HAMPTON ROADS, Va. (WAVY) — The collapse of the proposed two-year budget has given way to the possibility skill games could be part of the solution.
The small business community is livid with what they call Gov. Glenn Youngkin’s unreasonable restrictions that basically vetoes skill game operations in Virginia.
When the General Assembly adjourned Wednesday, legislators agreed to return May 13 to agree on a new budget.
10 On Your Side has been told the new budget bill will include 90% of the old bill.
One new element will be the role skill games play in creating new revenue streams in Virginia
The currently-banned skill games are in limbo, but when the legislature agreed to a re-do on the state budget, suddenly, they got a possible new life.
For State Sen. Bill DeSteph, that day cannot come soon enough, forced to say things like this.
“I love our governor,” DeSteph said at a Monday community conversation, “but we have a different policy position on this issue.”
Virginia Beach Resident Dee Oliver spoke at the community meeting.
“I think we all are very disappointed with the governor with what’s happened,” Oliver said, “especially with the decisions the governor has made, and we all supported him, and he ran on small business, and supported by small business, and we are small businesses.”
Youngkin, hearing it from all sides, may be forced to possibly change his restrictions on skill games that left practically all areas ineligible for skill games.
Del. Barry Knight is politically aware of what is to come.
“The skill games are going to be involved with this,” Knight said, “which is part of the negotiations. That’s what I’m hearing also.”
The negotiations could include skill games for the tens of millions of dollars in possible revenue streams when the skill-games industry gets fully regulated and operating.
The pressure for Youngkin to negotiate a deal to allow skill games is mounting because his usual supporters, like Munir Rassiwala, think he’s wrong.
“It goes to the governor’s desk and what does he decide, [he] puts in amendments, no skill games within 35-mile radius of a casino or Rosies, or 2,500 feet from a school, church, or place of worship.”
At the community meeting, DeSteph agreed with those gathered.
“The tax on this is well, it’s ridiculous,” DeSteph said.
That’s how he summed up the governor’s amendments.
Youngkin now says he gets it, and added that his amendments may be too restrictive.
“I am willing to sit down and talk about the perimeter policy and make sure it does not negatively impact folks,” Youngkin said.
Kelly’s Tavern operator Boyd Melchor is asking that everything be kept simple — tax each machine a flat rate, like $30 a day, that could raise 100s of millions of dollars per year.
“Let’s just say $30 dollars a day, every day,” Melchor said. “That is $200 million to the state per year [times] 20,000 skill games.”
Twenty-thousand machines pull in 100s of millions of dollars per year.
DeSteph said he supports a flat fee too. Keep it simple, he said.
“Boyd, if you want to put 10 machines in your establishment, we should tax you on 10 machines,” DeSteph said.
Revenue streams — that’s what this is all about, and that’s why skill games will be part of budget negotiations.
Youngkin explained part of his motive behind the skill games amendments.
“The 35-mile perimeter, which has been in previous gambling legislation for casinos, … we had a lot of discussions around that,” Youngkin said, “and, like I said, I can work with legislators to address both those topics.”
Oliver said this process must be fair to all, and in the end, more money will come into the state.
“You can’t put the moms and pops out of business,” Oliver said, “because this big entity [the casino] has come in and they don’t want to play with us.”
Said Melchor: This is David vs Goliath, and we are David, but we have a sling, and we got a rock, so we got a fighting chance. … Glenn Youngkin has awakened a sleeping giant.”
