Title 11 VAC — Gaming

Agency 5 Virginia Lottery Board

Chapter 11 Public Participation Guidelines

Part I Purpose and Definitions

11VAC5-11-10 Purpose

The purpose of this chapter is to promote public involvement in the development, amendment, or repeal of the regulations of the Virginia Lottery. This chapter does not apply to regulations, guidelines, or other documents exempted or excluded from the provisions of the Administrative Process Act (§ 2.2-4000 et seq. of the Code of Virginia).

History

Statutory Authority: §§ 2.2-4007.02 and 58.1-4007 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 28, Issue 5, eff. December 22, 2011; amended, Virginia Register Volume 31, Issue 3, eff. November 5, 2014.

11VAC5-11-20 Definitions

The following words and terms when used in this chapter shall have the following meanings unless the context clearly indicates otherwise:

"Administrative Process Act" means Chapter 40 (§ 2.2-4000 et seq.) of Title 2.2 of the Code of Virginia.

"Agency" means the Virginia Lottery Board, which is the unit of state government body empowered by the agency's basic law to make promulgate regulations or decide cases and hear appeals of agency decisions. Actions specified in this chapter may be fulfilled by state employees as delegated by the agency board.

"Basic law" means provisions in the Code of Virginia that delineate the basic authority and responsibilities of an agency.

"Commonwealth Calendar" means the electronic calendar for official government meetings open to the public as required by § 2.2-3707 C of the Freedom of Information Act.

''Negotiated rulemaking panel'' or "NRP'' means an ad hoc advisory panel of interested parties established by an agency to consider issues that are controversial with the assistance of a facilitator or mediator, for the purpose of reaching a consensus in the development of a proposed regulatory action.

"Notification list" means a list used to notify persons pursuant to this chapter. Such a list may include an electronic list maintained through the Virginia Regulatory Town Hall or other list maintained by the agency.

"Open meeting" means any scheduled gathering of a unit of state government empowered by an agency's basic law to make regulations or decide cases, which is related to promulgating, amending or repealing a regulation.

"Person" means any individual, corporation, partnership, association, cooperative, limited liability company, trust, joint venture, government, political subdivision, or any other legal or commercial entity and any successor, representative, agent, agency, or instrumentality thereof.

"Public hearing" means a scheduled time at which members of the Virginia Lottery Board or staff of the agency will meet for the purpose of receiving public comment on a regulatory action.

"Regulation" means any statement of general application having the force of law, affecting the rights or conduct of any person, adopted by the board in accordance with the authority conferred on it by applicable laws.

"Regulatory action" means the promulgation, amendment, or repeal of a regulation by the board.

"Regulatory advisory panel" or "RAP" means a standing or ad hoc advisory panel of interested parties established by the agency for the purpose of assisting in regulatory actions.

"Town Hall" means the Virginia Regulatory Town Hall, the website operated by the Virginia Department of Planning and Budget at www.townhall.virginia.gov, which has online public comment forums and displays information about regulatory meetings and regulatory actions under consideration in Virginia and sends this information to registered public users.

"Virginia Register" means the Virginia Register of Regulations, the publication that provides official legal notice of new, amended, and repealed regulations of state agencies, which is published under the provisions of Article 6 (§ 2.2-4031 et seq.) of the Administrative Process Act.

History

Statutory Authority: §§ 2.2-4007.02 and 58.1-4007 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 28, Issue 5, eff. December 22, 2011; amended, Virginia Register Volume 31, Issue 3, eff. November 5, 2014; Volume 42, Issue 10, eff. February 12, 2026.

Part II Notification of Interested Persons

11VAC5-11-30 Notification list

A. The agency shall maintain a list of persons who have requested to be notified of regulatory actions being pursued by the agency.

B. Any person may request to be placed on a notification list by registering as a public user on the Town Hall or by making a request to the agency. Any person who requests to be placed on a notification list shall elect to be notified either by electronic means or through a postal carrier.

C. The agency may maintain additional lists for persons who have requested to be informed of specific regulatory issues, proposals, or actions.

D. When electronic mail is returned as undeliverable on multiple occasions at least 24 hours apart, that person may be deleted from the list. A single undeliverable message is insufficient cause to delete the person from the list.

E. When mail delivered by a postal carrier is returned as undeliverable on multiple occasions, that person may be deleted from the list.

F. The agency may periodically request those persons on the notification list to indicate their desire to either continue to be notified electronically, receive documents through a postal carrier, or be deleted from the list.

History

Statutory Authority: §§ 2.2-4007.02 and 58.1-4007 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 28, Issue 5, eff. December 22, 2011.

11VAC5-11-40 Information to be sent to persons on the notification list

A. To persons electing to receive electronic notification or notification through a postal carrier as described in 11VAC5-11-30, the agency shall send the following information:

A notice of intended regulatory action (NOIRA).
A notice of the comment period on a proposed, a reproposed, or a fast-track regulation and hyperlinks to, or instructions on how to obtain, a copy of the regulation and any supporting documents.
A notice soliciting comment on a final regulation when the regulatory process has been extended pursuant to § 2.2-4007.06 or 2.2-4013 C of the Code of Virginia.

B. The failure of any person to receive any notice or copies of any documents shall not affect the validity of any regulation or regulatory action.

History

Statutory Authority: §§ 2.2-4007.02 and 58.1-4007 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 28, Issue 5, eff. December 22, 2011.

Part III Public Participation Procedures

11VAC5-11-50 Public comment

A. In considering any nonemergency, nonexempt regulatory action, the agency shall afford interested persons an opportunity to (i) submit data, views, and arguments, either orally or in writing, to the agency and (ii) be accompanied by and represented by counsel or other representative. Such opportunity to comment shall include an online public comment forum on the Town Hall.

To any requesting person, the agency shall provide copies of the statement of basis, purpose, substance, and issues; the economic impact analysis of the proposed or fast-track regulatory action; and the agency's response to public comments received.
The agency may begin crafting a regulatory action prior to or during any opportunities it provides to the public to submit comments.

B. The agency shall accept public comments in writing after the publication of a regulatory action in the Virginia Register as follows:

For a minimum of 30 calendar days following the publication of the notice of intended regulatory action (NOIRA).
For a minimum of 60 calendar days following the publication of a proposed regulation.
For a minimum of 30 calendar days following the publication of a reproposed regulation.
For a minimum of 30 calendar days following the publication of a final adopted regulation.
For a minimum of 30 calendar days following the publication of a fast-track regulation.
For a minimum of 21 calendar days following the publication of a notice of periodic review.
Not later than 21 calendar days following the publication of a petition for rulemaking.

C. The agency may determine if any of the comment periods listed in subsection B of this section shall be extended.

D. If the Governor finds that one or more changes with substantial impact have been made to a proposed regulation, he may require the agency to provide an additional 30 calendar days to solicit additional public comment on the changes in accordance with § 2.2-4013 C of the Code of Virginia.

E. The agency shall send a draft of the agency's summary description of public comment to all public commenters on the proposed regulation at least five days before final adoption of the regulation pursuant to § 2.2-4012 E of the Code of Virginia.

History

Statutory Authority: §§ 2.2-4007.02 and 58.1-4007 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 28, Issue 5, eff. December 22, 2011; amended, Virginia Register Volume 42, Issue 10, eff. February 12, 2026.

11VAC5-11-60 Petition for rulemaking

A. As provided in § 2.2-4007 of the Code of Virginia, any person may petition the agency to consider a regulatory action.

B. A petition shall include but is not limited to the following information:

The petitioner's name and contact information;
The substance and purpose of the rulemaking that is requested, including reference to any applicable Virginia Administrative Code sections; and
Reference to the legal authority of the agency to take the action requested.

C. The agency shall receive, consider and respond to a petition pursuant to § 2.2-4007 and shall have the sole authority to dispose of the petition.

D. The petition shall be posted on the Town Hall and published in the Virginia Register.

E. Nothing in this chapter shall prohibit the agency from receiving information or from proceeding on its own motion for rulemaking.

History

Statutory Authority: §§ 2.2-4007.02 and 58.1-4007 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 28, Issue 5, eff. December 22, 2011.

11VAC5-11-70 Appointment of regulatory advisory panel

A. The agency may appoint a regulatory advisory panel (RAP) to provide professional specialization or technical assistance when the agency determines that such expertise is necessary to address a specific regulatory issue or action or when individuals indicate an interest in working with the agency on a specific regulatory issue or action.

B. Any person may request the appointment of a RAP and request to participate in its activities. The agency shall determine when a RAP shall be appointed and the composition of the RAP.

C. A RAP may be dissolved by the agency if:

The proposed text of the regulation is posted on the Town Hall, published in the Virginia Register, or such other time as the agency determines is appropriate; or
The agency determines that the regulatory action is either exempt or excluded from the requirements of the Administrative Process Act.

History

Statutory Authority: §§ 2.2-4007.02 and 58.1-4007 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 28, Issue 5, eff. December 22, 2011.

11VAC5-11-80 Appointment of negotiated rulemaking panel

A. The agency may appoint a negotiated rulemaking panel (NRP) if a regulatory action is expected to be controversial.

B. An NRP that has been appointed by the agency may be dissolved by the agency when:

There is no longer controversy associated with the development of the regulation;
The agency determines that the regulatory action is either exempt or excluded from the requirements of the Administrative Process Act; or
The agency determines that resolution of a controversy is unlikely.

History

Statutory Authority: §§ 2.2-4007.02 and 58.1-4007 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 28, Issue 5, eff. December 22, 2011.

11VAC5-11-90 Meetings

Notice of any open meeting, including meetings of a RAP or NRP, shall be posted on the Virginia Regulatory Town Hall and Commonwealth Calendar at least seven working days prior to the date of the meeting. The exception to this requirement is any meeting held in accordance with § 2.2-3707 D of the Code of Virginia allowing for contemporaneous notice to be provided to participants and the public.

History

Statutory Authority: §§ 2.2-4007.02 and 58.1-4007 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 28, Issue 5, eff. December 22, 2011.

11VAC5-11-100 Public hearings on regulations

A. The agency shall indicate in its notice of intended regulatory action whether it plans to hold a public hearing following the publication of the proposed stage of the regulatory action.

B. The agency may conduct one or more public hearings during the comment period following the publication of a proposed regulatory action.

C. An agency is required to hold a public hearing following the publication of the proposed regulatory action when:

The agency's basic law requires the agency to hold a public hearing;
The Governor directs the agency to hold a public hearing; or
The agency receives requests for a public hearing from at least 25 persons during the public comment period following the publication of the notice of intended regulatory action.

D. Notice of any public hearing shall be posted on the Town Hall and Commonwealth Calendar at least seven working daysprior to the date of the hearing. The agency shall also notify those persons who requested a hearing under subdivision C 3 of this section.

History

Statutory Authority: §§ 2.2-4007.02 and 58.1-4007 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 28, Issue 5, eff. December 22, 2011.

11VAC5-11-110 Periodic review of regulations

A. The agency shall conduct a periodic review of its regulations consistent with:

An executive order issued by the Governor pursuant to § 2.2-4017 of the Administrative Process Act to receive comment on all existing regulations as to their effectiveness, efficiency, necessity, clarity, and cost of compliance; and
The requirements in § 2.2-4007.1 of the Administrative Process Act regarding regulatory flexibility for small businesses.

B. A periodic review may be conducted separately or in conjunction with other regulatory actions.

C. Notice of a periodic review shall be posted on the Town Hall and published in the Virginia Register.

History

Statutory Authority: §§ 2.2-4007.02 and 58.1-4007 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 28, Issue 5, eff. December 22, 2011.

Chapter 20 Administration Regulations

Part I General Parameters

11VAC5-20-10 Definitions

The following words and terms when used in any of the agency's regulations shall have the following meanings unless the context clearly indicates otherwise:

"Administrative Process Act" or "APA" means Chapter 40 (§ 2.2-4000 et seq.) of Title 2.2 of the Code of Virginia.

"Agency" means the Virginia Lottery created by the Virginia Lottery Law; Sports Betting (Chapter 40 (§ 58.1-4000 et seq.) of Title 58.1 of the Code of Virginia).

"Appeal" means a proceeding initiated by a retailer, bidder, or offeror (for a contract negotiated on a sole source basis), contractor or individual for an informal conference or formal hearing contesting the director's decision (i) to refuse to issue or renew, to suspend or to revoke a lottery license; or (ii) regarding a procurement action.

"Bank" means any commercial bank, savings bank, savings and loan association, credit union, trust company, and any other type or form of banking institution organized under the authority of the Commonwealth of Virginia or of the United States of America that is designated by the State Treasurer to perform functions, activities, or services in connection with the operations of the lottery for the deposit, handling and safekeeping of lottery funds, accounting for those funds, and the safekeeping of records.

"Board" means the Virginia Lottery Board established by the Virginia Lottery Law.

"Conference" or "consultation" means a type of appeal in the nature of an informational or factual proceeding of an informal nature provided for in § 2.2-4019 of the Administrative Process Act.

"Conference officer" means the director, or a person appointed by the director, who is empowered to preside at informal conferences or consultations and to provide a recommendation, conclusion, or decision in such matter.

"Consideration" means something of value given for a promise to make the promise binding. It is one of the essentials of a legal contract.

"Contract" means a binding agreement, enforceable by law, between two or more parties for the supply of goods or services.

"Depository" means any person, including a bonded courier service, armored car service, bank, central or regional offices of the agency, or any state agency that performs any or all of the following activities or services for the lottery:

The safekeeping and distribution of tickets to retailers;
The handling of lottery funds;
The deposit of lottery funds; or
The accounting for lottery funds.

"Director" means the Executive Director of the Virginia Lottery or the director's designee.

"Electronic funds transfer" or "EFT" means a computerized transaction that withdraws or deposits money from or to a bank account.

"Goods" means all material, equipment, supplies, printing, and automated data processing hardware and software.

"Hearing" means agency processes other than those informational or factual inquiries of an informal nature provided in §§ 2.2-4007 and 2.2-4019 of the Code of Virginia and includes only (i) opportunity for private parties to submit factual proofs in formal proceedings as provided in § 2.2-4009 of the Code of Virginia in connection with the making of regulations or (ii) a similar right of private parties or requirement of public agencies as provided in § 2.2-4020 of the Code of Virginia in connection with case decisions.

"Household" means members of a group who reside at the same address.

"Immediate family" means (i) a spouse and (ii) any other person residing in the same household as the officer or employee, who is a dependent of the officer or employee or of whom the officer or employee is a dependent.

"Inspection" means the close and critical examination of goods and services delivered to determine compliance with applicable contract requirements or specifications. It is the basis for acceptance or rejection.

"Legal entity" means an entity, other than a natural person, which has sufficient existence in legal contemplation that it can function legally, sue or be sued and make decisions through agents, as in the case of a corporation.

"Lottery" or "state lottery" means the lottery or lotteries established and operated pursuant to Chapter 40 (§ 58.1-4000 et seq.) of Title 58.1 of the Code of Virginia.

"Person" means a natural person and may extend and be applied to groups of persons, as well as a corporation, company, partnership, association, club, trust, estate, society, joint stock company, receiver, trustee, assignee, referee, or any other person acting in a fiduciary or representative capacity, whether appointed by a court or otherwise, and any combination of individuals, as well as all departments, commissions, agencies, and instrumentalities of the Commonwealth, including counties, cities, municipalities, political subdivisions, agencies, and instrumentalities thereof.

"Procurement" means the process for obtaining goods or services, including all activities from planning and preparation to processing of a request through the processing of a final invoice for payment.

"Retailer " means a person or business licensed by the agency to sell lottery tickets or shares.

"Sales," "gross sales," "annual sales," and similar terms mean total ticket sales including any discount allowed to a retailer for his compensation.

"Services" means any work performed by an independent contractor where the service rendered does not consist primarily of acquisition of equipment or materials, or the rental of equipment, materials, and supplies.

"Sole source" means that only one source is practicably available to furnish a product or service.

"Surety bond" means an insurance agreement in which a third party agrees to be liable to pay a specified amount of money to the agency in the event the retailer fails to meet his obligations to the agency.

"Transaction" means any matter considered by any governmental or advisory agency, whether in a committee, subcommittee, or other entity of that agency or before the agency itself, on which official action is taken or contemplated.

"Vendor" means one who provides goods or services to the agency.

"Virginia Lottery Law" means Chapter 40 (§ 58.1-4000 et seq.) of Title 58.1 of the Code of Virginia.

History

Statutory Authority: § 58.1-4007 of the Code of Virginia.
Historical Notes: Derived from VR447-01-2 § 1.1, eff. December 1, 1988; amended, Virginia Register Volume 6, Issue 6, eff. January 17, 1990; Volume 7, Issue 13, eff. April 24, 1991; Volume 8, Issue 24, eff. September 24, 1992; Volume 10, Issue 11, eff. March 23, 1994; Volume 19, Issue 15, eff. May 7, 2003; Volume 28, Issue 26, eff. September 26, 2012; Volume 31, Issue 3, eff. November 5, 2014; Volume 42, Issue 10, eff. February 12, 2026.

11VAC5-20-20 (Repealed.)

Historical Notes

Derived from VR447-01-2 §§ 1.2 to 1.5, eff. December 1, 1988; amended, Virginia Register Volume 6, Issue 6, eff. January 17, 1990; Volume 7, Issue 13, eff. April 24, 1991; Volume 8, Issue 24, eff. September 24, 1992; Volume 10, Issue 11, eff. March 23, 1994; repealed, Virginia Register Volume 13, Issue 3, eff. November 28, 1996.

11VAC5-20-60 Advertising

A. Advertising may include, but is not limited to, print advertisements; radio and television advertisements; digital, electronic, and video advertisements; billboards; point of purchase materials; point-of-sale display materials; and Internet and social media.

B. Any lottery retailer may use his own advertising materials unless the agency objects thereto. The agency shall develop written guidelines for such materials.

C. The agency may provide information displays or other material to the retailer, who shall position the material so it can be seen easily by the general public.

D. The agency may produce special posters, brochures or flyers describing various aspects of the lottery and provide these to lottery retailers to post or distribute.

History

Statutory Authority: § 58.1-4007 of the Code of Virginia.
Historical Notes: Derived from VR447-01-2 § 1.6, eff. December 1, 1988; amended, Virginia Register Volume 6, Issue 6, eff. January 17, 1990; Volume 7, Issue 13, eff. April 24, 1991; Volume 8, Issue 24, eff. September 24, 1992; Volume 10, Issue 11, eff. March 23, 1994; Volume 13, Issue 3, eff. November 28, 1996; Volume 19, Issue 15, eff. May 7, 2003; Volume 28, Issue 26, eff. September 26, 2012; Volume 31, Issue 3, eff. November 5, 2014.

11VAC5-20-70 (Repealed.)

Historical Notes

Derived from VR447-01-2 § 1.7, eff. December 1, 1988; amended, Virginia Register Volume 6, Issue 6, eff. January 17, 1990; Volume 7, Issue 13, eff. April 24, 1991; Volume 8, Issue 24, eff. September 24, 1992; Volume 10, Issue 11, eff. March 23, 1994; Volume 13, Issue 3, eff. November 28, 1996; Volume 19, Issue 15, eff. May 7, 2003; repealed, Virginia Register Volume 28, Issue 26, eff. September 26, 2012.

Part II Banks and Depositories

11VAC5-20-80 Approval of banks

A. The State Treasurer, with the concurrence of the director, and in accordance with applicable Treasury directives, shall approve a bank or banks to provide services to the agency.

B. A bank or banks shall serve as agent or agents for electronic funds transfers between the agency and lottery retailers as required by 11VAC5-20, 11VAC5-31, and 11VAC5-41 and by contracts between the agency, the State Treasury, retailers, and the banks.

History

Statutory Authority: § 58.1-4007 of the Code of Virginia.
Historical Notes: Derived from VR447-01-2 § 2.1, eff. December 1, 1988; amended, Virginia Register Volume 6, Issue 6, eff. January 17, 1990; Volume 7, Issue 13, eff. April 24, 1991; Volume 8, Issue 24, eff. September 24, 1992; Volume 10, Issue 11, eff. March 23, 1994; Volume 13, Issue 3, eff. November 28, 1996; Volume 19, Issue 15, eff. May 7, 2003; Volume 31, Issue 3, eff. November 5, 2014.

11VAC5-20-90 (Repealed.)

Historical Notes

Derived from VR447-01-2 §§ 2.2 to 2.4, eff. December 1, 1988; amended, Virginia Register Volume 6, Issue 6, eff. January 17, 1990; Volume 7, Issue 13, eff. April 24, 1991; Volume 8, Issue 24, eff. September 24, 1992; Volume 10, Issue 11, eff. March 23, 1994; Volume 13, Issue 3, eff. November 28, 1996; repealed, Virginia Register Volume 19, Issue 15, eff. May 7, 2003.

Part III Lottery Board Procedures

11VAC5-20-120 Officers of the board

A. The board shall have a chairman and a vice chairman who shall be elected by the board members.

B. The board will elect its officers annually at its January meeting, or as soon thereafter as reasonably possible, to serve for the calendar year.

History

Statutory Authority: § 58.1-4007 of the Code of Virginia.
Historical Notes: Derived from VR447-01-2 § 3.1, eff. December 1, 1988; amended, Virginia Register Volume 6, Issue 6, eff. January 17, 1990; Volume 7, Issue 13, eff. April 24, 1991; Volume 8, Issue 24, eff. September 24, 1992; Volume 10, Issue 11, eff. March 23, 1994; Volume 13, Issue 3, eff. November 28, 1996; Volume 19, Issue 15, eff. May 7, 2003.

11VAC5-20-130 Board meetings

A. The board will hold regular public meetings to receive information and recommendations from the director on the operation and administration of the lottery and to take official action. The board may also request information or comment from the public.

B. The board may hold special meetings as may be necessary to carry out its work. The chairman may call a special meeting at any time and shall call a special meeting when requested to do so by at least two board members or at the request of the director. Public notice of special meetings shall be given contemporaneously with the notice provided to all board members. Written notice is preferred but telephonic notice may be accepted by any board member in lieu of written notice.

C. A majority of board members shall constitute a quorum for the conduct of business at both regular and special meetings of the board. The chairman is eligible to vote at all meetings.

History

Statutory Authority: § 58.1-4007 of the Code of Virginia.
Historical Notes: Derived from VR447-01-2 § 3.2, eff. December 1, 1988; amended, Virginia Register Volume 6, Issue 6, eff. January 17, 1990; Volume 7, Issue 13, eff. April 24, 1991; Volume 8, Issue 24, eff. September 24, 1992; Volume 10, Issue 11, eff. March 23, 1994; Volume 13, Issue 3, eff. November 28, 1996; Volume 19, Issue 15, eff. May 7, 2003.

11VAC5-20-140 Committees of the board

A. The board chairman may, at his discretion, appoint such committees as he deems necessary to assist the board in its work.

B. A committee may be established to advise the board on a matter referred to it. A committee established to act in an advisory capacity to the board may include members of the general public. At least two members of the committee shall be board members and the chairman shall be a board member appointed by the board chairman.

A majority of the members appointed to an advisory committee shall constitute a quorum.
Recommendations of an advisory committee may be adopted by a majority vote of those present and voting. The chairman of an advisory committee shall be eligible to vote on all recommendations.
All actions of advisory committees shall be presented to the board in the form of recommendations.

History

Statutory Authority: § 58.1-4007 of the Code of Virginia.
Historical Notes: Derived from VR447-01-2 § 3.3, eff. December 1, 1988; amended, Virginia Register Volume 6, Issue 6, eff. January 17, 1990; Volume 7, Issue 13, eff. April 24, 1991; Volume 8, Issue 24, eff. September 24, 1992; Volume 10, Issue 11, eff. March 23, 1994; Volume 13, Issue 3, eff. November 28, 1996; Volume 19, Issue 15, eff. May 7, 2003.

11VAC5-20-150 Conferences on denial, suspension, or revocation of a retailer's license

The conduct of license appeal conferences will conform to the provisions of Article 3 (§ 2.2-4018 et seq.) of Chapter 40 of Title 2.2 of the Code of Virginia relating to case decisions.

An initial conference consisting of an informal fact-finding process will be conducted by the conference officer to attempt to resolve the issue to the satisfaction of the parties involved.
If an appeal is not resolved through the informal fact-finding process, at the request of the appellant, a formal hearing will be conducted by the board in public. Following the close of the evidence, the board may consider its decision in closed session. The board will then issue its decision on the case.
Upon receipt of the board's decision on the case, the appellant may elect to pursue court action in accordance with the provisions of the Administrative Process Act relating to court review.

History

Statutory Authority: § 58.1-4007 of the Code of Virginia.
Historical Notes: Derived from VR447-01-2 § 3.4, eff. December 1, 1988; amended, Virginia Register Volume 6, Issue 6, eff. January 17, 1990; Volume 7, Issue 13, eff. April 24, 1991; Volume 8, Issue 24, eff. September 24, 1992; Volume 10, Issue 11, eff. March 23, 1994; Volume 13, Issue 3, eff. November 28, 1996; Volume 19, Issue 15, eff. May 7, 2003; Volume 28, Issue 26, eff. September 26, 2012; Volume 42, Issue 10, eff. February 12, 2026.

11VAC5-20-160 Procedure for appealing a licensing decision

A. Upon receiving a notice that (i) an application for a license or the renewal of a license has been denied by the director, or (ii) the director intends to or has already taken action to suspend or revoke a current license, the applicant or licensed retailer may appeal by filing a written notice of appeal requesting a conference on the licensing action. The notice of appeal shall be submitted within 30 days of receipt of the notice of the licensing action.

Notice of licensing action is sent via email through document-signing software as the primary notification to the email provided on the application. Secondary notification is sent via signature-required common carrier to the last known address of the applicant or licensed retailer. The "last known address" means the address shown on the application of an applicant or licensed retailer unless a more current address has been provided to the agency by the applicant or licensed retailer.
The notice of appeal will be timely if it is received within 30 days of the date of the email notification or bears a signature-required common carrier date stamp that is within 30 days of the date of the secondary mailed notice prescribed in subdivision 1 of this subsection.

B. A notice of appeal may be mailed or hand delivered to the director at the Virginia Lottery headquarters office.

A notice of appeal delivered by hand will be timely only if received at the headquarters of the Virginia Lottery within the time allowed by subsection A of this section.
Delivery to any other Virginia Lottery office or to lottery sales personnel by hand or by mail is not sufficient.
The appellant assumes full responsibility for the method chosen to file the notice of appeal.

C. The notice of appeal shall state:

The decision of the director that is being appealed;
The legal and factual basis for the appeal;
The retailer's license number or sufficient information identifying the denied applicant; and
Any additional information the appellant may wish to include concerning the appeal.

History

Statutory Authority: § 58.1-4007 of the Code of Virginia.
Historical Notes: Derived from VR447-01-2 § 3.5, eff. December 1, 1988; amended, Virginia Register Volume 6, Issue 6, eff. January 17, 1990; Volume 7, Issue 13, eff. April 24, 1991; Volume 8, Issue 24, eff. September 24, 1992; Volume 10, Issue 11, eff. March 23, 1994; Volume 13, Issue 3, eff. November 28, 1996; Volume 19, Issue 15, eff. May 7, 2003; Volume 28, Issue 26, eff. September 26, 2012; Volume 31, Issue 3, eff. November 5, 2014; Volume 42, Issue 10, eff. February 12, 2026.

11VAC5-20-170 Procedures for conducting informal fact-finding licensing conferences

A. The conference officer will conduct an informal fact-finding conference with the appellant for the purpose of resolving the licensing action at issue.

B. The conference officer will hold the conference as soon as possible but not later than 30 days after the notice of appeal is filed, unless an alternate date is designated by the conference officer or the conference officer's designee and accepted by the appellant. A notice setting out the conference date, time, and location will be sent to the appellant, by certified mail, return receipt requested, or signature-required common carrier at least 10 days before the day set for the conference, unless a shorter time is agreed to by the appellant.

C. A conference may be conducted by telephone or video conferencing platform at the option of the appellant.

D. The conferences shall be informal.

The conferences will be electronically recorded. The recordings will be kept until the time limit for any subsequent appeal has expired.
A court reporter may be used. The court reporter shall be paid by the person who requested him. If the appellant elects to have a court reporter, a transcript shall be provided to the agency. The transcript shall become part of the agency's records.
The appellant may represent himself or may be represented by counsel to present facts, argument, or proof in the matter to be heard and may request other parties to appear to present testimony.
The agency will present its facts in the case and may request other parties to appear to present testimony.
Questions may be asked by any of the parties at any time during the presentation of information subject to the conference officer's prerogative to regulate the order of presentation in a manner that, in the conference officer's sole discretion, best serves the interest of fairly developing the facts.
The conference officer may exclude information at any time that the conference officer believes, in the conference officer's sole discretion, is not germane or that repeats information already received.
The conference officer shall declare the conference completed when the time established by the conference officer has expired.

E. Normally, the conference officer shall issue a decision within 15 days after the conclusion of an informal conference. However, for a conference with a court reporter, the conference officer shall issue his decision within 15 days after receipt of the transcript of the conference. In all cases the agency shall comply with the APA. The decision will be in the form of a letter to the appellant summarizing the case and setting out the conference officer's decision on the matter. The decision will be sent to the appellant by certified mail, return receipt requested, or signature-required common carrier.

F. After receiving the conference officer's decision on the informal conference, the appellant may elect to appeal to the board for a formal hearing on the licensing action. The request for appeal shall:

Be submitted in writing within 15 days of receipt of the conference officer's decision on the informal conference.
Be mailed or hand delivered to the chairman of the board at the headquarters of the Virginia Lottery.
Be governed by the same procedures in 11VAC5-20-160 B for filing the original notice of appeal.
State:

a. The decision of the conference officer that is being appealed;

b. The legal and factual basis for the appeal;

c. The retailer's license number or sufficient information identifying the denied applicant; and

d. Any additional information the appellant may wish to include concerning the appeal.

History

Statutory Authority: § 58.1-4007 of the Code of Virginia.
Historical Notes: Derived from VR447-01-2 § 3.6, eff. December 1, 1988; amended, Virginia Register Volume 6, Issue 6, eff. January 17, 1990; Volume 7, Issue 13, eff. April 24, 1991; Volume 8, Issue 24, eff. September 24, 1992; Volume 10, Issue 11, eff. March 23, 1994; Volume 13, Issue 3, eff. November 28, 1996; Volume 19, Issue 15, eff. May 7, 2003; Volume 28, Issue 26, eff. September 26, 2012; Volume 31, Issue 3, eff. November 5, 2014; Volume 42, Issue 10, eff. February 12, 2026.

11VAC5-20-180 Procedures for conducting formal licensing hearings

A. The board will conduct a formal hearing at its next regularly scheduled meeting following the receipt of a notice of appeal on a licensing action if the date of the scheduled meeting permits the required 10 days of notice to the appellant or at a date to be determined by the chairman of the board and accepted by the appellant.

B. A majority of members of the board is required to hear an appeal. If the chairman and vice chairman of the board are not present, the members present shall choose one from among them to preside over the hearing.

C. The board chairman, at the board chairman's discretion, may designate a committee of the board to hear licensing appeals and act on its behalf. Such committee shall have at least three members who will hear the appeal on behalf of the board. If the chairman of the board is not present, the members of the committee shall choose one from among them to preside over the hearing.

D. A notice setting the hearing date, time, and location will be sent to the appellant by certified mail, return receipt requested, or signature-required common carrier at least 10 days before the day set for the hearing, unless a shorter time is agreed to by the appellant.

E. The hearing shall be conducted in accordance with the provisions of Article 3 (§ 2.2-4018 et seq.) of the APA and shall be open to the public.

The hearing will be electronically recorded and the recording will be kept until any time limits for any subsequent court appeals have expired.
A court reporter may be used. The court reporter shall be paid by the person who requested the court reporter. If the appellant elects to have a court reporter, a transcript shall be provided to the agency. The transcript shall become part of the agency's records.
The provisions of §§ 2.2-4020 through 2.2-4023 of the APA shall apply with respect to the rights and responsibilities of the appellant and of the agency.

F. Normally, the board will issue its written decision within 21 days of the conclusion of the hearing. However, for a hearing with a court reporter, the board will issue its written decision within 21 days of receipt of the transcript of the hearing. In all cases the agency shall comply with the APA.

A copy of the board's written decision will be sent to the appellant by certified mail, return receipt requested, or signature-required common carrier. The original written decision shall be retained by the agency and become a part of the case file.
The written decision will contain:

a. A statement of the facts to be called "Findings of Facts";

b. A statement of conclusions to be called "Conclusions" and to include as much detail as the board feels is necessary to set out the reasons and basis for its decision; and

c. A statement, to be called "Decision and Order," which sets out the board's decision and order in the case.

G. After receiving the board's decision on the case, the appellant may elect to pursue court review as provided for in the APA.

History

Statutory Authority: § 58.1-4007 of the Code of Virginia.
Historical Notes: Derived from VR447-01-2 § 3.7, eff. December 1, 1988; amended, Virginia Register Volume 6, Issue 6, eff. January 17, 1990; Volume 7, Issue 13, eff. April 24, 1991; Volume 8, Issue 24, eff. September 24, 1992; Volume 10, Issue 11, eff. March 23, 1994; Volume 13, Issue 3, eff. November 28, 1996; Volume 19, Issue 15, eff. May 7, 2003; Volume 28, Issue 26, eff. September 26, 2012; Volume 31, Issue 3, eff. November 5, 2014; Volume 42, Issue 10, eff. February 12, 2026.

11VAC5-20-190 (Repealed.)

Historical Notes

Derived from VR447-01-2 § 3.8, eff. December 1, 1988; amended, Virginia Register Volume 6, Issue 6, eff. January 17, 1990; Volume 7, Issue 13, eff. April 24, 1991; Volume 8, Issue 24, eff. September 24, 1992; Volume 10, Issue 11, eff. March 23, 1994; repealed, Virginia Register Volume 13, Issue 3, eff. November 28, 1996.

Part IV Procurement

11VAC5-20-200 Procurement in general

The Virginia Lottery will purchase goods or services in accordance with procedures established by the board, after consultation with the director, pursuant to Chapter 40 (§ 58.1-4000 et seq.) of Title 58.1 of the Code of Virginia.

History

Statutory Authority: § 58.1-4007 of the Code of Virginia.
Historical Notes: Derived from VR447-01-2 § 4.1, eff. December 1, 1988; amended, Virginia Register Volume 6, Issue 6, eff. January 17, 1990; Volume 7, Issue 13, eff. April 24, 1991; Volume 8, Issue 24, eff. September 24, 1992; Volume 10, Issue 11, eff. March 23, 1994; Volume 13, Issue 3, eff. November 28, 1996; Volume 22, Issue 25, eff. November 6, 2006; Volume 28, Issue 26, eff. September 26, 2012; Volume 31, Issue 3, eff. November 5, 2014.

11VAC5-20-210 (Repealed.)

Historical Notes

Derived from VR447-01-2 §§ 4.2 to 5.9, eff. December 1, 1988; amended, Virginia Register Volume 6, Issue 6, eff. January 17, 1990; Volume 7, Issue 13, eff. April 24, 1991; Volume 8, Issue 24, eff. September 24, 1992; Volume 10, Issue 11, eff. March 23, 1994; Volume 13, Issue 3, eff. November 28, 1996; Volume 19, Issue 15, eff. May 7, 2003; repealed, Virginia Register Volume 22, Issue 25, eff. November 6, 2006.

Agency 10 Virginia Racing Commission

Chapter 11 Public Participation Guidelines

Part I Purpose and Definitions

11VAC10-11-10 Purpose

The purpose of this chapter is to promote public involvement in the development, amendment or repeal of the regulations of the Virginia Racing Commission. This chapter does not apply to regulations, guidelines, or other documents exempted or excluded from the provisions of the Administrative Process Act (§ 2.2-4000 et seq. of the Code of Virginia).

History

Statutory Authority: §§ 2.2-4007.02 and 59.1-369 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 25, Issue 5, eff. December 10, 2008.

11VAC10-11-20 Definitions

The following words and terms when used in this chapter shall have the following meanings unless the context clearly indicates otherwise:

"Administrative Process Act" means Chapter 40 (§ 2.2-4000 et seq.) of Title 2.2 of the Code of Virginia.

"Agency" means the Virginia Racing Commission, which is the unit of state government empowered by the agency's basic law to make regulations or decide cases. Actions specified in this chapter may be fulfilled by state employees as delegated by the agency.

"Basic law" means provisions in the Code of Virginia that delineate the basic authority and responsibilities of an agency.

"Commonwealth Calendar" means the electronic calendar for official government meetings open to the public as required by § 2.2-3707 C of the Freedom of Information Act.

''Negotiated rulemaking panel'' or ''NRP'' means an ad hoc advisory panel of interested parties established by an agency to consider issues that are controversial with the assistance of a facilitator or mediator, for the purpose of reaching a consensus in the development of a proposed regulatory action.

"Public hearing" means a scheduled time at which members or staff of the agency will meet for the purpose of receiving public comment on a regulatory action.

"Regulation" means any statement of general application having the force of law, affecting the rights or conduct of any person, adopted by the agency in accordance with the authority conferred on it by applicable laws.

"Regulatory action" means the promulgation, amendment, or repeal of a regulation by the agency.

"Regulatory advisory panel" or "RAP" means a standing or ad hoc advisory panel of interested parties established by the agency for the purpose of assisting in regulatory actions.

"Virginia Register" means the Virginia Register of Regulations, the publication that provides official legal notice of new, amended and repealed regulations of state agencies, which is published under the provisions of Article 6 (§ 2.2-4031 et seq.) of the Administrative Process Act.

History

Statutory Authority: §§ 2.2-4007.02 and 59.1-369 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 25, Issue 5, eff. December 10, 2008.

Part II Notification of Interested Persons

11VAC10-11-30 Notification list

A. The agency shall maintain a list of persons who have requested to be notified of regulatory actions being pursued by the agency.

C. The agency may maintain additional lists for persons who have requested to be informed of specific regulatory issues, proposals, or actions.

E. When mail delivered by a postal carrier is returned as undeliverable on multiple occasions, that person may be deleted from the list.

History

Statutory Authority: §§ 2.2-4007.02 and 59.1-369 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 25, Issue 5, eff. December 10, 2008.

11VAC10-11-40 Information to be sent to persons on the notification list

A. To persons electing to receive electronic notification or notification through a postal carrier as described in 11VAC10-11-30, the agency shall send the following information:

A notice of intended regulatory action (NOIRA).
A notice of the comment period on a proposed, a reproposed, or a fast-track regulation and hyperlinks to, or instructions on how to obtain, a copy of the regulation and any supporting documents.
A notice soliciting comment on a final regulation when the regulatory process has been extended pursuant to § 2.2-4007.06 or 2.2-4013 C of the Code of Virginia.

B. The failure of any person to receive any notice or copies of any documents shall not affect the validity of any regulation or regulatory action.

History

Statutory Authority: §§ 2.2-4007.02 and 59.1-369 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 25, Issue 5, eff. December 10, 2008.

Part III Public Participation Procedures

11VAC10-11-50 Public comment

A. In considering any nonemergency, nonexempt regulatory action, the agency shall afford interested persons an opportunity to submit data, views, and arguments, either orally or in writing, to the agency. Such opportunity to comment shall include an online public comment forum on the Town Hall.

To any requesting person, the agency shall provide copies of the statement of basis, purpose, substance, and issues; the economic impact analysis of the proposed or fast-track regulatory action; and the agency's response to public comments received.
The agency may begin crafting a regulatory action prior to or during any opportunities it provides to the public to submit comments.

B. The agency shall accept public comments in writing after the publication of a regulatory action in the Virginia Register as follows:

For a minimum of 30 calendar days following the publication of the notice of intended regulatory action (NOIRA).
For a minimum of 60 calendar days following the publication of a proposed regulation.
For a minimum of 30 calendar days following the publication of a reproposed regulation.
For a minimum of 30 calendar days following the publication of a final adopted regulation.
For a minimum of 30 calendar days following the publication of a fast-track regulation.
For a minimum of 21 calendar days following the publication of a notice of periodic review.
Not later than 21 calendar days following the publication of a petition for rulemaking.

C. The agency may determine if any of the comment periods listed in subsection B of this section shall be extended.

History

Statutory Authority: §§ 2.2-4007.02 and 59.1-369 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 25, Issue 5, eff. December 10, 2008.

11VAC10-11-60 Petition for rulemaking

A. As provided in § 2.2-4007 of the Code of Virginia, any person may petition the agency to consider a regulatory action.

B. A petition shall include but is not limited to the following information:

The petitioner's name and contact information;
The substance and purpose of the rulemaking that is requested, including reference to any applicable Virginia Administrative Code sections; and
Reference to the legal authority of the agency to take the action requested.

C. The agency shall receive, consider and respond to a petition pursuant to § 2.2-4007 and shall have the sole authority to dispose of the petition.

D. The petition shall be posted on the Town Hall and published in the Virginia Register.

E. Nothing in this chapter shall prohibit the agency from receiving information or from proceeding on its own motion for rulemaking.

History

Statutory Authority: §§ 2.2-4007.02 and 59.1-369 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 25, Issue 5, eff. December 10, 2008.

11VAC10-11-70 Appointment of regulatory advisory panel

B. Any person may request the appointment of a RAP and request to participate in its activities. The agency shall determine when a RAP shall be appointed and the composition of the RAP.

C. A RAP may be dissolved by the agency if:

The proposed text of the regulation is posted on the Town Hall, published in the Virginia Register, or such other time as the agency determines is appropriate; or
The agency determines that the regulatory action is either exempt or excluded from the requirements of the Administrative Process Act.

