements for manufacturers, distributors, and host locations (establishments like bars and truck stops where the machines are placed), with specific limitations on the number of machines per location and proximity to schools. It also establishes a voluntary exclusion program for individuals to self-exclude from playing these machines and other forms of gambling. The bill mandates that these skill game machines must be connected to a central monitoring system, undergo testing by independent laboratories, and meet specific technical requirements to ensure fairness and security. A new Chapter 42 is created in Title 58.1 of the Code of Virginia to govern these electronic gaming devices, with provisions for licensing fees, a gaming tax on gross profits (revenue minus prizes), and the distribution of tax revenue to the state general fund, localities, and a Gaming Regulatory Fund. The bill also includes provisions for penalties for violations, including felony charges for illegal operation and misdemeanors for underage play or prohibited acts by host locations. Importantly, the bill specifies that these regulations will take effect on January 1, 2027, and will expire on January 1, 2030, at which point the Lottery Board will report on compliance and the number of illegal devices seized.

Budget and Finance, Justice

https://lis.virginia.gov/bill-details/20261/HB1272