Boyd Melchor reluctantly unplugged the electronic consoles for skill games at his Virginia Beach establishments last week.

Customers enjoyed playing on the slot machine-like devices, he said. But the city began enforcing a long-delayed statewide ban on the games on Sunday.

Melchor, the owner of Kelly’s Tavern, a local franchise with several locations throughout Hampton Roads, said it’s a blow for small businesses that have come to rely on the financial boost the games provide. Establishments that host skill games keep 40% of the profits the devices bring in.

“Let’s put this ban on delay and not enforce the law until the General Assembly has a chance to hash this thing out,” he said.

His plea has found some support among lawmakers and other small business owners that host the devices.

Skill games resemble slot machines, with players plunking down money for a chance at bigger earnings. But winners are not determined solely on luck; users have to slightly interact with the game.

The legality of the games in Virginia has been in flux for years. It appeared the matter was finally settled after the Supreme Court of Virginia last month overturned an injunction that had allowed the games to remain in use — despite being banned — while a lawsuit over the legality of the ban was pending. The Supreme Court determined the lawsuit was unlikely to succeed and a lower court subsequently dismissed the lawsuit last week.

But several state legislators are asking Gov. Glenn Youngkin to hold off on enforcement.

“Small businesses in our communities are reeling and fearful that they may be forced to lay off employees or even close their doors for good without the income and stability these games provide,” states the Nov. 7 letter from 11 senators and delegates. “We collectively request that your administration and the departments it oversees delay enforcement of the skill games currently in operation until the (legislature) can convene in 2024 to develop clarity.”

The letter was signed by a bipartisan coalition of lawmakers, including Sen. Louise Lucas (D-Portsmouth) and Sen. Bill DeSteph (R-Virginia Beach).

Youngkin declined a request for comment.

Hundreds of small business owners also recently signed an open letter to the General Assembly explaining the last few years were financially challenging and asking legislators to allow the games.

“As we move forward in a post-pandemic era, it is imperative that our state government and General Assembly members support our survival and growth — and that starts by passing legislation to regulate, tax and enforce skill games,” the Nov. 14 letter states.

Without further action, the ban is free to be enforced. Victoria LaCivita, spokesperson for Attorney General Jason Miyares, said last month the attorney general was “very pleased” the injunction was overturned.

“The Commonwealth of Virginia has regulated gambling for centuries, and the skill games law is an ordinary exercise of the General Assembly’s authority to protect the public from dangerous gambling devices,” she wrote in an email.

Those found operating skill games could be hit with a $25,000 civil penalty per machine. They could also face criminal charges.

Illegal gambling is a Class 3 misdemeanor and could result in a fine upwards of $500. Illegally possessing and operating gambling devices is a Class 1 misdemeanor punishable by 12 months in jail or a fine up to $2,500, or both. Operating an illegal gambling enterprise or operation is a Class 6 felony, punishable by up to 12 months in jail and a fine up to $2,500, or up to five years in prison.

With enforcement left up to localities, it’s unclear how every individual city or county will choose to proceed. But a joint news release last month from Virginia Beach law enforcement — including Commonwealth’s Attorney Colin Stolle, City Attorney Mark Stiles, and Police Chief Paul Neudigate — signaled their intent to begin enforcement on Sunday.

Macie Allen, spokesperson for Stolle’s office, said the city hasn’t had specific struggles with skill games but wanted to ensure the community was warned.

“We were just trying to be proactive,” she said.

Meanwhile, Norfolk Commonwealth’s Attorney Ramin Fatehi said he believes the General Assembly expressed a preference for civil penalties, which are handled by city attorneys, by including that as a possible remedy.

“I would be deferring to (the city attorney) for civil cases unless or until I am presented with a case where they have exhausted their civil remedies and where the facts were sufficiently egregious to merit a criminal-law response and the expenditure of my office’s limited resources, which I believe are best focused on violent crime,” Fatehi wrote in an email.

The General Assembly initially passed legislation outlawing the games in 2020, but then-Gov. Ralph Northam delayed the ban to help the state raise money for a COVID-19 relief fund.

The ban took effect in 2021, until state Sen. Bill Stanley, an attorney, filed a lawsuit on behalf of client Hermie Sadler alleging it violated small businesses’ constitutional rights. The recent Supreme Court ruling that allowed the ban to be enforced involved his case. The Circuit Court for Greensville County then dismissed the lawsuit on Nov. 13.

In a statement, Stanley said Sadler intended to appeal the ruling and would continue to fight “against government overreach and the out-of-state casino interests.” Sadler, a former NASCAR driver, owns a variety of small businesses that offer skill games.

Mike Barley, spokesperson for Pace-O-Matic, said the company was disappointed with the ruling but remains committed to working with lawmakers to pass “commonsense” regulations. Pace-o-Matic is the Georgia-based parent company of Queen of Virginia, one of the most prominent skill game operators in the commonwealth.

Pace-O-Matic made several donations this year to candidates running for a seat in the statehouse, including $20,000 to Lucas’s successful bid for reelection.

While those who support skill games say they help small businesses stay afloat and bring in tax revenue for the state when regulated, others believe there are negative consequences.

Some opponents of skill games say its unwise to have so-called mini gambling parlors within restaurants and convenience stores. Others argue the devices threaten the state’s fledging casino industry and harm charitable gaming and the Virginia Lottery. Profits from the Virginia Lottery support K-12 public schools.

Katie King, katie.king@virginiamedia.com