History

Statutory Authority: §§ 2.2-4007.02 and 59.1-369 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 25, Issue 5, eff. December 10, 2008.

11VAC10-11-80 Appointment of negotiated rulemaking panel

A. The agency may appoint a negotiated rulemaking panel (NRP) if a regulatory action is expected to be controversial.

B. An NRP that has been appointed by the agency may be dissolved by the agency when:

There is no longer controversy associated with the development of the regulation;
The agency determines that the regulatory action is either exempt or excluded from the requirements of the Administrative Process Act; or
The agency determines that resolution of a controversy is unlikely.

History

Statutory Authority: §§ 2.2-4007.02 and 59.1-369 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 25, Issue 5, eff. December 10, 2008.

11VAC10-11-90 Meetings

History

Statutory Authority: §§ 2.2-4007.02 and 59.1-369 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 25, Issue 5, eff. December 10, 2008.

11VAC10-11-100 Public hearings on regulations

A. The agency shall indicate in its notice of intended regulatory action whether it plans to hold a public hearing following the publication of the proposed stage of the regulatory action.

B. The agency may conduct one or more public hearings during the comment period following the publication of a proposed regulatory action.

C. An agency is required to hold a public hearing following the publication of the proposed regulatory action when:

The agency's basic law requires the agency to hold a public hearing;
The Governor directs the agency to hold a public hearing; or
The agency receives requests for a public hearing from at least 25 persons during the public comment period following the publication of the notice of intended regulatory action.

History

Statutory Authority: §§ 2.2-4007.02 and 59.1-369 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 25, Issue 5, eff. December 10, 2008.

11VAC10-11-110 Periodic review of regulations

A. The agency shall conduct a periodic review of its regulations consistent with:

An executive order issued by the Governor pursuant to § 2.2-4017 of the Administrative Process Act to receive comment on all existing regulations as to their effectiveness, efficiency, necessity, clarity, and cost of compliance; and
The requirements in § 2.2-4007.1 of the Administrative Process Act regarding regulatory flexibility for small businesses.

B. A periodic review may be conducted separately or in conjunction with other regulatory actions.

C. Notice of a periodic review shall be posted on the Town Hall and published in the Virginia Register.

History

Statutory Authority: §§ 2.2-4007.02 and 59.1-369 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 25, Issue 5, eff. December 10, 2008.

Chapter 20 Regulations Pertaining to Horse Racing with Pari-Mutuel Wagering

Part I General Provisions

11VAC10-20-10 Definitions

The following words and terms, when used in this chapter, shall have the following meaning, unless the context clearly indicates otherwise:

"Act" means Chapter 29 (§ 59.1-364 et seq.) of Title 59.1 of the Code of Virginia.

"Breakage" means the odd cents by which the amount payable on each dollar wagered exceeds a multiple of $ .10.

"Carryover" means the nondistributed pool moneys which are retained and added to a corresponding pool in accordance with this chapter.

"Commission" means the Virginia Racing Commission.

"Enclosure" means all areas of the property of a track to which admission can be obtained only by payment of an admission fee or upon presentation of authorized credentials, and any additional areas designated by the commission.

"Entry" means two or more horses in a race that are treated as a single wagering interest for pari-mutuel wagering purposes.

"Expired ticket" means an outstanding ticket which was not presented for redemption within the required time period for which it was issued.

"Handle" means the total amount of all pari-mutuel wagering sales excluding refunds and cancellations.

"Horse owner" means a person owning an interest in a horse.

"Horse racing" means a competition on a set course involving a race among horses on which pari-mutuel wagering is permitted.

"Licensee" includes any person holding an owner's or operator's license, or any other license issued by the commission.

"Limited license" means a license issued by the commission allowing the holder to conduct a race meeting or meetings, with pari-mutuel wagering privileges, for a period not exceeding 14 days in any calendar year.

"Member" includes any person designated a member of a nonstock corporation, and any person who by means of a pecuniary or other interest in such corporation exercises the power of a member.

"Minus pool" means that the payout is in excess of the net pool.

"Mutuel field" means two or more horses are treated as a single wagering interest because the number of wagering interests exceeds the number that can be handled individually by the totalizator.

"Net pool" means the amount of gross pari-mutuel ticket sales less refundable wagers and retainage.

"Official order of finish" means the order of finish of the horses in a contest as declared official by the stewards.

"Off time" means the moment at which the starter dispatches the field.

"Operator's license" means a license issued by the commission allowing the holder to conduct a horse race meeting with pari-mutuel wagering privileges.

"Outstanding ticket" means a winning or refundable pari-mutuel ticket which was not cashed during the program for which it was issued.

"Owner's license" means a license issued by the commission allowing the holder to construct a horse racing facility for the purpose of conducting a race meeting with pari-mutuel wagering privileges.

"Pari-mutuel wagering" means the system of wagering on horse racing in which those who wager on horses that finish in the position or positions for which wagers are taken share in the total amounts wagered, less deductions required or permitted by law.

"Permit holder" includes any person holding a permit to participate in horse racing subject to the jurisdiction of the commission or in the conduct of a race meeting where pari-mutuel wagering is offered thereon as provided in the Act.

"Person" includes a natural person, partnership, joint venture, association or corporation.

"Pool" means the amount wagered during a race meeting in straight wagering, in multiple wagering, or during a specified period thereof.

"Principal stockholder" means any person who individually or in concert with his spouse and immediate family members, owns or controls, directly or indirectly, 5.0% or more of the stock of any person who is a licensee, or who in concert with his spouse and immediate family members has the power to vote or cause the vote of 5.0% or more of any such stock.

"Profit" means the net pool after the deduction of the amount wagered on the winners.

"Profit split" means a division of profit among the separate wagering interests or winning combinations resulting in two or more payout prices.

"Program" means a schedule of races run consecutively at a racetrack or simulcast to a satellite facility.

"Race meeting" means the whole consecutive period of time during which horse racing with pari-mutuel wagering is conducted by a licensee.

"Recognized majority horsemen's group" means the organization recognized by the commission as the representative of the majority of owners and trainers racing at race meetings subject to the commission's jurisdiction.

"Retainage" means the total amount deducted, from the pari-mutuel wagering pool in the percentages designated by statute for the Commonwealth of Virginia, purse money for the participants, Virginia Breeders Fund, and the operators.

"Single price pool" means an equal distribution of profit to winning wagering interests or winning wagering combinations through a single payout price.

"Stock" includes all classes of stock of an applicant or licensee corporation, and any debt or other obligation of such corporation or stockholder thereof or stock of any affiliated corporation if the commission finds that the holder of such obligation or stock derives therefrom such control of or voice in the operation of the applicant or licensee corporation that he should be deemed a stockholder.

"Totalizator" means an electronic data processing system for registering wagers placed on the outcomes of horse racing, deducting the retainage, calculating the mutuel pools and returns to ticket holders, and displaying approximate odds and payouts, including machines utilized in the sale and cashing of wagers.

"Unlimited license" means a license issued by the commission allowing the holder to conduct a race meeting or meetings, with pari-mutuel wagering privileges, for periods of 15 days or more in any calendar year.

"Virginia Breeders Fund" means the fund established to foster the industry of breeding racehorses in the Commonwealth of Virginia.

"Wagering interest" means one or more horses in a race which are identified by a single program number for wagering purposes.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-01-02 § 1.1, Virginia Register Volume 6, Issue 10, eff. March 14, 1990; amended, Virginia Register Volume 14, Issue 1, eff. October 29, 1997; Volume 31, Issue 25, eff. September 9, 2015.

Part II Licensure

11VAC10-20-20 Identification of applicant for owner's, owner-operator's, or operator's license

An application shall include the name, address, and telephone number of the applicant and the name, position, address, telephone number, and authorized signature of an individual to whom the commission may make inquiry.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-01-02 § 2.1, Virginia Register Volume 6, Issue 10, eff. March 14, 1990; amended, Virginia Register Volume 28, Issue 13, eff. March 27, 2012.

11VAC10-20-30 Applicant's affidavit

An application shall include an affidavit from the chief executive officer or a major financial participant in the applicant setting forth:

That application is made for a license to own, own-operate, or operate a horse racing facility at which pari-mutuel wagering is conducted;
That the affiant is the agent of the applicant, its owners, partners, members, directors, officers, and personnel and is duly authorized to make the representations in the application on their behalf. Documentation of the authority shall be attached;
That the applicant seeks a grant of a privilege from the Commonwealth of Virginia, and the burden of proving the applicant's qualifications rests at all times with the applicant;
That the applicant consents to inquiries by the Commonwealth of Virginia, its employees, the commission members, staff and agents, into the financial, character, and other qualifications of the applicant by contacting individuals and organizations;
That the applicant, its owners, partners, members, directors, officers, and personnel accept any risk of adverse public notice, embarrassment, criticism, or other circumstance, including financial loss, which may result from action with respect to the application and expressly waive any claim which otherwise could be made against the Commonwealth of Virginia, its employees, the commission, staff, or agents;
That the affiant has read the application and knows the contents; the contents are true to affiant's own knowledge, except matters therein stated as information and belief; as to those matters, affiant believes them to be true;
That the applicant recognizes all representations in the application are binding on it, and false or misleading information in the application, omission of required information, or substantial deviation from representations in the application may result in denial, revocation, suspension or conditioning of a license or imposition of a fine, or any or all of the foregoing;
That the applicant will comply with all applicable state and federal statutes and regulations, all regulations of the commission and all other local ordinances;
The affiant's signature, name, organization, position, address, and telephone number; and
The date.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-01-02 § 2.2, Virginia Register Volume 6, Issue 10, eff. March 14, 1990; amended, Virginia Register Volume 28, Issue 13, eff. March 27, 2012.

11VAC10-20-40 Disclosure of ownership and control

An applicant must disclose:

The type of organizational structure of the applicant, whether individual, business corporation, nonprofit corporation, partnership, joint venture, trust, association, or other;
If the applicant is an individual, the applicant's legal name, whether the applicant is a United States citizen, any aliases and business or trade names currently or previously used by the applicant, and copies of all state and federal tax returns for the past five years;
If the applicant is a corporation:

a. The applicant's full corporate name and any trade names currently or previously used by the applicant;

b. The jurisdiction and date of incorporation;

c. The date the applicant began doing business in Virginia and a copy of the applicant's certificate of authority to do business in Virginia;

d. Copies of the applicant's articles of incorporation, bylaws, and all state and federal corporate tax returns for the past five years;

e. The general nature of the applicant's business;

f. Whether the applicant is publicly held as defined by the rules and regulations of the Securities and Exchange Commission;

g. The classes of stock of the applicant. As to each class, the number of shares authorized, number of shares subscribed to, number issued, number outstanding, par value per share, issue price, current market price, number of shareholders, terms, position, rights, and privileges must be disclosed;

h. Whether the applicant has any other obligations or securities authorized or outstanding which bear voting rights either absolutely or upon any contingency, the nature thereof, face or par value, number of units authorized, number outstanding, and conditions under which they may be voted;

i. The names, in alphabetical order, and addresses of the directors and, in a separate list, officers of the applicant. The number of shares held of record directly or indirectly by each director and officer as of the application date of each class of stock, including stock options and subscriptions, and units held of record or beneficially of other obligations or securities which bear voting rights must be disclosed;

j. The names, in alphabetical order, and addresses of each recordholder as of the date of application or beneficial owner of shares, including stock options and subscriptions, of the applicant or units of other obligations or securities which bear voting rights. As to each holder of shares or units, the number and class or type of shares or units shall be disclosed;

k. Whether the requirements of the Securities Act of 1933 and Securities and Exchange Act of 1934, as amended, and Securities and Exchange Commission rules and regulations have been met in connection with issuance of applicant's securities, and copies of the most recent registration statement and annual report filed with the Securities and Exchange Commission;

l. Whether the securities registration and filing requirements of the applicant's jurisdiction of incorporation have been met, and a copy of the most recent registration statement filed with the securities regulator in that jurisdiction; and

m. Whether the securities registration and filing requirements of the Commonwealth of Virginia have been met. If they have not, the applicant must disclose the reasons why. The applicant must provide copies of all securities filings with Virginia's State Corporation Commission during the past five years.

If the applicant is an organization other than a corporation:

a. The applicant's full name and any aliases, business, or trade names currently or previously used by the applicant;

b. The jurisdiction of organization of the applicant;

c. The date the applicant began doing business in Virginia;

d. Copies of any agreements creating or governing the applicant's organization and all of the applicant's state and federal tax returns for the past five years;

e. The general nature of the applicant's business;

f. The names, in alphabetical order, and addresses of any partners and officers of the applicant and other persons who have or share policy-making authority. As to each, the applicant must disclose the nature and extent of any ownership interest, direct or indirect, including options, or other voting interest, whether absolute or contingent, in the applicant; and

g. The names, in alphabetical order, and addresses of any individual or other entity holding a record or beneficial ownership interest, direct or indirect, including options, as of the date of the application, or other voting interest, whether absolute or contingent, in the applicant. As to each, the applicant must disclose the nature and extent of the interest.

If a nonindividual record or beneficial holder of an ownership or other voting interest of 5.0% or more in the applicant is identified pursuant to subdivision 3, i or j or subdivision 4, f and g, the applicant must disclose the information required by those subdivisions as to record or beneficial holders of an ownership or other voting interest of 5.0% or more in that nonindividual holder. The disclosure required by those subdivisions must be repeated, in turn, until all other voting interests of 5.0% or more in the applicant or any nonindividual holder are identified. When an applicant is unable to provide the information required, it shall explain fully and document its inability to do so;
Whether the applicant is directly or indirectly controlled to any extent or in any manner by another individual or entity. If so, the applicant must disclose the identity of the controlling entity and a description of the nature and extent of control;
Any agreements or understandings which the applicant or any individual or entity identified pursuant to this part has entered into regarding ownership or operation of applicant's horse racing facility, and copies of any such agreements in writing;
Any agreements or understandings which the applicant has entered into for the payment of fees, rents, salaries, or other compensation concerning the proposed horse racing facility by the applicant, and copies of any such agreements in writing; and
Whether the applicant, any partner, director, officer, other policymaker, or holder of a direct or indirect record or beneficial ownership interest or other voting interest or control of 5.0% or more has held or holds a license or permit issued by a governmental authority to own or operate a horse racing facility, pari-mutuel wagering facility or any other form of gambling or has a financial interest in such an enterprise or conducts any aspect of horse racing or gambling. If so, the applicant must disclose the identity of the license or permit holder, nature of the license or permit, issuing authority, and dates of issuance and termination.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-01-02 § 2.3, Virginia Register Volume 6, Issue 10, eff. March 14, 1990.

11VAC10-20-50 Disclosure of character information

An applicant for a license must disclose and furnish particulars as follows whether the applicant or any individual or other entity identified pursuant to subdivisions 3 and 4 of 11VAC10-20-40 and subdivisions 2 and 3 of 11VAC10-20-110 of this chapter:

Been charged in any criminal proceeding other than a traffic violation. If so, the applicant must disclose nature of the charge, the date charged, court and disposition;
Had a horse racing, gambling, business, professional, or occupational license or permit revoked or suspended or renewal denied or been a party in a proceeding to do so. If so, the applicant must disclose the date of commencement, circumstances and disposition;
Been accused in an administrative or judicial proceeding of violating a statute or regulation relating to horse racing or gambling;
Been charged in an administrative or judicial proceeding of violating a statute or regulation relating to unfair labor practices or discrimination;
Begun an administrative or judicial action against a governmental regulator of horse racing or gambling. If so, the applicant must disclose the date of commencement, forum, circumstances and disposition;
Been the subject of voluntary or involuntary bankruptcy proceedings. If so, the applicant must disclose the date of commencement, forum, circumstances, date of decision and disposition;
Failed to satisfy any judgment, decree or order of an administrative or judicial tribunal. If so, the applicant must disclose the date and circumstances; and
Been delinquent in filing a tax return required or remitting a tax imposed by any government. If so, the applicant must disclose the date and circumstances.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-01-02 § 2.4, Virginia Register Volume 6, Issue 10, eff. March 14, 1990.

11VAC10-20-60 Disclosure of sites and facilities

An application for a license must disclose with respect to the pari-mutuel horse racing facility it will own, operate, or own and operate:

The address of the facility, ownership of site for the last five years, legal description, mortgagors, proof of title insurance, its size, and geographical location, including reference to county and municipal boundaries;
A site map showing existing highways and streets adjacent to the facility, and separately showing any proposed highways and streets adjacent to the facility, including their scheduled completion dates;
The type or types of racing for which the facility is designed, whether thoroughbred, harness standard bred, quarterhorse, or other;
Racetrack dimensions for each racetrack operated by the facility by:

a. Circumference;

b. Width;

c. Banking;

d. Location of chutes;

e. Length of stretch;

f. Distance from judges' stand to first turn;

g. Type of surface; and

h. Description of safety rail.

A description of the backstretch area, giving:

a. Dimensions and number of barns, whether open or enclosed;

b. Location and interval of barns;

c. Dimensions and number of stalls per barn;

d. Location of offices for veterinarians;

e. Location of facilities for emergency care for horses;

f. Location of facilities for feed, tack, and other vendors;

g. Location, description and number of housing units for backstretch employees;

h. Location and description of commissary, lavatory and recreational facilities for backstretch employees; and

i. Location and description of training track, if any.

A description of the grandstand, giving:

a. Total seating capacity;

b. Total reserved seating capacity;

c. Indoor and outdoor seating capacity;

d. Configuration of grandstand seating and pari-mutuel and concession facilities within the grandstand;

e. The number and location of men's and women's restrooms, drinking fountains and medical facilities available to patrons; and

f. Description of public pedestrian traffic patterns throughout the grandstand.

A description of the post-race detention barn, giving:

a. Distance from the post-race detention barn to track and paddock;

b. Number of sampling stalls;

c. Placement of viewing ports on each;

d. Location of post-mortem floor;

e. Number of wash stalls with hot and cold water and drains;

f. Availability of video monitors and other security measures; and

g. The walking ring.

A description of the paddock and saddling area, giving;

a. Number of stalls in the paddock;

b. Height from the floor to lowest point of the stall ceiling and entrance;

c. Paddock public address and telephone services; and

d. Public viewing area.

A description of the jockeys' and drivers' quarters, giving:

a. Changing areas;

b. A listing of equipment to be installed in each; and

c. The location of the jockeys' or drivers' quarters in relation to the paddock.

A description of the pari-mutuel totalizator, giving:

a. Approximate location of bettors' windows and cash security areas; and

b. A description of the equipment, including vendor and manufacturer if known.

A description of the parking, giving:

a. Detailed attention to access to parking from surrounding streets and highways;

b. Number of parking spaces available, distinguishing between public and other;

c. A description of the road surface on parking areas and the distance between parking and grandstand; and

d. A road map of the area showing the relationship of parking to surrounding, existing and proposed streets and highways.

A description of the height, type of construction and materials of perimeter fence;
A description of improvements and equipment at the horse racing facility for security purposes in addition to perimeter fence, including the vendor and manufacturer of equipment if known;
A description of starting, timing, photo finish, and photo-patrol or video equipment, including the vendor and manufacturer if known;
A description of work areas for the commission members, officers, employees, stewards, and agents;
A description of the facility's access to public transportation, the types of public transportation and schedules and road maps of area which show pick-up and drop-off points; and
A description of manure and other refuse containers and plans for their prompt and proper removal.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-01-02 § 2.5, Virginia Register Volume 6, Issue 10, eff. March 14, 1990.

11VAC10-20-70 Disclosure of development process

An applicant for a license must disclose with regard to development of its horse racing facility:

The total cost of construction of the facility, distinguishing between known costs and projected costs;
Separate identification of the following costs, distinguishing between known costs and projected costs:

a. Facility design;

b. Land acquisition;

c. Site preparation;

d. Improvements and equipment, separately identifying the costs of 11VAC10-20-60, and other categories of improvements and equipment; and

e. Organization, administrative, accounting, and legal.

Documentation of the nature of interim financing and the nature of permanent financing;
Documentation of fixed costs;
The schedule for construction of the facility, giving:

a. Acquiring land;

b. Soliciting bids;

c. Zoning and construction permit approval;

d. Awarding construction contracts;

e. Beginning construction;

f. Completing construction;

g. Training staff; and

h. Beginning of racing.

Schematic drawings;
Copies of any contracts with and performance bonds from the:

a. Architect or other design professional;

b. Project engineer;

c. Construction engineer;

d. Contractors and subcontractors; and

e. Equipment procurement personnel.

Whether the site has been acquired or leased by applicant. If so, the applicant must provide the documentation. If not, the applicant must state which actions must be taken in order to obtain the site; and
Whether present construction planning envisions future expansion of the facilities and, if so, a general description of the nature of such expansion.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-01-02 § 2.6, Virginia Register Volume 6, Issue 10, eff. March 14, 1990.

11VAC10-20-80 Disclosure of financial resources

An applicant for license must provide the following with regard to financial resources:

The most recent independently audited financial statement showing:

a. The applicant's current assets, including investments in affiliated entities, loans and accounts receivable;

b. Fixed assets;

c. Current liabilities, including loans and accounts payable; and

d. Long-term debt and equity; and

e. Statement of income and expenses, and statement of cash flow;

Equity and debt sources of funds to develop, own and operate the horse racing facility:

a. With respect to each source of equity:

(1) Contribution;

(2) Identification of the source;

(3) Amount;

(4) Form;

(5) Method of payment;

(6) Nature and amount of present commitment; and

(7) Documentation, copies of agreements and actions which the applicant will take to obtain commitments for additional amounts;

b. With respect to each source of debt:

(1) Contribution;

(2) Identification of the source;

(3) Amount;

(4) Terms of debt;

(5) Collateral;

(6) Identity of guarantors;

(7) Nature and amount of commitments; and

(8) Documentation, copies of agreements and actions which the applicant will take to obtain commitments for additional amounts; and

Identification and description of sources of additional funds if needed due to cost overruns, nonreceipt of expected equity or debt funds, failure to achieve projected revenues or other cause.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-01-02 § 2.7, Virginia Register Volume 6, Issue 10, eff. March 14, 1990.

11VAC10-20-90 Disclosure of financial plan

An applicant for a license must disclose with regard to its financial plan the financial projections for the development period and for each of the first five racing years, with separate schedules based upon the number of racing days, types of racing, and types of pari-mutuel wagering the applicant requires to break even and the optimum number of racing days and types of wagering the applicant seeks each year. The commission will utilize financial projections in deciding whether to issue licenses.

Neither acceptance of a license application nor issuance of a license shall bind the commission as to matters within its discretion, including, but not limited to, assignment of racing days and approval of types of permissible pari-mutuel pools.

The disclosure must include:

The following assumptions and support for them:

a. Average daily attendance;

b. Average daily per capita handle and average bet;

c. Retainage;

d. Admissions to track, including ticket prices and free admissions;

e. Parking volume, fees and revenues;

f. Concessions, gift shop and program sales;

g. Cost of purses;

h. Pari-mutuel expenses;

i. State taxes;

j. Local taxes;

k. Federal taxes;

l. Virginia Breeders Fund;

m. Payroll;

n. Operating supplies and services;

o. Utilities;

p. Repairs and maintenance;

q. Insurance;

r. Travel expenses;

s. Membership expenses;

t. Security expenses;

u. Legal and audit expenses; and

v. Debt service.

The following profit and loss elements:

a. Total revenue, including projected revenues from retainage, breakage, uncashed tickets, admissions, parking, and concessions, gift and program operations;

b. Total operating expenses, including anticipated expenses for:

(1) Purses;

(2) Pari-mutuel;

(3) Sales tax;

(4) Local taxes;

(5) Admissions tax;

(6) Virginia Breeders Fund;

(7) Special assessments;

(8) Cost of concession goods, gifts and programs;

(9) Advertising and promotion;

(10) Payroll;

(11) Operating supplies and service;

(12) Maintenance and repairs;

(13) Insurance;

(14) Security;

(15) Legal and audit; and

(16) Federal and state taxes.

c. Nonoperating expenses, including anticipated expenses for debt service, facility depreciation and identification of method used, and equipment depreciation and identification of method used.

Projected cash flow, including assessment of:

a. Income, including equity contributions, debt contributions, interest income and operating revenue; and

b. Disbursements, including land, improvements, equipment, debt service, operating expense and organizational expense.

Projected balance sheets as of the end of the development period and of each of the first five racing years setting forth:

a. Current, fixed and other noncurrent assets;

b. Current and long-term liabilities; and

c. Capital accounts.

The applicant must also disclose an accountant's review report of the financial projections.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-01-02 § 2.8, Virginia Register Volume 6, Issue 10, eff. March 14, 1990.

11VAC10-20-100 Disclosure of governmental actions

An applicant for a license must disclose with regard to actions of government agencies:

The street and highway improvements necessary to ensure adequate access to applicant's horse racing facility, and the cost of improvements, status, likelihood of completion and estimated date of completion;
The sewer, water and other public utility improvements necessary to serve applicant's facility, and the cost of improvements, status, likelihood of completion and estimated date of completion;
The status of any required government approvals for development, ownership and operation of its horse racing facility:

a. A description of the approval, unit of government, date and documentation;

b. Whether public hearings were held. If they were, the applicant must disclose when and where the hearings were conducted. If they were not held, the applicant must disclose why they were not held; and

c. Whether the unit of government attached any conditions to approval. If so, the applicant must disclose these conditions, including documentation. In addition, the applicant must summarize its plans to meet these conditions.

Whether any required governmental approvals remain to be obtained, as well as a description of the approval, unit of government, status, likelihood of approval and estimated date of approval;
Whether an environmental assessment or environmental impact statement of the facility has been or will be prepared. If so, the applicant must disclose its status and the governmental unit with jurisdiction, and provide a copy of any statement; and
Whether the applicant is in compliance with all state statutes, local charter provisions, local ordinances, and state and local regulations pertaining to the development, ownership and operation of its horse racing facility. If the applicant is not in compliance, the applicant must disclose the reasons why the applicant is not in compliance and summarize plans to obtain compliance.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-01-02 § 2.9, Virginia Register Volume 6, Issue 10, eff. March 14, 1990.

11VAC10-20-110 Disclosure of management

An applicant for a license must disclose with regard to the development, ownership and operation of its pari-mutuel horse racing facility:

A description of the applicant's management plan, with budget and identification of management personnel by function, job descriptions and qualifications for each management position, and a copy of the organization chart;
Management personnel to the extent known and with respect to each:

a. Legal name, alias or aliases and previous name or names;

b. Current residence and business addresses and telephone numbers;

c. Qualifications and experience in the following areas:

(1) General business;

(2) Marketing, promotion and advertising;

(3) Finance and accounting;

(4) Horse racing;

(5) Pari-mutuel wagering;

(6) Security; and

(7) Human and animal health and safety.

d. Description of the terms and conditions of employment and a copy of each type of agreement;

Consultants and other contractors who have provided or will provide management-related services to applicant with respect to each:

a. Full name;

b. Current address and telephone number;

c. Nature of services;

d. Qualifications and experience; and

e. Description of terms and conditions of each contractor's agreement and a copy of the agreement.

Memberships of the applicant, management personnel and consultants in horse racing organizations.
Description of the applicant's marketing, promotion and advertising plans;
A description of the applicant's plan for concessions, including whether the licensee will operate concessions and, if not, who will;
A description of training of the applicant's personnel; and
A description of plans for compliance with all laws pertaining to discrimination, equal employment and affirmative action; policies regarding recruitment, use and advancement of minorities; policies with respect to minority contracting; and a copy of Equal Employment Opportunity Statement.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-01-02 § 2.10, Virginia Register Volume 6, Issue 10, eff. March 14, 1990.

11VAC10-20-120 Disclosure of safety and security plans

An application for a license must disclose with regard to the development of its horse racing facility:

A description of the local emergency services available to the horse racing facility, including fire fighting, law enforcement and medical emergency services;
A description of the security equipment, such as fences, locks, alarms and monitoring equipment, for the horse racing facility, including:

a. Perimeter fence and its construction;

b. Stables;

c. Paddock;

d. Cash room and the vault;

e. Pari-mutuel ticket windows;

f. Totalizator room;

g. Post-race detention barn; and

h. Parking lot.

A description of the security procedures to be used:

a. To admit individuals to restricted areas of the horse racing facility;

b. To secure areas where money and mutuel tickets are vaulted, and daily transfers of cash via armored trucks;

c. To provide security for patrons and employees; and

d. Specific plans to discover persons at the facility who have been convicted of a felony, had a license suspended, revoked, or denied by the commission or by the horse racing authority of another jurisdiction or are a threat to the integrity of racing in Virginia.

A description of the security personnel to be employed at the facility, giving:

a. Whether personnel will be employees of the licensee or employees of an independent contractor;

b. If the personnel are employed by an independent contractor, describe the organization and qualifications of the contractor as well as meeting applicable state licensing requirements;

c. State the number of individuals to be employed and the area of the racetrack where each will serve;

d. Provide an organizational chart of the security force with a job description of each level; and

e. State whether or not the security personnel are bonded and if so, state amount and conditions of the bond and the name and address of the surety company that issued the bond.

A description of the fire safety and emergency procedures, giving:

a. Evacuating the patrons and controlling traffic in an emergency;

b. Inspecting the facility for fire and safety hazards;

c. Restricted smoking areas; and

d. Coordinating the facility's security, fire and safety procedures with the state police, the commission and other local agencies.

A description of the first aid facilities available at the horse racing facility during racing hours and the facilities available to employees during nonracing hours;
Whether the applicant will be a member of the Thoroughbred Racing Protective Bureau or other security organization; and
A description of the internal accounting controls to create cross checks and balances in order to safeguard assets and detect fraud and embezzlement.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-01-02 § 2.11, Virginia Register Volume 6, Issue 10, eff. March 14, 1990.

11VAC10-20-130 Disclosure of public service

An applicant for a license must disclose its plans for promotion of the orderly growth of horse racing in Virginia and education of the public with respect to horse racing and pari-mutuel wagering.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-01-02 § 2.12, Virginia Register Volume 6, Issue 10, eff. March 14, 1990.

11VAC10-20-140 Disclosure of impact of facilities

An applicant for a license must disclose and document the projected impact of its horse racing facility, including:

Economic impact, giving:

a. Number of jobs created, whether permanent or temporary, type of work, compensation, employer and how created;

b. Purchases of goods and services, types of purchases and projected expenditures;

c. Public and private investment; and

d. State and local tax revenues generated.

Environmental impact;
Impact on energy conservation and development of alternative energy sources; and
Social impact on the community in which the horse racing facility would be located.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-01-02 § 2.13, Virginia Register Volume 6, Issue 10, eff. March 14, 1990.

11VAC10-20-150 Effects on competition

An applicant must disclose the anticipated short-range and long-range effects of its ownership and operation of its horse racing facility on competition within the horse racing industry.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-01-02 § 2.14, Virginia Register Volume 6, Issue 10, eff. March 14, 1990.

11VAC10-20-160 Disclosure of assistance in preparation of application

An applicant must disclose the names, addresses and telephone numbers of individuals and businesses who assisted the applicant in the writing of its application and supply copies of all studies completed for the applicant.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-01-02 § 2.15, Virginia Register Volume 6, Issue 10, eff. March 14, 1990.

11VAC10-20-170 Personal information and authorization for release

In an application for a license, the applicant shall include the following with respect to each individual identified as an applicant, partner, director, officer, other policymaker, or holder of a direct or indirect record or beneficial ownership interest or other voting interest or control of five percent or more in the applicant and each individual identified pursuant to subdivisions 2 and 3 of 11VAC10-20-110:

Full name, business and residence addresses and telephone numbers, residence addresses for past five years, date of birth, place of birth, Social Security number, if the individual is willing to provide it, and two references; and
An authorization for release of personal information, on a form prepared by the commission, signed by the individual and providing that he:

a. Authorizes a review by, and full disclosure to, an agent of the Virginia State Police, of all records concerning the individual;

b. Recognizes the information reviewed or disclosed may be used by the Commonwealth of Virginia, its employees, the commission, members, staff and agents to determine the signer's qualifications for a license; and

c. Releases authorized providers and users of the information from any liability under state or federal data privacy statutes.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-01-02 § 2.16, Virginia Register Volume 6, Issue 10, eff. March 14, 1990.

11VAC10-20-180 License criteria

A. The commission may issue a license if it determines on the basis of all the facts before it that:

The applicant is financially able to operate a racetrack;
Issuance of a license will not adversely affect competition within the horse racing industry and the public interest;
The racetrack will be operated in accordance with all applicable state and federal statutes and regulations, regulations of the commission and all local ordinances; and
The issuance of the license will not adversely affect the public health, safety and welfare.

B. In making the required determinations, the commission must consider the following factors:

The integrity of the applicant, including:

a. Criminal record;

b. Involvement in litigation over business practices;

c. Involvement in disciplinary actions over a business license or permit or refusal to renew a license or permit;

d. Involvement in proceedings in which unfair labor practices, discrimination or government regulation of horse racing or gambling was an issue;

e. Involvement in bankruptcy proceedings;

f. Failure to satisfy judgments, orders or decrees;

g. Delinquency in filing of tax reports or remitting taxes; and

h. Any other factors related to integrity which the commission deems crucial to its decision making, as long as the same factors are considered with regard to all applicants.

The types and variety of pari-mutuel horse racing, pari-mutuel wagering, and other uses of the facility when racing or wagering is not offered;
The quality of physical improvements and equipment in applicant's facility, including:

a. Racetrack or tracks and provisions, if any, for a turf course;

b. Stabling, including fire control measures;

c. Grandstand;

d. Detention barn;

e. Paddock;

f. Jockeys', drivers' and backstretch employees' quarters;

g. Pari-mutuel totalizator;

h. Parking;

i. Access by road and public transportation;

j. Perimeter fence;

k. Other security improvements and equipment;

l. Starting, timing, photo finish and photo-patrol or video equipment;

m. Commission work areas; and

n. Any other factors related to quality which the commission deems crucial to its decision making, as long as the same factors are considered with regard to all applicants;

Imminence of completion of facility and commencement of pari-mutuel horse racing;
Financial ability to develop, own and operate a pari-mutuel horse racing facility successfully, including:

a. Ownership and control structure;

b. Amounts and reliability of development costs;

c. Certainty of site acquisition or lease;

d. Current financial condition;

e. Sources of equity and debt funds, amounts, terms and conditions and certainty of commitment;

f. Provision for cost overruns, nonreceipt of expected equity or debt funds, failure to achieve projected revenues or other financial adversity;

g. Feasibility of financial plan; and

h. Any other factors related to financial ability which the commission deems crucial to its decision making as long as the same factors are considered with regard to all applicants.

Status of governmental actions required for the applicant's facility, including:

a. Necessary road improvements;

b. Necessary public utility improvements;

c. Required governmental approvals for development, ownership and operation of the facility;

d. Acceptance of any required environmental assessment and preparation of any required environmental impact statement; and

e. Any other factors related to status of governmental actions which the commission deems crucial to its decision making as long as the same factors are considered with regard to all applicants.

Management ability of the applicant, including:

a. Qualifications of managers, consultants and other contractors to develop, own and operate a pari-mutuel horse racing facility;

b. Security plan;

c. Plans for human and animal health and safety;

d. Marketing, promotion and advertising plans;

e. Concessions plan;

f. Plan for training personnel;

g. Equal employment and affirmative action plans; and

h. Any other factors related to management ability which the commission deems crucial to its decision making as long as the same factors are considered with regard to all applicants.

Compliance with applicable statutes, charters, ordinances or regulations;
Efforts to promote orderly growth of horse racing in Virginia and educate public with respect to horse racing and pari-mutuel wagering;
Impact of facility, including:

a. Economic impact, including employment created, purchases of goods and services, public and private investment and taxes generated;

b. Environmental impact;

c. Impact on energy conservation and development of alternative energy sources;

d. Social impact;

e. Costs of public improvements;

f. Impact on the highway network; and

g. Any other factors related to impact which the commission deems crucial to its decision making as long as the same factors are considered with regard to all applicants.

Extent of public support and opposition;
Effects on competition, including:

a. Number, nature and relative location of other licenses;

b. Minimum and optimum number of racing days sought by the applicant; and

c. Any other factors of the impact of competition which the commission deems crucial to decision making as long as the same factors are considered with regard to all applicants.

The commission shall also consider any other information which the applicant discloses and is relevant and helpful to a proper determination by the commission.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-01-02 § 2.17, Virginia Register Volume 6, Issue 10, eff. March 14, 1990.

11VAC10-20-190 Criteria for horse racing facilities

A. Generally. Every license to conduct a horse race meeting with pari-mutuel wagering privileges of 15 days or more in any calendar year is granted by the commission upon the condition that the licensee will conduct horse racing at its facility or meeting for the promotion, sustenance, and growth of a native industry in a manner consistent with the health, safety, and welfare of the people. The adequacy and sufficiency with which the licensee meets the criteria for the procedures, facilities, and equipment for conducting a horse race meeting of such duration shall rest with the commission.

Each licensee shall accept, observe, and enforce all federal and state laws, regulations of the commission, and local ordinances.
Each licensee shall at all times maintain its grounds and facilities so as to be neat and clean, painted and in good repair, with special consideration for the comfort and safety of the public, employees, other persons whose business requires their attendance, and for the health and safety of the horses there stabled.
Each licensee shall honor commission exclusions from the enclosure and eject immediately any person found within the enclosure who has been excluded by the commission and report the ejection to the commission. Whenever any licensee ejects a person from the enclosure, it shall furnish a written notice to the person ejected and shall report the ejection to the commission.
No later than 15 days before the first day of any race meeting, each licensee shall submit to the commission the most recent inspection reports issued by governmental authorities regarding the condition of facilities, sanitation, and fire prevention, detection, and suppression.
Each licensee shall provide the commission daily attendance reports showing a turnstile count of all persons admitted to the enclosure and the reports shall indicate the daily number of paid admissions, taxed complimentary admissions, and tax exempt admissions.
Each licensee shall furnish to the commission within three months of the closing of its fiscal year, three copies of its balance sheet and of its operating statement for the previous fiscal year with comparison to the prior fiscal year, the same duly sworn to by the treasurer of the association, and certified by an independent certified public accountant. The financial report shall be in the form as may be prescribed from time to time by the commission.
Each licensee shall maintain a separate bank account to be known as the "horsemen's account," with the amount of purse money statutorily mandated to be deposited in the account within 48 hours of the running of the race. Withdrawals from this account shall at all times be subject to audit by the commission, and the horsemen's bookkeeper in charge of the account shall be bonded:

a. All portions of purse money shall be made available when the stewards have authorized payment to the earners; and

b. No portion of purse money other than jockey fees shall be deducted by the licensee for itself or for another, unless so requested in writing by the person to whom such purse moneys are payable, or his duly authorized representative. Irrespective of whether requested, at the close of each race meeting the horsemen's bookkeeper shall mail to each owner a duplicate of each owner's account showing every deposit, withdrawal, or transfer of funds affecting such owner's account.

Each licensee shall remit to the commission within five days of the day on which the revenue for pari-mutuel taxes, admission taxes, and breeders' funds were collected. The remittance shall be accomplished by a direct deposit in a financial institution designated by the commission. On those days when the fifth day is a holiday or a weekend day, the payment must be made by the succeeding business day. At the close of each month in which racing is conducted, the licensee must report to the commission all deposits of taxes and breeders' funds for that month.
On each day that deposits are made by the licensee, a report must be filed with the commission containing the following recapitulation: total retainage, pari-mutuel tax; state and local admissions taxes; purse moneys; total breakage; and breeders' fund taxes.
Each licensee shall provide areas within the enclosure where publications, other informational materials, and tip sheets, may be sold to the public. All persons holding a tip sheet concession at the facility must possess a permit from the commission as vendors. Such vendor shall post in a conspicuous place the previous day's tip sheet and the outcome of the races. Such vendor shall deliver one copy of the tip sheet to a commission representative at least one hour before post time.
Each licensee shall supervise the practice and procedures of all vendors of food, horse feed, medication, and tack, who are licensed and have access to the stabling area. No licensee by virtue of this regulation shall attempt to control or monopolize proper selling to owners, trainers, or stable employees; nor shall a licensee grant a sole concession to any vendor of feed, racing supplies, or racing services.
Each licensee shall provide to the commission copies of all subordinate contracts, in the amount of $15,000 annual gross and above, entered into by the owner, owner-operator, or operator, and such contracts shall be subject to approval of the commission.
Each licensee shall submit to the commission each calendar year a request for live racing days for the next calendar year as provided in 11VAC10-20-200. The holder of a license shall schedule no more than 125 days live racing days in the Commonwealth each calendar year; however, the commission may alter the number of live racing days based on what it deems to be in the best interest of the Virginia horse industry.
Each licensee shall post in a conspicuous place in every place where pari-mutuel wagering is conducted a sign that bears a toll-free telephone number for "Gamblers Anonymous" or other organization that provides assistance to compulsive gamblers.

B. Facilities. Each licensee shall provide all of the facilities for the conduct of horse racing so as to maintain horse racing of the highest quality and free of any corrupt, incompetent, or dishonest practices and to maintain in horse racing complete honesty and integrity.

Prior to the first race meeting at a facility owned or operated by the holder of an unlimited license, the licensee shall provide to the commission a certified report of a qualified surveyor, certifying the grade and measurement of the distances to be run.

a. Distances to be run shall be measured from the starting line at a distance three feet out from the inside rail.

b. The surveyor's report must be approved by the commission's executive secretary prior to the first race day of the meeting.

