Virginia lawmakers moved a step closer to setting firm rules for skill game machines on Tuesday (March 3), as the House of Delegates approved legislation designed to regulate and tax the devices that have quietly spread through convenience stores and small retailers.
Delegates signed off on Senate Bill 661 in a 57–39 vote, with one member abstaining. Because the House adopted a substitute version of the proposal, the measure now returns to the Senate for another review before it can head to the governor.
Virginia House passes SB661 regulating skill game machines, 57–39 with substitute. Bill now returns to Senate for approval of House changes. @RWW pic.twitter.com/fDvZUuD4I8
— Suswati Basu (@suswatibasu) March 3, 2026Lawmakers have branded the proposal the Virginia Small Business Economic Development Act. The bill would formally authorize skill game machines and place them under a statewide regulatory structure. Supporters argue the devices are already widely available and that the state should impose clear rules rather than continue a cycle of shifting enforcement and legal uncertainty.
How the Virginia skill games bill would regulate machines
Under the legislation, companies that distribute the machines, businesses that host them, and operators involved in running them would all have to secure licenses. The bill lays out registration procedures and compliance standards while giving regulators the authority to penalize unlicensed activity.
Each machine would carry an $800 monthly gaming tax, which distributors would be responsible for paying. The proposal also caps wagers at $5 per play and limits payouts to $5,000 per game. Those guardrails are intended to distinguish the devices from traditional casino-style gambling, as backers maintain the games depend primarily on player skill rather than chance.
Oversight would fall to the Virginia Alcoholic Beverage Control Authority. The agency would begin issuing provisional registrations on July 1, 2026. Permanent regulations would need to be in place by January 1, 2027, creating a phased rollout for enforcement.
The debate over skill games has simmered for years in Virginia. The machines have operated in a legal gray area, appearing in gas stations, convenience stores and other everyday retail settings while lawmakers and regulators wrestled with how to classify them. In 2024, a similar effort to regulate and tax the games cleared the General Assembly, but then-Governor Glenn Youngkin vetoed the bill, saying: “When it comes to additional gaming options, such as games of skill, we must proceed with a robust set of safeguards.”
Critics continue to question whether expanding access to gambling-style devices in neighborhood stores is wise. Sen. Adam Ebbin previously voiced concern about how easily consumers might encounter the machines during routine errands.
“If you want to gamble and you go into a casino, you know what you’re getting into. But if you’re going to buy milk, bread, or eggs and you just see these glitzy machines in your neighborhoods, that it can be enticing,” Ebbin said during an earlier debate.
The final decision now rests with the Senate, and potentially, once again, the governor.
Featured image: Canva
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