VCC Summer-Fall 2021

V irginia C apitol C onnections , S ummer /F all 2021 11 1. A massive proliferation of illegal Video Game Terminals in shadow locations, in mobile illegal gaming centers, and in “fly by night” temporary location set-ups; 2. Rapid growth of illegal “mini-casinos” in every corner of the state, operating 50 or more games in any given location, and not only in the shadows, but also in the open, facilitated by organized crime; 3. New and numerous illegal gaming devices being deployed in Virginia, as well as other unregulated and illegal gaming machines that take advantage of our most vulnerable citizens; and 4. The appearance of new “charitable gaming devices” appearing in for-profit businesses (bars, restaurants, tobacco shops, convenience stores, hair salons) under the guise of “charitable gaming,” IN DIRECTVIOLATION of the state’s budget language that prohibits any new charitable machines from being authorized to operate in the state until the summer of 2022; It is without question that the beneficiaries of these illegal activities are organized crime, that grab the profits for themselves, to the detriment of the Commonwealth of Virginia and the citizens that play these illegal machines where the odds of winning (or losing) are easily manipulated. Moreover, it is without question that the Commonwealth of Virginia is being robbed of much needed tax revenue at both the state and local level as a result of these serious criminal activities. Additionally, companies that operate these illegal gaming devices have been openly soliciting the same small businesses where the skill games once operated to replace the now dormant machines with new electronic slot machines, in direct violation of state law. Charitable gaming devices were only supposed to be placed on the premises of charitable organizations and accessed only by members of these organizations and their guests in the social quarters. No more, as they are now appearing in bars, convenience stores and restaurants, openly flouting the laws of the Commonwealth of Virginia. Why, you might ask, is this occurring?—Because, the rules do not apply to the criminal element that controls them, and the regulatory structure currently in place is both worthless, and seemingly powerless to stop it, and we’ve allowed it to happen on our watch. I do not sit here today making these claims without evidence to back it up—far from it. As most you know I am a former Prince William County Detective and currently sworn auxiliary sheriff deputy. I am in possession of a significant amount of evidence that details exactly what I have said. I will be reviewing these items with the chairman and counsel prior to our next meeting. And let me be absolutely clear, these mini-casinos, games of chance and illegal gaming machines pay no taxes, and only profit criminal enterprises and unscrupulous individuals; they have none of the safeguards of state-regulated gaming. They are creating safe- havens of unbridled criminal activity, and they are operated without oversight, age restrictions, and are easily accessible to children. WE MUST STOP THIS ILLEGAL CRIMINAL ACTIVITY NOW. We come here today as the first organizational step to try to get a clear and concise picture of electronic gaming in Virginia, and to create a regulatory and enforcement framework so we can stop the mass proliferation of illegal games and criminal enterprises. We must take action at once, or this cancer on the Commonwealth of Virginia will spread unabated, and we will be unable to control unless we take action IMMEDIATELY. I would request, Mr. Chairman, that this committee undertake the following actions at the first opportunity: 1. We must identify the problem and we must investigate this criminal activity utilizing sworn testimony and subpoena power if necessary and partner with state and local law enforcement authorities to gather facts and evidence in order stop the spread of illegal gaming by criminal elements. 2. We must craft new, meaningful statutes with clear delineations of who, what, when and how organizations can participate in charitable gaming, along with strict reporting, accounting and oversight standards that are unambiguous and completely enforceable. See Senator Bryce Reeves’ Speech…, continued on page 13 Thanks to Our Sponsors! Sandra C. Davis • VSCA • VSFA This Week in Virginia , hosted by Virginia Capitol veteran David Bailey , features discussions with Virginia elected officials, policy makers, and other leaders in the Commonwealth. The YouTube program spotlights behind-the-headlines analyses of the most recent news critical to the Commonwealth. In the past year, This Week in Virginia has showcased over 70 guests, including delegates, senators, cabinet secretaries, policy experts, and representatives from localities and associations across Virginia. Our guests have provided our viewers with insider perspectives on a broad array of topics. Visit our YouTube page, This Week in Virginia , for a new episode each week. For more information: http://thisweekinvirginia.tv/