Turf course requirements include the following:

a. The licensee shall maintain an adequate stockpile of growing medium and shall provide an irrigation system or other means of adequately watering the entire turf course evenly.

b. All turf course paths from inside rails to turf courses shall resemble the rest of the terrain, with no rails leading from the main course to the turf courses.

c. A portable rail shall be secure to absorb the impact of a horse.

Main track requirements include the following:

a. Each licensee shall provide a safety rail on the inside of each racing surface and such other fencing that is appropriate to safely enclose the racing surface for horses and riders.

b. The rail height shall be from 38 inches to 42 inches from the top of the cushion to the top of the rail. All top rails shall be bolted to poles and shall be smooth with no jagged edges. Rail posts shall be of a gooseneck type design and shall have no less than a 24-inch overhang with a continuous smooth elevated cover over posts.

c. All rails shall be constructed of materials designed to withstand the impact of a horse running at racing speed.

d. All rail posts shall be set in concrete at least six inches below the surface and 24 inches deep. A portable turf rail shall be secure to absorb the impact of a horse. No rail or post shall be used that will not take the impact of a horse or will break away, such as fiberglass, PVC, wood or hedges.

e. The design and construction of rails shall be approved by the commission prior to the first race meeting at the racetrack.

Each licensee shall provide distance poles marking off the racing surface and the poles shall be painted in the following colors: quarter poles, red and white; eighth poles, green and white; and sixteenth poles, black and white. All distance poles, including photofinish mirror imaging equipment and any other equipment, shall be set back a minimum of 10 feet from the back of the inside rail.
Each licensee shall provide racing surfaces whose construction, elevation, and surfaces have received scientific approval as safe and humane, adequate and proper equipment to maintain the racing surface, and sufficient trained personnel to properly operate the equipment. Daily records of maintenance shall be open for inspection.
Each licensee shall provide stabling in a sufficient amount to conduct a successful horse race meeting. The horses shall be quartered in individual stalls with separate feeding and watering facilities. Each barn, including the receiving barn, shall have a hot and cold water supply available, be well-ventilated, have proper drainage to prevent standing water and be constructed to be comfortable in all seasons during which racing is conducted.
Each licensee shall provide a stabling area that is maintained in approved sanitary condition with satisfactory drainage, manure, and other refuse kept in separate boxes or containers distant from living quarters, and the boxes or containers promptly and properly removed.
Each licensee shall provide a systematic and effective insect control program and programs to eliminate hazards to public health and comfort in the stabling area and throughout the enclosure.
Each licensee shall provide satisfactory living quarters for persons employed in the stabling area as well as satisfactory commissary, recreation, and lavatory facilities, and maintain the facilities in a clean and sanitary manner. No employee shall be permitted to sleep in any stall or barn loft.
Each licensee shall provide on every racing day satisfactory sanitary toilets and wash rooms, and furnish free drinking water for patrons and persons having business within the enclosure.
Each licensee shall provide a paddock where the horses are assembled prior to the post parade. Each licensee shall provide a public viewing area where patrons may watch the activities in the paddock. Each licensee shall also provide a sufficient number of roofed stalls so that horses may be housed during inclement weather.
Each licensee shall provide satisfactory facilities for jockeys or drivers who are participating in the day's program. The facilities shall include accommodations for rest and recreation, showers, toilets, wash basins, reducing facilities (sauna or steam room), arrangements for safe keeping of apparel and personal effects, and snack bar during horse race meetings.
Each licensee shall maintain an information desk where the public may make complaints regarding the facilities, operations of the licensee, or rulings of the commission. The licensee shall respond promptly to complaints, and inform the commission regarding any alleged violation of its regulations.
Each licensee shall maintain a test barn for use by commission employees in securing from horses that have run a race, samples of urine, saliva, blood, or other bodily substances for chemical analysis. The test barn shall include a wash rack, commission veterinarian office, a walking ring, and a sufficient number of stalls each equipped with a window sufficiently large to allow the taking of samples to be witnessed from outside the stall. The test barn shall be located convenient to the racing surface and shall be enclosed by a fence so that unauthorized persons shall be excluded. Space shall be provided for signing in and signing out of permittees whose attendance is required in the test barn.
Each licensee shall maintain a receiving barn conveniently located for use by horses arriving for races that are not quartered in the stabling area. The licensee shall have a sufficient number of stalls to accommodate the anticipated number of horses, hot and cold running water, and stall bedding. The licensee shall maintain the receiving barn in a clean and sanitary manner.
Each licensee shall provide and maintain lights so as to ensure adequate illumination in the stabling area and parking area. Adequacy of track lighting for night racing shall be determined by the commission.
Each licensee shall provide and maintain stands commanding an uninterrupted view of the entire racing surface for the stewards with the location to be approved by the commission. The licensee shall provide patrol judge stands so that the floor shall be at least six feet higher than the track rail. For harness racing, each licensee shall provide space for a patrol judge in the mobile starting gate that will accompany the horses during the race.
Each licensee shall furnish office space, approved by the commission, for the commission's use within the enclosure and an appropriate number of parking spaces so that its members and staff may carry out their duties.
Each licensee shall submit to the commission, at least 30 days prior to the opening day of a meeting, a complete list of its racing officials, as set forth elsewhere in these regulations, and department heads. No person shall hold any appointment for a horse race meeting unless approved by the commission after determination that the appointee is qualified for his duties, not prohibited by any law of the Commonwealth of Virginia or regulation of the commission, and eligible to hold a permit issued by the commission.
Each licensee shall provide a condition book, or for harness racing, a condition sheet, listing the proposed races for the upcoming racing days and prepared by the racing secretary, to the commission at least one week prior to opening day. Additional condition books or condition sheets shall be provided to the commission as soon as published.
No licensee shall allow any person to ride in a race or exercise any horse within the enclosure unless that person is wearing a protective helmet with the chin strap buckled. For flat racing, the term "exercising" is defined to include breezing, galloping, or ponying horses.
Each licensee shall employ at least three outriders for flat and steeplechase racing to escort starters to the post and to assist in the returning of all horses to the unsaddling area for flat races. No outrider shall lead any horse that has not demonstrated unruliness, but shall assist in the control of any horse that might cause injury to a jockey or driver or others. During racing hours, outriders will wear traditional attire. For flat race meetings, outriders shall be required to be present on the racing strip, mounted, and ready to assist in the control of any unruly horse or to recapture any loose horse, at all times when the track is open for exercising.
Each licensee shall employ for flat meets a sufficient number of valets to attend each jockey on a day's program. Valets will be under the immediate supervision and control of the clerk of scales. Each licensee shall provide uniform attire for valets who shall wear the uniform attire at all times while performing their duties within public view.
No licensee shall allow any person to ride in a race or to exercise any horse within the enclosure unless that person is wearing a protective safety vest. The vest shall be designed to provide shock-absorbing protection to the upper body of at least a rating of five as defined by the British Equestrian Trade Association (BETA).

C. Equipment. Each licensee shall provide all of the equipment for the conduct of horse racing so as to maintain horse racing of the highest quality and free of any corrupt, incompetent, dishonest, or unprincipled practices, and to maintain in horse racing complete honesty and integrity.

Each licensee shall maintain at least two operable starting gates for flat meetings and two operable mobile starting gates for harness racing. The licensee shall have in attendance one or more persons qualified to keep the starting gates in good working order and provide for periodic inspection. For flat meetings, the licensee shall also make at least one starting gate along with adequate personnel available for schooling for two hours each day during training hours, exclusive of nonrace days. For flat race meetings, the licensee shall have an adequate number of assistant starters to ensure the integrity of the start and to provide safe conditions for horse and rider. If a flat race is started at a place other than in a chute, the licensee shall maintain in good operating condition backup equipment for moving the starting gate. The backup equipment must be immediately available to replace the primary moving equipment in the event of failure. For harness racing meetings, a mobile starting gate shall be made available for qualifying races and schooling.
Each licensee shall maintain photo-finish equipment to assist the stewards and placing judges, where employed for flat race meetings, in determining the order of finish of each race. The licensee shall provide two electronic photofinish devices with mirror images to photograph the finish of each race. The location and operation of the photofinish devices must be approved by the commission before its first use in a race. The licensee shall ensure that the photofinish devices are calibrated before the first day of each race meeting and at other times as required by the commission. The standards and operations of the photo-finish camera as well as the methodology of the personnel shall be subject to the approval of the stewards:

a. The photo-finish photographer shall promptly furnish the stewards and placing judges prints as they are requested, and the photographer will promptly inform the stewards and placing judges of any malfunction of his equipment;

b. A print of a photo finish where the placing of horse is a half of length or less shall be displayed either by posting copies of the print or video means to the public promptly after the race has been declared "official"; and

c. Each licensee shall be responsible for maintaining a file of photo finishes of all races for one year after the closing of the horse race meeting.

Each licensee shall provide color video tape recordings of the running of each race clearly showing the position and actions of the horse and jockeys or drivers at close range. Each licensee shall provide at least three cameras to record panoramic and head-on views of the race. One camera shall be located on the finish line:

a. Promptly after a race has been declared "official," video tape recordings shall be replayed for the benefit of the public. In those races where there was a disqualification, video tapes of the head-on views may also be shown with an explanation by the public address announcer.

b. The licensee shall safeguard the tapes of all videotapes for one year after the close of the horse race meeting.

c. The stewards may, in their discretion, direct a video camera operator to videotape the activities of any horses or persons handling horses prior to, during or following a race.

Each licensee shall provide an electronic timing system. The system shall have the capability of timing the leading horse in at least hundredths of a second. Each licensee shall also provide a qualified person to manually time each race, including splits of each quarter of a mile, in the event of a malfunction of the electronic system.
Each licensee shall provide an internal communication system which links the stewards' stand, racing secretary's office, pari-mutuel department, jockeys' or drivers' room, paddock, test barn, commission veterinarian's office, starting gate, film patrol office, ambulances, public address announcer, patrol judges, and any other personnel designated by the commission.
Each licensee shall provide a public address system whereby calls of the races and other pertinent information may be communicated to the public. This system shall be utilized by a qualified person, and the system shall have the capability of transmitting throughout the stabling area.
Each licensee shall provide a totalizator and employ qualified personnel to operate the system, provide maintenance of the hardware, software, and ancillary wagering devices, and be able to perform emergency repairs in case of emergencies. The licensee shall also provide a mutuel board in the infield where approximate odds, amounts wagered in the win, place, and show pools on each betting interest, and other pertinent information may be prominently displayed to the public:

a. The totalizator shall maintain at least two independent sets of pool totals and compare them at least once every 60 seconds. The totalizator shall record in a system log file any difference in the final pool totals;

b. The totalizator shall have the capability of calculating the mutuel pools, approximate odds, probable payoffs and display them to the public at intervals of not more than 60 seconds;

c. The totalizator shall have the capability of being locked and wagering terminated automatically at the command of a steward. Any failure of the system to lock at the start of the race shall be reported immediately by the mutuel manager to the stewards;

d. The totalizator shall have the capability of displaying the probable payouts on various combinations in the daily double, exacta, and quinella wagering, and displaying the payoffs to the public;

e. The totalizator shall have the capability of recording the wagering by individual wagers, including the amount wagered, the betting interest, and the mutuel window where the wager was placed. The records of the wagering shall be promptly made available to the commission upon request. The licensee shall preserve the records of the wagering for one year after closing of the horse race meeting. The records shall not be destroyed without permission of the commission;

f. The personnel operating the totalizator shall report immediately to the stewards any malfunction in the system, or what they perceive to be any unusual patterns in the wagering;

g. The totalizator personnel shall make available to the commission any special reports or requests that may assist the commission in carrying out its statutory duties and responsibilities for the conduct of horse racing; and

h. The commission may require an independent certified audit of the totalizator's software attesting to the accuracy of its calculations and the integrity of its accounting processes.

Each licensee shall provide at least one human ambulance and at least one equine ambulance within the enclosure at all times during those hours when the racing and training surface is open for racing and exercising. However, a human ambulance shall not be required to be present during the exercising of Standardbred horses. The ambulances shall be manned and equipped to render immediate assistance, and shall be stationed at a location approved by the stewards.

a. The equine ambulance must be a covered vehicle that is low to the ground and large enough to accommodate a horse in distress. The equine ambulance must be able to navigate on the racetrack during all weather conditions and transport a horse outside the enclosure.

b. The equine ambulance must be equipped with large portable screens to shield a horse from public view, ramps to facilitate loading a horse, adequate means of loading a horse that is down, a rear door and a door on each side, a padded interior, a movable partition to initially provide more room to load a horse and to later restrict a horse's movement, a shielded area for the person who is attending to the horse, and an adequate area for the storage of water and veterinary medicines and equipment.

c. A licensee shall not conduct a race unless an equine ambulance or a commission veterinarian-approved substitute is readily available.

d. The equine ambulance, its supplies and attendants, and the operating procedures for the vehicle must be approved by the commission veterinarian.

e. The licensee shall maintain a properly equipped human ambulance, staffed with certified paramedics at any time the racetrack is open for racing or exercising horses. However, a human ambulance shall not be required to be present during the exercising of Standardbred horses. If the ambulance is being used to transport an individual, horses may not be raced or exercised until the ambulance is replaced.

f. Unless otherwise approved by the stewards, a human ambulance shall follow the field at a safe distance during the running of races, or in the event of inclement weather, two ambulances shall be parked to render immediate service. The human ambulance must be parked at an entrance to the racing surface unless the ambulance is being used to transport a person or when it is following the field during the running of a race.

g. During a racing day, the licensee shall maintain a first aid room equipped with at least two beds and other appropriate equipment, and the services of at least one physician during flat race meetings.

Each licensee shall maintain lighting for the racetrack and the patron facilities that is adequate to ensure the safety and security of the patrons, participants and horses. Lighting to ensure the proper operation of the videotape and photofinish devices must be approved by the commission.

a. The licensee shall maintain adequate additional lighting in the stable area as required by the commission.

b. If racing is conducted at night, the licensee shall maintain a backup lighting system that is sufficient to ensure the safety of patrons, participants and horses.

D. Safety. Each licensee shall employ sufficient trained personnel to provide for the safety and security of the public and others who have business within the enclosure. Each licensee shall also take all measures to prevent the outbreak of fires within the enclosure and develop plans for the quick extinguishing of any fires that should occur.

Each licensee shall provide sufficient trained security personnel under the supervision of a qualified director of security. If the licensee contracts with a private security service, the security service must be bonded and meet all applicable licensing requirements. If the licensee establishes its own security force, then director of security shall forward to the commission detailed plans for the screening, hiring, and training of its own personnel.
The director of security of each licensee shall cooperate fully with the commission and its staff, federal and state law-enforcement agencies, local police and fire departments, and industry security services to enforce all laws and regulations to ensure that horse racing in the Commonwealth of Virginia is of the highest integrity.
Each licensee shall develop a detailed security plan describing the equipment (i.e., fences, locks, alarms, and monitoring devices); the procedures to admit persons to restricted areas (i.e., stabling area, paddock, jockeys' or drivers' room, vault, mutuel lines, totalizator room, and test barn); and the trained personnel in sufficient numbers to provide for the safety and security of all persons during racing and nonracing hours.
Each licensee may provide a perimeter fence around the entire enclosure, but shall fence off the stabling area. The entrance to the stabling area shall be guarded on a 24-hour basis by uniformed security personnel so that unauthorized persons shall be denied access to the restricted stabling area. The licensee shall also provide for routine patrolling by uniformed security personnel on a 24-hour basis within the stabling area.
During racing hours, the licensee shall provide uniformed security personnel to guard the entrances to the paddock, jockeys' or drivers' room, and other restricted areas as may be deemed appropriate by the commission so that unauthorized persons shall be denied access to them.
The licensee's director of security shall submit to the commission a written report describing every arrest or completed incident of security investigation or rule violation including the person charged, the charges against the person, the present whereabouts of the person, and disposition of the charges, if any.
The licensee's director of security shall submit to the commission a detailed plan describing the procedures to be followed in case of fire or any other emergency within the enclosure. The plan shall contain the resources immediately available within the surrounding communities to cope with fire or other emergencies, route of evacuation for the public, controlling traffic, and those resources available from the surrounding communities for police, fire, ambulance, and rescue services.
Each licensee shall observe and enforce all state and local building codes and regulations pertaining to fire prevention, and shall prohibit the following:

a. Smoking in horse stalls, feed rooms, or under the shedrow;

b. Open fires and oil or gasoline burning lanterns or lamps in the stable area;

c. The unsafe use of electrical appliances or other devices which would pose a hazard to structures, horses, permittees, or the public; and

d. Keeping flammable materials including cleaning fluids or solvents in the stabling area.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-01-02 § 2.18, Virginia Register Volume 6, Issue 10, eff. March 14, 1990; Volume 20, Issue 23, eff. August 25, 2004; Volume 28, Issue 13, eff. March 27, 2012; Volume 29, Issue 13, eff. March 1, 2013; Volume 31, Issue 25, eff. September 9, 2015.

11VAC10-20-200 Request for racing days

A. Generally. A holder of an owner-operator's or operator's license has the privilege of conducting horse race meetings at facilities, licensed by the commission, with pari-mutuel wagering for a period of 20 years, subject to annual review by the commission. A holder of an owner-operator's or operator's license shall submit an annual request to the commission for racing days.

B. Where to file request. The licensee shall submit a request for racing days for the following calendar year in writing to the general business office of the commission at a time designated by the commission. The commission may, in its discretion, extend the deadline.

A request to be sent by certified mail shall be addressed to:

Executive Secretary

Virginia Racing Commission

Post Office Box 208

New Kent, VA 23124

A request to be hand-delivered shall be delivered to:

Executive Secretary

Virginia Racing Commission

1500 East Main Street

Suite 301

Richmond, VA 23219

A request delivered by hand or by certified mail will be timely only if received at the main office of the commission by 5 p.m. on or before the date prescribed.
Delivery to other than the commission's main office or to commission personnel by hand or by mail is not acceptable.
The licensee assumes full responsibility for the method chosen to deliver the request.

C. Content of request. The licensee's request in writing shall include a statement of how the request will provide for the promotion, sustenance, and growth of a native industry, in a manner consistent with the health, safety and welfare of the people, except that the commission, in its discretion, may waive the foregoing. The request shall include the following:

A request, signed by an officer of the licensee, for assignment of racing days;
A statement of the precise nature and extent of the assignment requested including the total number of racing days requested, the dates within which the racing days are to be conducted and the dark days, the breed or breeds to be utilized, the type or types of racing to be offered, the horse racing facility where the racing days are to be conducted, the hours of racing, and the projected purse structure.
A detailed statement of how the request meets the criteria established in 11VAC10-20-220 C; and
Any other documentation the licensee deems material to ensure a complete understanding of the request.

D. Amendment of request. A licensee may at any time amend a properly submitted request for racing days for commission approval.

E. Rescission of racing days. The commission may in its discretion rescind one or more racing days assigned to a licensee, if the commission finds that the licensee has not or will not meet the terms of its license. Any days rescinded may be reassigned to another licensee.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-01-02 § 2.19, Virginia Register Volume 6, Issue 13, eff. April 25, 1990; Volume 20, Issue 25, eff. September 23, 2004.

11VAC10-20-210 Owner, owner-operator, or operator unlimited license application fee

An applicant for an owner's, owner-operator's, or operator's license under § 59.1-375 of the Act must submit a nonrefundable application fee to the commission's designee at the time of application by a certified check or bank draft to the order of the Commonwealth of Virginia in the amount of $10,000 to cover the cost of the background investigations mandated by § 59.1-371 of the Code of Virginia. In the event the cost of the investigation exceeds the $10,000 application fee, the applicant must remit the amount of the difference by certified check or bank draft within 10 days after receipt of a bill from the commission.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-01-02 § 2.20, Virginia Register Volume 6, Issue 10, eff. March 14, 1990.

11VAC10-20-220 Assignment of racing days

A. Generally. The commission shall promptly consider a request for racing days and assign racing days to a licensee.

B. Consideration of requests. Upon receipt of a request for assignment or revision of racing days, the commission shall consider the request at its next regular meeting and may, in its discretion, assign the racing days as requested, modify the request, deny the request, or hold a public hearing pursuant to the following procedures.

If the commission deems a hearing is appropriate, the commission shall send written notice to the licensee and give due notice of the public hearing. The notice must include a brief description of the request, a statement that persons wishing to participate may do so in writing, the time and place of any public hearing on the request, and the earliest and latest date that the commission may act.
The licensee will be afforded the opportunity to make an oral presentation, and the licensee or its representative shall be available to answer inquiries by the commissioners.
Any affected parties, including horsemen, breeders, employees of the licensee, representatives of other state and local agencies will be afforded the opportunity to make oral presentations. The public may be afforded the opportunity to make oral presentations and shall be given the opportunity to submit written comments.
If, after a request is received, the commission determines that additional information from the licensee is necessary to fully understand the request, the commission shall direct the licensee to submit additional information.
If the commission further determines it is necessary for a full understanding of a request, the commission shall request the licensee or a person submitting comments to appear before the commission. The commission shall request the appearance in writing at least five days in advance.
If a licensee fails to comply with the foregoing, the commission may deny the request for racing days.
A record of the proceedings shall be kept, either by electronic means or by court reporter, and the record shall be maintained until any time limits for any subsequent court appeals have expired.
Three or more members of the commission are sufficient to hear the presentations. If the chairman of the commission is not present, the commissioners shall choose one from among them to preside over the hearing.

C. Criteria for assignment of racing days. The commission, in making its determination, must consider the success and integrity of horse racing; the public health and safety, and welfare; public interest, necessity and convenience; as well as the following factors:

The integrity of the licensee;
The financial resources of the licensee;
The ability of the licensee to conduct horse racing, including the licensee's facilities, systems, managers, and personnel;
Past compliance of the licensee with statutes, regulations, and orders regarding horse racing with pari-mutuel wagering privileges;
The licensee's market, including area, population, and demographics;
The performance of the horse race meeting with previously assigned dates;
The impact of the assignment of racing days on the economic viability of the horse racing facility including attendance and pari-mutuel handle;
The quantity and quality of economic development and employment generated;
Commonwealth tax revenues from racing and related economic activity;
The entertainment and recreation opportunities for residents of the Commonwealth;
The breeds of horse racing;
The quality of racing;
The availability and quality of horses;
The development of horse racing;
The quality of the horse racing facility;
Security;
Purses;
Benefits to Virginia breeders and horse owners;
Stability in racing dates;
Competition among horse racing facilities, other racing days and with other providers of entertainment and recreation as well as its effects;
The social effects;
The environmental effects;
Community and government support;
Sentiment of horsemen; and
Any other factors related to the assignment of racing days that the commission deems crucial to its decision-making as long as the same factors are considered with regard to all requests.

D. Assigning racing days. In assigning racing days to a licensee, the commission shall designate in writing the total number of racing days assigned, the dates within which the racing days are to be conducted and dark days, the breed or breeds to be utilized, the type or types of racing to be offered, the horse racing facility where the racing days will be conducted, and the hours of racing.

The commission shall approve, deny or give its qualified approval to a request for racing days within 45 days after a public hearing, if a public hearing was held on the request.
Upon application by the licensee, the commission may, in its discretion, change the assignment of racing days previously made.
The commission shall require a bond with surety or a letter of credit in an amount it determines to be sufficient to cover any indebtedness, including but not limited to purses, awards to horsemen and moneys due the Commonwealth of Virginia, incurred by the licensee.

E. Denial of request final. The denial of a request by the commission shall be final unless appealed by the licensee under the provisions of these regulations.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-01-02 § 2.21, Virginia Register Volume 6, Issue 13, eff. April 25, 1990; Volume 20, Issue 23, eff. August 25, 2004.

11VAC10-20-230 Payment of owner and operator license fee

An owner's or operator's license becomes effective upon the receipt by the commission of a certified check or bank draft to the order of the Commonwealth of Virginia in the amount of license fees and is suspended if the license fee is not received on or before the specified dates:

Owner's license: A nonrefundable fee of $5,000 per year due and payable within 10 days of the original license being issued and on or before January 1 of each succeeding year.
Operator's license: A nonrefundable fee of $100 times the number of racing days awarded in the annual application for racing days due and payable on or before January 1 of each year.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-01-02 § 2.22, Virginia Register Volume 6, Issue 10, eff. March 14, 1990.

11VAC10-20-240 Transfer or acquisition of interest in owner's, owner-operator's or operator's license

A. Generally. A licensee already holding a limited or unlimited owner's, owner-operator's or operator's license may apply to the commission to transfer its race meet or meetings to that of another horse racing facility already licensed by the commission.

B. Requirements for transfer of racing days. The licensee shall apply to the commission in writing requesting the transfer of its racing days to that of another licensee stating:

The reason for the transfer;
Why the transfer will provide for the promotion, sustenance, and growth of horse racing and breeding, in a manner consistent with the health, safety, and welfare of the Commonwealth of Virginia;
Why the transfer will maintain horse racing in the Commonwealth of the highest quality, and free of any corrupt, incompetent, dishonest, or unprincipled practices and maintain complete honesty and integrity;
Why the transfer will not adversely affect the operation of any other horse racing facility licensed by the commission;
That the transfer has been expressly consented to by the licensee to which the transfer is to be made;
That all licensees agree to be bound by the regulations and requirements placed upon it by the commission before the application for the transfer was submitted; and
That all licensees to whom racing days are to be transferred, have paid all and any applicable license fees for the conduct of horse racing, with pari-mutuel wagering privileges, at the particular facility or place for holding races on which the racing is to be conducted.

C. Consideration by commission. The commission will take into account the statement submitted by the licensee and any other testimony or documentation that it deems material before approving or denying the request for transfer of a race meet or meetings. The commission shall act on the application within 60 days of receipt.

D. Acquiring an interest in a licensee. Any person desiring to become a partner, member or principal stockholder of any licensee, or to acquire actual control of a licensee, whether direct or indirect, individually or in concert with others, shall apply to the commission for approval.

The commission may demand such information of the applicant as it finds it necessary to consider and act on the application. The application shall include all applicable disclosures required by the commission for licensure as owners or operators, as specified in 11VAC10-20-20 through 11VAC10-20-180 of this chapter. The commission shall consider the application forthwith and shall approve or deny the application within 60 days of receipt. The commission shall deny any application if in its judgment the acquisition would be detrimental to the public interest, or to the honesty, integrity, and reputation of racing.
The commission shall approve an application to become a partner, member or principal stockholder if the application meets the criteria set forth in the Act and subdivision 1 of this subsection.
The commission shall approve an application to acquire actual control of a licensee only if it finds that the applicant meets the criteria set forth in the Act, the criteria set forth in subdivision 1 of this subsection for a partner, member or principal stockholder, and the criteria set forth in this subdivision.

a. If an applicant proposes to acquire actual control of a licensee, such person shall submit to the commission:

(1) The applicant's proposal for the future operation of any existing or planned racetrack, or satellite facility owned or operated by the licensee;

(2) Such additional information as the applicant desires; and

(3) Such information as may be required by the commission to assure the commission that the licensee, under the actual control of such person, will have the experience, expertise, financial responsibility and commitment to comply with:

(a) The provisions of the Act;

(b) Commission regulations and orders;

(c) The requirements for the continued operation of the licensee pursuant to the terms and conditions in effect on the date of the application of all licenses held by the licensee;

(d) Any existing contract with a recognized majority horsemen's group; and

(e) Any proposal submitted to the commission by such person.

b. Any such acquisition of control without prior approval of the commission shall be voidable by the commission and, in such instance, the commission may revoke any license it has issued to such licensee, order compliance with this subsection, or take such other action as may be appropriate within the authority of the commission.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-01-02 § 2.23, Virginia Register Volume 6, Issue 13, eff. April 25, 1990; Volume 22, Issue 11, eff. March 8, 2006.

11VAC10-20-250 (Repealed.)

Historical Notes

Derived from VR662-01-02 § 2.24, Virginia Register Volume 6, Issue 13, eff. April 25, 1990; repealed, Virginia Register Volume 10, Issue 13, eff. April 20, 1994.

Part III Pari-Mutuel Wagering

11VAC10-20-260 Generally

A. Permitted wagering. All permitted wagering shall be under a pari-mutuel wagering system whereby the holders of winning tickets divide the total amount wagered, less retainage, in proportion to the sums they have wagered individually. All other systems of wagering other than pari-mutuel, e.g., bookmaking and auction-pool selling, are prohibited and any person participating or attempting to participate in prohibited wagering shall be excluded from the enclosure or satellite facility.

B. Persons under the age of 18 are prohibited from wagering. No person under the age of 18 shall be permitted by any licensee to purchase or cash a pari-mutuel ticket. No employee of the licensee shall knowingly sell or cash any pari-mutuel ticket for a person under the age of 18.

C. Posted order of finish. Payment of valid pari-mutuel tickets shall be made on the basis of the order of finish as posted on the display devices and declared "official" by the stewards. Any subsequent change in the order of finish or award of purse money as may result from a ruling by the stewards or commission shall in no way affect the pari-mutuel payout.

D. Errors in payment. The licensee shall be responsible for the correctness of all payouts posted as "official" on the display devices. If an error is made in posting the payout figures on the display devices and discovered before any tickets are cashed, the error shall be corrected accompanied by a public address announcement, and only the correct amounts shall be used in the payout, irrespective of the initial error on the display devices.

The licensee shall compare the two independent final pool totals and payouts calculated by the totalizator prior to posting them on the display devices.
If an error is made in posting the payout figures on the display devices and discovered after tickets have been cashed, where the public is underpaid, the amount of the underpayment shall be added to the same pool immediately following. Where the public is overpaid, the amount of the overpayment shall be absorbed by the licensee.
If any underpayment is discovered after the close of the horse race meeting or an opportunity does not exist to add the amount of the underpayment to the same pool, the total underpayment shall be placed in an interest-bearing account and added to the same pool at the next race meeting of the same breed.

E. Minimum wagers. The minimum wager for straight wagering shall be $2.00. The licensee may determine the minimum wager for multiple wagering, which shall be no less than $.10.

F. Minimum payouts. The licensee shall pay to the holder of any ticket entitling the holder to participate in the distribution of a pari-mutuel pool the amount wagered by the holder plus a minimum profit of 5.0% or $.01, whichever is greater. If such a payout creates a deficiency in the pari-mutuel pool, the licensee shall make up the deficiency from its share of the pari-mutuel wagering.

The licensee, with the approval of the stewards, may bar wagering on a horse or entry in any or all pari-mutuel pools in a stakes race, handicap, futurity or other special event where the licensee has good and sufficient reason to believe that accepting wagers on the horse or entry may result in a deficiency or minus pool. The decision to bar wagering on a horse or entry shall be announced publicly before wagers are accepted on that race.

G. Posting of regulations. A general explanation of this chapter may be posted for the benefit of the public in the wagering areas of the enclosure and satellite facilities.

H. Identification of holder. The licensee shall require positive identification of a holder of a valid winning pari-mutuel ticket before the payment when, in the stewards' discretion, circumstances warrant this action.

I. Wagers placed in cash. The licensee shall only accept wagers placed in cash or vouchers and then only at the racetrack or satellite facilities. It shall be the responsibility of the licensee to instruct the mutuel clerks to accept wagers on a "cash only" basis.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-01-02 § 3.1, Virginia Register Volume 6, Issue 13, eff. April 25, 1990; Volume 14, Issue 1, eff. October 29, 1997; Volume 18, Issue 20, eff. May 22, 2002; Volume 22, Issue 15, eff. March 7, 2006; Volume 29, Issue 13, eff. March 1, 2013.

11VAC10-20-270 Request for types of pari-mutuel pools

A. Generally. Each licensee shall submit a request in writing to the commission for approval of the types of pari-mutuel wagering pools that are to be offered to the public during the horse race meeting. The request for approval of types of pari-mutuel wagering pools shall be submitted to the commission in writing no less than 30 days before the scheduled opening day of the horse race meeting.

B. Content of request. The licensee's request in writing shall include a statement of how the request will provide for the promotion, sustenance and growth of a native industry, in a manner consistent with the health, safety and welfare of the people, except that the commission, in its discretion, may waive the foregoing.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-01-02 § 3.2, Virginia Register Volume 6, Issue 13, eff. April 25, 1990; Volume 14, Issue 1, eff. October 29, 1997; Volume 18, Issue 20, eff. May 22, 2002.

11VAC10-20-280 Approval of pools

A. Generally. The commission shall promptly consider a request for types of pari-mutuel wagering pools.

B. Consideration of requests. Upon receipt of a request for approval or modification of types of pari-mutuel wagering pools, the commission shall consider the request at its next regularly scheduled meeting, and may, in its discretion, approve the types of pari-mutuel wagering pools as requested, modify the request, or deny the request.

C. Criteria for approval of pools. The commission, in making its determination, must consider the success and integrity of horse racing; the public health and safety, and welfare; and public interest, necessity, and convenience.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-01-02 § 3.3, Virginia Register Volume 6, Issue 13, eff. April 25, 1990; Volume 14, Issue 1, eff. October 29, 1997; Volume 18, Issue 20, eff. May 22, 2002.

11VAC10-20-290 Pari-mutuel tickets

A. Generally. A valid pari-mutuel ticket is evidence of a contribution to the pari-mutuel pool operated by the licensee and is evidence of the obligation of the licensee to pay to the holder the portion of the distributable amount of the pari-mutuel pool as is represented by the ticket.

B. Valid pari-mutuel tickets. To be deemed a valid pari-mutuel ticket, the ticket must have been issued by a pari-mutuel ticket machine operated by the licensee and recorded as a ticket entitled to a share of the pari-mutuel pool, and contain imprinted information as to:

The name of the licensee;
A unique identifying number or code;
The name of the track at which the wager is placed;
Identification of the terminal at which the ticket was issued;
A designation of the racing day for which the wagering transaction was issued;
The race number for which the pool was conducted;
The types or types of wagers represented;
The number or numbers representing the wagering interests for which the wager was made; and
The amount or amounts of the contributions to the pari-mutuel pool or pools for which the ticket is evidence.

C. Ticket cancellation. All tickets with a total value of $250 or less on live or simulcast races may be cancelled at any window at any time prior to post time for that race. All tickets exceeding $250 may also be cancelled at any time prior to post time for the race on which the wager was made. However, this cancellation requires the approval of the mutuel manager or his designee. It shall be the responsibility of the mutuel manager or his designee to determine if the approval of the cancellation will considerably alter or manipulate the pari-mutuel pool, and a written report must be submitted to the commission.

D. Invalid claims. There shall be no refunds or payouts for lost or destroyed tickets, or tickets which have been mutilated beyond identification.

E. Identification of tickets. The responsibility for identifying valid pari-mutuel tickets rests with the licensee.

F. Limits on cashing tickets. Payment on valid pari-mutuel tickets, including tickets where refunds are ordered, shall be made only upon presentation and surrender of valid pari-mutuel tickets to the licensee within 180 days after the purchase of the ticket. Failure to present any valid pari-mutuel ticket to the licensee within 180 days after the purchase of the ticket shall constitute a waiver of the right to payment.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-01-02 § 3.4, Virginia Register Volume 6, Issue 13, eff. April 25, 1990; Volume 14, Issue 1, eff. October 29, 1997; Volume 18, Issue 20, eff. May 22, 2002.

11VAC10-20-300 Operations of the mutuel department

A. Generally. Each licensee shall strive to keep the daily program of racing progressing as expeditiously as possible with due regard for the health, safety, and comfort of the public and participants. The licensee shall provide a sufficient number of mutuel windows and clerks so that the public will be conveniently accommodated.

B. Post time. Post time for the first race on each racing day shall be approved by the commission upon written request by the licensee. Post time for subsequent races on the same program shall be fixed by the mutuel manager. Where heat racing is utilized in harness racing, the time between separate heats of a single race shall not be less than 40 minutes.

C. Termination of wagering. The pari-mutuel machines shall be locked by a steward immediately upon the start of the race through an electrical control in the stewards' stand or before the start of a race through a method subject to the approval of the commission.

D. Unwarranted delays. If the start of the race is delayed two minutes or more beyond the official post time, as shown on the display devices, for no good reason, the stewards may, in their discretion, lock the ticket-issuing machines.

E. Commencement of wagering. Mutuel windows shall open no less than 30 minutes before the first race. Cashing of tickets shall begin, and selling shall resume, as soon as possible after the official results of a race have been posted on the display devices.

F. Interruptions of wagering. If, for any reason, including a malfunction of the totalizator, the ticket-issuing machines are locked during the wagering on a race before the start, they shall remain locked until after the race. Wagering shall cease on that race, and the payout for that race shall be computed on the sums then wagered in each pool. However, in the event the ticket-issuing machines are inadvertently locked through some human error or mechanical problem, the ticket-issuing machines shall be reopened only on the approval of the stewards, if the system balances when it is again operational.

G. Conclusion of wagering. No pari-mutuel tickets may be sold after the totalizator has been locked, and the licensee shall not be responsible for pari-mutuel ticket sales entered into but not completed by issuance of a ticket before the totalizator has been locked.

H. Designated windows. No pari-mutuel tickets shall be sold except by the licensee, and pari-mutuel tickets shall only be sold at regular windows properly designated by signs and freestanding self-service or ticket issuing devices.

I. Compliance with tax regulations. All payouts on winning tickets shall be subject to withholding of federal and state taxes when the amount of the payout exceeds the dollar threshold set by the U.S. Internal Revenue Service. In those cases where the payouts require identification and deduction of withholding taxes prior to cashing pari-mutuel tickets to holders, the licensee shall comply with the applicable regulations of the Internal Revenue Service and the statutes of the Commonwealth of Virginia requiring identification and deduction of withholding taxes.

J. Emergency situations. If any emergency arises in connection with the operation of the mutuel department at a racetrack or satellite facility and the emergency is not covered by these regulations and an immediate decision is necessary, the mutuel manager shall make the decision, and make a prompt report of the facts to the stewards and the commission.

K. Simulcast pools. When wagers are commingled at a racetrack in another jurisdiction, the licensee shall make payouts on winning wagers at the price posted at the racetrack where the live race took place. However, once wagering has commenced and circumstances prevent commingling some or all of the wagers to the racetrack in the other jurisdiction, the licensee, through a previously established written policy approved by the commission, shall:

Pay prices posted by the racetrack in the other jurisdiction;
Establish its own pools using the wagers that were not commingled with the racetrack in the other jurisdiction;
Refund all wagers, if an announcement is made not less than two minutes prior to the post time that commingling cannot be accomplished and the circumstances involve only one race; or
Refund all wagers, if the wager involves more than one race and an announcement that commingling cannot be accomplished by the start of the first race or not more than 10 minutes after the finish of the first race of the wager, unless there is a payout due a wager as a result of the first race.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-01-02 § 3.5, Virginia Register Volume 6, Issue 13, eff. April 25, 1990; Volume 14, Issue 1, eff. October 29, 1997; Volume 18, Issue 20, eff. May 22, 2002.

11VAC10-20-310 Wagering interests

A. Generally. The licensee shall be responsible for the coupling of horses for wagering purposes in accordance with these regulations and shall provide wagering opportunities in accordance with the success and integrity of horse racing as well as the public interest.

B. Coupled entries. When two or more horses run in a race and are coupled for wagering purposes, a wager on one of the horses shall be a wager on all of them. The horses so coupled are called "an entry."

C. Mutuel field. When the individual horses competing in a race exceed the numbering capacity of the display devices, the highest numbered horses within the capacity of the display devices and all horses of a higher number shall be grouped together and called the "mutuel field," and a wager on one of them shall be a wager on all of them.

D. Pools dependent upon wagering interests. Unless the commission otherwise provides, at the time the pools are opened for wagering, the licensee:

Shall offer win wagering on all contests with three or more betting interests.
Shall offer place wagering on all contests with four or more betting interests.
Shall offer show wagering on all contests with five or more betting interests.
May offer quinella wagering on all contests with three or more betting interests.
May offer quinella double wagering on all contests with three or more betting interests.
May offer exacta wagering on all contests with two or more betting interests.
May offer trifecta wagering on all contests with three or more betting interests.
May offer superfecta wagering on all contests with four or more betting interests.
Shall not offer twin trifecta wagering on any contests with six or less betting interests.

E. Steward's approval. Once pools are opened for wagering, no changes to or cancellations of the betting pools shall be made without prior approval of the stewards.

F. Extraordinary circumstances. In extraordinary circumstances, discretion is vested in the stewards to cancel any trifecta, exacta, quinella, or any other multiple wager pool, and assign multiple wagering pools to other races when the stewards believe it would best maintain in horse racing complete honesty and integrity.

G. Stake races and special events. In the case of stake races, handicaps, futurities, and other special events, the licensee may offer any straight and multiple wagering pools regardless of the number of wagering interest upon submission of a request in writing to the commission and approval from the commission or its executive secretary.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-01-02 § 3.6, Virginia Register Volume 6, Issue 13, eff. April 25, 1990; Volume 14, Issue 1, eff. October 29, 1997; Volume 18, Issue 20, eff. May 22, 2002; Volume 23, Issue 18, eff. May 31, 2007.

11VAC10-20-320 Straight wagering

A. Generally. Win, place, and show pari-mutuel wagering pools shall be considered "straight wagering." In any race, the win, place, and show pools are treated separately, and the distribution of the profits are calculated independently of each other. The "net pool" to be distributed as profit shall be all sums wagered in the pool, less retainage and breakage, as defined elsewhere in these rules.

