Slot machines in Virginia gas stations are illegal, and that has been true continuously since the Virginia Supreme Court reinstated the state’s ban in October 2023. Whether the device is marketed as a slot machine, a “skill game,” an “amusement terminal,” or an “entertainment machine,” a gas station or convenience store that keeps one plugged in faces a Class 1 misdemeanor, civil penalties of up to $25,000 per machine, and the possible loss of its alcohol license. Governor Glenn Youngkin’s April 13, 2026 veto of SB 661 closed the most recent attempt to legalize and regulate the machines, so no legal path exists for a standard retail location to offer them.1Legislative Information System. SB661 – 2026 Regular Session
What the Ban Actually Covers
Virginia Code § 18.2-325 defines a gambling device broadly. The statute reaches any machine or electronic device that, depending on an element of chance, may deliver something of value or determine a player’s prize. “Skill games” are named in the statute as a category of gambling device.2Virginia Code Commission. Virginia Code 18.2-325 – Definitions
The definition of a skill game is where many operators get caught. It covers any electronic or mechanical device that requires money, a coin, or a token to play, whose outcome depends on any element of player skill, and that lets the player win cash, gift cards, vouchers, or credits redeemable for value. The operative phrase is “any element of skill,” not “primarily skill.” A machine that is 95 percent chance and 5 percent skill still qualifies. A machine that is mostly skill but awards prizes partly by chance still qualifies.2Virginia Code Commission. Virginia Code 18.2-325 – Definitions
Physically, these devices look like what sits on a casino floor: a video screen showing spinning reels, cards, or symbols, with buttons or a touchscreen, cash or voucher intake, and payouts in cash, credits, or tickets. Distributors sometimes rebrand them as “amusement machines” or “entertainment terminals.” The label does not change the legal classification. If the machine takes money and offers a prize based on play, it is a gambling device under Virginia law.
The Penalties Stack
The financial and legal exposure comes from several directions at once, and they add together.
Criminal Charge
Under Va. Code § 18.2-331, possessing or operating a gambling device is a Class 1 misdemeanor, punishable by up to 12 months in jail and a fine of up to $2,500. The charge is not limited to the machine’s owner. It reaches anyone who sells, transports, rents, or knowingly possesses a device with reason to believe it will be used for gambling, which includes the store owner who lets a distributor place one on the premises.3Virginia Code Commission. Virginia Code 18.2-331 – Illegal Possession, Etc., of Gambling Device; Penalty
Civil Penalty Per Machine
This is where the numbers get serious. Va. Code § 18.2-331.1 lets the Attorney General, a Commonwealth’s Attorney, or a locality’s attorney seek a civil penalty of up to $25,000 for each illegal machine on the premises. Five machines in one store can mean $125,000 in civil fines, a figure that exceeds what most convenience stores earn from the devices in a year. The state can also obtain a court order to seize the machines and any cash inside them.4Virginia Code Commission. Virginia Code 18.2-331.1 – Operation of Gambling Devices at Unregulated Locations; Civil Penalty
Alcohol License
If your gas station sells beer, wine, or spirits, it holds a license from the Virginia Alcoholic Beverage Control Authority. ABC has independent administrative authority to act against any licensed establishment found with gambling devices on site. Agents inspect, and when they find a gaming machine, they coordinate with the Attorney General or local prosecutors to pursue enforcement.5Virginia Alcoholic Beverage Control Authority. Letter Regarding Skill Games For most gas stations, the alcohol license generates far more revenue over the life of the business than any gaming terminal ever will.
Insurance Will Not Cover It
Standard commercial general liability policies exclude losses from illegal activity. Operating a prohibited gambling device is a criminal act, so legal fees, judgments, and related losses tied to the machines will almost certainly fall outside your coverage. An owner counting on insurance to absorb a fine or defense cost will discover otherwise at the worst time.
Who Enforces This
Enforcement does not sit with one office. Local sheriffs and city police investigate when machines are reported at a retail location. ABC agents monitor compliance at any establishment with a liquor license and refer cases when they find active devices.5Virginia Alcoholic Beverage Control Authority. Letter Regarding Skill Games The Office of the Attorney General provides legal guidance across jurisdictions and can bring direct civil actions statewide to seize machines and collect penalties.4Virginia Code Commission. Virginia Code 18.2-331.1 – Operation of Gambling Devices at Unregulated Locations; Civil Penalty
A rural gas station owner might assume the local prosecutor has bigger things to worry about. That might be true for a while. But ABC agents run their own inspections, and the Attorney General does not need a local referral to file suit. Enforcement has been uneven across Virginia, but every legal tool for a crackdown is in place.
The 2026 Veto Closed the Legalization Door
The General Assembly passed SB 661 in 2026, which would have legalized and regulated skill games under ABC oversight with per-location machine caps, a monthly gaming tax, age restrictions, and a local opt-out through referendum.6Legislative Information System. SB661 – 2026 Regular Session Governor Youngkin vetoed the bill on April 13, 2026.1Legislative Information System. SB661 – 2026 Regular Session
The practical effect: the 2020 ban, reinstated by the Supreme Court of Virginia in October 2023, continues to apply with no regulatory alternative.7Virginia Mercury. Virginia Supreme Court Reinstates Ban on Slots-Like Skill Games No retail establishment in Virginia can legally offer slot-style machines without a specialized casino or pari-mutuel license, which gas stations and convenience stores do not qualify for.
If You Still Have Machines in Your Store
Remove them. No pending legislation, regulatory exception, or local ordinance currently protects their operation, and there is no scheduled timeline for another legalization attempt after the 2026 veto.
Distributors may tell you enforcement is unlikely or that new legislation is on the way. Neither statement changes your exposure. Under both § 18.2-331 and § 18.2-331.1, the person who possesses the machine at their location is liable regardless of who owns the hardware. Waiting for a distributor to come retrieve the devices is not a defense when an ABC agent or officer walks in and finds them running.
The math no longer works. A machine generating a few hundred dollars a month in profit exposes the business to a $25,000 civil penalty per unit, a criminal record for the owner, and potential loss of an alcohol license worth far more over time than any terminal will ever earn.