WINCHESTER — Ankit Patel, owner of Greenwood Grocery and Deli in Frederick County, was among the hundreds of convenience stores in Virginia that didn't sell lottery Virginia Lottery tickets on Monday.

A notice posted to the front door of his store told customers there wouldn't be any lottery sales on April 15 to protest Gov. Glenn Youngkin's proposed amendments to pending legislation aimed at legalizing, regulating and taxing the slot-like gambling machines known as skill games.

The machines, which can be found at convenience stores, truck stops and restaurants around the state, have been idled since October 2023, when the Virginia Supreme Court affirmed a ban on skill games approved by Virginia legislators in 2020. The ban was supposed to take effect in 2021.

But Senate Bill 212 would bring back skill games, which look similar to slot machines but are said to involve an element of skill

"Support Skill Games, Support Small Businesses," stated the notice at Patel's store, which is located along Senseny Road east of Winchester.

On Youngkin's final day of bill actions, he proposed changes to the legislation that include a higher tax rate (35%) on the gross profits from the machines, as well as a provision that would allow localities to prohibit the machines through a referendum or local ordinance.

The Republican governor's amendments would also impose restrictions that ban the machines within about a half-mile of houses of worship and day cares and prohibit them within 35 miles of any casino, racetrack or gambling “satellite facility." 

Those pushing to bring back the arcade-style betting machines in Virginia argue that Youngkin's proposed changes are too stiff and essentially constitute a ban. 

"It is not an amendment. It is a substitute," Patel said.

He added that the changes would "wipe out" the ability of store owners to carry skill games in many parts of Virginia because of the proposed placement restrictions. He referenced a "cheat sheet" that shows the stores that wouldn't be able to carry the machines due to their proximity to churches or casinos. 

Overall, he said, "they put a slap on our face with the amendments."  

The bill that was sent to the governor did not have the placement restrictions that Youngkin's amended version contains. The original bill would have allowed up to four of the machines in any convenience store, restaurant or other establishment with a liquor license, and up to 10 at each truck stop with a 25% tax rate on game revenue — 10% lower than the 35% Youngkin is proposing.

The skill games bill was among the most controversial and closely-watched this General Assembly legislative session, with lobbyists on both sides having advancing arguments.

"The Governor supports small business owners having access to skill games and his proposed legislative amendments, stemming from discussions with a bipartisan group of members and dozens of outside stakeholders, would establish an important regulatory framework, enhance consumer and public safety protections, and grant localities and Virginians a voice," Youngkin spokesman Christian Martinez wrote in an email. 

Virginians Against Neighborhood Slot Machines, a coalition that has the state's casinos among its members, thanked Youngkin for shaping a “more thoughtful approach” than the bill sent to him, which “would have led to an unprecedented expansion of gambling in Virginia," The Washington Post reported. 

"WE DON’T NEED SHADY SLOTS ON EVERY CORNER!" reads a message on the Virginians Against Neighborhood Slot Machines website.

Raj Sood, who owns Neer Food Mart on Valley Avenue in Winchester, is also frustrated with the proposed restrictions from Youngkin. In his opinion, the rewrite would inhibit some businesses like his own that operate on a tight-profit margin to grow. He also didn't sell lottery tickets on Monday as a form of protest. 

"The thing is he has to be fair with us. Our profit margin as a small business is very low," Sood said. "The skill games helps us to keep more employees in the store so we can (better) serve the community and make more job opportunities. I don't know why they don't understand that." 

According to The Associated Press, the skill games debate is an unusual issue for the state legislature inasmuch as it has not fallen along partisan lines. State lawmakers will take the matter up again when the General Assembly reconvenes today to address Youngkin’s amendments and vetoes. The AP reported that Virginia lawmakers first voted to ban skill games in 2020 as they were opening the door to casinos in the state.

State lawmakers representing the Winchester area, all of whom are Republicans, were divided on Senate Bill 212. Del. Bill Wiley (Frederick County) and Sen. Timmy French (Shenandoah County) supported the skill games legislation when it went through the General Assembly's two chambers while Del. Delores Oates (Warren County) and minority leader Del. Todd Gilbert (Shenandoah County) voted against it. 

French — a freshman lawmaker and a co-owner of French Brothers Dairy — is a chief co-patron of Senate Bill 212. By phone Tuesday, he signaled that he cannot support the bill as amended and spoke about the importance of establishing a regulatory framework for skill games in a way that is fair to all business owners.

"We've got to get it back to where it's fair to all of the businesses that choose to take part," French said. 

He added that some small businesses in his district would be excluded from possible revenue from skill games because of the "setback requirements" or placement restrictions in the amended bill.

"SB212 as amended, I'm not going to be able to support (the bill), but we're going to take those amendments and try to rework them and get it back to what the Senate had ... and see if we can't get something that we can all agree on," French said. 

While he doesn't like gambling or casinos, Wiley noted that the reality is "we have gambling throughout the Commonwealth," and he sees an opportunity to for some of the money from the skill games tax to be used toward Interstate 81 improvements — a priority of residents in the Shenandoah Valley.  

In Youngkin's proposal, 75% of the state’s tax revenue from skill games would be routed to fund public education and 5% would go the Interstate 81 Corridor Improvement Fund.

"This bill came across my desk, and my first thought was no," Wiley said, but then he added that he and some others "felt it was an opportunity to get funding for 81."

"We're trying to find creative ways to fund what I call the 800-pound gorilla — I-81," said Wiley.

According to organizers, nearly 500 store owners in the state participated in Monday's protest by not selling lottery tickets. Also, some stores closed on Tuesday from 3:50 to 4:50 p.m.