B. Win pools. The amount wagered to win on the horse or wagering interest which finished first is deducted from the net pool and the balance which remains is profit. The profit is divided by the amount wagered on the horse or wagering interest finishing first, this quotient being the profit per dollar wagered to win. The return to the holder includes the amount wagered and the profit. In addition, the following provisions apply to win pools:

If there is a dead heat for first involving two horses of two different wagering interests, the net win pool shall be distributed as if it were a place pool. If the dead heat involves horses of three wagering interests, the net win pool is distributed as if it were a show pool; and
If no win ticket is sold on the horse which finishes first, then the net win pool is distributed to the holders of win tickets on the horse or wagering interest finishing second. If no such ticket is sold, then the licensee shall make a prompt refund.

C. Place pools. The amounts wagered to place on the first two horses to finish are deducted from the net place pool and the balance which remains is profit. The profit is divided into two equal amounts; one-half of the profit is divided by the amount wagered to place on the first finisher, this quotient being the profit per dollar wagered to place on the first finisher; and one-half of the profit is divided by the amount wagered to place on the second finisher, this quotient being the profit per dollar wagered to place on the second finisher. The return to the holder includes the amount wagered and the profit.

If there is a dead heat for first between horses representing the same wagering interest, the net place pool is distributed as if it were a win pool. If the dead heat is between horses representing two different wagering interests, the place pool is distributed as if one wagering interest finished first and the other finished second. If the dead heat is among horses representing three different wagering interests, the net place pool is distributed as if it were a show pool.
If there is a dead heat for second between horses representing the same wagering interest, the net place pool is distributed as if no dead heat occurred. If the dead heat for second is between horses representing two or more wagering interests, the net place pool is divided in half, with one-half allocated to the horse finishing first and the other one-half divided equally so as to allocate one-fourth of the net place pool for wagers to place on each of the two horses finishing in a dead heat for second, or one-sixth of the net place pool for wagers to place on each of three horses finishing in a dead heat for second.
If the first and second finishers comprise a single wagering interest, the net place pool is distributed as if it were a win pool.
If no place ticket is sold on a horse which finishes first or second, then the horse which finished third shall replace that horse in the distribution of wagers in the net place pool. If no such ticket is sold, then the licensee shall make a prompt refund.

D. Show pools. The amounts wagered to show on the first three horses to finish are deducted from the net pool to determine the profit. The profit is divided into three equal amounts. One-third of the net show pool is divided by the amount wagered to show on the first finisher, the quotient being the profit per dollar wagered to show on the first finisher; one-third of the net show pool is divided by the amount wagered to show on the second finisher, the quotient being the profit per dollar wagered to show on the second finisher; and one-third of the profit is divided by the amount wagered to show on the third finisher, the quotient being the profit per dollar wagered to show on the third finisher. The return to the holder includes the amount wagered and the profit.

If there is a dead heat for first between two horses involving different wagering interests, or three horses involving three different wagering interests, the show pool is distributed as if no dead heat occurred. If the dead heat for first is between two horses including the same wagering interest, two-thirds of the profit is allocated to wagers to show on the coupled wagering interest and one-third of the profit is allocated to wagers to show on the other horse among the first three finishers. If the dead heat for first is among three horses including one wagering interest, the show pool is distributed as if it were a win pool.
If there is a dead heat for second between two horses including different wagering interests, the show pool is distributed as if no dead heat occurred. If the dead heat for second is between horses including the same wagering interest, two-thirds of the net show pool shall be allocated to wagers to show on the coupled wagering interest and one-third of the profit shall be allocated to wagers to show on the horse finishing first. If the dead heat for second is among three horses involving two or three wagering interests, one-third of the net show pool is allocated to wagers to show on the horse finishing first and the remaining two-thirds of the net show pool is divided equally by the number of wagering interests finishing in a dead heat for second for proportionate distribution on wagers to show for each wagering interest finishing in a dead heat for second.
If there is a dead heat for third between horses involving the same wagering interests, the net show pool is distributed as if no dead heat occurred. If the dead heat for third is among horses involving two or more wagering interests, two-thirds of the net show pool shall be allocated to wagers to show on the first two finishers and the remaining one-third of the net show pool is divided equally by the number of wagering interests finishing in a dead heat for third for proportionate distribution on wagers to show for each wagering interest finishing in a dead heat for third.
If the first three horses to finish comprise one wagering interest, the net show pool shall be distributed as if it were a win pool. If two horses coupled as a single wagering interest finish first and second, or first and third, or second and third, two-thirds of the net show pool shall be allocated to wagers to show on the single wagering interest and one-third of the net show pool shall be allocated to wagers on the other horse among the first three finishers.
In the event one horse coupled in the wagering by reason of being in the mutuel field or part of a mutuel entry finishes first or second and another horse included in the same wagering interest finishes in a dead heat for third, the allocation of the net show pool shall be:

One-half of the net show pool shall be allocated to the wagers on the field or entry, one-third of the net show pool shall be allocated to the horse finishing first or second, and one-sixth of the net show pool allocated for the horse finishing in a dead heat for third. The remaining one-sixth of the net show pool shall be allocated to wagers on the horse, which was not a part of the mutuel field or entry, finishing in a dead heat for third.

In the event only two horses finish, the net show pool, if any, shall be distributed as if it were a place pool. If only one horse finishes, the net show and place pools, if any, shall be distributed as if it were a win pool.
If, in the event no show ticket is sold on a horse which finishes first, or second, or third, then, the horse which finished fourth shall replace that horse in the distribution of wagers in the show pool. If no such ticket is sold, then the licensee shall make a prompt refund.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-01-02 § 3.7, Virginia Register Volume 6, Issue 13, eff. April 25, 1990.

11VAC10-20-330 Multiple wagering

A. Generally. Daily double, quinella, exacta, trifecta, quinella double, pick (n), twin trifecta, and superfecta pari-mutuel wagering pools shall be considered "multiple wagering." In any race or races, the daily double, quinella, exacta, trifecta, quinella double, pick (n), twin trifecta, and superfecta pools are treated separately and the distribution of the pools are calculated independently of each other. The "net pool" to be distributed shall be all sums wagered in the pool, less retainage and breakage, as defined elsewhere.

B. Daily double pools. The daily double wager is the purchase of a pari-mutuel ticket to select the two horses that will finish first in the two races specified as the daily double. If either of the selections fails to win, the pari-mutuel ticket is void, except as otherwise provided. The amount wagered on the winning combination, the horse or wagering interest which finishes first in the first race coupled with the horse or wagering interest finishing first in the second race of the daily double, is deducted from the net pool to determine the profit. The profit is divided by the amount wagered on the winning combination, the quotient being the profit per dollar wagered on the winning daily double. The return to the holder includes the amount wagered and the profit. In addition, the following provisions apply to daily double pools:

If there is a dead heat for first including two different wagering interests in one of the two daily double races, the daily double pool is distributed as if it were a place pool, with one-half of the net pool allocated to wagers combining the single winner of one daily double race and one of the wagering interests involved in the dead heat in the other daily double race, and with the other one‑half of the net pool allocated to the wagers combining the single winner of one daily double race and the other wagering interest involved in the dead heat in the other daily double race.
If there are dead heats for first involving different wagering interests in each of the daily double races which result in winning combinations, the net pool shall be allocated equally to the winning combinations after first deducting from the net pool the amount wagered on all winning combinations for proportionate allocation to the winning daily double combinations.
If no daily double ticket is sold combining the horse or wagering interest which finishes first in one of the daily double races, the daily double pool is distributed as if it were a win pool, with the net pool allocated to wagering combinations which include the horse or wagering interest which finished first in one of the daily double races.
If no daily double ticket is sold combining the horses or wagering interests which finish first in both the first and second race of the daily double, then the winning combinations for distribution of the daily double profit shall be that combining the horses or wagering interests which finished second in each of the daily double races.
If, after daily double wagering has begun, a horse not coupled with another as a wagering interest in the first race of the daily double is excused by the stewards or is prevented from obtaining a fair start, then daily double wagers combining the horse shall be deducted from the daily double pool and shall be promptly refunded.
If, after the first race of the daily double has been run, a horse not coupled with another as a wagering interest in the second race of the daily double is excused by the stewards or prevented from obtaining a fair start, then daily double wagers combining the winner of the first daily double race with the horse, which was excused or was prevented from obtaining a fair start, shall be allocated a consolation daily double.
Consolation daily double payoffs shall be determined by dividing the net daily double pool by the amount wagered combining the winner of the first daily double race with every horse or wagering interest scheduled to start in the second daily double race, the quotient being the consolation payoff per dollar wagered combining the winner of the first daily double race with the horse prevented from racing in the second daily double race. The return to the holder includes the amount wagered and the profit. The consolation payoff shall be deducted from the net daily double pool before calculation and allocation of wagers on the winning daily double combination.
If for any reason the first race of the daily double is cancelled and declared "no contest" a full and complete refund shall be promptly made of the daily double pool.
If for any reason the second race of the daily double is cancelled and declared "no contest," the net daily double pool shall be paid to the holders of daily double tickets which include the winner of the first race. If no such ticket is sold, then the net daily double pool shall be paid to the holders of daily double tickets which include the second place horse. If no daily double tickets were sold on the second place horse, then the licensee shall make a prompt refund.

C. Quinella pools. The quinella wager is the purchase of a pari-mutuel ticket to select the first two horses to finish in the race. The order in which the horses finish is immaterial. The amount wagered on the winning combination, the first two finishers irrespective of which horse finishes first and which horse finishes second, is deducted from the net pool to determine the profit. The net pool is divided by the amount wagered on the winning combination. The return to the holder includes the amount wagered and the profit. In addition, the following provisions apply to the quinella pools:

If there is a dead heat for first between horses including two different wagering interests, the net quinella pool is distributed as if no dead heat occurred. If there is a dead heat among horses involving three different wagering interests, the net quinella pool is distributed as if it were a show pool and the pool is allocated to wagers combining any of the three horses finishing in the dead heat for first.
If there is a dead heat for second between horses including two different wagering interests, the net quinella pool is distributed as if it were a place pool and it is allocated to wagers combining the first finisher with either horse finishing in a dead heat for second. If the dead heat is among horses involving three different wagering interests, the net quinella pool is distributed as if it were a show pool and it is allocated to wagers combining the first horse with each of the three horses finishing in a dead heat for second.
If horses representing a single wagering interest finish first and second, the net quinella pool shall be allocated to wagers combining the single wagering interest with the horse or wagering interest with the horses or wagering interest which finishes third.
If no quinella ticket is sold combining the first finisher with one of the horses finishing in a dead heat for second, then the net quinella pool is allocated to wagers combining the first finisher with the other horse finishing in a dead heat for second.
If no quinella ticket is sold combining the first finisher with either of the horses finishing in a dead heat for second, then the net quinella pool is allocated to wagers combining the two horses which finished in the dead heat for second.
If no quinella ticket is sold combining the first finisher with either of the horses finishing in a dead heat for second, or combining the two horses which finished in a dead heat for second, the net quinella pool is distributed as if it were a show pool and it is allocated to wagers combining any of the first three finishers with any other horses.
If no quinella ticket is sold combining the first two finishers, then the net quinella pool shall be distributed as if it were a place pool and it is allocated to wagers combining the first finisher with any other horses and to wagers combining the second finisher with any other horse.
If no quinella ticket is sold combining horses or wagering interests as would require distribution, a full and complete refund shall be made of the entire quinella pool.
If a horse is excused by the stewards, no further quinella tickets shall be issued designating that horse, and all quinella tickets previously issued designating that horse shall be refunded and deducted from the gross pool.

D. Exacta pools. The exacta wager is the purchase of a pari-mutuel ticket to select the two horses that will finish first and second in a race. Payment of the ticket shall be made only to the purchaser who has selected the same order of finish as officially posted. The amount wagered on the winning combination, the horse finishing first and the horse finishing second, in exact order, is the amount to be deducted from the net exacta pool to determine the profit. The profit is divided by the amount wagered on the winning combination, the quotient being the profit per dollar wagered on the winning exacta combination. The return to the holder includes the amount wagered and the profit. In addition, the following provisions apply to the exacta pool:

If no ticket is sold on the winning combination of an exacta pool, the net exacta pool shall be distributed equally between holders of tickets selecting the winning horse to finish first and holders of tickets selecting the second place horse to finish second.
If there is a dead heat between two horses for first place, the net exacta pool shall be calculated and distributed as a place pool, one-half of the net exacta pool being distributed to holders of tickets selecting each of the horses in the dead heat to finish first with the other horse to finish second.

In case of a dead heat between two horses for second place, the net exacta pool shall be calculated as a place pool, one-half of the net exacta pool being distributed to holders of tickets selecting the horse to finish first and one horse in the dead heat, and the other one-half being distributed to holders selecting the horse to finish first and the other horse in the dead heat.

If there is a dead heat for second place and if no ticket is sold on one of the two winning combinations, the entire net exacta pool shall be calculated as a win pool and distributed to holders of the other winning combination. If no tickets combine the winning horse with either of the place horses in the dead heat, the net exacta pool shall be calculated and distributed as a place pool to holders of tickets representing any interest in the net pool.
If an entry finishes first and second, or mutuel field horses finish first and second, the net pool shall be distributed to holders of tickets selecting the entry to win combined with the horses having finished third.
If no ticket is sold that would require distribution of an exacta pool, the licensee shall make a complete and full refund of the exacta pool.
If a horse is excused by the stewards, no further exacta tickets shall be issued designating that horse, and all exacta tickets previously issued designating that horse shall be refunded and deducted from the gross pool.

E. Trifecta pools. The trifecta wager is purchase of a pari-mutuel ticket to select the three horses that will finish first, second, and third in a race. Payment of the ticket shall be made only to the holder who has selected the same order of finish as officially posted. The amount wagered on the winning combination, the horse finishing first, the horse finishing second, and the horse finishing third, in exact order, is deducted from the pool to determine the profit. The profit is divided by the amount wagered on the winning combination, the quotient being the profit per dollar wagered on the winning combination. The return to the holder includes the amount wagered and the profit.

If no ticket is sold on the winning combination, the net trifecta pool shall be distributed equally among holders of tickets designating the first two horses in order.
If no ticket is sold designating, in order, the first two horses, the net trifecta pool shall be distributed equally among holders of tickets designating the horse to finish first.
If no ticket is sold designating the first horse to win, the net trifecta pool shall be distributed equally among holders of tickets designating the second and third horses in order. If no such ticket is sold, then the licensee shall make a prompt refund.
If less than three horses finish, the payout shall be made on tickets selecting the actual finishing horses, in order, ignoring the balance of the selection.
If there is a dead heat, all trifecta tickets selecting the correct order of finish, counting a horse in a dead heat as finishing in either position involved in the dead heat, shall be winning tickets. The net trifecta pool shall be calculated as a place pool.
If a horse is excused by the stewards, no further trifecta tickets shall be issued designating that horse, and all trifecta tickets previously issued designating the horse shall be refunded and deducted from the gross pool.

F. Quinella double pools. The quinella double requires selection of the first two finishers, irrespective of order, in each of two specified races.

The net quinella double pool shall be distributed to winning wagers in the following precedence, based upon the official order of finish:

a. If a coupled entry or mutuel field finishes as the first two contestants in either race, as a single price pool to those selecting the coupled entry or mutuel field combined with the next separate wagering interest in the official order of finish for that race, as well as the first two finishers in the alternate quinella double race; otherwise

b. As a single price pool to those who selected the first two finishers in each of the two quinella double races; but if there are no such wagers, then

c. As a profit split to those who selected the first two finishers in either of the two quinella double races; but if there are no such wagers on one of those races, then

d. As a single price pool to those who selected the first two finishers in the one covered quinella double race; but if there were no such wagers, then

e. The entire pool shall be refunded on quinella double wagers for those races.

If there is a dead heat for first in either of the two quinella double races involving:

a. Horses representing the same wagering interest, the quinella double pool shall be distributed to those selecting the coupled entry or mutuel field combined with the next separate wagering interest in the official order of finish for that race.

b. Horses representing two wagering interests, the quinella double pool shall be distributed as if no dead heat occurred.

c. Horses representing three or more wagering interests, the quinella double pool shall be distributed as a profit split.

If there is a dead heat for second in either of the quinella double races involving horses representing the same wagering interest, the quinella double pool shall be distributed as if no dead heat occurred.
If there is a dead heat for second in either of the quinella double races involving horses representing two or more wagering interests, the quinella double pool shall be distributed as profit split.
Should a wagering interest in the first half of the quinella double be scratched prior to the first quinella pool race being declared official, all money wagered on combinations including the scratched wagering interest shall be deducted from the quinella double pool and refunded.
Should a wagering interest in the second half of the quinella double be scratched prior to the close of wagering on the first quinella double contest, all money wagered on combinations including the scratched wagering interest shall be deducted from the quinella double pool and refunded.
Should a wagering interest in the second half of the quinella double be scratched after the close of wagering on the first quinella double race, all wagers combining the winning combination in the first race with a combination including the scratched wagering interest in the second race shall be allocated a consolation payout. In calculating the consolation payout, the net quinella double pool shall be divided by the total amount wagered on the winning combination in the first race and an unbroken consolation price obtained. The unbroken consolation price is multiplied by the dollar value of wagers on the winning combination in the first race combined with a combination including the scratched wagering interest in the second race to obtain the consolation payout. Breakage is not declared in this calculation. The consolation payout is deducted from the net quinella double pool before calculation and distribution of the winning quinella double payout. In the event of a dead heat involving separate wagering interests, the net quinella double pool shall be distributed as a profit split.
If either of the quinella double races is cancelled prior to the first quinella double race or the first quinella double race is declared "no contest," the entire quinella double pool shall be refunded on quinella double wagers for those races.
If the second quinella double race is cancelled or declared "no contest" after the conclusion of the first quinella double race, the net quinella double pool shall be distributed as a single price pool to wagers selecting the winning combination in the first quinella double race. If there are no wagers selecting the winning combination in the first quinella double race, the entire quinella double pool shall be refunded on quinella double wagers for those races.

G. Pick (n) pools. The pick (n) pool requires selection of the first-place finisher in each of a designated number of races. The licensee must obtain approval from the commission or its executive secretary concerning the scheduling of pick (n) contests, the designation of one of the methods prescribed in subdivision 1 of this subsection and the amount of any cap to be set on the carryover. Any changes to the approved pick (n) format require prior approval from the commission or its executive secretary.

The pick (n) pool shall be apportioned under one of the following methods:

a. Method 1, pick (n) with carryover. The net pick (n) pool and carryover, if any, shall be distributed as a single price pool to those who selected the first-place finisher in each of the pick (n) races, based upon the official order of finish. If there are no such wagers, then a designated percentage of the net pool shall be distributed as a single price pool to those who selected the first-place finisher in the greatest number of pick (n) races; and the remainder shall be added to the carryover.

b. Method 2, pick (n) with minor pool and carryover. The major share of the net pick (n) pool and carryover, if any, shall be distributed to those who selected the first-place finisher in each of the pick (n) races, based upon the official order of finish. The minor share of the net pick (n) pool shall be distributed to those who selected the first-place finisher in the second greatest number of pick (n) races, based upon the official order of finish. If there are no wagers selecting the first-place finisher of all pick (n) contests, the minor share of the pick (n) pool shall be distributed as a single price pool to those who selected the first-place finisher in the greatest number of pick (n) races; and the major share shall be added to the carryover.

c. Method 3, pick (n) with no minor pool and no carryover. The net pick (n) pool shall be distributed as a single price pool to those who selected the first-place finisher in the greatest number of pick (n) races, based upon the official order of finish. If there are no winning wagers, the pool is refunded.

d. Method 4, pick (n) with minor pool and no carryover. The major share of the net pick (n) pool shall be distributed to those who selected the first place finisher in the greatest number of pick (n) races, based upon the official order of finish. The minor share of the net pick (n) pool shall be distributed to those who selected the first-place finisher in the second greatest number of pick (n) races, based upon the official order of finish. If there are no wagers selecting the first-place finisher in a second greatest number of pick (n) races, the minor share of the net pick (n) pool shall be combined with the major share for distribution as a single price pool to those who selected the first-place finisher in the greatest number of pick (n) races. If the greatest number of first-place finishers selected is one, the major and minor shares are combined for distribution as a single price pool. If there are no winning wagers, the pool is refunded.

e. Method 5, pick (n) with minor pool and no carryover. The major share of net pick (n) pool shall be distributed to those who selected the first-place finisher in each of the pick (n) races, based on the official order of finish. The minor share of the net pick (n) pool shall be distributed to those who selected the first-place finisher in the second greatest number of pick (n) races, based upon the official order of finish. If there are no wagers selecting the first-place finisher in all pick (n) races, the entire net pick (n) pool shall be distributed as a single price pool to those who selected the first-place finisher in the greatest number of pick (n) races. If there are no wagers selecting the first-place finisher in a second greatest number of pick (n) races, the minor share of the pick (n) pool shall be combined with the major share for distribution as a single price pool to those who selected the first-place finisher in each of the pick (n) races. If there are no winning wagers, the pool is refunded.

f. Method 6, pick (n) with minor pool, jackpot, major carryover and jackpot carryover. Predetermined percentages of the net pick (n) pool shall be set aside as a major pool, minor pool, and jackpot pool. The major share of the net pick (n) pool and the major carryover, if any, shall be distributed to those who selected the first-place finisher of each of the pick (n) races, based on the official order of finish. If there are no tickets selecting the first-place finisher in each of the pick (n) races, the major net pool shall be added to the major carryover. If there is only one single ticket selecting the first-place finisher of each of the pick (n) races, based on the official order of finish, the jackpot share of the net pick (n) pool and the jackpot carryover, if any, shall be distributed to the holder of that single ticket, along with the major net pool and the major carryover, if any. If more than one ticket selects the first-place finisher of each of the pick (n) races, the jackpot net pool shall be added to the jackpot carryover. The minor share of the net pick (n) pool shall be distributed to those who selected the first-place finisher of the second greatest number of pick (n) races, based on the official order of finish. If there are no wagers selecting the first-place finisher of all pick (n) races, the minor net pool of the pick (n) pool shall be distributed as a single price pool to those who selected the first-place finisher of the greatest number of pick (n) races.

If there is a dead heat for first in any of the pick (n) races involving:

a. Horses representing the same wagering interest, the pick (n) pool shall be distributed as if no dead heat occurred.

b. Horses representing two or more wagering interests, the pick (n) pool shall be distributed as a single price pool with each winning wager receiving an equal share of the profit.

Should a wagering interest in any of the pick (n) races be scratched, the actual favorite, as evidenced by total amounts wagered in the win pool at the host track for the race at the close of wagering on that race, shall be substituted for the scratched wagering interest for all purposes, including pool calculations. In the event that the win pool total for two or more favorites is identical, the substitute selection shall be the wagering interest with the lowest program number. The totalizator shall produce reports showing each of the wagering combinations with substituted wagering interests which became winners as a result of the substitution, in addition to the normal winning combination. When the condition of the racecourse warrants a change of racing surface in any of the legs of a pick (n) with four or more races included, and such change has not been known to the public prior to the close of wagering for the pick (n) pool, the stewards shall declare the changed leg(s) an "all win" race(s) for pick (n) wagering purposes only. An "all win" race(s) will assign the winner of that race(s) to each pick (n) ticket holder as their selection for that race.
The pick (n) pool shall be cancelled and pick (n) wagers for the individual performance shall be refunded if:

a. At least two races included as part of a pick three are cancelled or declared "no contest."

b. At least three races included as part of a pick four, pick five or pick six are cancelled or declared "no contest."

c. At least four races included as part of a pick seven, pick eight or pick nine are cancelled or declared "no contest."

d. At least five races included as part of a pick 10 are cancelled or declared "no contest."

If at least one race included as part of a pick (n) is cancelled or declared "no contest," but not more than the number specified in subdivision 4 of this subsection, the net pool shall be distributed as a single price pool to those whose selection finished first in the greatest number of pick (n) races for that program. The distribution shall include the portion ordinarily retained for the pick (n) carryover but not the carryover from previous performances.
The pick (n) carryover may be capped at a designated level approved by the commission so that if, at the close of any program, the amount in the pick (n) carryover equals or exceeds the designated cap, the pick (n) carryover will be frozen until it is won or distributed under other provisions of this chapter. After the pick (n) carryover is frozen, 100% of the net pool, part of which ordinarily would be added to the pick (n) carryover, shall be distributed to those whose selection finished first in the greatest number of pick (n) races for that program.
A licensee may request permission from the commission to distribute the pick (n) carryover on a specific program. The request must contain justification for the distribution, an explanation of the benefit to be derived and the intended date and program for the distribution.
Should the pick (n) carryover be designated for distribution on a specified date and performance in which there are no wagers selecting the first-place finisher in each of the pick (n) races, the entire pool shall be distributed as a single price pool to those whose selection finished first in the greatest number of pick (n) races. The pick (n) carryover shall be designated for distribution on a specified date and program only under the following circumstances:

a. Upon approval from the commission as provided in subdivision 7 of this subsection;

b. Upon approval from the commission when there is a change in the carryover cap, a change from one type of pick (n) wagering to another, or when the pick (n) is discontinued;

c. On the closing program of a race meeting.

If, for any reason, the pick (n) carryover must be held to the corresponding pick (n) pool to a subsequent race meeting, the carryover shall be deposited in an interest-bearing account approved by the commission. The pick (n) carryover plus accrued interest shall then be added to the net pick (n) pool on a date and program of the race meeting designated by the commission.
With the approval of the commission, a licensee may contribute to the pick (n) carryover a sum of money up to the amount of any designated cap.
Providing information to any person regarding the covered combinations, amounts wagered on specific combinations, number of tickets sold or number of live tickets remaining is strictly prohibited. This chapter shall not prohibit necessary communication between totalizator and mutuel employees for processing of pool data.
The licensee may suspend previously approved pick (n) wagering with the approval of the commission. Any carryover shall be held until the suspended pick (n) wagering is reinstated. The licensee may request approval of a pick (n) wager or separate wagering pool for specific programs.

H. Superfecta pools. The superfecta pool requires selection of the first four finishers, in their exact order, for a single race.

The net superfecta pool shall be distributed to winning wagers in the following precedence based upon the official order of finish:

a. As a single price pool to those whose combination finished in correct sequence as the first four wagering interests; but if there are no such wagers, then

b. As a single price pool to those whose combination included, in correct sequence, the first three wagering interests; but if there are no such wagers, then

c. As a single price pool to those whose combination included, in correct sequence, the first two wagering interests; but if there are no such wagers, then

d. As a single price pool to those whose combination correctly selected the first-place wagering interest only; but if there are no such wagers, then

e. The entire pool shall be refunded on superfecta wagers for that race.

If less than four wagering interests finish and the race is declared official, payouts will be made based upon the order of finish of those wagering interests completing the race. The balance of any selection beyond the number of wagering interests completing the race shall be ignored.
If there is a dead heat for first involving:

a. Horses representing four or more wagering interests, all of the wagering combinations selecting four wagering interests which correspond with any of the wagering interests involved in the dead heat shall share in a profit split.

b. Horses representing three wagering interests, all of the wagering combinations selecting the three dead-heated wagering interests, irrespective of order, along with the fourth-place wagering interest shall share in a profit split.

c. Horses representing two wagering interests, both of the wagering combinations selecting the two dead-heated wagering interests, irrespective of order, along with the third and fourth-place wagering interests shall share in a profit split.

If there is a dead heat for second involving:

a. Horses representing three or more wagering interests, all of the wagering combinations correctly selecting the winner combined with any of the three wagering interests involved in the dead heat for second shall share in a profit split.

b. Horses representing two wagering interests, all of the wagering combinations correctly selecting the winner, the two dead-heated wagering interests, irrespective of order, and the fourth-place wagering interest shall share in a profit split.

If there is a dead heat for third, all wagering combinations correctly selecting the first two finishers, in correct sequence, along with any two of the wagering interests involved in the dead heat for fourth shall share in a profit split.
If there is a dead heat for fourth, all wagering combinations correctly selecting the first three finishers, in correct sequence, along with any of the wagering interests involved in the dead heat for fourth shall share in a profit split.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-01-02 § 3.8, Virginia Register Volume 6, Issue 13, eff. April 25, 1990; Volume 14, Issue 1, eff. October 29, 1997; Volume 18, Issue 20, eff. May 22, 2002; Volume 23, Issue 18, eff. May 31, 2007; Volume 25, Issue 18, eff. June 1, 2009; Volume 29, Issue 13, eff. March 1, 2013.

11VAC10-20-340 Refunds

A. Generally. For all wagers other than the daily double, pick three or pick six, a refund at face value shall be made to all holders of pari-mutuel tickets on horses that have been excused by the stewards, participated in a race where no horse finished, or a race, where in the discretion of the stewards, was declared "no contest" for wagering purposes. Unless otherwise provided for in this chapter, no refund shall be made if the horse excused by the stewards is part of a coupled entry or the field.

B. Nonstarters. If any horse is prevented from obtaining a fair start by failure of the starting gate or other untoward events, the stewards, in their discretion, may order a prompt refund in any pool on that horse.

C. Cancelling pools due to nonstarters. If any horse or horses are prevented from obtaining a fair start so that it would reduce the total number of starters below six, the following shall apply:

If horses representing five wagering interests obtain a fair start, the licensee may refund the entire amount wagered in the show pool;
If horses representing four or fewer wagering interests obtain a fair start, the licensee may refund the entire amount wagered in the show pool as well as place pool; and
If horses representing fewer than two interests obtain a fair start, the race may be declared "no contest" and the entire amount wagered in the win, place and show pools shall be promptly refunded.

D. Cancelling pools due to late scratches. After wagering has commenced on a race and prior to the race being run, should a horse or horses be excused by the stewards resulting in a field of less than six different wagering interests, the following apply:

If horses representing five wagering interests will start, the licensee may refund the entire amount wagered in the show pool;
If horses representing five or fewer wagering interests will start, the licensee may refund the entire amount wagered in the show pool as well as place pool;
If horses representing fewer than two interests will start, the race may be cancelled and the entire amount wagered in the win, place and show pools shall be promptly refunded. However, the horse or horses shall race for the purse as nonwagering event.

E. No refunds. If a horse is left at the post at the start, or the rider or driver is unseated, there shall be no refund.

F. Scratches in entries. If two or more horses in a race are coupled as a wagering interest or the field, there shall be no refund unless all of the horses so coupled are excused by the stewards or all of the horses so coupled are prevented from obtaining a fair start. Discretion, however, is vested in the stewards to order a refund where a part of an entry is excused by the stewards or prevented from obtaining a fair start, where it is in the public interest to do so. In this instance, the remaining part of the entry may race for the purse only.

G. Postponed races. In the case of a race postponed beyond the day originally scheduled, all money wagered on the race shall be refunded.

H. Cancelling turf races. In the event conditions require a race to be moved from the turf to the main racing surface, any advance wager shall be refunded at the request of the holder of the pari-mutuel ticket up until post time of the race. This regulation does not apply to pick (n) wagering.

I. Announcement of refunds. In those cases where a refund is due the public or a pari-mutuel pool is cancelled, the licensee shall promptly inform the public through the public address system and other appropriate means of communication.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-01-02 § 3.9, Virginia Register Volume 6, Issue 13, eff. April 25, 1990; Volume 18, Issue 20, eff. May 22, 2002; Volume 23, Issue 18, eff. May 31, 2007.

Part IV Distribution of Purse Money

11VAC10-20-350 Purse amounts

Pursuant to § 59.1-392 of the Code of Virginia, 8.0% of the pari-mutuel pools for straight wagering, and 9.0% of the pari-mutuel pools for multiple wagers shall be allocated for purse money to participants by the licensee. In making the distribution of purse money, the licensee shall, to the extent possible, maintain purse amounts in proper relationship to actual pari-mutuel handles.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-01-02 § 4.1, Virginia Register Volume 6, Issue 13, eff. April 25, 1990.

11VAC10-20-360 Adjustments to purses

Should levels of pari-mutuel handle create overpayment or underpayment of purses paid during the course of the race meeting, the licensee shall make adjustments in each publication of its condition book to attempt to keep purses consistent with mutuel handles.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-01-02 § 4.2, Virginia Register Volume 6, Issue 13, eff. April 25, 1990.

11VAC10-20-370 Overpayments carried over

If, at the end of the horse race meeting, an overpayment of purses has occurred, the overpayment shall be carried over to the next horse race meeting of the same breed and the overpayment may be recovered by the licensee. The licensee shall recover the overpayment on an even basis over the course of the horse race meeting to prevent serious inconsistencies in purse levels during the horse race meeting.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-01-02 § 4.3, Virginia Register Volume 6, Issue 13, eff. April 25, 1990.

11VAC10-20-380 Underpayments carried over

If, at the end of a horse race meeting, an underpayment of purses has occurred, the underpayment shall be carried over to the next horse race meeting of the same breed. The underpayment must be paid to the horse owners by adding the underpayment to the purses. The licensee shall repay the underpayment on an even basis over the course of the horse race meeting to prevent serious inconsistencies in purse levels during the horse race meeting.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-01-02 § 4.4, Virginia Register Volume 6, Issue 13, eff. April 25, 1990.

11VAC10-20-390 Willful underpayment

Should the commission determine that a licensee willfully failed to adjust purse levels in violation of these regulations for the purposes of retaining purse underpayments from one race meeting to the next, the licensee will be the subject of disciplinary action of the commission.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-01-02 § 4.5, Virginia Register Volume 6, Issue 13, eff. April 25, 1990.

11VAC10-20-400 Escrow accounts

All money received by a licensee for races that require nominating, sustaining, entry, or starting fees must be placed in interest bearing escrow accounts, and all accrued interest must be added to these races if: (i) the total fees received for the race exceed $15,000; or (ii) fees are due and payable for the race more than 180 days in advance of the advertised date of the running of the race.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-01-02 § 4.6, Virginia Register Volume 6, Issue 13, eff. April 25, 1990.

Chapter 40 Satellite Facilities

Part I General Provisions

11VAC10-40-10 Definitions

The following words and terms, when used in these regulations, shall have the following meaning, unless the context clearly indicates otherwise:

"Commission" means the Virginia Racing Commission.

"Licensee" includes any person holding an owner's or operator's license under Article 2 (§ 59.1-375 et seq.) of Chapter 29 of Title 59.1 of the Code of Virginia.

"Satellite facility" means all areas of the property at which simulcast horse racing is received for the purposes of pari-mutuel wagering, and any additional areas designated by the commission.

"Simulcast horse racing" means the simultaneous transmission of the audio or video portion, or both, of horse races from a licensed horse racetrack or satellite facility to another licensed horse racetrack or satellite facility, regardless of state of licensure, whether such races originate within the Commonwealth or any other jurisdiction, by satellite communication devices, television cables, telephone lines, or any other means for the purposes of conducting pari-mutuel wagering.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-02-05 § 1.1, eff. March 23, 1994; amended, Virginia Register Volume 31, Issue 25, eff. September 9, 2015.

11VAC10-40-20 Generally

The commission is authorized to issue licenses for satellite facilities for the promotion, sustenance and growth of a native industry, in a manner consistent with the health, safety and welfare of the people. The operation of satellite facilities shall be conducted so as to maintain horse racing in the Commonwealth of Virginia of the highest quality and free of any corrupt, incompetent, dishonest or unprincipled practices and to maintain in horse racing complete honesty and integrity.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-02-05 § 1.2, eff. March 23, 1994.

11VAC10-40-30 Local referendum

The commission shall not grant a license to own or operate a satellite facility until a referendum approving the question is held in the county or city in which the satellite facility is to be located.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-02-05 § 1.3, eff. March 23, 1994.

11VAC10-40-40 Observance of regulations

The holder of a license to own or operate a satellite facility shall be charged with the same duties and responsibilities as are the holders of unlimited licenses with respect to the observance and enforcement of the act and the regulations of the commission.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-02-05 § 1.4, eff. March 23, 1994.

11VAC10-40-50 Interstate Horse Racing Act

The conduct of simulcast horse racing must comply with the provisions of the Interstate Horse Racing Act of 1978 (15 USC § 3001 et seq.).

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-02-05 § 1.5, eff. March 23, 1994.

11VAC10-40-60 Majority ownership

The commission shall require that the majority ownership of satellite facilities be restricted to an entity licensed by the commission that is (i) a significant infrastructure limited licensee or (ii) the nonprofit industry stakeholder organization recognized by the commission if by August 1, 2015, there is no significant infrastructure limited licensee or a pending application for such license. After the issuance of a license to own or operate a satellite facility to the nonprofit industry stakeholder organization, if the commission grants a license to a significant infrastructure limited licensee pursuant to § 59.1-376 of the Code of Virginia, then such limited licensee may own or operate the remaining available satellite facilities authorized in accordance with this section. In no event shall the commission authorize any such entities to own or operate more than a combined total of 10 satellite facilities. Nothing in this chapter shall be deemed to preclude private local ownership or participation in any satellite facility.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-02-05 § 1.6, eff. March 23, 1994; amended, Virginia Register Volume 31, Issue 25, eff. September 9, 2015.

11VAC10-40-70 Approval of simulcasting contracts

Any contractual agreement between a licensee and other entities concerning simulcast horse racing is subject to the approval of the commission.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-02-05 § 1.7, eff. March 23, 1994.

11VAC10-40-80 Disclosure of contracts

Each licensee upon request shall provide to the commission copies of all contracts entered into by the licensee relating to the operation of a satellite facility.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-02-05 § 1.8, eff. March 23, 1994.

11VAC10-40-90 Restrictions on wagering

Wagering on simulcast horse racing shall take place only at a licensed horse racetrack or satellite facility.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-02-05 § 1.9, eff. March 23, 1994.

11VAC10-40-100 Permits required

All racing officials employed in a satellite facility shall apply for permits under the provisions of 11VAC10-50-10 et seq. All participants employed in a satellite facility shall apply for permits under the provisions of 11VAC10-60-10 et seq.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-02-05 § 1.10, eff. March 23, 1994.

Part II Application for a License

11VAC10-40-110 Where to file application

An applicant for a license to own or operate a satellite facility shall submit an application on a form, prepared by the commission, to the main office of the commission. The application shall be submitted either by certified mail or hand delivered.

An application to be sent by certified mail shall be addressed to:

Executive Secretary

Virginia Racing Commission

Post Office Box 1123

Richmond, VA 23218

An application to be hand delivered shall be delivered to the Executive Secretary, Virginia Racing Commission at the commission's office in Richmond, Virginia.
Delivery to other than the commission's main office is not acceptable.
The applicant assumes full responsibility for the method chosen to deliver the application.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-02-05 § 2.1, eff. March 23, 1994.

11VAC10-40-120 Application fee

An applicant for a license to own or operate a satellite facility must submit a nonrefundable application fee to the commission's designee at the time of application by a certified check or bank draft to the order of the Commonwealth of Virginia in the amount of $500. In the event the cost of the background investigation exceeds the application fee, the applicant must remit the amount of the difference by certified check or bank draft within 10 days after receipt of a bill from the commission.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-02-05 § 2.2, eff. March 23, 1994.

11VAC10-40-130 Identification of applicant for a license

An application for a license to own or operate a satellite facility shall include the name, address and telephone number of the applicant, and the name, position, address, telephone number and authorized signature of an individual to whom the commission may make inquiry.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-02-05 § 2.3, eff. March 23, 1994.

11VAC10-40-140 Applicant's affidavit

An application for a license shall include an affidavit from the chief executive officer, director, officer or other participant in the applicant setting forth:

That the application is made for a license to own or operate a satellite wagering facility at which pari-mutuel wagering on horse racing is conducted;
That the affiant is the agent of the applicant, its owners, partners, members, directors, officers and personnel, and is duly authorized to make the representations in the application on their behalf. Documentation of the authority must be attached;
That the applicant seeks a grant of privilege from the Commonwealth of Virginia, and the burden of proving the applicant's qualifications rests at all times with the applicant;
That the applicant consents to inquiries by the Commonwealth of Virginia and the commission into the financial, character and other qualifications of the applicant by contacting individuals and organizations;
That the applicant, its owners, partners, members, directors, officers, and personnel accept any risk of adverse public notice, embarrassment, criticism, or other circumstance, including financial loss, which may result from action with respect to the application and expressly waive any claim which otherwise could be made against the Commonwealth of Virginia, its employees, the commission, staff or agents;
That the affiant has read the application and knows the contents; the contents are true to the affiant's own knowledge, except matters therein stated as information and belief; as to those matters, the affiant believes them to be true;
That the applicant recognizes all representations in the application are binding on it, and false or misleading information in the application, omission of required information, or substantial deviation from representations in the application may result in denial, revocation or conditioning of a license or imposition of a fine, or any or all of the foregoing;
That the applicant will comply with all applicable local, state and federal statutes, regulations and ordinances;
The affiant's signature, name, organization, position, address, and telephone number; and
The date.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-02-05 § 2.4, eff. March 23, 1994.

