Virginia small business owners form coalition to advocate for legal skill games

A group of small business owners representing various establishments such as restaurants, retail stores, bars, convenience stores, and truck stops has come together to form a coalition to advocate for the legalization of skill games in Virginia. 

Named the Virginia Merchants and Amusement Coalition (VA MAC), the coalition's primary objective is to provide assistance to Virginia's small businesses by safeguarding legal skill games and assisting law enforcement in addressing illicit gaming activities, the organization said in a statement.

Members of VA MAC are working to further educate Virginia lawmakers on how important skill games are to local businesses while urging the General Assembly to pass legislation that would regulate the games, producing tax revenue for the Commonwealth.

"This is about looking out for Virginia's small businesses who count on skill games to create local jobs, generate revenue, and support economic growth in our communities," said VA MAC President, Rich Kelly, owner of Hard Times Café with four locations in northern Virginia. "VA MAC is just the beginning of our efforts to support the regulation of skill games and to stand with law enforcement in their work to end illegal gaming."

According to the coalition, skill games provide additional revenue to small businesses by supplementing their traditional income base. For many businesses, these games made it possible to recover from the income losses experienced during the pandemic, manage the skyrocketing price of goods, and meet higher-than-expected wages during the current labor shortage.

Skill games provide location partners with 40% of profits with no hidden fees or additional costs, the statement said. Another 35% goes to a local operator. Virginia-based distributors also make a percentage of the profit, ensuring that over 75% of the revenue generated by skill games stays within the local community. Legal skill games have also generated hundreds of millions of dollars for the Commonwealth in additional tax revenue, it added.

"Our Commonwealth is at a crossroads. Until skill games are regulated, Virginia will continue to miss out on an estimated $130 million in tax revenue per year, and potentially much more. Now our small businesses need your help to keep their doors open — and keep skill games in our locations. At VA MAC, we're spreading that message across the Commonwealth, encouraging Virginians to contact their legislators and express the urgency in protecting legal skill games and supporting Virginia small businesses," Kelly said.

Regulating and taxing legal skill games will also help law enforcement better identify bad actors and put a stop to illegal gaming operations, VA MAC says.

Meanwhile, there has been opposition from various quarters advocating for stricter measures against illegal skill games. Early this year, Nebraska state senator Tom Briese proposed legislation to tax "skill games" as they expand in the state. He demanded "skill games" pay the same taxes as slot machines, and begin contributing to lowering property taxes. Last year, a group named Pennsylvanians Against Gaming Expansion  called for a crackdown on illegal “skill games,” which it claims cost residents millions of dollars.