Skill gaming ban faces second lawsuit in Virginia
(The Center Square) – Several business owners filed a lawsuit against the Commonwealth of Virginia to stop the state from enforcing a ban on gambling on skilled games shortly after the legalization of casinos in some parts of the commonwealth.
Games of skill provide the state with about $130 million in tax revenue every year and was used to boost public school funding to offset formulaic losses caused by low enrollment during the COVID-19 pandemic. It also boosts income for small businesses.
Six business owners based in Norfolk and Virginia Beach filed the lawsuit, which claims the ban violates the Virginia Human Rights Act. It was the second lawsuit this week, which challenges the ban set to take place July 1.
Games of skill are used in parts of the commonwealth, often in truck stops, restaurants and convenience stores. According to the lawsuit, businesses that operate businesses that use games of skill to earn money are disproportionately owned by religious and ethnic minorities who will be barred from using them. The lawsuit alleges the ban is discriminatory because horse racing venues will be allowed to operate similar games.
“The plaintiffs’ businesses and their continuing business interests are substantially dependent upon the additional revenue derived from the operation of skill games upon their premises to remain financially viable,” the lawsuit states.
According to the lawsuit, these businesses will be substantially harmed by the ban, especially as many are still recovering from losses caused by the COVID-19 pandemic and the subsequent shutdown.
The Virginia Human Rights Act prohibits discrimination based on protected classes, such as sex, race, religion or national origin.
Attorney Mike Joynes and Del. Steve Heretick, D-Portsmouth, are the two lawyers representing the businesses. Joynes could not be reached for comment by The Center Square and Heretick is not providing press statements at this time.
Neither the governor’s office, nor the attorney general’s office responded to a request for comment.
This lawsuit shortly follows a lawsuit from Sen. Bill Stanley, R-Glade Hill, who is representing small business owner and former NASCAR driver Hermie Sadler. Their lawsuit also seeks to halt the ban, arguing that it provides discriminatory-based content restrictions on the business.
Both lawsuits come shortly after the state legalized casino gambling in Virginia. Stanley and Sadler allege that the state’s actions are benefiting a few wealthy casino owners by squashing competition at the expense of small business owners.
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