11VAC10-40-150 Disclosure of ownership and control

An applicant must disclose, if not already a licensee of the commission:

The type of organizational structure of the applicant, whether individual, business corporation, nonprofit corporation, partnership, joint venture, trust, association, or other;
If the applicant is an individual, the applicant's legal name, whether the applicant is a United States citizen, any aliases and business or trade names currently or previously used by the applicant, and copies of all state and federal tax returns for the past five years;
If the applicant is a corporation:

a. The applicant's full corporate name and any trade names currently or previously used by the applicant;

b. The jurisdiction and date of incorporation;

c. The date the applicant began doing business in Virginia and a copy of the applicant's certificate of authority to do business in Virginia;

d. Copies of the applicant's articles of incorporation, bylaws, and all state and federal corporate tax returns for the past five years;

e. The general nature of the applicant's business;

f. Whether the applicant is publicly held as defined by the rules and regulations of the Securities and Exchange Commission;

If the applicant is an organization other than a corporation:

a. The applicant's full name and any aliases, business, or trade names currently or previously used by the applicant;

b. The jurisdiction of organization of the applicant;

c. The date the applicant began doing business in Virginia;

d. Copies of any agreements creating or governing the applicant's organization and all of the applicant's state and federal tax returns for the past five years;

e. The general nature of the applicant's business;

f. The names, in alphabetical order, and addresses of any partners and officers of the applicant and other persons who have or share policymaking authority. As to each, the applicant must disclose the nature and extent of any ownership interest, direct or indirect, including options, or other voting interest, whether absolute or contingent, in the applicant; and

If a nonindividual record or nonindividual beneficial holder of an ownership or other voting interest of 5.0% or more in the applicant is identified pursuant to subdivision 3 i or j, or subdivision 4 f and g, the applicant shall disclose the information required by those subdivisions as to record or beneficial holders of an ownership or voting interest of 5.0% or more in that nonindividual holder. The commission shall have the right to inquire for further disclosure of the applicant as it deems necessary. When an applicant is unable to provide the information required, it shall explain fully and document its inability to do so;
Whether the applicant is directly or indirectly controlled to any extent or in any manner by another individual or entity. If so, the applicant must disclose the identity of the controlling entity and a description of the nature and extent of control;
Any agreements or understandings which the applicant or any individual or entity identified pursuant to this section has entered into regarding ownership or operation of the applicant's satellite facility, and copies of any such agreements in writing;
Any agreements or understandings which the applicant has entered into for the payment of fees, rents, salaries, or other compensation concerning the proposed satellite facility by the applicant, and copies of any such agreements in writing; and
Whether the applicant, any partner, director, officer, other policymaker, or holder of a direct or indirect record or beneficial ownership interest or other voting interest or control of 5.0% or more has held or holds a license or permit issued by any governmental authority to own or operate a horse racing facility, pari-mutuel wagering facility or any other form of gambling or has a financial interest in such an enterprise or conducts any aspect of horse racing or gambling. If so, the applicant must disclose the identity of the license or permit holder, nature of the license or permit, issuing authority, and dates of issuance and termination.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-02-05 § 2.5, eff. March 23, 1994.

11VAC10-40-160 Disclosure of character information

Unless the applicant for a license is already a licensee or holder of a permit from the commission, the applicant shall disclose and furnish particulars regarding whether the applicant or any individual or other entity identified pursuant to 11VAC10-40-150 or 11VAC10-40-220 of this chapter or a lease holder of the site of the facility has:

Been charged in any criminal proceeding other than in connection with a traffic violation. If so, the applicant must disclose the nature of the charge, the date charged, court and disposition;
Had a horse racing, gambling, business, professional, or occupational license or permit revoked or suspended or renewal denied or been a party in a proceeding to do so. If so, the applicant must disclose the date of commencement, circumstances and disposition;
Been accused in an administrative or judicial proceeding of violating a statute or regulation relating to horse racing or gambling;
Been charged in an administrative or judicial proceeding of violating a statute or regulation relating to unfair labor practices or discrimination;
Begun an administrative or judicial action against a governmental regulator of horse racing or gambling. If so, the applicant must disclose the date of commencement, forum, circumstances and disposition;
Been the subject of voluntary or involuntary bankruptcy proceedings. If so, the applicant must disclose the date of commencement, forum, circumstances, date of decision and disposition;
Failed to satisfy any judgment, decree or order of an administrative or judicial tribunal. If so, the applicant must disclose the date and circumstances; and
Been delinquent in filing a tax return required or remitting a tax imposed by any government. If so, the applicant must disclose the date and circumstances.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-02-05 § 2.6, eff. March 23, 1994.

11VAC10-40-170 Disclosure of site and facilities

An applicant for a license must disclose with respect to the satellite facility:

The address of the facility, ownership of the site for the last three years, legal description, mortgagors, proof of title insurance, its size and geographical location, including reference to county and municipal boundaries;
A site map showing parking facilities, highways and streets adjacent to the facility, and separately showing any proposed highways and streets adjacent to the facility that are under construction, including their scheduled completion dates;
A description of the satellite facility, including portions of the facility not used for pari-mutuel wagering, giving:

a. Total capacity;

b. Total number of square feet;

c. Dimensions of the facility;

d. Configuration of the viewing, dining and concession facilities with the facility;

e. Approximate location of mutuel windows and cash security areas;

f. Description of the wagering equipment, including vendor and manufacturer, if known; and

g. Preliminary architectural plans of the interior and exterior of the facility, if the proposed facility is to be constructed by the licensee.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-02-05 § 2.7, eff. March 23, 1994.

11VAC10-40-180 Disclosure of development process

An applicant for a license may propose to lease, acquire or construct premises for each satellite facility. Such premises may be adjacent to or located within other businesses including but not limited to hotels and restaurants. Further, an applicant for a license must disclose with regard to the development of the satellite facility:

If the facility is to be constructed, the total cost of construction of the facility distinguishing between known costs and projected cost;
Separate identification of the following costs:

a. Facility design;

b. Site acquisition or rental costs;

c. Satellite reception and video equipment; and

d. Organizational, administrative, accounting and legal.

Documentation of the nature of interim financing, if any, and the nature of permanent financing, if any;
Documentation of fixed costs;
The schedule for construction, acquisition or leasing of the facility, giving, as the case may be:

a. Acquiring or leasing the site;

b. Soliciting bids;

c. Zoning and construction permit approval;

d. Awarding construction contracts;

e. Beginning construction;

f. Completing construction;

g. Training staff; and

h. Beginning of operation;

Schematic drawings;
Copies of contracts, if any, with performance bonds from the:

a. Architect or other design professional;

b. Project engineer;

c. Construction engineer;

d. Contractors and subcontractors; and

e. Equipment procurement personnel;

Whether the site has been acquired or leased by the applicant; and
Whether present planning envisions future expansion of the facility.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-02-05 § 2.8, eff. March 23, 1994.

11VAC10-40-190 Disclosure of financial resources

An applicant for a license must provide the following with regard to financial resources:

Unless the applicant is already the holder of a license from the commission, the applicant shall submit the most recently audited financial statement showing:

a. The applicant's current assets, including investments in affiliated entities, loans and accounts receivable;

b. Fixed assets;

c. Current liabilities, including loans and accounts payable;

d. Long-term debt and equity;

e. Contingent tax liability; and

f. Statement of income and expenses, and statement of cash flow.

Equity and debt sources of funds to develop, own and operate a satellite facility:

a. With respect to each source of equity:

(1) Identification of the source;

(2) Amount;

(3) Form;

(4) Method of payment;

(5) Nature and amount of present commitment; and

(6) Documentation, copies of agreements and actions which the applicant will take to obtain commitments for additional amounts.

b. With respect to each source of debt:

(1) Identification of the source;

(2) Amount;

(3) Terms of debt;

(4) Collateral;

(5) Identity of guarantors;

(6) Nature and amount of commitments; and

(7) Documentation, copies of agreements and actions the applicant will take to obtain commitments for additional amounts.

Identification and description of sources of additional funds needed due to cost overruns, nonreceipt of expected equity or debt funds, failure to achieve projected revenues or other cause.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-02-05 § 2.9, eff. March 23, 1994.

11VAC10-40-200 Disclosure of financial plan

An applicant for a license shall submit detailed financial projections for the operation of the satellite facility at the location that includes financing and income, expenses, profits or losses. The applicant shall include projections for purse money, the Virginia Breeders Fund, revenue to the Commonwealth and localities. The applicant shall also include the basis for the projections.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-02-05 § 2.10, eff. March 23, 1994.

11VAC10-40-210 Disclosure of governmental actions

An applicant for a license must disclose whether it is in compliance with all state statutes, local charter provisions, local ordinances, and state and local regulations pertaining to the development, ownership and operation of the satellite facility. If the applicant is not in compliance, the applicant must disclose the reasons why the applicant is not in compliance and summarize plans to obtain compliance.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-02-05 § 2.11, eff. March 23, 1994.

11VAC10-40-220 Disclosure of management

An applicant for a license must disclose with regard to the management of the satellite facility:

A description of the applicant's management plan, with budget and identification of management personnel by function, job description and qualifications for each management position, and a copy of the organization chart;
Management personnel to the extent known and with respect to each:

a. Legal name, alias or aliases and previous name or names;

b. Current residence and business addresses and telephone numbers;

c. Qualifications and experience in the following areas:

(1) General business;

(2) Marketing, promotion and advertising;

(3) Finance and accounting;

(4) Horse racing;

(5) Pari-mutuel wagering;

(6) Security; and

(7) Operation of satellite wagering facilities;

d. Description of the terms and conditions of employment and each applicant upon request shall provide to the commission a copy of each form of agreement;

Consultants and other contractors who have provided or will provide management-related services to the applicant and with respect to each:

a. Full name;

b. Current address and telephone number;

c. Nature of services;

d. Qualifications and experience; and

e. Description of terms and conditions of each contractor's agreement and a copy of the agreement;

Memberships of the applicant, management personnel and consultants in horse racing organizations;
Description of the applicant's marketing, promotion and advertising plans;
A description of the applicant's plan for concessions, including whether the licensee will operate the concessions and, if not who will; and
A description of training of the applicant's personnel.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-02-05 § 2.12, eff. March 23, 1994.

11VAC10-40-230 Disclosure of affirmative action plan

An applicant for a license shall develop and disclose a plan to be in compliance with all laws pertaining to discrimination, equal employment and affirmative action; policies regarding recruitment, use and advancement of minorities; policies with respect to minority contracting; and a copy of the Equal Employment Opportunity statement. Such disclosure shall include, but not be limited to, a general policy statement, goals, objectives and strategies for ensuring that the licensee is in compliance with all relevant laws.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-02-05 § 2.13, eff. March 23, 1994.

11VAC10-40-240 Disclosure of lease

If the applicant leases the site of the satellite facility, the applicant shall submit copies of any leasing agreement, and any other arrangements for the use of the facility between the applicant and the owner of the facility.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-02-05 § 2.14, eff. March 23, 1994.

11VAC10-40-250 Disclosure of safety and security plans

An applicant for a license must disclose with regard to the development of the satellite facility the emergency services available; the fire, safety and security equipment and procedures; the security personnel to be employed; and a plan for uniform identification of employees, enabling customers to generally identify the function of each except undercover security personnel who shall carry a badge cleared with its local police jurisdiction. The disclosure shall include a description of the internal accounting controls to create cross checks and balances in order to safeguard assets and detect fraud and embezzlement.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-02-05 § 2.15, eff. March 23, 1994.

11VAC10-40-260 Disclosure of impact of the satellite facility

An applicant for a license must disclose and document the projected impact of satellite facility, including:

Economic impact, giving:

a. Number of jobs created, permanent or temporary, type of work, compensation, employer, gender, and race;

b. Purchases of goods and services, types of purchases, and projected expenditures;

c. Public investment and private investment; and

d. State tax revenues generated and local tax revenues generated;

Environmental impact;
Impact on energy conservation and development of alternative energy sources; and
Social impact on the community in which the facility would be located.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-02-05 § 2.16, eff. March 23, 1994.

11VAC10-40-270 Disclosure of assistance in preparation of application

An applicant must disclose the name, addresses and telephone numbers of individuals and businesses who assisted the applicant in the completion of its application and supply copies of all studies completed for the applicant.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-02-05 § 2.17, eff. March 23, 1994.

11VAC10-40-280 Personal information and authorization for release

In an application for a license, the applicant shall include the following with respect to each individual identified as an applicant, partner, director, officer, other policymaker, or holder of a direct or indirect record or beneficial ownership interest or other voting interest or control of 5.0% or more in the applicant, any lease holder of a site of satellite facility, and each individual identified pursuant to subdivisions 2 and 3 of 11VAC10- 40-220.

Full name, business and residence addresses, and telephone numbers, residence addresses for the past five years, date of birth, place of birth, social security number if the individual is willing to provide it, and two references; and
An authorization for release of personal information, on a form prepared by the commission, signed by the individual providing that he:

a. Authorizes a review by, and full disclosure to the Federal Bureau of Investigation, an agent of the Virginia State Police, of all records concerning the individual;

b. Recognizes the information reviewed or disclosed may be used by the Commonwealth of Virginia and the commission to determine the individual's qualifications for a license; and

c. Releases authorized providers and users of the information from any liability under state or federal data privacy statutes.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-02-05 § 2.18, eff. March 23, 1994.

Part III Simulcasting Schedule

11VAC10-40-290 Submission of a simulcasting schedule

Upon the award of a license, the licensee shall submit to the main office of the commission, not later than 15 days after the award of the license, the proposed simulcasting schedule for each satellite facility for the current year, and if such award is made after the first business day of September, for the next calendar year as well.

Thereafter, the licensee shall submit to the main office of the commission, no later than the first business day of September, the simulcasting schedule for the satellite facility for the following calendar year. The commission may, in its discretion, extend the deadline for submission of such simulcasting schedule.

The commission may grant the licensee leave to amend such simulcasting schedule at such times as the commission deems necessary or appropriate to reflect the broadcast of additional or fewer races.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-02-05 § 3.1, eff. March 23, 1994.

11VAC10-40-300 Intrastate simulcasting schedule

The licensee shall disclose the proposed simulcasting schedule of races, if any, emanating from the licensee's racetrack including:

The calendar dates;
The days of the week and hours of operation;
The total number of races per date;
The reason certain dates are sought; and
Any other information the licensee deems appropriate in assisting the commission in evaluating the disclosure.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-02-05 § 3.2, eff. March 23, 1994.

11VAC10-40-310 Interstate simulcasting schedule

If the simulcasting dates are requested from a location other than those emanating from the licensee's racetrack, the licensee shall disclose, to the extent known, the simulcast schedule including:

The specific dates;
The breed of horse;
The host track or tracks;
The number of races;
The number of races per date; and
Any other information the licensee deems appropriate in assisting the commission in evaluating the disclosure.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-02-05 § 3.3, eff. March 23, 1994.

11VAC10-40-320 Special events

The licensee may make a request to the commission at any time during the calendar year to include any special events that are not included in the disclosure of the simulcasting schedules.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-02-05 § 3.4, eff. March 23, 1994.

11VAC10-40-330 Commission approval

Within 15 days of receipt of the simulcasting schedules provided for herein, the commission shall accept, reject or modify any request made by a licensee in its interstate simulcasting schedule, intrastate simulcasting schedule or special events. In the absence of commission approval, the executive secretary of the commission may grant temporary approval of the simulcasting schedule or any changes therein, pending ratification by the commission, at its next regularly scheduled meeting.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-02-05 § 3.5, eff. March 23, 1994.

11VAC10-40-340 Interruption of simulcast signal

A. If there is a problem in the transmission of data or the simulcast signal between the racetrack and the satellite facility, it shall be within the discretion of the stewards to:

Order the race to be run on schedule;
Delay the race until the matter is resolved, if this is possible; or
After having delayed the race, if problem is not resolved and further delay is not possible, order the race to be run.

B. If a race is run before the resolution of a problem in the transmission of data or signal between the racetrack and the satellite facility, the stewards shall cause an announcement to be made that any pari-mutuel ticket issued before the running of the race is a valid ticket regardless of the nontransmission of data or the signal.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-02-05 § 3.6, eff. March 23, 1994.

11VAC10-40-350 Locking wagering machines

The mutuel manager shall designate a person at the satellite facility to lock the ticket issuing machines at the start of the race in the event of a failure in the system or through the inadvertence of the stewards.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-02-05 § 3.7, eff. March 23, 1994.

11VAC10-40-360 Digital display

Unless otherwise permitted by the commission, every simulcast will contain in its video content a digital display of actual time of day, the name of the racetrack from where the race emanates, the number of the race being displayed, and any other relevant information available to patrons at the racetrack.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-02-05 § 3.8, eff. March 23, 1994.

11VAC10-40-370 Encryption

The licensee shall maintain security controls over its uplink and communication systems, including encryption of signals unless this requirement is specifically waived by the commission.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-02-05 § 3.9, eff. March 23, 1994.

Chapter 50 Racing Officials

Part I General

11VAC10-50-10 Generally

No racing official shall participate in any horse racing subject to the jurisdiction of the commission or in the conduct of a race meeting or pari-mutuel wagering of the race meeting unless the person possesses a permit from the commission and complies with the provisions of Chapter 29 (§ 59.1-364 et seq.) of Title 59.1 of the Code of Virginia and the regulations of the commission. Permits issued by the commission are not transferable.

A. Application for permit. A person desiring to obtain a permit as a racing official shall make an application for a permit on a form prescribed by the commission. The application shall be accompanied by a fee prescribed by the commission and shall include the cost of fingerprinting and a background investigation. The applicant shall be fingerprinted upon making his initial application in the Commonwealth. However, the commission, in its discretion, may require fingerprints from any applicant or holder of a permit at any time. The application shall be verified by the oath or affirmation of the applicant. In addition, the applicant shall demonstrate that he:

Is of good moral character and reputation;
Is experienced in horse racing;
Is familiar with the duties the applicant is applying to do and with the regulations of the commission;
Possesses the mental and physical capacity to perform the duties of the position; and

An applicant whose vision is essential to the performance of his duties shall take and satisfactorily pass an optical examination every two years. The eye examination results must show natural or corrected 20-20 vision and an ability to distinguish colors correctly.

B. Fee schedule. Before submitting an application for a permit as a racing official, the applicant shall consult the fee schedule of the Virginia Racing Commission to ascertain the applicable fee, make out a check or money order payable to the Virginia Racing Commission or pay in cash the full amount of the fee, and submit the fee with the application.

C. Consideration by commission. The commission shall promptly consider an application and shall issue or deny the permit based on information in the application and all other information before the commission, including any investigation the commission deems appropriate. If an application is approved, the commission shall issue a permit, and the permit shall be valid for one year.

D. Denial of application. The commission shall deny the application if it finds that the issuance of a permit to a person as a racing official would not be in the interests of the people of the Commonwealth, or the horse racing industry of the Commonwealth or would reflect adversely on the honesty and integrity of the horse racing industry in the Commonwealth. The commission shall also deny the application if it finds that the applicant:

Has knowingly made a false statement of a material fact in the application or has deliberately failed to disclose any information requested by the commission;
Is or has been guilty of any corrupt or fraudulent practice or conduct in connection with any horse race meeting in this or any other state;
Has knowingly failed to comply with the provisions of Chapter 29 (§ 59.1-364 et seq.) of Title 59.1 of the Code of Virginia or the regulations of the commission;
Has had a permit to engage in activity related to horse racing denied for just cause, suspended, or revoked in any other jurisdiction, and such denial, suspension, or revocation is still in effect;
Is unqualified to perform the duties required for the permit sought; or
Has been convicted of a misdemeanor or felony involving unlawful conduct or wagering, fraudulent use of a credential, unlawful transmission of information, touting, bribery, administration or possession of drugs, or any felony considered by the commission to reflect adversely on the horse racing industry in the Commonwealth.

E. Denial is final. The denial of an application by a person as a racing official shall be final unless an appeal is made by the applicant under the provisions of the regulations of the commission.

F. Prohibited activities for racing officials. No racing official or any assistant of a racing official while serving at any race meeting licensed by the commission shall engage in any of the following activities:

Participating in the sale, purchase, or ownership of any horse that is racing at a meeting where the racing official is serving;
Being involved in any way in the purchase or sale of any contract on any jockey racing at the meeting;
Wagering at race meetings licensed by the commission;
Accepting any gratuity or payment, other than regular wages or salary, directly or indirectly; or
Engaging in any activity that would impair a racing official's judgment or to function in his assigned capacity.

G. Reporting violations. Every racing official and any assistant are responsible to report immediately to the stewards every observed violation of the regulations of the commission as well as all violations of state and federal laws during the race meeting.

H. Single appointment. No racing official may hold more than one official position unless at the request of the licensee or on its own motion the commission determines that the holding of more than one appointment would not subject the official to a conflict of his interests and duties in the two official positions.

I. Emergency appointment. Any racing official who desires to leave his position or is unable to fulfill his responsibilities must first obtain permission from the commission. The licensee shall promptly appoint a successor, subject to the issuance of the appropriate permit by the commission. In the event of an emergency and the licensee is unable to appoint a successor in time to permit the orderly conduct of racing, the stewards shall immediately appoint a temporary successor.

J. Notification of commission. The list of racing officials to be employed by the licensee shall be submitted to the commission no later than 30 days prior to the opening of the race meeting. The licensee shall be responsible for submitting an application for each racing official who has not been previously issued a permit by the commission no later than 60 days prior to the opening of the race meeting.

K. Fine, suspension, and revocation. A racing official may be fined, be suspended, or have his permit revoked at any time by the commission for incompetence, failure to follow or enforce the commission's regulations, or any conduct detrimental to horse racing. The disciplinary action of the commission shall be final unless the racing official appeals the action under the provisions of this chapter.

L. Attendance at proceedings. A racing official shall attend, when requested by the stewards or commission, any hearing, appeal, or proceeding where his testimony may be material in arriving at a determination of the matter.

M. Interference with other officials. A racing official shall not interfere with the deliberations or the decision-making of other racing officials.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-03-01 § 1.1, eff. December 19, 1990; amended, Virginia Register Volume 35, Issue 22, eff. July 8, 2019.

Part II Personnel

11VAC10-50-20 General manager

The licensee shall appoint a qualified person to act as the general manager for any unlimited race meeting. The general manager, and his assistant, if one is appointed, shall oversee the conduct of the race meeting and cooperate with the commission in implementing these regulations. In addition, the general manager's duties include but are not limited to:

Providing the procedures, facilities and equipment as set forth in 11VAC10-10-10 et seq. that the race meeting shall be free of any incompetent or unprincipled practices;
Ensuring the pari-mutuel wagering at the race meeting is conducted in accordance with the provisions as set forth in 11VAC10-20-260 et seq.
Developing, with the assistance of the licensee's marketing and promotional staff, plans for the education of the public concerning horse racing and the growth of the horse industry in the Commonwealth; and
Properly supervising the licensee's employees to assure that they are present in sufficient numbers to provide for the public health, safety and welfare as well as to protect the integrity of horse racing.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-03-01 § 2.1, eff. December 19, 1990.

11VAC10-50-30 Racing secretary

The licensee shall appoint a qualified person to act as racing secretary for the race meeting. The racing secretary shall be responsible for the conduct of the racing office and all of the licensee's employees who are assigned to the racing office. The racing secretary, and his assistant, if one is appointed, shall also be responsible for the programming of races during the race meeting and all of the duties pertaining to the programming of races. Among the duties of the racing secretary are:

Recruiting the highest possible quality of horses for the race meeting and assigning stall space to horses. The racing secretary shall submit the procedures and stall application forms to achieve a quality horse population no later than 60 days before the opening of the race meeting;
Receiving and keeping safe, with the assistance of the clerk of the course, registration or eligibility certificates of horses stabled within the enclosure or horses to be entered into races, and returning upon request the certificates to the horse owner or his representative;
Publishing at least 30 days prior to the opening of the race meeting and at intervals thereafter acceptable to the commission a condition book or sheet that sets forth the conditions and eligibility for horses to be entered into races for the meeting and distributing the book or sheet among owners, trainers and the commission;
Supervising the taking of entries for each day's races, verifying the eligibility, the accuracy of the information submitted with the entry and the weights claimed for the horses, where appropriate;
Coupling of entries for wagering purposes, as provided for in these regulations, and assigning horses to the mutuel field for wagering purposes in a manner approved by the stewards;
Maintaining a list of horses which were entered but denied an opportunity to race because they were excluded from a race programmed in the condition book or sheet either by overfilling or failure to fill the race. The racing secretary shall submit to the commission for approval, at least 30 days prior to the opening of the race meeting, a detailed description of the manner in which preference will be allocated to those horses excluded;
Posting a list of entries or an overnight sheet in a conspicuous location in the racing secretary's office, upon the closing of entries each day, and making available copies of the list of entries or overnight sheet to other racing officials, commission personnel, horsemen, members of the media and the public;
Maintaining, with the assistance of the clerk of the course, a permanent record of all stakes, entrance moneys and arrears paid or due, and depositing the moneys in an escrow account as provided in 11VAC10-20;
Publishing, with the assistance of the program director, a daily racing program accurately containing all of the information that is deemed appropriate to the type of racing being offered and any other information the commission may deem appropriate;
Assigning weights to be carried by each horse in a handicap race, and when weights are not specified by the conditions of the race, the scale of weights of either The Jockey Club or the National Steeplechase Association shall apply, as they are appropriate;
Keeping, with the assistance of the clerk of the course, permanent records of the results of each race of the meeting, and updating the registration or eligibility certificate with information deemed appropriate by the commission or the appropriate breed registry;
Informing the horsemen's bookkeeper of the results of each race as well as the amounts of purse moneys due and the parties to whom the purse moneys are due and, in general, supervising the account;
Posting a list in a conspicuous place in the racing secretary's office of those horses that have been nerved and those horses that have been gelded or spayed;
Maintaining, with the assistance of the stall superintendent, a list of the horses stabled within the enclosure, and maintaining a record of arrival and departure of all horses stabled within the enclosure;
Supervising the claims clerk in determining the eligibility of owners to claim other horses at the race meeting and whether sufficient funds exist in the horsemen's account or proper funding is available to make a valid claim; and
Withdrawing, cancelling or changing any race which has not closed. In the event the cancelled race is a stakes race, all subscriptions and fees paid in connection with the race shall be refunded.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-03-01 § 2.2, eff. December 19, 1990; amended, Virginia Register Volume 25, Issue 17, eff. May 27, 2009.

11VAC10-50-40 Licensee's veterinarian

The licensee shall appoint a qualified person to act as the licensee's veterinarian for the race meeting. The licensee's veterinarian shall possess a full and unrestricted license to practice veterinary medicine from the Virginia Board of Veterinary Medicine and shall be present within the enclosure on racing days to perform his duties. The licensee's veterinarian shall be approved by the commission and shall be designated to work under the authority and direction of the commission veterinarian. The duties of the licensee's veterinarian include, but are not limited, to:

Performing prerace examinations of horses entered to race on that day's program and recommending to the stewards that horses found to be unfit for racing be scratched;
Observing horses in the paddock and being present at the starting gate, where he can recommend to the stewards scratching any horse that he deems to be unfit for racing;
Observing horses after the finish of a race and upon their leaving the racing surface for injuries or lameness;
Rendering emergency care to horses injured either in workouts or racing when a practicing veterinarian is not readily available to perform these services;
Assisting the commission veterinarian in determining horses that are bleeders, either through observing the horse bleed from the nostrils after a workout or a race, by observing a private practitioner's endoscopic examination of a horse following a workout or race, or by retrieving information from other racing jurisdictions;
Assisting the commission veterinarian in the supervision and collection of samples in the test barn;
Placing horses on the veterinarian's list and observing workouts as needed to remove horses from the veterinarian's list; and
Being authorized to humanely destroy any horse deemed to be so seriously injured that it is in the best interests of the horse to so act.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-03-01 § 2.3, eff. December 19, 1990; amended, Virginia Register Volume 28, Issue 15, eff. April 16, 2012.

11VAC10-50-50 Paddock judge

The licensee shall appoint a qualified person to act as the paddock judge for the race meeting. The paddock judge shall have general supervision of the paddock and among the duties of the paddock judge are:

Assuring that horses are in the paddock at the time appointed by the stewards and reporting to the stewards those horses which are late to the paddock;
Assembling the horses and jockeys in the paddock no later than 15 minutes before the scheduled post time for each race;
Keeping a record of all equipment carried by all horses in all races and permitting no change in equipment unless authorized by the stewards;
Inspecting the leg bandages worn by horses and ordering the bandages removed or replaced as deemed appropriate;
Supervising the schooling of horses in the paddock with the prior permission of the stewards;
Supervising the farrier assigned to the paddock to ensure that the plating of each horse in each race is examined, determining whether the horse is properly shod, and making changes deemed necessary;
Excluding from the paddock all those persons who have no immediate business with the horses entered in a race and reporting rule violations in the paddock area to the stewards;
Taking all measures to ensure that the saddling of all horses is orderly, open to public view unless permission to saddle horses elsewhere has been granted by the stewards, free from interference, and further assuring that the horses are mounted at the same time, and leave the paddock for the post parade in the proper sequence;
Permitting a horse to be excused from parading and instead permitting that the horse be led to the post, with the approval of the stewards;
Assuring that the horse displays the proper saddle cloth number and the jockey wears the proper number before leaving the paddock for the post parade;
Keeping a record of those horses accompanied to the post by pony riders; and
Checking out horses and drivers as they leave the paddock for warmups prior to racing and checking in their return to the paddock after the warmups for Standardbred race meetings.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-03-01 § 2.4, eff. December 19, 1990; amended, Virginia Register Volume 33, Issue 2, eff. October 19, 2016.

11VAC10-50-60 Patrol judge

The licensee shall appoint a sufficient number of qualified persons to act as patrol judges for the race meeting. For flat and jump race meetings, the licensee shall appoint a sufficient number of patrol judges as approved by the commission, and for Standardbred race meetings, a single patrol judge shall ride in the mobile starting gate. Among the duties of the patrol judge are:

Reporting, particularly as to any suspected violation of these regulations, during the running of each race to the stewards through radio or telephone communication;
Writing a report of their observations of every race, and documenting all violations of these regulations that they observed during the running of the race. These reports shall be delivered to the stewards at the conclusion of each day of racing;
Assisting the stewards in making a determination of an objection, inquiry or protest of the running of a race;
Assisting the stewards in making up a list of participants in each race to review the films before the commencement of the next succeeding day of racing; and
Notifying the stewards of any objection lodged by a driver after a Standardbred race, and the mobile starting gate shall be positioned so that drivers can promptly lodge objections with the patrol judge.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-03-01 § 2.5, eff. December 19, 1990; amended, Virginia Register Volume 28, Issue 13, eff. March 27, 2012.

11VAC10-50-70 Horse identifier

The licensee shall appoint a qualified person to act as horse identifier for the race meeting. The horse identifier shall be responsible for the proper identification of all horses entered to race. Among the duties of the horse identifier are:

Accompanying the commission's or licensee's veterinarian upon request during the prerace examination of all horses entered to race so as to ascertain their identity;
Examining every horse entered to race in the paddock for sex, age, color, markings, lip-tattoo, digital tattoo, microchip, or freeze brand number and name for comparison with the information contained on the certificate of registration;
Using photographs, if they exist, as an aid in identifying horses entered to race during the prerace examination and in the paddock prior to racing;
Notifying both the stewards and paddock judge of any doubts he has concerning the identity of any horse entered to race; and
Assisting the racing secretary in the safekeeping of certificates of registration, eligibility certificates, and racing permits and the recording any information required to be entered on these documents.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-03-01 § 2.6, eff. December 19, 1990; amended, Virginia Register Volume 35, Issue 22, eff. July 8, 2019.

11VAC10-50-80 Clerk of scales

The licensee shall appoint a qualified person to act as clerk of scales for the race meeting. The clerk of scales shall be responsible for the security, regulation and control of the jockeys' room, equipment in the jockeys' room and personnel permitted access to the jockeys' room. Among the duties of the clerk of scales are:

Securing the jockeys' room and excluding unauthorized persons, and ensuring that no jockey, valet or other person leaves the jockeys' room or paddock until their participation in the racing day is concluded;
Supervising the custodian of the jockeys' room and ensuring that the jockeys' room is properly equipped as provided for in 11VAC10-20-190 and informing the stewards and licensee of any deficiencies;
Ascertaining that all of the jockeys, who are programmed to ride on that racing day, are in the jockeys' room at the time appointed by the stewards and are in possession of the proper permit from the commission;
Weighing out every jockey no later than 15 minutes prior to the race that the jockey is scheduled to ride and recording all overweights which shall immediately be posted and announced to the public;
Weighing in every jockey immediately after the finish of each race and promptly notifying the stewards whether any jockey weighed in more than two pounds underweight or overweight;
Providing the horsemen's bookkeeper with an accounting of riding fees due each jockey at the end of each racing day;
Safekeeping of all racing colors;
Reporting all color changes or jockey changes from that listed in the daily racing program and causing any changes to be immediately posted and announced to the public;
Supervising the valets and the issuance of numbered saddle cloths and equipment for each horse;
Testing the accuracy of the scales at the beginning of the race meeting and conducting periodic tests of the scales thereafter;
Submitting to the racing secretary at the close of each racing day a statement of weight carried in each race by each jockey, noting overweight, if any; and
Notifying the stewards immediately of all complaints, protests, objections or disputes submitted to the clerk of scales, and if the stewards are not available, then to the commission.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-03-01 § 2.7, eff. December 19, 1990.

11VAC10-50-90 Placing judge

The licensee shall appoint three qualified persons to act as placing judges for a flat race meeting. The judges shall occupy a stand directly above the finish line during the running of each race. Among the duties of the placing judges are:

Placing horses at the finish of race. The placing judges shall only consider the position of the horses' noses and not any other part of the body;
Placing the horses in the order of finish and displaying the result on the infield results board;
Calling for a photograph from the photo-finish camera when the finish indicates a close finish or when the judges are not in unanimous agreement as to the correct order of finish;
Referring photo-finish photographs to the stewards for concurrence before the order of finish is displayed on the infield results board, when the placing judges are not in unanimous agreement or there is an apparent dead heat following the examination of the photograph;
Submitting to the stewards and the horsemen's bookkeeper at the conclusion of each racing day a list of the placings of those in each race and those horses which did not finish;
Correcting errors in the displaying of the order of finish on the infield results board, with the permission of the stewards, before the race is declared "official" by the stewards; and
For Standardbred race meetings, the stewards may act as placing judges; however, all three stewards shall inspect any photo-finish and be in unanimous agreement before posting the order of finish.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-03-01 § 2.8, eff. December 19, 1990.

11VAC10-50-100 Starter

A. Flat races. The licensee shall appoint a qualified person to act as starter for a flat race meeting. The starter shall be responsible for the fair and equal start of all horses at the scheduled starting time by means of a starting gate and bell. Among the duties of the starter are:

Ensuring that two operable starting gates are available at all times during racing days and that the starting gates are clean, neat and in good repair;
Permitting no horses to be entered in a race unless approved by the starter;
Maintaining a starter's list of the horses' names and posting the list in the racing secretary's office of those ineligible to start because lack of training or bad behavior at entering or leaving the starting gate;
Schooling those horses which are on the starter's list by being present with an adequate number of assistant starters during hours approved by the stewards, and approving those horses for entry which are making their first lifetime starts;
Appointing assistant starters who shall not handle or take charge of a horse in the starting gate without the express instructions from the starter;
Changing daily the gate position of each assistant starter without notice to the assistant starters until the field for the first race comes upon the racing surface;
Taking all necessary measures to ensure a fair and equal start;
Overseeing the post parade of the horses, jockeys, outriders and pony riders from the time they arrive on the track until the start is effected;
Ensuring that no jockey dismounts without the permission of the starter. A jockey may dismount only due to accident or injury to horse or jockey or equipment adjustment; in that case the starter may permit all jockeys to dismount. The starter shall delay the start until all jockeys have remounted their horses;
Ensuring that no other person than the jockey shall help in effecting a start by striking a horse or shouting at it or otherwise assisting;
Causing all horses, so far as is practical, to be loaded in order of post position, but the starter may, in his discretion, load an unruly or fractious horse out of order;
Reporting to the stewards any disobedience of his orders or attempts to take unfair advantage at the starting gate and recommending penalties for offenders;
Maintaining a written record showing the names of all starters during the racing day and the names of the assistant starters who handled each horse, and making the record available to stewards upon request;
Notifying the stewards immediately of any significant failure of the starting gate, or any defect in the starting process if any horse is not in the starting gate when the field is dispatched, or for any other reason a horse does not receive a fair start; and
Keeping in constant radio or telephone communication with the stewards from the time the horses leave the paddock until the horses leave the starting gate.

B. Jump races. In jump races, where the horses are started by other than a starting gate, the licensee shall appoint qualified persons to act as a starter and assistant starter. The starter shall be responsible for securing a fair and equal start for all horses at the scheduled time by means of a flag. Among the duties of the starter are:

Ensuring that there shall be no start until, and no recall after, the assistant starter has dropped the flag in answer to the flag of the starter;
Starting the horses as far as possible in a line, but the horses may be started at a reasonable distance behind the starting post as the starter deems necessary;
Cancelling a race unless at least one horse and jockey returns to the starter after the recall flag has been raised for a false start;
Declaring a race a walkover if only one horse and jockey returns and satisfies the starter of obeying the recall flag;
Restarting the race, when the racing surface is clear, if more than one horse and jockey obeys the recall flag;
Ensuring that no jockey dismounts without the permission of the starter. A jockey may dismount only because of an accident or injury to horse or jockey or equipment adjustment; in that case the starter permits all jockeys to dismount. The starter shall delay the start until all jockeys have remounted their horses;
Ensuring that no other person than the jockey shall help in effecting a start by striking a horse or shouting at it or otherwise assisting;
Reporting to the stewards any disobedience of his orders or attempts to take unfair advantage at the start and recommending penalties for offenders; and
Keeping in constant radio or telephone communication with the stewards from the time the horses leave the paddock until the horses start.

C. Standardbred races. In Standardbred races, where horses are started by means of a mobile starting gate, the licensee shall appoint a person qualified to act as starter for the race meeting. Among the duties of the starter are:

Maintaining two operable mobile starting gates and ensuring that both mobile starting gates are clean, neat and in good repair;
Providing a mobile starting gate with a screen or shield in front of the position for each horse, and the arms of the starting gate shall be perpendicular to the rail;
Appointing a qualified person to be the driver of the mobile starting gate;
Ensuring that the driver of the mobile starting gate knows and practices emergency procedures in the event there is a malfunction of the starting gate;
Maintaining a starter's list of the horses' names and posting the list in the racing secretary's office of those ineligible for entry because lack of training or bad behavior at the starting gate;
Schooling those horses which are on the starter's list by being present with a mobile starting gate during nonracing hours, approved by the stewards, and approving those horses coming off the starter's list and those making their first start;
Starting qualifying races by being present with a mobile starting gate as directed by the licensee and approved by the stewards;
Having control of the horses from the formation of the post parade until the starter gives the word "go";
Notifying the drivers during or before the post parade of the number of preliminary warming up scores and calling the horses to the starting gate no nearer than an eighth of a mile from the starting point;
Allowing sufficient time so that the speed of the starting gate can be gradually increased, and so that the following minimum speeds will be maintained:

a. For the first eighth of a mile, not less than 11 miles per hour;

b. For the next sixteenth of a mile, not less than 18 miles per hour; and

c. From that point to the starting point, the speed will be gradually increased to maximum speed.

Ensuring that the starting point is marked on the inside rail and not less than 200 feet from the first turn, and at the starting point the starter shall give the word "go";
Sounding for a recall by flashing a plainly visible light and sounding a recall signal to the drivers, when:

a. A horse scores ahead of the starting gate;

b. There is interference;

c. A horse has broken equipment;

d. There is a malfunction of the starting gate; or

e. A horse falls before the word "go" is given.

However, there shall be no recall after the word "go" has been given and any horse, regardless of its position or an accident, shall be deemed a starter. While the starter shall endeavor to get all horses away in position and on gait, there shall be no recall for a horse that breaks its gait.

Recommending to the stewards penalties to drivers for the following actions:

a. Delaying the start;

b. Failing to obey the starter's instructions;

c. Rushing ahead of the inside or outside wing of the gate;

d. Coming to the starting gate out of position;

e. Crossing over before reaching the starting point;

f. Interfering with another horse during the start; or

g. Failing to come up into position.

Using a loudspeaker for any other purpose other than to give instructions to drivers is prohibited and the volume of the loudspeaker shall be no higher than necessary to carry the voice of the starter to the drivers; and
Notifying the stewards of an unmanageable or bad acting horse or a horse liable to cause accidents or injury to any other horse or driver and recommending to the stewards that unmanageable horses be excused.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-03-01 § 2.9, eff. December 19, 1990.

11VAC10-50-110 Outriders

The licensee shall appoint a sufficient number of qualified people to act as outriders for the race meeting. The outriders shall accompany the field of horses from the paddock to the post, assist jockeys with unruly horses, render assistance when requested by the jockey, and be present during morning workouts at flat and jump race meetings to assist exercise riders as required by these regulations.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-03-01 § 2.10, eff. December 19, 1990.

11VAC10-50-120 Entry clerk

The licensee shall appoint a sufficient number of qualified people to act as entry clerks for the race meeting. The entry clerks shall assist the racing secretary in the taking of entries for each day's races, verifying the eligibility of the entrants, the accuracy of the information submitted with the entry, the weights claimed for the horses, where appropriate, and assisting the draw for post position. Entry clerks may also serve in other capacities during the race meeting with the approval of the stewards.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-03-01 § 2.11, eff. December 19, 1990.

11VAC10-50-130 Clocker

The licensee shall appoint a sufficient number of qualified people to act as clockers for flat race meetings. The clockers shall be present at their assigned locations at the opening of training hours each morning and remain there until training hours are concluded. The clockers shall keep a listing of the name of each horse working out, distance, time, manner in which the workout was accomplished, condition of the racing surface, and any other information deemed appropriate. At the conclusion of training hours, the clocker shall submit the listing to the stewards, racing secretary, media and any other personnel deemed appropriate.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-03-01 § 2.12, eff. December 19, 1990.

