Note: Beginning July 1, 2021, skill games are illegal in Virginia. June 2021 skill games tax returns are due on or before July 20, 2021.
The skill games tax is a new tax on certain gambling machines. The tax is $1,200 per machine every month a machine is operated in Virginia. Game distributors are subject to the tax.
A portion of the money raised by this tax goes to:
- Virginia’s COVID-19 Relief Fund
- Virginia’s Problem Gambling Treatment and Support Fund
- Localities where skill games are located
Virginia ABC regulates skill games in Virginia.
What types of skill games are subject to the tax?
Skill games subject to this tax include slot machine-type games and similar game machines that have cash, or cash equivalent prizes. You’ll find these sorts of machines in some gas stations, truck stops, restaurants, bars, grocery and convenience stores, and other venues throughout Virginia.
What types of skill games are not subject to the tax?
Games found in family entertainment centers that don’t pay out in cash or cash equivalents aren’t subject to this tax. Games can pay out in tokens, merchandise, or vouchers, and be exempt from the tax, as long as the tokens, merchandise or vouchers:
- can’t be redeemed for cash
- don’t include alcohol
- can’t be repurchased
- aren’t more valuable than the total cost of playing the games or multiple games.
See House Bill 881/Senate Bill 971 for more information.
How to file and pay
Complete Form SK-1 and send it to us. Form SK-1 is due by the 20th of the month, and covers activity for the previous month (e.g. the August 20th due date covers machines in use during July).