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This recent regulatory upheaval was noted even by such prominent figures as Virginia Senator Bill Stanley. In personal correspondence with GamblingNews, Stanley argued that the recent rulings on electronic gambling and charitable gambling have only created a more important and more difficult legal gray area to control. Instead of the courts ruling in favour of the state, the deregulation of these forms of gambling has reduced any potential state oversight, leading to a new legal conflict heading into 2022. Citing the GamblingNews interview, Stanley stated that “These court rulings demonstrate the need for the legislature to fix the problems it has created.”
The current situation began when state lawmakers temporarily legalized “games of skill” before recapitulating and banning them. The ban was challenged in court, and a judge in rural Virginia ruled in favor of the plaintiff, finding that the ban constituted a violation of First Amendment rights. Following the outcome, Attorney General Mark Herring will appeal the decision to the Virginia Supreme Court.
Virginia Assistant Attorney General A. Anne Lloyd pushed for a review of the decision, writing that the state was grateful for the regulatory scheme being used on gaming machines, which generated more than $130 million in annual revenue for the state. That said, he claimed that the court order blocking the law legalized the machines without addressing the current situation of the regulatory system. The Virginia Department of Alcohol and Beverage Control’s regulatory authority, which collected taxes and oversaw the use of the devices, was dissolved as a regulatory authority during the ban’s term. Lloyd argued that this decision makes it legal for children of all ages in the state of Virginia to gamble on skill video games.
The dispute surrounding charity gambling began when Cheers, a charity gaming company, initiated a lawsuit against the Virginia Department of Agriculture and Consumer Services. This followed the amendment of the regulatory regime to allow Texas Hold’em poker tournaments to be held to raise funds for charity. Although this decriminalized the act, it did not allow the agency to oversee the proceedings. Cheers’ case was based on the Department’s failure to respond to permit requests, and the company won the case. Although the case is not groundbreaking, Senator Chap Parkersen stated that it only illustrated that charity games had the same problem as skill-based games, the fact that they were technically legal without being under the supervision of a national agency. As more events and games emerge, we may see more legal activity until this loophole is closed.
Source: GamblingNews
SiGMA Asia 2022
After all the excitement of the Malta Week 2021 conferences, the SiGMA Group plans to move around the world with destinations like Kyiv and Toronto as hubs to attract the best and brightest in the iGaming world together. Our next exhibition will take us to the avant-garde metropolis of the United Arab Emirates for three days of networking, panel discussions and festivities. Stay up to date with the latest and greatest through SiGMA News.