11VAC10-50-140 Gap attendant

The licensee shall appoint a sufficient number of qualified people to act as gap attendants for flat race meetings. The gap attendants shall be present at their assigned locations at the opening of training hours each morning and remain there until training hours are concluded. The gap attendant shall obtain the name of each horse working out, distance, and the starting and finishing points of the workout, and report this information to the clocker. The gap attendants shall report to the stewards any exercise rider or trainer who refuses to supply this information.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-03-01 § 2.13, eff. December 19, 1990.

11VAC10-50-150 Timer

The licensee shall appoint a sufficient number of qualified people to act as timers for race meetings. The timers shall be present at their assigned locations and equipped with stopwatches or other timing devices to record the time of each race, along with appropriate fractional times, in the event of a failure of the electronic timing system or limitations to the electronic system. The timer shall keep record of his time for each race along with the appropriate fractional times.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-03-01 § 2.14, eff. December 19, 1990.

11VAC10-50-160 Custodian of jockeys' room

The licensee shall appoint a qualified person to act as custodian of the jockeys' room for flat race meetings or custodian of the drivers' room for Standardbred race meetings. The custodian shall assist the clerk of scales in performing his duties and supervise the valets. Among the duties of the custodian are:

Maintaining order, decorum and cleanliness in the jockeys' room and scale rooms;
Assisting the clerk of scales as required;
Ensuring that no unauthorized persons are admitted to the jockeys' room;
Supervising the care and storage of racing colors;
Supervising the valets, and arranging with the stewards and clerk of scales a rotation among the valets for the weighing out of jockeys;
Ensuring that no valet converses with the public after reporting to the jockeys' room or leaves the confines of the area where they perform their duties which includes the jockeys' room, paddock and winners' circle;
Ensuring that jockeys are neat in appearance and properly attired when they leave the jockeys' room to ride in a race;
Reporting to the stewards any violation of a regulation occurring within the jockeys' room; and
Assigning to each jockey a locker capable of being locked for the use of storing clothing, equipment and personal effects.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-03-01 § 2.15, eff. December 19, 1990.

11VAC10-50-170 Valets

The licensee shall appoint a sufficient number of qualified persons to act as valets for flat race meetings. The valets shall attend the weighing out of jockeys prior to riding in races and the weighing in of jockeys after riding in races under the supervision of the clerk of scales and custodian of the jockeys' room. Among the duties of valets are:

Reporting to the jockeys' room at the time appointed by the stewards and clerk of scales, and not leaving the confines of the area where they perform their duties which includes the jockeys' room, paddock and winners' circle;
Conversing with the public while performing their duties is forbidden;
Attending the weighing out of jockey, the saddling of the jockeys' mount prior to racing, and attending the weighing in of jockeys in a rotation approved by the stewards and clerk of scales; and
Returning to the confines where they perform their duties is forbidden, once valets have completed their participation in the racing day and left the confines.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-03-01 § 2.16, eff. December 19, 1990.

11VAC10-50-180 Claims clerk

The licensee shall appoint a qualified person to act as claims clerk for the race meeting. The claims clerk shall assist the stewards and racing secretary in processing claims filed for horses entered in claiming races. Among the duties of the claims clerk are:

Ensuring there is an adequate supply of claiming forms and envelopes provided by the licensee, and the forms and envelopes are in a form approved by the commission;
Ensuring that the claims box is locked at the time appointed by the stewards and only opened when the horses for the race enter the racing surface on their way from the paddock to the post;
Informing no one except the stewards of any claims filed for a horse in the claiming race and of any multiple claims on a horse entered in the race;
Ascertaining that the claiming form and envelopes are properly complete;
Ascertaining that the person filing a claim is eligible to claim horses at the race meeting and informing the stewards immediately of any doubts of the person's eligibility to make a claim;
Ascertaining that sufficient funds have been deposited with the licensee or exist in the horsemen's account to cover the cost of the claim and informing the stewards immediately of any insufficiency in funds; and
Being present when the stewards draw for the successful claimant in those cases where multiple claims are made on a single horse.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-03-01 § 2.17, eff. December 19, 1990.

11VAC10-50-190 Clerk of the course

The licensee shall appoint a qualified person to act as clerk of the course for the race meeting. The clerk of the course shall assist the racing secretary in performing his duties. Among the duties of the clerk of the course are:

Safekeeping of registration or eligibility certificates and making any notation upon them required by recognized breed registries;
Returning registration or eligibility certificates to the owners of the horses or their representative upon request;
Publishing conditions and entry forms for stakes and futurities to be run at the race meeting;
Receiving nominations for stakes races and futurities, and depositing any fees associated with these races in an escrow account as provided for in 11VAC10-20-10 et seq.; and
Maintaining accurate records of race results from each racing day.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-03-01 § 2.18, eff. December 19, 1990.

11VAC10-50-200 Director of security

The licensee shall appoint a qualified person to act as director of security for the race meeting. The director of security shall be responsible for the safety and security of the public, participants and physical plant of the horse racing facility. Among the duties of the director of security are:

Developing a comprehensive security plan for the horse racing facility encompassing local emergency services available; including fire fighting, law enforcement and medical emergency;
Inspecting on a periodic basis the security equipment, such as fences, locks, alarms and monitoring equipment for the horse racing facility;
Developing procedures whereby unauthorized persons may be excluded from restricted areas, securing areas where money and mutuel tickets are vaulted, and discovery and expulsion of persons who are a threat to the integrity of racing in Virginia;
Supervising the security officers employed by the licensee so that the safety and welfare of the public and participants may be protected and to protect the integrity of racing in Virginia;
Developing evacuation procedures in case of a fire or other emergency, and training the licensee's security personnel and other employees in their responsibilities in emergency situations;
Inspecting the licensee's first aid and medical facilities and ensuring the personnel are trained, equipped and ready to render emergency assistance to the public and participants when required;
Reporting to the commission's director of security any actual, suspected or indicated violation of these regulations or of any criminal offense coming to his attention;
Cooperating with commission personnel, Virginia State Police and industry security services in the performance of their duties; and
Informing the commission of the licensee's internal accounting controls to safeguard assets, and detect fraud and embezzlement.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-03-01 § 2.19, eff. December 19, 1990.

11VAC10-50-210 Security officer

The licensee shall appoint a sufficient number of qualified persons to act as security officers for the race meeting. The security officers shall assist the licensee's director of security in carrying out his responsibilities. The security officers shall conduct themselves so as to protect the safety and welfare of the public and participants and protect the integrity of horse racing in Virginia.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-03-01 § 2.20, eff. December 19, 1990.

11VAC10-50-220 Mutuel manager

The licensee shall appoint a qualified person to act as mutuel manager for the race meeting. The mutuel manager shall supervise the operations of the mutuel department and the licensee's personnel employed in the mutuel department so that the public interest and the integrity of horse racing in Virginia may be protected. Among the duties of the mutuel manager are:

Inspecting on a periodic basis the operation of the totalizator for the accuracy of its calculations;
Assigning a sufficient number of mutuel clerks so that the wagering may be conducted efficiently and without undue delay or inconvenience to the public;
Observing the progression of the wagering and informing the stewards immediately of any malfunction in the totalizator or suspected unusual patterns in the wagering;
Locking the ticket-issuing machines at the start of the race in the event of a failure in the system or through the inadvertence of the stewards;
Making any emergency decisions when there is not sufficient time for consultation with the stewards, but submitting a written report to the stewards and the commission of the action taken and the reason for taking the action;
Comparing two independent sets of pool totals at periodic intervals and verifying any discrepancies;
Ascertaining the accuracy of the approximate odds and payouts posted on the infield results board;
Preparing, at the request of the stewards or commission, special reports on any of the wagering activity during the race meeting; and
Safekeeping the records of the wagering activity for a period of at least 30 days following the conclusion of the race meeting and not destroying the records without the permission of the commission.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-03-01 § 2.21, eff. December 19, 1990.

11VAC10-50-230 Photo-finish camera operator

The licensee shall appoint a qualified person to act as photo-finish camera operator for the race meeting. The photo-finish camera operator shall be responsible for the operation of the photo-finish camera equipment and for producing prints of photo-finishes of a quality required by the placing judges and stewards. Among the duties of the photo-finish camera operator are:

Being in his assigned location in sufficient time prior to the first race to ensure that the photo-finish cameras are operable and sufficient supplies are on hand;
Taking clear photo-finish photographs of all horses passing the finish line on two separate cameras;
Producing prints of the finishes of any races as requested either by the placing judges or stewards;
Notifying the stewards and placing judges immediately of any malfunction in either camera or the inability to produce prints;
Supplying the media and other appropriate personnel with the number of beaten lengths of any horses finishing in the race; and
Keeping safe films of the finishes of all races for one year after the closing of the race meeting, and not destroying any films without the permission of the commission.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-03-01 § 2.22, eff. December 19, 1990.

11VAC10-50-240 Video patrol personnel

The licensee shall appoint a sufficient number of qualified persons to operate the film or video patrol camera for the race meeting. The video patrol camera personnel shall be responsible for the recording of each race during meeting as provided for in 11VAC10-20-10 et seq. Among the duties of the video patrol camera personnel are:

Being in their assigned location in sufficient time prior to the first race to ensure that the video patrol cameras and equipment are in operable condition;
Making recording of the running of each race clearly showing the position and actions of the horses and jockeys or drivers at close range;
Replaying for the benefit of the stewards of any portion of the race requested by the stewards;
Notifying the stewards immediately of any malfunction in either the cameras or equipment or the inability to replay any portion of a race;
Replaying the running of each race for the benefit of the public and showing the public any riding fouls that resulted in a disqualification; and
Safekeeping the records of all races for one year after the closing of the race meeting, and not destroying any of the records without the permission of the commission.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-03-01 § 2.23, eff. December 19, 1990.

11VAC10-50-250 Program director

The licensee shall appoint a qualified person to act as program director for the race meeting. The program director shall perform his duties under the supervision of the racing secretary, ensure that all of the information contained in the daily racing program is accurate, and provide all of the information in the daily racing program that is deemed appropriate to the type of racing.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-03-01 § 2.24, eff. December 19, 1990.

11VAC10-50-260 Track superintendent

The licensee shall appoint a qualified person to act as track superintendent for the race meeting. The track superintendent shall (i) be responsible for the maintenance of the racing and training surfaces in a safe and humane condition, (ii) keep written records of the maintenance done on the racing and training surfaces and present records for inspection upon request of the stewards or commission, and (iii) keep the necessary equipment and personnel to maintain the racing and training surfaces in proper condition.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-03-01 § 2.25, eff. December 19, 1990.

11VAC10-50-270 Stall superintendent

The licensee shall appoint a qualified person to act as stall superintendent for the race meeting. The stall superintendent shall assist the racing secretary in seeing that the horses are in their assigned stalls, establishing a system where horses may not leave or enter the stabling area without the racing secretary's permission, and seeing that the stabling area is maintained in a clean, neat and sanitary condition.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-03-01 § 2.26, eff. December 19, 1990.

11VAC10-50-280 Horsemen's bookkeeper

The licensee shall appoint a qualified person to act as the horsemen's bookkeeper during the race meeting. The horsemen's bookkeeper shall assist the racing secretary in maintaining the separate bank account known as the horsemen's account. Among the duties of the horsemen's bookkeeper are:

Ensuring the purse money statutorily mandated is deposited in the account within 48 hours after the running of the race and informing the commission immediately of any deficiencies;
Making all portions of purse money available when the stewards have authorized payment to the earners;
Ensuring that no portion of the purse money, other than jockey fees, is deducted without proper authorization;
Ensuring that proper authorization is on file prior to making deductions from the purse money other than jockey fees;
Mailing to each owner a duplicate record of a deposit, withdrawal or transfer of funds affecting the owner's racing at the close of the race meeting; and
Assisting the claims clerk in determining whether there are sufficient funds available for an owner or authorized agent to claim another horse.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-03-01 § 2.27, eff. December 19, 1990.

11VAC10-50-290 Other persons qualified to assist racing officials

The licensee may appoint qualified persons to assist the racing officials for the race meeting. No person shall act as an assistant in any capacity or serve under the supervision of a racing official unless the person has been issued a permit by the commission as provided for elsewhere in these regulations.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-03-01 § 2.28, eff. December 19, 1990; amended, Virginia Register Volume 27, Issue 2, eff. September 27, 2010.

Chapter 130 Virginia Breeders Fund

Part I Definitions

11VAC10-130-10 Definitions

The following words and terms when used in this chapter shall have the following meanings unless the context clearly indicates otherwise:

"Breeding season" means a period of time beginning on February 1 and ending on August 1 of each year. For Standardbreds, the breeding season means a period of time beginning February 15 and ending on July 15 of each year.

"Registered" means the completion of the process of filing an application with the commission or its designee to satisfy the requirements for participation in the Virginia Breeders Fund.

"Stallion owner" means an owner or lessee of record of a stallion that covered mares in the Commonwealth of Virginia during the breeding season in which it sired a Virginia-bred horse.

"Virginia-bred Arabian horse" means a registered Arabian horse foaled in the Commonwealth of Virginia.

"Virginia Arabian horse breeder" means the owner or lessee of record of the mare at the time of foaling of a Virginia-bred Arabian horse.

"Virginia Arabian sire" means a registered Arabian stallion that covered mares only in the Commonwealth of Virginia during the breeding season in which it sired a Virginia-bred Arabian horse.

"Virginia-bred Quarter Horse" means a registered Quarter Horse foaled or conceived in the Commonwealth of Virginia.

"Virginia Quarter Horse breeder" means the owner or lessee of record of the mare at the time of conception of a Virginia-bred Quarter Horse.

"Virginia Quarter Horse sire" means a registered Quarter Horse stallion or registered Virginia Thoroughbred stallion that covered mares only in the Commonwealth of Virginia during the breeding season in which it sired a Virginia-bred Quarter Horse.

"Virginia resident" means a person legally required to file a resident income tax return with the Commonwealth of Virginia or a partnership, corporation, stable name, or other entity that is solely owned by Virginia residents and owners legally required to file resident income tax returns with the Commonwealth.

"Virginia-bred Standardbred horse" means a registered Standardbred horse sired by a Virginia Standardbred sire, a registered Standardbred horse foaled in the Commonwealth of Virginia provided that the foal-producing mare is domiciled in the Commonwealth from July 15 through December 31 of the year in which the horse is foaled, or a registered Standardbred horse foaled in the Commonwealth provided that the foal-producing mare is bred back that same breeding season to a Virginia Standardbred sire with the following exceptions:

A foal of a mare that is solely owned by a Virginia resident at the time of conception; or
A foal of a mare purchased solely by a Virginia resident at a public auction.

"Virginia Standardbred horse breeder" means the owner or lessee of record of the mare at the time of conception of a Virginia-bred Standardbred horse.

"Virginia Standardbred sire" means a registered Standardbred stallion that stood only in the Commonwealth of Virginia during the breeding season in which it sired a Virginia-bred Standardbred horse. Shipment of semen for the breeding of mares outside the Commonwealth shall be permitted so long as any resulting foals meet the requirements of this chapter in all other respects.

"Virginia-bred Thoroughbred horse" means a registered Thoroughbred horse foaled in Virginia. Beginning with foals of 2024, the foal's dam must also domicile in Virginia from September 1 of the year of conception and reside in Virginia until the dam foals the following year.

"Virginia-sired Thoroughbred horse" means a registered Thoroughbred horse sired by a Virginia Thoroughbred sire, but not foaled in Virginia or not otherwise satisfying the requirements for a Virginia-bred Thoroughbred horse.

"Virginia Thoroughbred horse breeder" means the owner or lessee listed on The Jockey Club registration papers as the owner or lessee of record of the mare at the time of foaling a Virginia-bred Thoroughbred horse.

"Virginia Thoroughbred sire" means a registered Thoroughbred stallion that covers mares, other than test mares, only in the Commonwealth during the breeding season in which it sires a Virginia-bred Thoroughbred horse, or only during that part of the breeding season after entering the Commonwealth.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-04-04 § 1.1, eff. January 27, 1993; amended, Virginia Register Volume 14, Issue 7, eff. January 22, 1998; Volume 15, Issue 26, eff. August 25, 1999; Volume 17, Issue 4, eff. October 16, 2000; Volume 17, Issue 19, eff. May 7, 2001; Volume 18, Issue 20, eff. May 22, 2002; Volume 23, Issue 11, eff. January 10, 2007; Volume 23, Issue 18, eff. April 30, 2007; Volume 30, Issue 18, eff. May 31, 2014; Volume 33, Issue 10, eff. January 1, 2017; Volume 40, Issue 8, eff. January 1, 2024.

Part II General

11VAC10-130-20 Generally

The purpose of this chapter is to establish procedures for the administration of the Virginia Breeders Fund by the Virginia Racing Commission as provided for in § 59.1-372 of the Code of Virginia.

A. Certification. The commission or its designee shall certify that a racehorse is Virginia bred for eligibility for entry into races restricted to Virginia-bred horses, and to qualify its owner, the stallion owner, if applicable, and breeder for awards.

B. Determination of eligibility. The final determination of all questions, disputes or protests relating to the registration, eligibility for certification or breeding of a Virginia-bred horse and the final determination of eligibility of any horse to enter a race restricted to Virginia-bred horses shall rest solely with the commission.

C. Documentation. In making its determination, the commission or its designee, in its discretion, may require the submission of any certificate of foal registration, eligibility paper or any other registration document, affidavits or other substantive proof to support or deny any claim concerning registration of a horse as Virginia bred.

D. False statements. Any person who submits false or misleading information to a breed registry, to the commission or its designee, or to any racing official may be fined, have his permit suspended or revoked, be denied participation in the Virginia Breeders Fund for a period of time deemed appropriate by the commission, or any or all of the foregoing.

E. Forfeiture of awards and purse moneys. Any person who is denied participation in the Virginia Breeders Fund under the provisions of this chapter shall forfeit and restore to the fund any awards and purse moneys received based upon the submission of false or misleading information. Until the awards and purse moneys are restored, the commission may suspend the person's permit to participate in horse racing at licensed facilities.

F. Recognized registries. The commission shall recognize certificates of registration from the following breed registries:

Thoroughbred: The Jockey Club;
Standardbred: The United States Trotting Association;
Quarter Horse: The American Quarter Horse Association; and
Arabian horse: The Arabian Horse Registry of America.

G. Payment of awards. All awards for owners, stallion owners and breeders shall be distributed from the Virginia Breeders Fund in a manner prescribed by the commission. The following provisions shall apply to payment of owner, stallion owner and breeder awards:

Determination of individual distributions to a stallion owner shall be in the same ratio as the amount of first-place purse money won by the Virginia-bred horse at the race meeting, which qualifies the stallion owner for an award, to the total amount of first-place purse money won by all Virginia-bred horses that qualify stallion owners for awards at the race meeting;
Determination of individual distributions to a breeder shall be in the same ratio as the amount of first-place purse money won by the Virginia-bred horse at the race meeting, which qualifies the breeder for an award, to the total amount of first-place purse money won by all Virginia-bred horses at the race meeting;
Determination of individual distributions to an owner shall be in the same ratio as the amount of nonsupplemented first-place purse money won by the Virginia-bred horse at the race meeting that qualifies the owner for an award to the total amount of nonsupplemented first-place purse money won by all Virginia-bred horses at the race meeting;
To become eligible for an owner, a stallion owner or a breeder award from the Virginia Breeders Fund, the owner, stallion owner or breeder must be certified by the commission or its designee prior to receiving any award, unless his racehorse, stallion or foal has been previously registered with the commission or its designee;
A stallion owner or breeder need only be certified once per racehorse; and
Any unclaimed awards from the Virginia Breeders Fund shall be remitted to the fund.

H. Distribution by breeds. The funds generated by the breed of horse through pari-mutuel wagering at a race meeting shall be distributed to that breed of horse through owner awards, stallion owner awards, breeder awards, purses and purse supplements.

I. Reimbursement of funds. The source of funding is 1.0% of all pari-mutuel pools, which shall be paid to the commission within five days of the date that the funds were generated. Purse moneys shall be paid from the horsemen's account when approval is granted by the stewards. The commission shall reimburse the horsemen's account to the extent that funds are available from the Virginia Breeders Fund.

J. Restrictions. In disbursing the Virginia Breeders Fund, the following restrictions shall apply:

Supplements to purses from the Virginia Breeders Fund shall not be considered in determining owner awards;
The amount of the purses for races restricted to Virginia-bred horses or any adjustments must be fair, equitable and appropriate to the quality of the horses competing for those purses;
Purses from the Virginia Breeders Fund shall be considered for stallion owner and breeder awards;
Funds allocated for purses shall be credited to the owner's account by the horsemen's bookkeeper in accordance with procedures established elsewhere in this chapter; and
Underpayment of moneys generated by each breed shall be remitted to the Virginia Breeders Fund.

K. Reservation of funds. The commission may set aside funds for distribution in future years if the commission, in its discretion, determines that there is an insufficient supply of Virginia-bred horses of a certain breed to warrant a distribution. In this event, the funds shall be deposited in an interest-bearing account for future distribution of awards and purse supplements to the breed that generated the funds so set aside.

L. Assignment of awards. Awards distributable to breeders and stallion owners are only assignable pursuant to a court order.

M. Advisory committee. To assist it in establishing this awards and incentive program to foster the industry of breeding racehorses in Virginia, the commission shall appoint an advisory committee composed of two members from each of the registered breed associations representing each breed of horse participating in the fund program, one member representing the owners and operators of racetracks and one member representing all the meets sanctioned by the National Steeplechase Association.

The commission, in its discretion, may establish and appoint the members of subcommittees of the advisory committee for each breed of horse participating in the fund program. Each subcommittee shall be composed of one commissioner, the executive secretary of the commission, two advisory committee members, a member representing an owner or operator of a horse racing facility, and an at-large member associated with the breed of horse participating in the fund program. All appointments shall be approved by the commission.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-04-04 § 2.1, eff. January 27, 1993; amended, Virginia Register Volume 14, Issue 7, eff. January 22, 1998; Volume 15, Issue 26, eff. August 25, 1999; Volume 17, Issue 4, eff. October 16, 2000; Volume 18, Issue 20, eff. May 22, 2002; Volume 30, Issue 18, eff. May 31, 2014.

Part III Thoroughbreds

11VAC10-130-30 Commencement of registration

The commission shall establish a date when owners of Thoroughbred stallions shall commence registering their stallions and breeders of Virginia-bred Thoroughbred horses shall commence registering their foals. No fee shall be assessed for registering stallions or foals prior to the date for the commencement of registration.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-04-04 § 3.1, eff. January 27, 1993; amended, Virginia Register Volume 14, Issue 7, eff. January 22, 1998.

11VAC10-130-40 Stallion registration

A. Initial registration. For a stallion owner to be certified to receive stallion owner awards from the Virginia Breeders Fund, the stallion owner shall register his stallion with the commission or its designee by satisfying the following requirements:

Each year prior to the commencement of the breeding season, but no later than January 31, or within 30 days following the entry into stud in Virginia if entry is after the breeding season commences, the owner or authorized agent shall submit an application on a form approved by the commission that shall set forth the name of the stallion, year of foaling, registration number, pedigree, including sire, dam and sire of the dam, where the stallion is standing at stud, the date of entry to stud if after the commencement of the breeding season, and the names and addresses of owners and lessees; and
The application shall be signed and dated by the owner or lessee, or the authorized agent.

B. Registration fees. A stallion may be registered with the commission or its designee for the breeding season after January 31 or 30 days following its entry into stud in Virginia. A registration fee of $100 for current members of the Virginia Thoroughbred Association (VTA) and $200 for non-VTA members shall accompany the application. A late registration fee of $250 for current VTA members and $350 for non-VTA members shall be assessed. A late registration of a stallion shall be accepted by the commission or its designee until August 1 for that breeding year.

C. Change of ownership. If there is a change in ownership or the stallion is subsequently leased or syndicated or the location of where the stallion is standing is changed, the new owner, lessee or syndicate manager shall submit to the commission or its designee a new application for stallion registration.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-04-04 § 3.2, eff. January 27, 1993; amended, Virginia Register Volume 14, Issue 7, eff. January 22, 1998; Volume 15, Issue 26, eff. August 25, 1999; Volume 17, Issue 4, eff. October 16, 2000; Volume 28, Issue 13, eff. March 27, 2012; Volume 30, Issue 18, eff. May 31, 2014.

11VAC10-130-50 (Repealed.)

History

Historical Notes: Derived from VR662-04-04 § 3.3, eff. January 27, 1993; repealed, Virginia Register Volume 14, Issue 7, eff. January 22, 1998.

11VAC10-130-51 Foal registration

A. Requirements. For an owner or lessee of a dam to be certified to receive breeder awards from the Virginia Breeders Fund, the owner or lessee must register his foal with the commission or its designee by satisfying the following requirements:

The breeder, owner, lessee, or his authorized agent must submit an application on a form approved by the commission, including the name of the stallion; the name of the dam; the sire of the dam; the sex; color; year of birth; the location of foaling; and name, address and telephone number of the owner, lessee or his authorized agent;
The application must be signed and dated by the breeder, owner, lessee, or his authorized agent; and
As of September 1, 1999, all Virginia-bred Thoroughbred horses must be registered with the commission or its designee prior to being entered in any race at race meeting designated by the commission for purse supplements or awards from the Virginia Breeders Fund.

B. Registration fees. A foal may be registered by December 31 of its year of foaling by submitting a $25 fee for current members of the Virginia Thoroughbred Association (VTA) and $125 for non-VTA members that must accompany the application for foal registration. A yearling may be registered by December 31 of its yearling year by submitting a $50 fee for current VTA members and $150 for non-VTA members that must accompany the application for foal registration. A two-year-old or older may be registered by submitting a $200 fee for current VTA members and $300 for non-VTA members, which must accompany the application for foal registration.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 14, Issue 7, eff. January 22, 1998; amended, Virginia Register Volume 15, Issue 26, eff. August 25, 1999; Volume 18, Issue 20, eff. May 22, 2002; Volume 28, Issue 13, eff. March 27, 2012; Volume 30, Issue 18, eff. May 31, 2014.

11VAC10-130-52 Virginia-Sired Thoroughbreds

A Virginia-sired Thoroughbred may be registered with the commission or its designee by submitting a $25 fee for current members of the Virginia Thoroughbred Association (VTA) and $125 for non-VTA members that must accompany an application for registration in the Virginia Breeders Fund. The payment of the registration fee and filing of the application shall occur prior to entry in any race at a race meeting designated by the commission. Such registration shall entitle the horse to entry into races restricted to Virginia-bred Thoroughbreds and purse supplements, but shall not entitle a Virginia-sired Thoroughbred to other awards from the Virginia Breeders Fund.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 18, Issue 20, eff. May 22, 2002; amended, Virginia Register Volume 28, Issue 13, eff. March 27, 2012.

11VAC10-130-60 Fund distribution; allocation of funds

The funds generated by pari-mutuel wagering on Thoroughbred horse races for the Virginia Breeders Fund shall be allocated on the following schedule or as the commission deems appropriate in order to promote, sustain, and grow a native industry:

35% shall be set aside for payment to the breeders of Virginia-bred Thoroughbred horses that win races at a race meeting designated by the commission;
15% shall be set aside for payment to owners or lessees of registered Virginia stallions that sire Virginia-bred Thoroughbred horses that win races at race meetings designated by the commission; and
50% shall be paid to supplement purses as determined by the commission under the following provisions:

a. An award may be paid to the owner or owners of a Virginia-bred Thoroughbred horse each time the horse earns purse money in a nonrestricted race at race meetings licensed by the commission or wins races at race meetings designated by the commission;

b. The maximum amount payable for breeder or stallion owner awards to a Virginia-bred Thoroughbred horse for any single race shall be $25,000;

c. The maximum amount payable for an owner award to a Virginia-bred Thoroughbred horse for any single race run in Virginia shall be $25,000, and the maximum amount payable for an owner award for any single race in any other jurisdiction shall be $5,000; and

d. Purses shall be paid for races restricted to Virginia-bred Thoroughbred horses.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-04-04 § 3.4, eff. January 27, 1993; amended, Virginia Register Volume 14, Issue 7, eff. January 22, 1998; Volume 15, Issue 26, eff. August 25, 1999; Volume 17, Issue 4, eff. October 16, 2000; Volume 17, Issue 19, eff. May 7, 2001; Volume 18, Issue 20, eff. May 22, 2002; Volume 23, Issue 11, eff. January 10, 2007; Volume 24, Issue 16, eff. April 14, 2008.

11VAC10-130-70 Restricted races

The racing secretary at each unlimited race meeting licensed by the commission may include in the condition book restricted races that equal not less than 5.0% of the total nonsubstitute races included in that book, and that those races shall be run if six separate wagering interests are entered. If there is not a sufficient number of registered Virginia-bred horses entered to fill the race, then the racing secretary may substitute another race.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-04-04 § 3.5, eff. January 27, 1993; amended, Virginia Register Volume 14, Issue 7, eff. January 22, 1998; Volume 17, Issue 4, eff. October 16, 2000; Volume 17, Issue 19, eff. May 7, 2001.

Part IV Standardbreds

11VAC10-130-75 Commencement of registration

The commission shall establish a date when owners of Standardbred stallions shall commence registering their stallions and breeders of Virginia-bred Standardbred horses shall commence registering their foals.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 14, Issue 7, eff. January 22, 1998.

11VAC10-130-76 Stallion registration

A. Initial registration. For a stallion owner to be certified to receive stallion owner awards from the Virginia Breeders Fund, the stallion owner must register his stallion with the commission or its designee by satisfying the following requirements:

Each year prior to the commencement of the breeding season, but no later than January 31, or within 30 days following the entry into stud in Virginia if entry is after the breeding season commences, the owner or authorized agent shall submit an application on a form approved by the commission that shall set forth the name of the stallion; year of foaling; registration number; pedigree, including sire, dam and sire of the dam; where the stallion is standing at stud; the date of entry to stud if after the commencement of the breeding season; and the names and addresses of owners and lessees;
The application must be signed and dated by the owner or lessee, or the authorized agent;
A notarized copy of the stallion's Certificate of Registration, clearly showing the front and transfer side of the document, must accompany the application;
If the stallion is held under a lease or a syndicate agreement, a copy of the lease or agreement must accompany the application, and the lease or agreement must include a statement that the lessee or syndicate manager is authorized to sign the Service Certificate and receive stallion awards; and
The owner or authorized agent must submit to the commission a notarized copy of The United States Trotting Association's Report of Mares Bred at the conclusion of the breeding season and no later than December 31 of the breeding year.

C. Change of ownership. If there is a change in ownership, or the stallion is subsequently leased or syndicated, or the location of where the stallion is standing is changed, the new owner, lessee or syndicate manager must submit to the commission or its designee a new application for stallion registration.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 14, Issue 7, eff. January 22, 1998; amended, Virginia Register Volume 15, Issue 26, eff. August 25, 1999; Volume 17, Issue 4, eff. October 16, 2000.

11VAC10-130-77 Foal registration

A. Requirements. For an owner or lessee of a dam to be certified to receive breeder awards from the Virginia Breeders Fund, the owner or lessee must register its foal with the commission or its designee by satisfying the following requirements:

The owner, lessee or his authorized agent must submit an application, on a form approved by the commission, including the name of the stallion; the name of the dam; the sire of the dam; sex; color; year of foaling; and name, address and telephone number of the owner, lessee or his authorized agent;
The application must be signed and dated by the owner, lessee or his authorized agent;
If the dam is held under a lease, a statement to that effect and a copy of the lease, which must include a statement that the lessee is authorized to register the foal, must accompany the application; and
All Virginia-bred Standardbred horses must be registered with the commission or its designee prior to being entered in races.

B. Registration fees. A foal may be registered with the commission or its designee.

C. Embryo/ovum transplants. Effective with foals of 2003 and thereafter, foals other than the first foal each year produced by any method including but not limited to embryo/ovum transplant shall be ineligible for racing or breeding in the Commonwealth of Virginia. This regulation shall not apply in the case of same birth twins. In addition, any future offspring of foals not eligible for racing or breeding under this regulation shall also not be eligible for racing or breeding in the Commonwealth of Virginia.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 14, Issue 7, eff. January 22, 1998; amended, Virginia Register Volume 15, Issue 26, eff. August 25, 1999; Volume 17, Issue 4, eff. October 16, 2000; Volume 20, Issue 4, eff. October 14, 2003.

11VAC10-130-80 Allocation and restriction of funds

A. Allocation. The funds generated by harness racing through pari-mutuel wagering shall be allocated according to the following schedule:

15% may be set aside for payment to the breeders of Virginia-bred Standardbred horses that win races at horse racing facilities licensed by the commission;
10% may be set aside for payment to the owners or lessees of Virginia Standardbred stallions that sire Virginia-bred Standardbred horses that win races at horse racing facilities licensed by the commission; and
75% may be paid to supplement purses according to the following provisions:

a. Not less than 75% may be set aside to develop a stakes program for Virginia-bred Standardbred horses; and

b. Any remaining amounts shall be set aside and may be paid to the owner or owners of a Virginia-bred Standardbred horse each time the horse wins or earns purse money in a nonrestricted race at a horse racing facility licensed by the commission.

B. Restriction. During the first five calendar years of live pari-mutuel harness racing in the Commonwealth, payment of stallion owner and breeder awards shall be limited to an amount not exceeding 20% of that horse's nonmaiden nonsupplemented first-place purse used in the calculation and 40% of that horse's maiden nonsupplemented first-place purse used in the calculation.

C. Restricted races. The racing secretary at each unlimited race meeting licensed by the commission shall include on the condition sheet at least one race each day restricted to Virginia-bred Standardbred horses and the race shall be run if six separate betting interests are entered. If there is not a sufficient number of registered Virginia-bred horses entered to fill the race, then the racing secretary may substitute another race.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-04-04 § 4.1, eff. January 27, 1993; amended, Virginia Register Volume 14, Issue 7, eff. January 22, 1998; Volume 17, Issue 4, eff. October 16, 2000; Volume 19, Issue 3, eff. September 27, 2002.

Part V Arabians and Quarter Horses

11VAC10-130-90 Allocation of funds

The funds generated by Arabian and Quarter horse racing through pari-mutuel wagering shall be allocated to the breed which generated the funds according to the following schedule:

20% shall be set aside for payment to the breeders of Virginia-bred horses that win races at horse racing facilities licensed by the commission;
10% shall set aside for payment to the owners or lessees of registered Virginia stallions which sire Virginia-bred horses that win races at horse racing facilities licensed by the commission; and
70% shall be paid to supplement purses according to the following provisions:

a. A purse supplement may be paid to the owners of Virginia-bred horses each time Virginia-bred horses win nonrestricted races at horse racing facilities licensed by the commission; and

b. A purse supplement shall be paid to purses for races restricted to Virginia-bred horses.

History

Statutory Authority: §§ 59.1-369 and 59.1-372 of the Code of Virginia.
Historical Notes: Derived from VR662-04-04 § 5.1, eff. January 27, 1993.

Chapter 140 Flat Racing

Part I Generally

11VAC10-140-10 Definitions

The following words and terms when used in these regulations shall have the following meanings unless the context clearly indicates otherwise:

"Assigned weight" means the weight carried by a horse specified in the conditions of the race or by the racing secretary and printed in the daily racing program.

"Dead heat" means the finish of a race by two horses or more at the same time.

"Finish wire" means a real or imaginary line from the position of the photo-finish camera to a point immediately across and at right angles to the racing surface.

"Flat racing" means horse racing conducted over a surface without obstacles and includes racing with mounted riders for Arabians, Quarter Horses and Thoroughbreds.

"Highweight handicap" means a handicap race in which the weight assigned to the top horse is not less than 140 pounds.

"Match race" means a race between two horses.

"Nonstarter" means a horse that fails to obtain a fair opportunity to start, as determined by the stewards, when the starter dispatches the horses.

"Official time" means the period from the time the first horse crosses the starting post until the first horse crosses under the finish wire.

"Overweight" means any weight of one pound or more over the assigned weight carried by a horse in a race.

"Place" means to finish second in a race.

"Post position" means the relative position assigned to each horse numbered from the inner rail across the track at the starting line, from which each horse is to start a race.

"Post time" means the advertised moment scheduled for the arrival of all horses at the starting post for a race.

"Produce race" means a race to be run by the produce of horses named or described in the conditions of the race at the time of entry.

"Purse race" means a race for money or other prize to which the owners of horses entered do not contribute a fee of more than $100.

"Race" means a contest among horses for a purse, prize or other reward, run at a race meeting licensed by the commission and in the presence of the stewards.

"Show" means to finish third in a race.

"Starter" means a horse that obtains a fair opportunity to start when the starter dispatches the horses.

"Starting post" means the starting point of a race.

"Underweight" means any weight less than the assigned weight carried by a horse in a race.

"Weigh in" means the presentation of a jockey to the clerk of scales for weighing after a race.

"Weigh out" means the presentation of a jockey to the clerk of scales for weighing prior to a race.

"Win" means to finish first in a race.

"Winner" means the horse whose nose reaches the finish wire first.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-01 § 1.1, eff. September 26, 1991; amended, Virginia Register Volume 18, Issue 23, eff. July 1, 2002.

Part II Paddock to Post

11VAC10-140-12 Safety helmets

Any person mounted on a horse or stable pony on association grounds must wear a safety helmet approved by the American Society for Testing and Materials (ASTM) securely fastened under the chin at all times.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 23, Issue 18, eff. May 31, 2007.

11VAC10-140-15 Safety vests

A. A safety vest shall be worn when:

Racing, parading, or warming up a horse prior to racing;
Jogging, training, or exercising a horse at any time; or
Handling horses in the starting gate.

B. A safety vest shall:

Cover the torso, front and back, from the collar bone to the hip bone;
Be of uniform material and thickness over the whole of the vest except for localized:

a. Variation due to pattern, for example, quilting;

b. Thinner areas to aid fit, for example, under the arms, at fastenings and at edges; and

c. Thicker areas in regard to particularly sensitive areas of the body, for example, the spine; and

Equal or exceed a minimum shock absorbance rating of five according to the specifications established by the British Equestrian Trade Association (BETA), which are as follows:

a. Use a critical height apparatus to measure the maximum deceleration on impact of a striker consisting of a spherical idententer weighing 5.9 (+/-0.05) kilograms with a diameter of 215 (+/-2) millimeters;

b. Condition the vest and the striker for a minimum of three hours at 23° (+/-2°) Centigrade;

c. With the vest lying on a smooth, flat massive concrete base with the inside of the vest facing the striker and positioned so that the striker will impact on an area of typical thickness, not reinforced by additional material, raise and release the striker starting at a height of 0.2 meter and increasing the height by increments of 0.2 meter to a height that will result in a deceleration of over 300 gravity units (1G=9.81 ms^-1) as measured by recording the signal from an accelerometer through the impact from the time before the striker impacts the vest until the accelerometer returns to the same level as before the impact;

d. Record the gravity units measured at each height increment on a line graph that has the gravity units in ascending order as the vertical axis and the release height in meters in ascending meters as the horizontal access.

e. Plot the height in meters at which the deceleration reached 300 gravity units; and

f. Multiply the height obtained in subdivision 3 e of this subsection by 10 to calculate the shock absorbance rating.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 23, Issue 18, eff. May 31, 2007.

11VAC10-140-20 Paddock time

The trainer shall be responsible for the arrival in the paddock at the time prescribed by the stewards for each horse entered by the trainer.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-01 § 2.1, eff. September 26, 1991.

11VAC10-140-30 Weighing out

A jockey shall be weighed out by the clerk of scales no later than 15 minutes before post time. The following provisions shall apply to the weighing out of jockeys:

His clothing, saddle, girth, pad and saddle cloth shall be included in a jockey's weight;
Bit, blinkers, bridle, chamois, goggles, number cloth, overgirth, reins, safety helmet, safety vest, and whip shall not be included in a jockey's weight;
When a substitute jockey is required, he shall be weighed out promptly, and the name of the substitute jockey and weight announced to the public;
No jockey may carry overweight in excess of two pounds, without the permission of the owner or trainer;
If the overweight is more than one pound but less than five pounds, the jockey shall declare the amount of the overweight to the clerk of scales no later than 45 minutes before post time;
All overweights must be announced to the public;
A substitute jockey must be named, if the overweight exceeds five pounds;
If an underweight is discovered after wagering has commenced but before the start, the horse shall be returned to the paddock and the weight corrected;
A jockey shall not be weighed out unless the prescribed fee has been deposited with the horsemen's bookkeeper; and
Failure to have the prescribed fee on deposit with the horsemen's bookkeeper may be cause for the stewards to excuse the horse from racing.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-01 § 2.2, eff. September 26, 1991; amended, Virginia Register Volume 18, Issue 23, eff. July 1, 2002.

11VAC10-140-40 Prohibitions

No person other than the horse's owner, trainer, employees of the owner or trainer, paddock judge, horse identifier, assigned valet, commission veterinarian or his designee, steward, farrier, pony rider, or outrider shall touch a horse while it is in the paddock. The material used as a tongue tie shall be supplied by the horse's trainer or his designee, who shall affix the tongue tie in the paddock.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-01 § 2.3, eff. September 26, 1991; amended, Virginia Register Volume 18, Issue 23, eff. July 1, 2002; Volume 26, Issue 20, eff. May 29, 2010.

