Legal turmoil in Virginia's gambling sector could lead to further difficulties in the gray area

A series of legal clashes over skill-based gaming and charity have left the regulatory regime currently in place in Virginia unclear, with more potential court cases on the horizon in 2022

This recent shift in regulation has been noted even by prominent figures such as Virginia Senator Bill Stanley. In a personal correspondence with GamblingNews, Stanley argued that recent gaming and charitable gaming regulations have only created a more significant legal gray area that is harder to control. Instead of the courts ruling in favor of the state, the deregulation of these forms of gambling has only reduced any potential government oversight, leading to further litigation that will last until 2022. Quoting an interview with GamblingNews, Stanley stated that “These court rulings demonstrate that it is up to the legislature to address the problems it has created.”

The current situation began with state legislators temporarily legalizing “skill-based games” and then reversing the decision and banning them. The aforementioned ban was challenged in court based on a decision by a Virginia judge in favor of the plaintiff on the grounds that the ban violated First Amendment rights. After that, Attorney General Mark Herring will appeal the decision to the Virginia Supreme Court.

Virginia Deputy Solicitor General A. Ann Lloyd pushed for a review of the decision and wrote that the state is grateful for the regulatory scheme that has been put in place on slot machines that have generated more than $130 million in annual revenue for the state. At the same time, she argued that the injunction blocking the law legalized slots, without paying attention to the current status of the regulatory system. The Virginia Department of Alcohol and Beverage Control, which collected taxes and oversaw the use of devices, lost its authority as a regulator during the ban period. Lloyd argued that the decision allows children of all ages in the state of Virginia to bet on skill-based games.

The controversy surrounding charitable gambling began when the gaming charity Cheers sued the Virginia Department of Agriculture and Consumer Services. This came after an amendment to the regulatory scheme to allow Texas Hold’em poker tournaments to raise funds for charity. This act decriminalized, but did not allow the agency to observe the trial. The Cheers case was based on the fact that the Department did not respond to requests for permission and the firm won the case. While the case may not be groundbreaking, Senator Chap Parkersen stated that he was simply illustrating that charity games have the same problem as skill-based games and the fact that they were technically legal and not subject to national agency oversight. As events unfold, we will be able to gain more legal clarity until this legal gap is closed.

Source: GamblingNews

SiGMA Asia 2022

After the fascinating set of conferences that Malta Week 2021 has become, SiGMA Group plans to take the world by storm by visiting the golden domes of Kyiv and the snowy city of Toronto, where they will bring together the best and brightest representatives of the iGaming world. Our next exhibition will take us to the ultra-modern metropolises of the United Arab Emirates, where we will organize three days of networking, group discussions and celebrations. Stay up to date with the latest SiGMA News.