Pace-O-Matic (POM), a developer of skill games, praised the Virginia court’s decision to extend the injunction allowing skill games to continue operating in the state.

The company was relieved by the judge’s decision to extend the injunction and permit skill games to continue operations. The company believes there is a market for skill games because their economic value was evident during the pandemic.

POM reminded the state that, absent action, it would continue to lose tax revenue during the injunction.

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Skill Games Operations Will Proceed

Greensville County Justice Louis R. Lerner extended the operation of skill games in Virginia until at least the spring of 2023, when the new trial date is scheduled, and the nation’s foremost developer of skill games, Michael Barley, issued a statement in response.

Barley thanked Hermie Sadler and his legal team for their efforts to protect the revenue-dependent small businesses, expressing the company’s satisfaction that “legal skill games will continue to operate in Virginia,” allowing small business owners across the state to generate much-needed revenue.

Upholding the Legality of Skill Games and Additional Taxation

The company anticipates the final court decision will uphold the legality of skill games in the commonwealth, Barley continued, emphasizing the need for “further regulation and additional taxation” if taxpayers are to avoid missing out on nearly $100 million in tax revenue that could have gone toward critical projects in addition to curbing the proliferation of illegal games in Virginia communities.

Barley’s remarks refer to Virginia not collecting tax revenue on skill games during the ongoing injunction. A year ago, Emporia-based NASCAR driver and small business owner Hermie Sadler won an injunction allowing operations to continue pending the outcome of his appeal.

Important Revenue Source

From July 2020 to July 2021, skill games generated nearly $140 million in tax revenue for the state’s Covid Relief Fund and local municipalities, funding vital public services, and Barley was adamant that they still have a place in the current economic climate. If these games were significant enough to support small businesses during COVID,” he continued, persuaded that skill games “should be permitted to continue operating in a regulated market” in order to assist the businesses in coping with the ongoing economic downturn.

Preserving Game’s Existence and Safeguarding the Market

Pennsylvania is another state where skill games are on the chopping block, and POM is embroiled in litigation to preserve the games’ existence and safeguard its small business partners’ interests. 

In October, the state’s largest land-based gambling venue, Parx Casino, and its operator, Greenwood Racing, filed a lawsuit against the Georgia-based skill games developer, claiming unfair competition and arguing that the gambling machines distributed by POM in bars, restaurants, gas stations, and corner stores are in essence illegal slot machines.

POM filed a lawsuit against the state’s Bureau of Liquor Control Enforcement (BLCE) at the beginning of the year, alleging that the regulator engaged in coordinated harassment of Pennsylvania Skill location owners and operators.

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