11VAC10-140-50 Saddling horses

The trainer shall be responsible for the saddling of the horse, and in his absence, he must assign an assistant or substitute trainer to saddle each horse entered by him. All horses must be saddled in the paddock unless permission to saddle horses elsewhere has been granted by the stewards.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-01 § 2.4, eff. September 26, 1991; amended, Virginia Register Volume 33, Issue 2, eff. October 19, 2016.

11VAC10-140-60 Changing equipment

Permission must be obtained from the stewards for the following changes of a horse's equipment from that which the horse used in its last previous start:

To add blinkers or any device that would restrict vision or could affect performance to a horse's equipment or to discontinue the use of blinkers or any such device that would restrict vision or could affect performance;
To use or discontinue use of a bar plate;
To race a horse without shoes or with a type of shoes not generally used for racing; and
To race a horse without the jockey carrying a whip.

Changes of equipment shall be noted in the daily program. In the absence of such notation, the change of equipment shall be announced to the public and noted on the closed-circuit television system. The stewards shall cause an appropriate public announcement or a display to be made in the paddock or elsewhere at the discretion of the stewards for the aforementioned changes of equipment.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-01 § 2.5, eff. September 26, 1991; amended, Virginia Register Volume 18, Issue 23, eff. July 1, 2002; Volume 26, Issue 20, eff. May 29, 2010.

11VAC10-140-70 First-time starters

Whips or blinkers may be used on two-year-old horses and other first-time starters, if the horses are schooled from the starting gate under the supervision of the starter, and approved by the starter and the stewards before the time of entry.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-01 § 2.6, eff. September 26, 1991.

11VAC10-140-80 Identifying equipment

Each horse shall carry a conspicuous saddlecloth number and each jockey shall wear a number on his right arm, both of which correspond to the number of the horse as listed in the daily racing program. In the case of a coupled entry, each horse making up the coupled entry shall carry the same number with a distinguishing letter.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-01 § 2.7, eff. September 26, 1991.

11VAC10-140-90 Inspecting equipment

The paddock judge may, in his discretion, require that bandages on a horse's legs be removed or replaced.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-01 § 2.8, eff. September 26, 1991.

11VAC10-140-100 Post parade

All horses shall parade past the stewards' stand and carry their assigned weight from the paddock to the starting post, unless excused by the stewards from the post parade. The following provisions shall apply to post parades:

The stewards, in their discretion, may excuse a horse from the post parade;
Any horse excused from the post parade shall be led by an employee of the owner or trainer and shall carry its assigned weight from the paddock to the starting post;
After passing the stewards' stand during the post parade, the horses may leave the parade to walk, canter or otherwise warm up on their way to the starting post;
The post parade shall not exceed 12 minutes from the time the field enters the racing surface until reaching the starting post, except for unavoidable delays;
If a jockey is thrown from a horse during the post parade, he shall remount the horse at the point where he was thrown from the horse;
If a jockey is injured during the post parade or a substitute jockey is needed, then the horse shall be returned to the paddock where the horse shall be mounted by the substitute jockey;
If a horse leaves the racing surface during the post parade, the horse shall be returned to the racing surface at the nearest practical point to where it left the course and then complete the post parade; and
No person shall willfully delay the arrival of a horse at the starting post.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-01 § 2.9, eff. September 26, 1991.

11VAC10-140-110 Lead pony and rider

A horse may be led to the starting post by a lead pony and rider, but the horse and lead pony shall pass the steward's stand during the post parade en route to the starting post. Lead ponies and riders may be excluded from the paddock at the discretion of the stewards.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-01 § 2.10, eff. September 26, 1991.

11VAC10-140-120 Outrider

Outriders shall accompany the horses during the post parade and be positioned to render assistance to a jockey riding an unruly horse or catch a loose horse from the time the horses enter the racing surface until reaching the starting post. The outrider shall not help a jockey riding an unruly horse unless the jockey requests the assistance of an outrider. After the start of the race, the outriders shall position themselves to help jockeys in pulling up horses, catch any loose horses or render assistance to any injured horses.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-01 § 2.11, eff. September 26, 1991.

11VAC10-140-130 Post time

Post time shall be prominently displayed on the closed-circuit television system and, if available, on the infield results board. The starter shall endeavor to get the horses and jockeys at the starting post at post time so as to avoid any delay in effecting the start of the race.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-01 § 2.12, eff. September 26, 1991; amended, Virginia Register Volume 18, Issue 23, eff. July 1, 2002.

Part III Starting a Race

11VAC10-140-140 Starter

The horses and jockeys, lead ponies and riders, and outriders shall be under the supervision of the starter from the time the horses enter the racing surface until the race is started. While the horses, jockeys, lead ponies and pony riders are under his supervision, the starter shall:

Grant a delay to allow for the substitution of an injured jockey or for the repairing of broken equipment;
Load the horses into the starting gate in the order of their post position or, with the approval of the stewards, load the horses into the starting gate by dividing the field and loading the horses from each section simultaneously;
Report to the stewards any delay in the start; and
Recall the horses from a false start where a starting gate is not used.

However, the starter, in his discretion, may:

Allow other jockeys to dismount during any delay;
Unload the horses from the starting gate, if there is a lengthy delay in the start of a race; and
Load a fractious horse out of post position order.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-01 § 3.1, eff. September 26, 1991; amended, Virginia Register Volume 18, Issue 23, eff. July 1, 2002.

11VAC10-140-150 Unmanageable horse

If a horse is unmanageable at the starting post, the starter may recommend to the stewards that the horse be excused. If the stewards excuse a horse from a race because it is unmanageable, they shall:

Order all money wagered on the unmanageable horse deducted from the pari-mutuel pool and order a prompt refund; and
Place the unmanageable horse on the stewards' list.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-01 § 3.2, eff. September 26, 1991.

11VAC10-140-160 Starting gate

Each licensee shall maintain at least two operable starting gates as required by 11VAC10-20-190.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-01 § 3.3, eff. September 26, 1991.

11VAC10-140-170 Fair start

If a door on the starting gate fails to open, a horse is inadvertently loaded into an incorrect post position, or otherwise fails to obtain a fair start, then the starter shall immediately report the circumstances to the stewards. In these circumstances, the stewards shall:

Post the "inquiry" sign on the infield results board;
Advise the public through the public address system and any other appropriate means to hold all mutuel tickets;
Make a determination of whether the horse obtained a fair start after consulting with the starter, other appropriate persons and reviewing the video tape recordings of the race; and
If the stewards determine that a horse did not obtain a fair start, they may order a refund on any or all of the portions wagered upon the horse; however, the horse shall be entitled to any purse money earned by its finish in the race.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-01 § 3.4, eff. September 26, 1991; amended, Virginia Register Volume 18, Issue 23, eff. July 1, 2002.

11VAC10-140-180 Nonstarter

If the horse is declared a nonstarter in a stakes race, futurity or other special event, then any entrance or starting fees shall be refunded.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-01 § 3.5, eff. September 26, 1991; amended, Virginia Register Volume 18, Issue 23, eff. July 1, 2002.

11VAC10-140-190 Assistance prohibited

Only the jockey may strike a horse at the start of a race. Only the jockey shall be permitted to shout or otherwise assist in breaking the horse away from the starting gate. During the running of a race, no assistance may be rendered by others.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-01 § 3.6, eff. September 26, 1991.

Part IV Post to Finish

11VAC10-140-200 Leading horse

A leading horse when clear of all other horses in the race is entitled to any part of the racing surface, but no horse shall cross or weave in front of other horses in any way to impede them, cause interference or constitute intimidation.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-01 § 4.1, eff. September 26, 1991.

11VAC10-140-210 Interference

During a race, or while under the starters orders for a steeplechase race, no jockey shall (i) strike, strike at, or touch another jockey or another jockey's horse or equipment or (ii) jostle another horse to interfere with that jockey or horse.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-01 § 4.2, eff. September 26, 1991; amended, Virginia Register Volume 23, Issue 18, eff. May 31, 2007; Volume 35, Issue 22, eff. July 8, 2019.

11VAC10-140-220 Third party interference

If a horse or jockey interferes with or jostles another horse, the aggressor may be disqualified, unless the interfered or jostled horse or jockey was partly at fault or the interference was wholly caused by the fault of some other horse or jockey.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-01 § 4.3, eff. September 26, 1991.

11VAC10-140-230 Control of horse

A jockey shall be responsible for making his best effort to control and guide his mount during the running of the race so that it does not jostle, impede, interfere or intimidate another horse or jockey.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-01 § 4.4, eff. September 26, 1991.

11VAC10-140-240 Off course

If a horse leaves the prescribed course of a race and jumps any fence or goes around any beacon or other obstacle other than those on the prescribed course, it must turn back and resume the race from the point at which it originally left the prescribed course, or be disqualified. A rider who continues in a race on a horse thus disqualified may be fined or suspended, or both. If a beacon or flag is dislodged from its position, it is no longer considered to mark the course and can be ignored by the rider.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-01 § 4.5, eff. September 26, 1991; amended, Virginia Register Volume 31, Issue 18, May 1, 2015.

11VAC10-140-250 Ridden out

All horses shall be ridden to win or finish as near as possible to the first-place horse and show the best and fastest performance of which it is capable in the running of the race.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-01 § 4.6, eff. September 26, 1991.

11VAC10-140-260 Easing

A jockey shall not restrain a horse without adequate cause, even if it has no apparent chance to earn a portion of the purse money. A jockey shall not unnecessarily cause a horse to shorten its stride.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-01 § 4.7, eff. September 26, 1991.

11VAC10-140-270 Instructions

All horses and jockeys are expected to give their best efforts during the race, and any instructions or advice to jockeys to ride or handle their mounts otherwise than to win, is forbidden.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-01 § 4.8, eff. September 26, 1991.

11VAC10-140-280 Reversal of form

The stewards shall consider marked reversals of form and conduct inquiries of owners, trainers, jockeys and any other holders of permits that they deem appropriate to determine whether the horse was deliberately restrained or impeded in any way from winning or finishing as near as possible to the first-place horse.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-01 § 4.9, eff. September 26, 1991.

11VAC10-140-290 Use of whip

Whips are to be used uniformly and the stewards shall conduct inquiries into excessive or non-use of a whip, or the dropping of a whip during the running of a race.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-01 § 4.10, eff. September 26, 1991.

11VAC10-140-300 Prohibited equipment

No device other than the ordinary whip, shall be used to affect the speed of the horse during a race. No sponge or other object may be used to interfere with the respiratory system of a horse.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-01 § 4.11, eff. September 26, 1991.

11VAC10-140-310 Weighing in

After a race has been run, a jockey shall pull up his horse, ride promptly to the clerk of scales, dismount, and be weighed in by the clerk of scales. The following provisions shall apply to the weighing in of jockeys:

The winning horse may be accompanied by an outrider after the horse has been pulled up and is returned to the clerk of scales;
If a jockey is prevented from returning to the clerk of scales because of an accident or injury to either horse or rider, the jockey may be conveyed to the winners' circle by other means or excused by the stewards from weighing in;
A jockey must, upon returning to the clerk of scales, unsaddle the horse he has ridden and no other person shall touch the horse except by its bridle;
No person shall help a jockey in removing from the horse the equipment that is to be included in the jockey's weight;
No person shall throw any covering over any horse at the place of dismounting until the jockey has removed all the equipment that is to be included in his weight;
A jockey shall carry over to the scales all pieces of equipment carried when weighing out, but after weighing in, the equipment may be handed to a valet;
A jockey shall not weigh in at less weight than he weighed out, and the stewards shall be informed of any underweight or overweight carried by the jockey; and
If a jockey weighs in two or more pounds less than the weight at which he weighed out, the horse shall be disqualified.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-01 § 4.12, eff. September 26, 1991; amended, Virginia Register Volume 18, Issue 23, eff. July 1, 2002.

Chapter 150 Harness Racing

Part I Generally

11VAC10-150-10 Definitions

The following words and terms when used in this chapter shall have the following meaning, unless the context clearly indicates otherwise:

"Hopples" means equipment including straps with loops at each end, each loop encircling a leg on a horse's body which tend to steady the horse and help it to maintain its gait.

"Harness racing" means races whereby registered Standardbred horses compete in harness and hitched to sulkies or under saddle.

"Starter" means a horse that obtains a fair start when the starter dispatches the horses.

"Starting point" means a point, no less than 200 feet from the first turn, where the starter gives the word, "Go."

"Sulky" means a United States Trotting Association-approved dual-shaft, dual-wheel racing vehicle on which the driver is seated.

"Warmup trip" means a horse being exercised prior to racing.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-02 § 1.1, eff. July 15, 1991; amended, Virginia Register Volume 16, Issue 26, eff. August 14, 2000.

Part II Conduct of Racing

11VAC10-150-12 Safety helmets

A protective helmet, meeting the 2000 Standard for Protective Headgear (Snell Memorial Foundation), meeting Federal Motor Vehicle Safety Standard No. 218 (49 CFR 571.218), or that is ASTM/SEI certified, securely fastened under the chin, must be worn at all times on association grounds when:

Racing, parading, or warming up a horse prior to racing; or
Jogging, training, or exercising a horse at any time.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 23, Issue 18, eff. May 31, 2007.

11VAC10-150-15 Safety vests

A. A safety vest shall be worn when:

Racing, parading or warming up a horse prior to racing; or
Jogging, training or exercising a horse at any time.

B. A safety vest shall:

Cover the torso, front and back, from the collar bone to the hip bone;
Be of uniform material and thickness over the whole of the vest except for localized:

a. Variation due to pattern, for example, quilting;

b. Thinner areas to aid fit, for example, under the arms, at fastenings and at edges; and

c. Thicker areas in regard to particularly sensitive areas of the body, for example, the spine; and

Equal or exceed a minimum shock absorbance rating of five according to the specifications established by the British Equestrian Trade Association (BETA), which are as follows:

b. Condition the vest and the striker for a minimum of three hours at 23º (+/-2º) Centigrade,

e. Plot the height in meters at which the deceleration reached 300 gravity units, and

f. Multiply the height obtained in subdivision 3 e of this subsection by 10 to calculate the shock absorbance rating.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 23, Issue 18, eff. May 31, 2007.

11VAC10-150-20 Paddock procedures

The trainer shall be responsible for the arrival in the paddock at the time prescribed by the stewards for each horse entered by the trainer. The following provisions shall apply to the procedures to be followed in the paddock:

The paddock time shall not be less than one hour prior to post time;
Except for warmup trip, no horse shall leave the paddock until the post parade;
No driver, trainer or groom, once admitted to the paddock shall leave the paddock unless to attend a horse during a warmup trip;
Once leaving the paddock no person, except an owner who has another horse entered in a later race, shall be permitted to return;
Any horse that falls to the racing surface during a warmup trip shall be automatically excused by the stewards;
The licensee shall provide the services of a farrier during hours when horses are racing or taking warmup trips; and
The licensee shall provide equipment so that racing will not be unnecessarily delayed due to broken equipment.
A trainer may exercise his option not to take warmup trips with his horse prior to racing; however, such horse shall be satisfactorily paraded before the commission veterinarian or his assistant prior to starting in a race to determine the horse's fitness for racing.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-02 § 2.1, eff. July 15, 1991; amended, Virginia Register Volume 16, Issue 26, eff. August 14, 2000.

11VAC10-150-30 Sulky

Harness racing shall be conducted with each horse hitched to a United States Trotting Association-approved sulky. Each sulky shall have dual shafts and shall be equipped with wheel discs on the inside and outside of each wheel. During inclement weather, the wheels may be covered with mud guards. With the permission of the stewards, harness racing may be conducted under saddle.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-02 § 2.2, eff. July 15, 1991; amended, Virginia Register Volume 16, Issue 26, eff. August 14, 2000.

11VAC10-150-40 Identifying equipment

The licensee shall supply to each horse entered a numbered saddle pad which corresponds to the number of the horse as listed in the daily racing program. The horse shall wear the designated saddle pad during all warmup trips.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-02 § 2.3, eff. July 15, 1991; amended, Virginia Register Volume 16, Issue 26, eff. August 14, 2000.

11VAC10-150-50 Racing colors

Drivers must wear distinguishing colors, clean white pants and a safety helmet, with the chin strap in place, during all warmup trips and races.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-02 § 2.4, eff. July 15, 1991.

11VAC10-150-60 Substitute driver

No driver shall, without good and sufficient reason, refuse to drive a horse when ordered by the stewards to substitute for another driver. When a driver is programmed to drive a horse and removed at his request, he shall not be permitted to drive another horse in the same race.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-02 § 2.5, eff. July 15, 1991.

11VAC10-150-70 Late driver change

No driver may be changed without the permission of the stewards and for good cause. A person who causes a driver change after the daily racing program has been printed shall be subject to disciplinary action.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-02 § 2.6, eff. July 15, 1991.

11VAC10-150-80 Hopples

A horse habitually wearing hopples shall not be permitted to start in a race without them unless permission is granted by the stewards. A free-legged pacer shall not be permitted to race with hopples unless permission is granted by the stewards. Any person altering a horse's hopples for a fraudulent purpose shall be subject to disciplinary action.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-02 § 2.7, eff. July 15, 1991; amended, Virginia Register Volume 16, Issue 26, eff. August 14, 2000.

11VAC10-150-90 Excessive use of the whip

Drivers will be allowed whips not exceeding three feet, nine inches, plus a snapper not longer than six inches. The following actions shall be considered as excessive use of the whip:

Causing visible injury;
Whipping a horse after a race; and
Whipping under the arch or shafts of the sulky.

The use of the whip shall be confined to an area above and between the sulky shafts, to include the sulky shafts and the outside wheel discs. Drivers shall keep a line in each hand from the start of the race until the head of the stretch finishing the race.

The commission veterinarian or his designee shall make a mandatory visual inspection of each horse following each race for evidence of excessive use of the whip.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-02 § 2.8, eff. July 15, 1991; amended, Virginia Register Volume 16, Issue 26, eff. August 14, 2000.

11VAC10-150-100 Post parade

No horse may be excused from the post parade without the permission of the stewards. The horses comprising a race shall be formed in a post parade and on the track no less than 12 minutes prior to post time, unless, due to inclement weather, the stewards decrease the length of time. The starter shall inform the drivers of the number and length of warmup scores to be taken prior to going to the starting gate.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-02 § 2.9, eff. July 15, 1991.

11VAC10-150-110 Timing procedure

The time shall be taken from the first horse leaving the point which the distance of the race is measured until the winner reaches the wire. The leading horse shall be timed and his time only shall be announced. In the case of a dead heat for win, the time shall be accorded to the horses involved in the dead heat.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-02 § 2.10, eff. July 15, 1991.

Part III Driving Rules

11VAC10-150-120 Start

A driver shall obey the starter's instructions. The starter may make recommendations to the stewards that disciplinary action be taken against a driver for:

Delaying the start;
Failing to obey the starter's instructions;
Rushing ahead of the inside or outside wing of the starting gate;
Coming to the starting gate out of position.
Crossing over before reaching the starting post;
Interfering with another driver or horse during the start; and
Failing to come up into the correct post position.

When a horse comes to the starting gate out of its assigned post position and gains an unfair advantage by moving either to the left or right of its assigned post position before the starter gives the word "go," the horse may be disqualified and placed by the stewards.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-02 § 3.1, eff. July 15, 1991; amended, Virginia Register Volume 16, Issue 26, eff. August 14, 2000.

11VAC10-150-130 Racing

A. Although a leading horse is entitled to any part of the racing surface, except after selecting his position in the home stretch, the driver of the leading horse and any other driver committing any of the following acts shall be subject to disciplinary action:

Changing either to the right or left during any part of the race when another horse is so near him that it causes the other horse to shorten its stride or make a break;
Jostling, striking, hooking wheels or interfering with another horse or driver;
Crossing sharply in front of a horse or crossing over in front of a field of horses in a reckless manner, endangering other drivers;
Swerving in and out or pulling up quickly;
Crowding a horse or driver;
Carrying a horse out;
Causing confusion or interference among trailing horses;
Letting a horse pass inside needlessly or otherwise helping another horse to improve his position in the race;
Committing any act which shall impede the progress of another horse or causing him to break;
Changing course after selecting a position in the home stretch;
Swerving in and out, or bearing in and out, in a manner so as to interfere with another horse, cause another driver to change course or take back;
Driving in a careless or reckless manner;
Loud shouting or other improper conduct; and
Kicking a horse, which shall be defined as a blow or thrust with the foot against any part of the horse's body or to impel by striking with the foot. Removal of a foot from the stirrups in and of itself shall not constitute the offense of kicking. The stewards shall assess a minimum fine of $200, a suspension or both disciplinary actions for the first violation, and any subsequent violation shall result in a suspension.

B. If at a racetrack that does not have a continuous solid inside hub rail a horse or part of the horse's sulky leaves the course by going inside the hub rail or other demarcation that constitutes the inside limits of the course, the offending horse shall be placed one or more positions where, in the opinion of the stewards, the action gave the horse an unfair advantage over other horses in the race or the action helped the horse improve its position in the race. In addition, when an act of interference causes a horse or part of the horse's sulky to cross the inside limits of the course, and the horse is placed by the judges, the offending horse shall be placed behind the horse with which it interfered.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-02 § 3.2, eff. July 15, 1991; amended, Virginia Register Volume 16, Issue 26, eff. August 14, 2000; Volume 18, Issue 23, eff. July 1, 2002; Volume 20, Issue 4, eff. November 17, 2003.

11VAC10-150-140 Objections

A driver shall lodge an objection by promptly informing the patrol judge prior to pulling up his horse after the race and dismounting. He shall proceed immediately to the designated telephone in the paddock to explain his objection.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-02 § 3.3, eff. July 15, 1991; amended, Virginia Register Volume 18, Issue 23, eff. July 1, 2002.

11VAC10-150-150 Driven to the finish

A driver shall drive his horse so as to win or finish as near as possible to the first-place horse and demonstrate the best and fastest performance of which it is capable during the race.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-02 § 3.4, eff. July 15, 1991.

11VAC10-150-160 Inconsistent driving

When a horse is driven or has been driven in the past with a design to prevent its winning a race, which it was evidently capable of winning, or driven in an inconsistent manner, or driven in a manner to perpetrate a fraud, the driver and anyone conspiring with him shall be subject to disciplinary action.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-02 § 3.5, eff. July 15, 1991.

11VAC10-150-170 Breaking

A. Driver's responsibility. When a horse breaks from its gait, the driver shall at once, where clearance exists, take the horse to the outside and pull it to its gait. The stewards may set any horse back one or more places if a driver of a breaking horse does not:

Properly attempt to pull the horse to its gait;
Take the horse to the outside where clearance exists; or
Lose ground by the break.

B. Lapped-on break. The stewards shall set back a breaking horse when the nose of a contending horse, which is on gait, is at least even with the hind quarter of the breaking horse at the finish.

C. Fraudulent intent. A driver allowing his horse to break, or causing his horse to make a break, for a fraudulent purpose shall be subject to disciplinary action.

D. Notation. One of the stewards shall call out a break made during the course of a race so that the clerk of the course may make a notation on the horse's eligibility certificate.

E. Any horse making a break that causes interference to other contending horses may be placed behind all offended horses; if there has been no failure on the part of the driver of the breaking horse in complying with this section, the driver may not be subject to disciplinary action by the stewards.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-02 § 3.6, eff. July 15, 1991; amended, Virginia Register Volume 16, Issue 26, eff. August 14, 2000.

11VAC10-150-180 Excessive conversation

A driver engaging in excessive or unnecessary conversation between or among other drivers while on the racing surface, either during warmup trips, post parade or races shall be subject to disciplinary action.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from VR662-05-02 § 3.7, eff. July 15, 1991.

11VAC10-150-190 Qualifying races

A. No Standardbred may be raced unless it has a race at the chosen gait, with a charted line in qualifying time, within 30 days of its last race; however, this may be extended to 45 days for a particular race or race meet with the approval of the stewards.

B. If a Standardbred does not have a charted line within 30 days (or 45 days if approved by the stewards in accordance with subsection A of this section) of its race, then the horse must race in a qualifying race under the supervision of the stewards to determine its fitness for racing.

C. The following provisions shall apply to qualifying races:

The licensee shall provide appropriate personnel for qualifying races to keep a charted line for each Standardbred in each qualifying race, an electronic timing device shall be in operation, and a photo-finish camera shall be in operation;
The licensee shall schedule as many qualifying races on as many days as is deemed appropriate for the horse supply, and the licensee shall maintain the racing surface in condition so that all Standardbreds have a reasonable opportunity to meet the qualifying time;
A Standardbred must race in a qualifying race if it has one race over a fast track that is not in the qualifying time as agreed upon by the licensee and the representative of the horsemen or on gait;
A Standardbred coming off the Veterinarian's List must race in a qualifying race, and the stewards, in their discretion, may require the horse to race in one or more qualifying races to establish its fitness for racing; and
The stewards, in their discretion, may authorize the collection of blood, urine or other samples of body substances from Standardbreds after competing in qualifying races.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 18, Issue 23, eff. July 1, 2002; amended, Virginia Register Volume 34, Issue 2, eff. September 16, 2017.

11VAC10-150-200 Time trials

For Standardbreds, time trials are permitted with the permission of the licensee and the commission provided that (i) the horse is subject to post-race testing; (ii) an electronic timing device is utilized; (iii) if the horse is accompanied by prompters, the prompters shall not precede the horse; and (iv) the stewards are present.

History

Statutory Authority: § 59.1-369 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 18, Issue 23, eff. July 1, 2002.

Agency 15 Charitable Gaming Board

Chapter 13 Public Participation Guidelines

Part I Purpose and Definitions

11VAC15-13-10 Purpose

The purpose of this chapter is to promote public involvement in the development, amendment or repeal of the regulations of the Charitable Gaming Board. This chapter does not apply to regulations, guidelines, or other documents exempted or excluded from the provisions of the Administrative Process Act (§ 2.2-4000 et seq. of the Code of Virginia).

History

Statutory Authority: §§ 2.2-4007.02 and 18.2-340.18 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 25, Issue 4, eff. November 26, 2008.

11VAC15-13-20 Definitions

The following words and terms when used in this chapter shall have the following meanings unless the context clearly indicates otherwise:

"Administrative Process Act" means Chapter 40 (§ 2.2-4000 et seq.) of Title 2.2 of the Code of Virginia.

"Agency" means the Charitable Gaming Board, which is the unit of state government empowered by the agency's basic law to make regulations or decide cases. Actions specified in this chapter may be fulfilled by state employees as delegated by the agency.

"Basic law" means provisions in the Code of Virginia that delineate the basic authority and responsibilities of an agency.

"Commonwealth Calendar" means the electronic calendar for official government meetings open to the public as required by § 2.2-3707 C of the Freedom of Information Act.

"Public hearing" means a scheduled time at which members or staff of the agency will meet for the purpose of receiving public comment on a regulatory action.

"Regulatory action" means the promulgation, amendment, or repeal of a regulation by the agency.

"Regulatory advisory panel" or "RAP" means a standing or ad hoc advisory panel of interested parties established by the agency for the purpose of assisting in regulatory actions.

History

Statutory Authority: §§ 2.2-4007.02 and 18.2-340.18 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 25, Issue 4, eff. November 26, 2008.

Part II Notification of Interested Persons

11VAC15-13-30 Notification list

A. The agency shall maintain a list of persons who have requested to be notified of regulatory actions being pursued by the agency.

C. The agency may maintain additional lists for persons who have requested to be informed of specific regulatory issues, proposals, or actions.

E. When mail delivered by a postal carrier is returned as undeliverable on multiple occasions, that person may be deleted from the list.

History

Statutory Authority: §§ 2.2-4007.02 and 18.2-340.18 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 25, Issue 4, eff. November 26, 2008.

11VAC15-13-40 Information to be sent to persons on the notification list

A. To persons electing to receive electronic notification or notification through a postal carrier as described in 11VAC15-13-30, the agency shall send the following information:

A notice of intended regulatory action (NOIRA).
A notice of the comment period on a proposed, a reproposed, or a fast-track regulation and hyperlinks to, or instructions on how to obtain, a copy of the regulation and any supporting documents.
A notice soliciting comment on a final regulation when the regulatory process has been extended pursuant to § 2.2-4007.06 or 2.2-4013 C of the Code of Virginia.

B. The failure of any person to receive any notice or copies of any documents shall not affect the validity of any regulation or regulatory action.

History

Statutory Authority: §§ 2.2-4007.02 and 18.2-340.18 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 25, Issue 4, eff. November 26, 2008.

Part III Public Participation Procedures

11VAC15-13-50 Public comment

To any requesting person, the agency shall provide copies of the statement of basis, purpose, substance, and issues; the economic impact analysis of the proposed or fast-track regulatory action; and the agency's response to public comments received.
The agency may begin crafting a regulatory action prior to or during any opportunities it provides to the public to submit comments.

B. The agency shall accept public comments in writing after the publication of a regulatory action in the Virginia Register as follows:

For a minimum of 30 calendar days following the publication of the notice of intended regulatory action (NOIRA).
For a minimum of 60 calendar days following the publication of a proposed regulation.
For a minimum of 30 calendar days following the publication of a reproposed regulation.
For a minimum of 30 calendar days following the publication of a final adopted regulation.
For a minimum of 30 calendar days following the publication of a fast-track regulation.
For a minimum of 21 calendar days following the publication of a notice of periodic review.
Not later than 21 calendar days following the publication of a petition for rulemaking.

C. The agency may determine if any of the comment periods listed in subsection B of this section shall be extended.

History

Statutory Authority: §§ 2.2-4007.02 and 18.2-340.18 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 25, Issue 4, eff. November 26, 2008.

11VAC15-13-60 Petition for rulemaking

A. As provided in § 2.2-4007 of the Code of Virginia, any person may petition the agency to consider a regulatory action.

B. A petition shall include but is not limited to the following information:

The petitioner's name and contact information;
The substance and purpose of the rulemaking that is requested, including reference to any applicable Virginia Administrative Code sections; and
Reference to the legal authority of the agency to take the action requested.

C. The agency shall receive, consider and respond to a petition pursuant to § 2.2-4007 and shall have the sole authority to dispose of the petition.

D. The petition shall be posted on the Town Hall and published in the Virginia Register.

E. Nothing in this chapter shall prohibit the agency from receiving information or from proceeding on its own motion for rulemaking.

History

Statutory Authority: §§ 2.2-4007.02 and 18.2-340.18 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 25, Issue 4, eff. November 26, 2008.

11VAC15-13-70 Appointment of regulatory advisory panel

B. Any person may request the appointment of a RAP and request to participate in its activities. The agency shall determine when a RAP shall be appointed and the composition of the RAP.

C. A RAP may be dissolved by the agency if:

The proposed text of the regulation is posted on the Town Hall, published in the Virginia Register, or such other time as the agency determines is appropriate; or
The agency determines that the regulatory action is either exempt or excluded from the requirements of the Administrative Process Act.

History

Statutory Authority: §§ 2.2-4007.02 and 18.2-340.18 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 25, Issue 4, eff. November 26, 2008.

11VAC15-13-80 Appointment of negotiated rulemaking panel

A. The agency may appoint a negotiated rulemaking panel (NRP) if a regulatory action is expected to be controversial.

B. An NRP that has been appointed by the agency may be dissolved by the agency when:

There is no longer controversy associated with the development of the regulation;
The agency determines that the regulatory action is either exempt or excluded from the requirements of the Administrative Process Act; or
The agency determines that resolution of a controversy is unlikely.

History

Statutory Authority: §§ 2.2-4007.02 and 18.2-340.18 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 25, Issue 4, eff. November 26, 2008.

11VAC15-13-90 Meetings

History

Statutory Authority: §§ 2.2-4007.02 and 18.2-340.18 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 25, Issue 4, eff. November 26, 2008.

11VAC15-13-100 Public hearings on regulations

A. The agency shall indicate in its notice of intended regulatory action whether it plans to hold a public hearing following the publication of the proposed stage of the regulatory action.

B. The agency may conduct one or more public hearings during the comment period following the publication of a proposed regulatory action.

C. An agency is required to hold a public hearing following the publication of the proposed regulatory action when:

The agency's basic law requires the agency to hold a public hearing;
The Governor directs the agency to hold a public hearing; or
The agency receives requests for a public hearing from at least 25 persons during the public comment period following the publication of the notice of intended regulatory action.

History

Statutory Authority: §§ 2.2-4007.02 and 18.2-340.18 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 25, Issue 4, eff. November 26, 2008.

11VAC15-13-110 Periodic review of regulations

A. The agency shall conduct a periodic review of its regulations consistent with:

An executive order issued by the Governor pursuant to § 2.2-4017 of the Administrative Process Act to receive comment on all existing regulations as to their effectiveness, efficiency, necessity, clarity, and cost of compliance; and
The requirements in § 2.2-4007.1 of the Administrative Process Act regarding regulatory flexibility for small businesses.

B. A periodic review may be conducted separately or in conjunction with other regulatory actions.

C. Notice of a periodic review shall be posted on the Town Hall and published in the Virginia Register.

History

Statutory Authority: §§ 2.2-4007.02 and 18.2-340.18 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 25, Issue 4, eff. November 26, 2008.

Chapter 40 Charitable Gaming Regulations [Repealed]

Part I Definitions [Repealed]

11VAC15-40-10 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 29, Issue 3, eff. November 7, 2012; amended, Virginia Register Volume 33, Issue 4, eff. November 17, 2016; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

Article 1 Permits [Repealed]

11VAC15-40-20 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 29, Issue 3, eff. November 7, 2012; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC15-40-30 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 29, Issue 3, eff. November 7, 2012; amended, Virginia Register Volume 33, Issue 4, eff. November 17, 2016; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC15-40-40 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 29, Issue 3, eff. November 7, 2012; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

Article 2 Conduct of Games, Rules of Play, Electronic Bingo [Repealed]

11VAC15-40-50 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 29, Issue 3, eff. November 7, 2012; amended, Virginia Register Volume 33, Issue 4, eff. November 17, 2016; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC15-40-60 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 29, Issue 3, eff. November 7, 2012; amended, Virginia Register Volume 33, Issue 4, eff. November 17, 2016; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

Article 3 Bank Accounts, Recordkeeping, Financial Reporting, Audits, Fees [Repealed]

11VAC15-40-70 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 29, Issue 3, eff. November 7, 2012; amended, Virginia Register Volume 33, Issue 4, eff. November 17, 2016; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC15-40-80 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 29, Issue 3, eff. November 7, 2012; amended, Virginia Register Volume 33, Issue 4, eff. November 17, 2016; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC15-40-90 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 29, Issue 3, eff. November 7, 2012; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC15-40-100 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 29, Issue 3, eff. November 7, 2012; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

Article 4 Rent [Repealed]

11VAC15-40-110 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 29, Issue 3, eff. November 7, 2012; amended, Virginia Register Volume 33, Issue 4, eff. November 17, 2016; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

Part III Suppliers [Repealed]

11VAC15-40-120 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 29, Issue 3, eff. November 7, 2012; amended, Virginia Register Volume 33, Issue 4, eff. November 17, 2016; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC15-40-130 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 29, Issue 3, eff. November 7, 2012; amended, Virginia Register Volume 33, Issue 4, eff. November 17, 2016; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC15-40-140 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 29, Issue 3, eff. November 7, 2012; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC15-40-143 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 29, Issue 3, eff. November 7, 2012; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

Article 1 Manufacturers [Repealed]

11VAC15-40-147 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 29, Issue 3, eff. November 7, 2012; amended, Virginia Register Volume 33, Issue 4, eff. November 17, 2016; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

Article 2 General Requirements [Repealed]

11VAC15-40-150 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 29, Issue 3, eff. November 7, 2012; amended, Virginia Register Volume 33, Issue 4, eff. November 17, 2016; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

Article 3 System Requirements [Repealed]

11VAC15-40-160 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 29, Issue 3, eff. November 7, 2012; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC15-40-170 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 29, Issue 3, eff. November 7, 2012; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC15-40-180 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 29, Issue 3, eff. November 7, 2012; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC15-40-190 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 29, Issue 3, eff. November 7, 2012; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC15-40-200 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 29, Issue 3, eff. November 7, 2012; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC15-40-210 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 29, Issue 3, eff. November 7, 2012; amended, Virginia Register Volume 33, Issue 4, eff. November 17, 2016; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC15-40-220 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 29, Issue 3, eff. November 7, 2012; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC15-40-230 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 29, Issue 3, eff. November 7, 2012; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC15-40-240 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 29, Issue 3, eff. November 7, 2012; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC15-40-250 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 29, Issue 3, eff. November 7, 2012; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC15-40-260 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 29, Issue 3, eff. November 7, 2012; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC15-40-270 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 29, Issue 3, eff. November 7, 2012; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC15-40-280 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 29, Issue 3, eff. November 7, 2012; amended, Virginia Register Volume 33, Issue 4, eff. November 17, 2016; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC15-40-290 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 29, Issue 3, eff. November 7, 2012; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

Article 4 Electronic Pull-tab Devices [Repealed]

11VAC15-40-300 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 29, Issue 3, eff. November 7, 2012; amended, Virginia Register Volume 34, Issue 12, eff. March 8, 2018; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC15-40-310 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 29, Issue 3, eff. November 7, 2012; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC15-40-320 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 29, Issue 3, eff. November 7, 2012; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC15-40-330 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 29, Issue 3, eff. November 7, 2012; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC15-40-340 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 29, Issue 3, eff. November 7, 2012; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC15-40-350 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 29, Issue 3, eff. November 7, 2012; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC15-40-360 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 29, Issue 3, eff. November 7, 2012; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC15-40-370 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 29, Issue 3, eff. November 7, 2012; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC15-40-380 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 29, Issue 3, eff. November 7, 2012; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC15-40-390 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 29, Issue 3, eff. November 7, 2012; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC15-40-400 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 29, Issue 3, eff. November 7, 2012; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

Article 5 Game Requirements [Repealed]

11VAC15-40-410 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 29, Issue 3, eff. November 7, 2012; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC15-40-420 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 29, Issue 3, eff. November 7, 2012; repealed, Virginia Register Volume 33, Issue 4, eff. November 17, 2016.

11VAC15-40-430 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 29, Issue 3, eff. November 7, 2012; repealed, Virginia Register Volume 33, Issue 4, eff. November 17, 2016.

Article 1 Network Bingo Providers [Repealed]

11VAC15-40-440 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 33, Issue 4, eff. November 17, 2016; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

Article 2 General Requirements [Repealed]

11VAC15-40-450 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 33, Issue 4, eff. November 17, 2016; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

Article 3 System Requirements [Repealed]

11VAC15-40-460 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 33, Issue 4, eff. November 17, 2016; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC15-40-470 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 33, Issue 4, eff. November 17, 2016; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC15-40-480 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 33, Issue 4, eff. November 17, 2016; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC15-40-490 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 33, Issue 4, eff. November 17, 2016; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC15-40-500 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 33, Issue 4, eff. November 17, 2016; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC15-40-510 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 33, Issue 4, eff. November 17, 2016; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC15-40-520 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 33, Issue 4, eff. November 17, 2016; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC15-40-600 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 33, Issue 4, eff. November 17, 2016; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC15-40-610 (Repealed.)

History

Historical Notes: Derived from Virginia Register Volume 33, Issue 4, eff. November 17, 2016; repealed, Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

Agency 20 Department of Agriculture and Consumer Services, Charitable Gaming

Chapter 20 Charitable Gaming Regulations

Part I Definitions

11VAC20-20-10 Definitions

In addition to the definitions contained in § 18.2-340.16 of the Code of Virginia, the following words and terms when used in this chapter shall have the following meanings unless the context clearly indicates otherwise:

"Add-on" means a player's purchase of additional poker chips during a tournament at preannounced times before that player runs out of poker chips.

"Administer" means the conduct of activities by an operator that are associated with production of a poker tournament.

"Agent" means any person authorized by a supplier, network bingo provider, or manufacturer to act for or in place of such supplier, network bingo provider, or manufacturer.

"Board of directors" means the board of directors, managing committee, or other supervisory body of a qualified organization.

"Calendar day" means the period of 24 consecutive hours commencing at 12:00:01 a.m. and concluding at midnight.

"Calendar week" means the period of seven consecutive calendar days commencing at 12:00:01 a.m. on Sunday and ending at midnight the following Saturday.

"Cash" means United States currency or coinage.

"Charitable Gaming Law" means Article 1.1:1 (§ 18.2-340.15 et seq.) of Chapter 8 of Title 18.2 of the Code of Virginia.

"Charitable host representative" means a person who (i) is a bona fide member, as defined in § 18.2-340.16 of the Code of Virginia, of the qualified organization; (ii) meets all other requirements for bona fide members set forth in the Charitable Gaming Law; (iii) does not receive remuneration pursuant to § 18.2-340.33 of the Code of Virginia; and (iv) is responsible for the oversight and execution of the written contract between the qualified organization and operator during the poker tournament.

"Commissioner" means the Commissioner of the Virginia Department of Agriculture and Consumer Services.

"Concealed face bingo card" means a nonreusable bingo card constructed to conceal the card face.

"Conduct" means the actions associated with the provision of a gaming operation during and immediately before or after the permitted activity, which may include (i) selling bingo cards or packs, electronic bingo devices, instant bingo or pull-tab cards, electronic pull-tab devices, electronic pull-tabs, network bingo cards, or raffle tickets; (ii) calling bingo games; (iii) distributing prizes; (iv) dealing playing cards; (v) distributing poker chips; and (vi) any other services provided by game workers, charitable host representatives, or volunteer dealers.

"Control program" means software involved in any critical game function.

"Daubing" means covering a square containing a number called with indelible ink or otherwise marking a number called on a card or an electronic facsimile of a card.

"Deal" means each separate package or series of packages consisting of one game of instant bingo, pull-tabs, or seal cards with the same serial number.

