SB1323 creates the Virginia Gaming Commerce Regulation Act of 2025, a comprehensive regulatory framework for “electronic gaming devices,” which the bill also describes as skill games. The bill defines these devices, distinguishes them from other forms of gambling, and establishes a licensing system for manufacturers, distributors, operators, and host locations. It sets statewide limits on the number of devices, requires independent testing and approval, mandates central accounting and registration labels, and imposes age-verification, security, and reporting requirements. It also authorizes local referenda to prohibit these devices in a locality and bars local governments from imposing their own license or tax requirements on the regulated industry.
The bill also rewrites Virginia’s criminal and civil enforcement structure for these devices. It makes it unlawful to operate, possess, place, or offer unregistered devices, devices in unregulated locations, or devices in excess of statutory limits, and it creates misdemeanor and felony penalties for repeat violations. It adds these devices to the state’s gambling and racketeering definitions, while carving out lawful activity under the new chapter. The bill further establishes a tax and revenue distribution system: a monthly per-device gaming tax and a broader fund distribution formula that sends revenue to problem gambling treatment, public education, local law enforcement, the State Police gaming enforcement function, Interstate 81 improvements, and regulatory administration.
The bill’s impact on state law is broad. It amends multiple criminal, gaming, and revenue statutes, creates a new chapter in Title 58.1 governing electronic gaming commerce, and adds a new fund structure for collecting and allocating gaming-related revenue. It also amends the voluntary exclusion program and the Problem Gambling Treatment and Support Fund to include electronic gaming devices, and it updates the Gaming Regulatory Fund to cover oversight of the new chapter. In practical terms, the bill would legalize and tightly regulate a new category of skill-based gaming devices under state law, while simultaneously strengthening penalties for unlicensed or noncompliant operations.
The general sentiment reflected in the available history is mixed but leans cautious and divided. The Senate Committee on General Laws and Technology reported the substitute version on a 9-6 vote and rereferred it to Finance and Appropriations, indicating significant support but also substantial opposition. The substitute structure and the extensive regulatory and enforcement provisions suggest an attempt to address concerns about unregulated skill games by bringing them into a licensed, taxed, and monitored system rather than leaving them in a gray area.
The main points of contention appear to be the legalization and regulation of skill games themselves, the scope of state control, and the bill’s treatment of local authority. Opponents likely object to expanding gaming access in convenience stores, truck stops, ABC retail locations, and similar venues, as well as to the bill’s preemption of local taxation and licensing. Supporters likely emphasize consumer protections, problem-gambling funding, law-enforcement tools, and the conversion of an existing unregulated market into a regulated and taxable one. The bill’s device limits, 21-and-over requirement, and local referendum option appear designed to address some of those concerns, but the committee vote shows the issue remained contentious.
SB1323 would substantially amend Virginia’s gambling, criminal, and revenue laws by creating a new regulatory chapter for electronic gaming devices, commonly referred to as skill games. It establishes licensing, testing, labeling, accounting, and enforcement rules; creates new civil and criminal penalties for unlicensed, unregistered, or over-limit devices; and adds these devices to the state’s gambling-related definitions and racketeering provisions. It also creates new special funds and revenue-sharing formulas that direct gaming-related receipts to education, problem gambling services, law enforcement, transportation, and regulatory oversight, while limiting local governments’ ability to impose separate fees or taxes on the regulated activity.
The bill appears to have generated divided but meaningful support in committee, with the Senate Committee on General Laws and Technology reporting the substitute version on a 9-6 vote. That vote suggests the proposal had enough backing to advance, but also faced organized opposition. The substitute’s detailed regulatory structure, local referendum option, and revenue allocations indicate an effort to balance legalization with oversight and public-interest safeguards.
The central controversy is whether Virginia should authorize and regulate electronic gaming devices/skill games at all, and if so, how broadly. Critics are likely concerned about expanded gambling access, the presence of devices in retail settings, and the bill’s restriction on local licensing and taxation authority. Supporters likely favor replacing an unregulated market with a licensed system that includes age checks, device limits, testing, and dedicated funding for education, problem gambling treatment, and enforcement. The committee split reflects those competing views.