"Decision bingo" means a bingo game where the cost to a player to play is dependent on the number of bingo numbers called, and the prize payout is in direct relationship to the number of participants and the number of bingo numbers called but shall not exceed statutory prize limits for a regular bingo game.

"Department" means the Virginia Department of Agriculture and Consumer Services.

"Designator" means an object used in the bingo number selection process, such as a ping-pong ball, upon which bingo letters and numbers are imprinted.

"Device number" means the unique serial number assigned to each electronic gaming device by the department and displayed on the device tag affixed by the department.

"Device tag" means the mark that contains a unique serial number assigned to each electronic gaming device that is affixed by the department to each electronic gaming device indicating that the department has authorized and approved the use of such device.

"Discount" means any reduction in cost of admission or game packs or any other purchases through use of coupons, free packs, or other similar methods.

"Disinterested player" means a player who is unbiased.

"Disposable bingo paper" or "disposable paper" means a nonreusable, paper bingo card manufactured with preprinted numbers.

"Distributed pull-tab system" means a computer system consisting of a computer and associated equipment for the use of distributing a finite number of electronic pull-tabs, a certain number of which entitle a player to prize awards at various levels.

"Door prize" means any prize awarded by the random drawing or random selection of a name or number based solely on attendance at a charitable gaming activity.

"Electronic bingo device" means an electronic unit that uses proprietary software or hardware or operates in conjunction with commonly available software and computers to display facsimiles of bingo cards and allows a player to daub such cards or allows for the automatic daubing of such cards.

"Electronic gaming" or "electronic games" means any instant bingo, pull-tabs, or seal card gaming that is conducted primarily by use of an electronic device. "Electronic gaming" does not include (i) the game of chance identified in clause (ii) of the definition of "bingo" in § 18.2-340.16 of the Code of Virginia or (ii) network bingo.

"Electronic gaming device" means an electronic unit used to facilitate the play of an electronic pull-tab. An electronic pull-tab device may take the form of an upright cabinet or a handheld device or may be of any other composition as approved by the department.

"Electronic gaming adjusted gross receipts" means the gross receipts derived from electronic gaming less the total amount in prize money paid out to players.

"Electronic gaming manufacturer" means a manufacturer of electronic devices used to conduct electronic gaming.

"Electronic pull-tabs" means a form of electronic gaming using an electronic version of a single instant bingo card or pull-tab. An electronic pull-tab is a predetermined game outcome in electronic form, distributed on-demand from a finite number of game outcomes by a distributed pull-tab system.

"Equipment and video systems" means equipment that facilitates the conduct of charitable gaming, such as ball blowers, flashboards, electronic verifiers, and replacement parts for such equipment. Equipment and video systems shall not include dispensing devices, electronic bingo devices, or electronic pull-tab devices.

"Event game" means a bingo game (i) that is played using instant bingo cards or pull-tabs in which the winners include both instant winners and winners who are determined by the random draw of a bingo ball, the random call of a bingo number, or the use of a seal card, and (ii) that is sold in its entirety and played to completion during a single bingo session.

"Fiscal year" or "annual reporting period" means the 12-month period beginning January 1 and ending December 31 of any given year.

"Flare" means a printed or electronic display that bears information relating to the name of the manufacturer or logo, name of the game, card count, cost per play, serial number, number of prizes to be awarded, and specific prize amounts in a deal of instant bingo, pull-tab, seal cards, or electronic pull-tabs.

"Free space number," "perm number," "center number," "card number," or "face number" means the number generally printed in the center space of a bingo card that identifies the unique pattern of numbers printed on that card.

"Game manager" means a person who (i) is a bona fide member, as defined in § 18.2-340.16 of the Code of Virginia, of the qualified organization that is managing, operating, and conducting a poker tournament; (ii) meets all other requirements for bona fide members set forth in the Charitable Gaming Law and this chapter; and (iii) is responsible for the operation of the qualified organization's poker tournament and does not receive remuneration for it pursuant to § 18.2-340.33 of the Code of Virginia.

"Game program" means a written list of all games to be played, including the sales price of all bingo paper, network bingo cards, and electronic bingo devices, pack configuration, prize amounts to be paid during a session for each game, and an indication whether prize amounts are fixed based on attendance.

"Game set" means the entire pool of electronic pull-tabs that contains predefined and randomized game results assigned under a unique serial number. This term is equivalent to "deal" or "deck."

"Game subset" means a division of a game set into equal sizes.

"Immediate family" means one's spouse, parent, child, sibling, grandchild, grandparent, mother-in-law or father-in-law, or stepchild.

"Interested persons" means (i) the president, an officer, or a game manager of any qualified organization that is exempt or is a permit applicant or holds a permit to conduct charitable gaming, or (ii) the owner, director, officer, or partner of an entity engaged in supplying charitable gaming supplies to organizations, engaged in providing network bingo supplies to organizations, or engaged in manufacturing any component of an electronic game that is distributed in the Commonwealth.

"IRS" means the U.S. Internal Revenue Service.

"Management" means the provision of oversight of a gaming operation, which may include the responsibilities of applying for and maintaining a permit or authorization; compiling, submitting, and maintaining required records and financial reports; and ensuring that all aspects of the operation are in compliance with all applicable statutes and regulations.

"Manufacturer" means a person who or entity that assembles from raw materials or subparts a completed piece of bingo equipment or supplies, a distributed pull-tab system, or other charitable gaming or electronic gaming equipment or supplies. "Manufacturer" also means a person who or entity that modifies, converts, adds, or removes parts to or from bingo equipment or supplies, a distributed pull-tab system, or other charitable gaming or electronic gaming equipment or supplies to further their promotion or sale for the conduct of charitable gaming.

"Operation" means the activities associated with production of a charitable gaming or electronic gaming activity, which may include (i) the direct on-site supervision of the conduct of charitable gaming and electronic gaming; (ii) coordination of game workers; and (iii) all responsibilities of charitable gaming and electronic gaming designated by the organization's management.

"Operator" means a person who has registered with the department in accordance with 11VAC20-30-50 to administer poker tournaments.

"Organization number" means a unique identification number issued by the department.

"Owner" means any individual with financial interest of 10% or more in a supplier, network bingo provider, or a manufacturer of a distributed pull-tab system or other electronic gaming device or system distributed in the Commonwealth.

"Pack" means sheets of bingo paper or electronic facsimiles assembled in the order of games to be played. This shall not include any raffle.

"Poker game" means a Texas Hold'em poker game as defined in § 18.2-340.16 of the Code of Virginia.

"Poker tournament" means a Texas Hold'em poker tournament as defined in § 18.2-340.16 of the Code of Virginia.

"Prize" means cash, merchandise, certificate, or other item of value awarded to a winning player.

"Progressive bingo" means a bingo game in which the prize is carried forward to the next game if a predetermined pattern is not completed within a specified number of bingo numbers called.

"Progressive seal card" means a seal card game in which a prize is carried forward to the next deal if not won when a deal is completed.

"Remuneration" means payment in cash or the provision of anything of value for goods provided or services rendered.

"Seal card" means a board or placard used in conjunction with a deal of the same serial number that contains one or more concealed areas that when removed or opened, reveal a predesignated winning number, letter, or symbol located on that board or placard.

"Selection device" means a manually or mechanically operated device used to randomly select bingo numbers.

"Serial number" means a unique number assigned by the manufacturer to each set of bingo cards or network bingo cards; each instant bingo, pull-tab, or seal card in a deal; each electronic bingo device; each door prize ticket; each game set and game subset of electronic pull-tabs; and each electronic gaming device.

"Series number" means the number of unique card faces contained in a set of disposable bingo paper cards, network bingo cards, or bingo hard cards. A 9000 series, for example, has 9,000 unique faces.

"Session" means a period of time during which one or more bingo games are conducted or during which instant bingo, pull-tabs, seal cards, or electronic gaming may be sold and redeemed. A session begins with the sale of instant bingo, pull-tabs, seal cards, electronic gaming, electronic bingo devices, network bingo cards, or bingo cards or packs.

"Social organization" means the same as that term is defined in § 18.2-340.16 of the Code of Virginia.

"Social quarters" means the same as that term is defined in § 18.2-340.16 of the Code of Virginia.

"Treasure chest" means a raffle including a locked treasure chest containing a prize that a participant, selected through some other authorized charitable game, is afforded the chance to select from a series of keys a predetermined key that will open the locked treasure chest to win a prize.

"Use of proceeds" means the use of funds derived by an organization from its charitable gaming activities, which are disbursed for those lawful religious, charitable, community, or educational purposes.

"Voucher" means a printed ticket tendered to the player, upon request, for any unused game plays or winnings that remain on the electronic pull-tab device.

"WINGO" means a variation of a traditional bingo game that uses visual devices rather than a verbal caller and is intended for play by hearing impaired persons.

History

Statutory Authority: § 18.2-340.19 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023; amended, Virginia Register Volume 40, Issue 17, eff. May 9, 2024.

Article 1 Permits

11VAC20-20-20 Eligibility for permit to conduct charitable gaming; when valid; permit requirements

A. The conduct of charitable gaming is a privilege that may be granted or denied by the department. Except as provided in § 18.2-340.23 of the Code of Virginia, every eligible organization, volunteer fire department, and rescue squad with anticipated gross gaming receipts that exceed the amount set forth in § 18.2-340.23 of the Code of Virginia in any 12-month period shall obtain a permit from the department prior to the commencement of charitable gaming activities. To be eligible for a permit, an organization must meet all of the requirements of § 18.2-340.24 of the Code of Virginia.

B. Pursuant to § 18.2-340.24 B of the Code of Virginia, the department shall review a tax exempt request submitted to the IRS for a tax exempt status determination and may issue an interim certification of tax-exempt status solely for the purpose of charitable gaming, conditioned upon a determination by the IRS. The department shall charge the fee set forth in § 18.2-340.24 B of the Code of Virginia for this review. The fee shall be payable to the Treasurer of Virginia.

C. A permit shall be valid only for activities, locations, days, dates, and times as listed on the permit. A permit alone does not authorize an organization to conduct electronic gaming. An organization that conducts electronic gaming must have a separate electronic gaming authorization on its permit.

D. In accordance with § 18.2-340.19 A 1 of the Code of Virginia, as a condition of receiving a charitable gaming permit or authorization to conduct electronic gaming, an organization shall use a minimum percentage of its charitable gaming receipts for those lawful religious, charitable, community, or educational purposes for which the organization is specifically chartered or organized as follows:

For all charitable gaming other than electronic gaming, the minimum percentage shall be 10% of its gross receipts.
For electronic gaming, the minimum percentage shall be 20 % of its electronic gaming adjusted gross receipts.

E. If an organization fails to meet the minimum use of proceeds requirement for charitable gaming other than electronic gaming, its permit may be suspended or revoked; however, the department shall not suspend or revoke the permit for charitable gaming of any organization solely because of its failure to meet the required percentage without having first provided the organization with an opportunity to implement a remedial business plan.

F. An organization may request a temporary reduction in the predetermined percentage specified in subsection D of this section from the department. In reviewing such a request, the department shall consider such factors appropriate to and consistent with the purpose of charitable gaming, which may include (i) the organization's overall financial condition; (ii) the length of time the organization has been involved in charitable gaming; (iii) the extent of the deficiency; and (iv) the progress that the organization has made in attaining the minimum percentage in accordance with a remedial business plan pursuant to subsection E of this section.

G. An organization whose permit is revoked for failure to comply with provisions set forth in subsection D of this section shall be eligible to reapply for a permit at the end of one year from the date of revocation. The department, at its discretion, may issue the permit if it is satisfied that the organization has made substantial efforts toward meeting its remedial business plan.

H. If an organization fails to meet the minimum use of proceeds requirement for electronic gaming:

The social organization's authorization to conduct electronic gaming may be revoked or suspended.
The qualified organization's permit for the conduct of electronic gaming only may be revoked or suspended.
If an organization becomes dissolved for any reason, then the department shall either suspend or revoke its authorization to conduct electronic gaming.
If the permit or authorization is suspended, the department shall set the terms of the suspension, which shall include the length of the suspension and a requirement that prior to reinstatement of the permit or authorization, the organization shall submit a remedial business plan approved by the department to address the conditions that resulted in the suspension.
If an organization fails to meet the minimum use of proceeds requirement after having been suspended, the organization's authorization shall be revoked. An organization whose permit is revoked shall be eligible to reapply at a date determined by the department. If the permit is revoked, the organization is required to reapply for an authorization, and if the authorization was revoked fewer than 18 months prior to reapplying for a permit, then the organization shall submit a remedial business plan approved by the department to address the conditions that resulted in the revocation. The department, at its discretion, may issue the authorization if it is satisfied that the organization's remedial business plan will result in meeting the use of proceeds requirement.

History

Statutory Authority: § 18.2-340.15 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC20-20-30 Charitable gaming permit application process for raffles, bingo, paper pull-tabs, network bingo, paper instant bingo, paper seal cards, and poker tournaments

A. Any organization (i) anticipating gross gaming receipts from raffles that exceed the amount set forth in § 18.2-340.23 of the Code of Virginia or (ii) intending to operate and conduct bingo, electronic gaming, instant bingo, seal cards, pull-tabs, a poker tournament, or network bingo shall complete a department-prescribed application to request issuance or renewal of an annual permit to conduct charitable gaming. Organizations shall submit a nonrefundable fee payable to the Treasurer of Virginia in the amount of $200 with the application, unless the organization is exempt from such fee pursuant to § 18.2-340.23 of the Code of Virginia.

B. The department may initiate action against any organization exempt from permit requirements when it reasonably believes the organization is not in compliance with the provisions of Charitable Gaming Law or regulations adopted pursuant thereto.

C. Permits shall be valid for a period of one year from the date of issuance or for a period specified on the permit. The department may issue permits for periods of less than one year.

D. Permits shall be granted only after a background investigation of an organization, interested persons, or both to ensure public safety and welfare as required by § 18.2-340.25 of the Code of Virginia. Investigations shall consider the nature, the age and severity, and the potential harm to public safety and welfare of any criminal offenses. The investigation may include the following:

A search of criminal history records for the chief executive officer and chief financial officer of the organization, game manager, or charitable host representative. Information and authorization to conduct these records checks shall be provided in the permit application. In addition, the department shall require that the organization provides assurances that all other members involved in the management, operation, or conduct of charitable gaming meet the requirements of subdivision 12 of § 18.2-340.33 of the Code of Virginia. Applications may be denied if:

a. Any person participating in the management of any charitable gaming has ever been:

(1) Convicted of a felony; or

(2) Convicted of any misdemeanor involving fraud, theft, or financial crimes within the preceding five years.

b. Any person participating in the conduct of charitable gaming has been:

(1) Convicted of any felony in the preceding 10 years; or

(2) Convicted of any misdemeanor involving fraud, theft, or financial crimes within the preceding five years;

An inquiry as to whether the organization has been granted tax-exempt status pursuant to § 501(c) by the Internal Revenue Service and is in compliance with IRS annual filing requirements;
An inquiry as to whether the organization has entered into any contract with, or has otherwise employed for compensation, any persons for the purpose of organizing or managing, operating, or conducting any charitable gaming activity, excluding a written contract with an operator to administer a qualified organization's poker tournament;
Inquiries into the finances and activities of the organization and the sources and uses of funds;
Inquiries into the level of community or financial support to the organization and the level of community involvement in the membership and management of the organization; and
An inquiry as to whether the organization operates in accordance with the provisions of or is in violation of any provision of the Charitable Gaming Law or regulations promulgated pursuant thereto.

E. The permit application for an organization that has not previously held a permit shall include:

A copy of the articles of incorporation, bylaws, charter, constitution, or other appropriate organizing document;
A copy of the determination letter issued by the IRS under § 501(c) of the Internal Revenue Code, if appropriate, or a letter from the national office of an organization indicating the applicant organization is in good standing and is currently covered by a group exemption ruling. A letter of good standing is not required if the applicable national or state office has furnished the department with a listing of member organizations in good standing in the Commonwealth as of January 1 of each year and has agreed to promptly provide the department any changes to the listing as they occur;
A copy of the written lease or proposed written lease agreement and all other agreements between the organization and the landlord if the organization rents or intends to rent a facility where bingo, a poker tournament, or electronic gaming is or will be conducted. Information on the lease shall include name, address, and telephone number of the landlord; maximum occupancy of the building; the rental amount per session; and if the landlord that leases a facility where a poker tournament will be conducted is an entity, the name of each of the entity's owners, members, managers, officers, and directors;
An authorization by an officer or other appropriate official of the organization to permit the department to determine whether the organization has been investigated or examined by the IRS in connection with charitable gaming activities during the previous three years; and
Any contracts or any other agreements with landlords, suppliers, network bingo providers, social organizations, operators, or manufacturers to which the organization is or may be a party.

F. If the organization wishes to conduct a poker tournament, the organization must provide the following information and documentation with its permit application in addition to the documents listed in subsection E of this section:

House rules that govern how the poker tournament will be played. All house rules shall be preapproved by the department and shall be consistent with the Charitable Gaming Law, this chapter, 11VAC20-30, and the official rules for poker tournaments established by the Poker Tournament Directors Association;
If the organization uses or intends to use an operator to administer its poker tournament, the identity of the organization's charitable host representative and a copy of a current photo identification of the charitable host representative, such as a driver's license or other government-issued identification;
If the organization uses or intends to use an operator to administer its poker tournament, a copy of the operator's internal control policies that comply with criteria established in 11VAC20-30-60 O;
If the organization intends to manage, operate, and conduct or manages, operates, and conducts its own poker tournament, the designation and identity of the organization's game manager who shall be responsible for the operation and conduct of the poker tournament for the qualified organization and a copy of a current photo identification of the game manager, such as a driver's license or other government-issued identification; and
A sample of the badge that meets the criteria established in 11VAC20-30-60 Q.

G. Copies of minutes of meetings of the organization may be requested by the department prior to rendering a permitting decision.

H. Organizations applying to renew a permit previously issued by the department shall submit articles of incorporation, bylaws, charter, constitution, or other organizing document; IRS determination letter; any new contract or agreement with a landlord, supplier, network bingo provider, social organization, operator, or manufacturer to which the organization is or may be a party; and a copy of any lease with any landlord or social organization if there are any amendments or changes to these documents.

I. Organizations may request permits to conduct joint bingo games as provided in § 18.2-340.29 of the Code of Virginia.

In the case of a joint bingo game, each organization shall file a permit application.
The nonrefundable permit fee for joint bingo games shall be a total of $200. However, no permit application fee is due if each of the organizations is exempt from the application fee pursuant to § 18.2-340.23 of the Code of Virginia.
A single permit may be issued in the names of all the organizations conducting a joint bingo game. All restrictions and prohibitions applying to single organizations shall apply to qualified organizations jointly conducting bingo games pursuant to § 18.2-340.29 of the Code of Virginia.
No joint bingo game shall be conducted prior to the issuance of a joint permit.
Applications for joint bingo games shall include an explanation of the division of manpower, costs, and proceeds for the joint bingo game.

J. An organization wishing to change dates, times, or locations of its charitable gaming shall request an amendment to its permit. Amendment requests shall be made in writing on a form prescribed by the department in advance of the proposed effective date.

K. An organization may cancel its charitable gaming due to inclement weather, disasters, or other circumstances outside the organization's control without an amendment to its permit.

L. An organization may sell raffle tickets for a drawing to be held outside of the Commonwealth of Virginia in the United States provided:

The raffle is conducted by the organization in conjunction with a meeting outside the Commonwealth of Virginia or with another organization that is licensed to conduct raffles outside the Commonwealth of Virginia;
The raffle is conducted in accordance with this chapter and the laws and regulations of the state where the drawing is to be held; and
The portion of the proceeds derived from the sale of raffle tickets in the Commonwealth is reported to the department.

M. Any permitted organization that ceases to conduct charitable gaming shall immediately notify the department in writing and provide the department a report as to the disposition of all unused charitable gaming supplies or electronic gaming devices on a form prescribed by the department.

History

Statutory Authority: § 18.2-340.19 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023; amended, Virginia Register Volume 40, Issue 17, eff. May 9, 2024.

11VAC20-20-40 Charitable gaming authorization for electronic gaming

A. The operation and conduct of electronic gaming is a privilege that may be granted or denied by the department. A social organization desiring to operate and conduct electronic gaming shall obtain a permit to conduct charitable gaming and an authorization to operate and conduct electronic gaming from the department prior to the commencement of any electronic gaming. To be eligible for a permit or an authorization, a social organization must meet all of the requirements of the Charitable Gaming Law and regulations adopted pursuant thereto.

B. A social organization desiring to operate and conduct electronic gaming shall complete a department-prescribed application to request a new or to renew an existing authorization. The social organization must provide the quantity of electronic gaming devices it intends to operate on the premises at the time when the authorization is issued to the organization. In accordance with §§ 18.2-340.23 and 18.2-340.26:3 of the Code of Virginia, a social organization shall submit a nonrefundable application fee payable to the Treasurer of Virginia in the amount of $200 in addition to the fee prescribed for the charitable gaming permit.

C. If an organization's charitable gaming permit is denied pursuant to 11VAC20-20-20 and 11VAC20-20-50, then its request for a new or renewal authorization to operate and conduct electronic gaming shall be denied by the department.

D. An authorization to operate and conduct electronic gaming shall be valid for one year from the date of issuance. The department may issue an authorization that is valid for less than one year or up to two years when it determines that such is necessary. Authorizations shall be noted on the charitable gaming permit, and the expiration date for the authorization shall be the same as the charitable gaming permit expiration date.

E. An authorization to operate and conduct electronic gaming shall be valid only for the operation and conduct of electronic gaming at the primary location; on the days of the week, dates, and times; and for the quantity of electronic gaming devices listed on the permit.

A social organization shall designate a contiguous area within its primary location as its social quarters. A social organization's social quarters shall not include any area that is included in the public space leased to a qualified organization so that the qualified organization may operate and conduct electronic gaming.
A social organization shall designate a contiguous area within its primary location as its public space. A social organization's public space shall not include any area that is included in its social quarters. A social organization may lease its public space to a qualified organization so that the qualified organization may operate and conduct electronic gaming.
The primary location shall have a unique physical address established by the United States Postal Service and a certificate of occupancy issued by the city, county, or town where the building is physically located.
The social organization's principal place of business as registered with the State Corporation Commission shall be its primary location so long as the principal place of business is where the organization conducts its business. The operation and conduct of electronic gaming alone does not constitute the conduct of business for the purpose of determining a social organization's primary location. If the social organization is not registered with the State Corporation Commission, then the social organization's primary location shall be (i) the location where the organization conducts its business and (ii) if requested by the department, confirmed by the affiliated national or state organization as the social organization's primary location.
Upon request of the department, the social organization shall provide sufficient documentation to identify its primary location. If the social organization is unable or unwilling to provide such documentation, then the department shall deny the social organization's application for authorization to operate and conduct electronic gaming in accordance with 11VAC20-20-50.

F. A social organization authorized to operate and conduct electronic gaming that wishes to change dates, times, primary location, or the quantity of electronic gaming devices identified on its authorization shall request an amendment to its authorization. Amendment requests shall be made in writing on a form prescribed by the department. The social organization must receive an amended authorization prior to implementing the requested amendment. At no time shall a social organization's authorization reflect a number of devices that is inconsistent with the number of electronic gaming devices at their location.

G. A social organization shall notify on a form prescribed by the department when it purchases or leases any additional distributed pull-tab system or electronic gaming device beyond the quantity already identified on its authorization.

H. A social organization may cancel its scheduled electronic gaming session due to inclement weather, disaster, or other circumstance outside the organization's control without an amendment to its authorization. The social organization shall immediately notify the department of the cancellation.

I. A social organization that ceases to operate and conduct electronic gaming shall immediately notify the department in writing and provide a report to the department as to the disposition of any distributed pull-tab system or electronic gaming devices.

J. A social organization authorized to operate and conduct electronic gaming shall not use an electronic gaming device that does not bear a device tag affixed by the department.

K. If an organization determines at any point prior to the close of the fiscal year that it may not meet the requirement established in 11VAC20-20-20 D, an organization may request a temporary reduction in the percentage specified in 11VAC20-20-20 D from the department. In reviewing such a request, the department may consider such factors appropriate to and consistent with the purpose of charitable gaming, which may include (i) the organization's overall financial condition; (ii) the length of time the organization has been involved in charitable gaming and electronic gaming; and (iii) the extent of the deficiency. The department may grant a temporary reduction at its discretion; however, the department will not grant a temporary reduction after the close of the fiscal year.

L. A social organization authorized to operate and conduct electronic gaming shall:

Maintain a valid charitable gaming permit. If the department suspends or revokes a social organization's charitable gaming permit, the department shall take the same action against the social organization's authorization to operate and conduct electronic gaming;
Maintain its federal tax exempt status;
Maintain eligibility for its federal tax exempt status by continuing to meet the IRS criteria for that tax exemption;
Not possess more electronic gaming devices at its primary location than the quantity of such devices listed on its authorization;
Operate only electronic gaming devices that have a device tag affixed by the department;
Acquire, lease, obtain, purchase, rent, or use a distributed pull-tab system or electronic gaming device from a manufacturer or supplier that has a current permit issued by the department pursuant to § 18.2-340.34 of the Code of Virginia;
Not inure any part of its electronic gaming adjusted gross receipts to benefit a private shareholder or individual; and
Not violate a provision of or fail to meet a requirement of the Charitable Gaming Law or a regulation adopted pursuant thereto.

M. In addition to the requirements established in subsection L of this section, a social organization authorized to operate and conduct electronic gaming that is a fraternal organization shall:

Serve a fraternal purpose;
Have a substantial program of fraternal activities, as defined by the IRS;
Be distinguishable from its chartering parent organization; and
Be largely self-governing and have its own officers, bylaws, or other governing documents and its own general financial independence from its parent organization.

N. In addition to the requirements established in subsection L of this section, a qualified organization that is a social organization as defined in subdivision 4 of the definition of "social organization" in § 18.2-340.16 of the Code of Virginia and is authorized to operate and conduct electronic gaming must continue to be substantially composed of past or present members of the U.S. Armed Forces.

O. The department may suspend or revoke the authorization to operate and conduct electronic gaming of a social organization that does not comply with subsection L, M, or N of this section.

History

Statutory Authority: § 18.2-340.15 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC20-20-50 Suspension, revocation, or denial of permit and authorization

A. Pursuant to § 18.2-340.20 of the Code of Virginia, the department may suspend, revoke, or deny (i) the permit to conduct charitable gaming or to contract with an operator to administer a poker tournament or (ii) the authorization to operate and conduct electronic gaming of any organization for cause, including any of the following reasons:

The organization is found to be in violation of or has failed to meet any of the requirements of the Charitable Gaming Law or regulations governing the management, operation, and conduct of charitable gaming or electronic gaming in the Commonwealth.
The organization is found to be not in good standing with its state or national organization.
The IRS revokes or suspends the organization's federal tax-exempt status.
The organization willfully and knowingly provides false information in its application for a permit to conduct charitable gaming.
The organization is found to have a member involved in the management, operation, or conduct of its charitable gaming who has been convicted of any felony or any misdemeanor as follows:

a. For any person participating in the management or operation of any charitable gaming:

(1) Convicted of a felony; or

(2) Convicted of any misdemeanor involving fraud, theft, or financial crimes within the preceding five years.

b. For any person participating in the conduct of charitable gaming:

(1) Convicted of any felony within the preceding 10 years; or

(2) Convicted of any misdemeanor involving fraud, theft, or financial crimes within the preceding five years.

The organization is found to have managed, operated, or conducted a poker tournament or to have contracted with an operator or any person to administer a poker tournament on its behalf without a permit issued to the organization to do so.
If the qualified organization uses or intends to use an operator to administer its poker tournament, the qualified organization fails to submit or provide to the department (i) a written contract that complies with 11VAC20-30-180, (ii) a new or amended written contract with its operator within the 20 days following the date on which that contract is signed by all parties to the contract, or (iii) a new or amended written contract with its operator that complies with 11VAC20-30-180.
The qualified organization, member of the qualified organization, person affiliated or associated with the qualified organization, or immediate family member or person residing in the household of a member of the qualified organization or of a person affiliated or associated with the qualified organization directly or indirectly has any interest or ownership in an operator with which the qualified organization contracts to administer its poker tournament.
A member of the qualified organization; person affiliated or associated with the qualified organization; or immediate family member or person residing in the household of a director, officer, owner, partner, employee, independent contractor, or member of the qualified organization or of a person affiliated or associated with the qualified organization receives compensation from an operator with which the qualified organization contracts to administer its poker tournament.
If the qualified organization conducts a poker tournament or contracts with an operator to administer its poker tournament, the qualified organization, member of the qualified organization, person affiliated or associated with the qualified organization, or immediate family member or person residing in the household of a member of the qualified organization or of a person affiliated or associated with the qualified organization directly or indirectly receives any payment from the landlord of the facility where the poker tournament occurs or from the agents, employees, immediate family members, or persons residing in the household of the landlord unless such payment is directly related to a written contract to lease a facility for use to hold a poker tournament as required by 11VAC20-20-120 A and such payment is made by check or electronic fund transfer from the landlord directly to the qualified organization's charitable gaming account.

B. The failure to meet any of the requirements of § 18.2-340.24 of the Code of Virginia shall cause the denial of the permit, and no organization shall conduct any charitable gaming until the requirements are met and a permit is obtained.

C. The failure to meet the definition of a social organization or the requirements in § 18.2-340.26:1 shall cause the denial of the authorization to conduct electronic gaming, and no organization shall conduct electronic gaming until the requirements are met and an authorization is obtained.

D. Except when an organization fails to meet any of the requirements of § 18.2-340.24 of the Code of Virginia or fails to file a financial report as required by § 18.2-340.30 of the Code of Virginia or when a manufacturer fails to file a financial report as required by § 18.2-340.30:2 of the Code of Virginia, in lieu of suspending, revoking, or denying a permit to conduct charitable gaming; an authorization to operate and conduct electronic gaming; or a permit to distribute a distributed pull-tab system or electronic gaming devices, the department may afford an organization or manufacturer, at the department's discretion, an opportunity to enter into a compliance agreement specifying additional conditions or requirements as it may deem necessary to ensure an organization's or a manufacturer's compliance with the Charitable Gaming Law and regulations adopted pursuant thereto and may require that an organization or manufacturer participates in such training as is offered by the department.

E. If the premises on which a social organization operates and conducts electronic gaming is deemed a common nuisance pursuant to § 18.2-258 of the Code of Virginia, then the department may suspend, revoke, or deny the social organization's authorization to operate and conduct electronic gaming.

F. If a permit or authorization to operate and conduct electronic gaming is suspended, the department shall set the terms of the suspension, which shall include the length of the suspension and a requirement that, prior to reinstatement of the permit or authorization, the organization shall submit a remedial business plan to address the conditions that resulted in the suspension. The remedial business plan must be approved by the department prior to reinstatement of the permit or authorization.

G. An organization whose permit or authorization to operate and conduct electronic gaming is revoked shall be eligible to reapply for an authorization one year from the date of revocation. If the authorization was revoked fewer than 18 months prior to the organization reapplying for an authorization, the organization shall submit a remedial business plan for approval by the department to address the conditions that resulted in the revocation. The remedial business plan must be approved by the department prior to reinstatement of the permit or authorization. The department at its discretion may issue the authorization if it is satisfied that the organization's remedial business plan will result in compliance with the requirements of the Charitable Gaming Law and regulations adopted pursuant thereto.

H. If a permit or authorization to operate and conduct electronic gaming is suspended, the department shall set the terms of the suspension, which shall include the length of the suspension and a requirement that prior to reinstatement of the authorization, the organization shall submit a remedial business plan approved by the department to address the conditions that resulted in the suspension. The remedial business plan must be approved by the department prior to reinstatement of the permit or authorization.

I. If an organization fails to meet the minimum use of proceeds requirement after having been suspended, the organization's authorization to operate and conduct electronic gaming shall be revoked. An organization whose authorization is revoked shall be eligible to reapply for an authorization at the end of one year from the date of revocation. If the authorization is revoked, the organization is required to reapply for an authorization, and if the authorization was revoked less than 18 months prior to reapplying for an authorization, then the organization shall submit a remedial business plan approved by the department to address the conditions that resulted in the revocation. The department at its discretion may issue the authorization if it is satisfied that the organization's remedial business plan will result in meeting the use of proceeds requirement.

History

Statutory Authority: § 18.2-340.19 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023; amended, Virginia Register Volume 40, Issue 17, eff. May 9, 2024.

Article 2 Conduct of Games, Rules of Play, Electronic Bingo

11VAC20-20-60 Conduct of bingo, paper instant bingo, paper pull-tabs, paper seal cards, event games, network bingo, electronic gaming, and raffles

A. Organizations subject to this chapter shall post their charitable gaming permit or authorization to operate and conduct electronic gaming at all times on the premises where charitable gaming is conducted.

B. No individual shall provide any information or engage in any conduct that alters or is intended to alter the outcome of any charitable game or electronic game.

C. Individuals younger than 18 years of age may play bingo provided such persons are accompanied by a parent or legal guardian. It shall be the responsibility of the organization to ensure that such individuals are eligible to play. An organization's house rules may further limit the play of bingo or purchase of raffle tickets by minors.

D. Individuals younger than 18 years of age may sell raffle tickets for a qualified organization raising funds for activities in which they are active participants.

E. No individual younger than 18 years of age may participate in the management or operation of bingo games. Individuals 14 through 17 years of age may participate in the conduct of a bingo game provided the organization permitted for charitable gaming obtains and keeps on file written parental consent from the parent or legal guardian and verifies the date of birth of the minor. An organization's house rules may further limit the involvement of minors in the conduct of bingo games. No individual younger than 21 years of age may participate in the management, operation, or conduct of electronic gaming.

F. No qualified organization shall sell any network bingo cards, paper instant bingo, paper pull-tab, or paper seal card to any individual younger than 18 years of age. No individual younger than 18 years of age shall play or redeem any network bingo cards, paper instant bingo, paper pull-tab, or paper seal card. No individual younger than 21 years of age shall play any electronic gaming device or electronic game or redeem anything from the play of such a device or game.

G. Unless otherwise prohibited by the Code of Virginia or this chapter, nonmembers who are under the direct supervision of a bona fide member may participate in the conduct of bingo or electronic gaming.

H. All game workers shall have in their possession a photo identification, such as a driver's license or other government-issued identification, and shall make the photo identification available for inspection upon request by a department agent while participating in the management, operation, or conduct of a bingo game or electronic gaming.

I. A game manager who is a bona fide member of the organization and is designated by the organization's management as the person responsible for the operation of the bingo game during a particular session shall be present any time a bingo game is conducted.

J. A game manager who is a bona fide member of the qualified organization and is designated by the organization's management as a person responsible for the operation of the electronic games shall be present at the facility where the electronic gaming occurs any time electronic gaming is available to the public. For electronic gaming conducted by the social organization for its members only, the game manager or responsible representative must be available by telephone at all times and must be physically present at the facility within 30 minutes of a request by the department. Failure to provide the department access to the facility may result in the revocation or suspension of the organization's electronic gaming authorization.

K. Organizations shall ensure that all charitable gaming equipment, a distributed pull-tab system, and any electronic gaming device are in working order before charitable gaming activities commence.

L. Each electronic gaming device must have a device tag affixed indicating that such device is authorized and approved by the department. All organizations shall notify the department of any new distributed pull-tab system or electronic gaming devices they purchase or lease.

M. Any organization selling bingo, paper instant bingo, paper pull-tabs, paper seal cards, or network bingo supplies or conducting electronic gaming shall:

Maintain a supplier's, network bingo provider's, or manufacturer's invoice or a legible copy thereof at the location where the gaming is taking place and cards are sold. The original invoice or legible copy shall be stored in the same storage space as the gaming supplies. All gaming supplies shall be stored in a secure area that has access limited only to bona fide members of the organization;
Pay for all charitable gaming supplies except electronic gaming supplies, only by a check drawn on the charitable gaming account of the organization ; and
Pay for all electronic gaming supplies, including the use of the electronic gaming device, by check or electronic fund transfer drawn from the charitable gaming account of the organization. Any electronic fund transfer shall be agreed to in writing between the qualified or social organization and the licensed manufacturer or supplier.

A complete inventory of all charitable gaming supplies shall be maintained by the organization on the premises where the gaming is being conducted.

N. A bingo session game worker may receive complimentary food and nonalcoholic beverages provided on premises, as long as the retail value of such food and beverages does not exceed $15 for each session.

O. Permitted organizations shall not commingle records, supplies, or funds from permitted activities with those from paper instant bingo, paper pull-tabs, paper seal cards, or electronic gaming sold in social quarters.

P. Individuals who are not members of an organization or are members who do not participate in any charitable gaming activities may be paid reasonable fees for preparation of quarterly and annual financial reports.

Q. Except as allowed pursuant to § 18.2-340.34:1 of the Code of Virginia, no free packs, free electronic bingo devices, free electronic pull-tabs, free network bingo cards, discounts, or remuneration in any other form shall be provided directly or indirectly to game workers, members of their family, or individuals residing in their household. The reduction of tuition, dues, or any fees or payments due as a result of a member or shareholder or anyone in their household working bingo games, electronic gaming, or raffles is prohibited.

R. Individuals providing security for an organization's charitable gaming activity shall not participate in the charitable gaming activity and shall not be compensated with charitable gaming supplies, free electronic pull-tabs, or network bingo cards or with rentals of electronic bingo devices or electronic gaming devices.

S. No organization shall award any prize money or any merchandise valued in excess of the amounts specified by the Code of Virginia.

T. Multiple sessions shall be permitted in a single premises as long as the sessions are distinct from one another and are not used to advertise or do not result in the awarding of more in prizes than is permitted for a single qualified organization. All leases for organizations to conduct charitable gaming or electronic gaming in a single premises shall ensure each session is separated by an interval of at least 30 minutes. Bingo sales for the subsequent session may take place during the 30-minute break once the building is cleared of all patrons and workers from the previous session. No other sales of charitable gaming supplies or electronic gaming may occur during the 30-minute break.

U. All bingo and instant bingo, pull-tabs, seal card, or electronic gaming sales, play, and redemption must occur within the time specified on the charitable gaming permit or authorization to operate and conduct electronic gaming. Network bingo card sales must occur within the time specified on the charitable gaming permit.

V. Paper instant bingo, paper pull-tabs, or paper seal cards shall only be sold in conjunction with a bingo session, except as authorized by § 18.2-340.26:1, 18.2-340.26:2, or 18.2-340.26:3 of the Code of Virginia. No paper instant bingo, paper pull-tab, or paper seal card sales shall take place more than two hours before the selection of the first ball for the first bingo game or more than two hours after the selection of the last ball for the last bingo game. If multiple sessions are held at the same location for either bingo or electronic gaming, no paper instant bingo, paper pull-tab, paper seal card, or electronic pull-tab sales shall be conducted during the required 30-minute break between sessions. The department may take action if it believes that a bingo session is not legitimate or is being conducted in a manner such that paper instant bingo, paper pull-tabs, or paper seal cards are not being sold in conjunction with a bingo session.

W. Only a game worker for a qualified organization may rent, exchange, or otherwise provide electronic bingo devices or electronic gaming devices to players.

X. A qualified organization shall conduct only bingo games, network bingo, and raffles listed on a game program for that session. The program shall list all prize amounts. If the prize amounts are determined by attendance or at the end of a game, the game program shall list the attendance required for the prize amount or disclose that prizes shall be determined at the end of a game and the method for determining the prize amount. In such a case, the organization shall announce the prize amount at the end of the game. The percentage of the gross receipts from network bingo cards allocated to the prize pool shall be listed on the game program along with the maximum allowable prize amount for network bingo.

Y. A qualified organization selling paper instant bingo, paper pull-tabs, or paper seal cards or conducting electronic gaming shall post a flare provided by the manufacturer at the location where such cards or electronic pull-tabs are sold. All such sales and prize payouts shall be in accordance with the flare for that deal.

Z. Only qualified organizations, facilities in which qualified organizations play bingo, network bingo providers, and suppliers permitted by the department shall advertise a bingo game. Providing players with information about network bingo or bingo games through printed advertising is permitted, provided the name of the qualified organization shall be in a type size equal to or larger than the name of the premises, the hall, or the word "bingo." Printed advertisements shall identify the use of proceeds percentage reported in the past quarter or fiscal year.

AA. Advertisements for electronic gaming are prohibited.

BB. Raffles that award prizes based on a percentage of gross receipts shall use prenumbered tickets.

CC. The following rules shall apply to mechanical dispensing devices used to dispense paper instant bingo, paper pull-tabs, or paper seal cards:

A mechanical dispensing device shall only be used at a location and time during which a qualified organization holds a permit to conduct charitable gaming. Only instant bingo, paper pull-tab, or paper seal cards purchased by an organization to be used during the organization's charitable gaming activity shall be in the mechanical dispensing device.
Keys to the dispensing area and coin box or cash box shall be in the possession and control of the game manager or designee of the organization's board of directors at all times. Keys shall at all times be available at the location where the mechanical dispensing device is being used.
The game manager or designee shall provide access to the mechanical dispensing device to the department, its employees, or its agents for inspection upon request.
Only a game worker of an organization may stock the mechanical dispensing device, remove cash, or pay winners' prizes.

DD. Organizations shall only acquire, lease, obtain, purchase, rent, or use charitable gaming supplies from a supplier; network bingo supplies from a network bingo provider; distributed pull-tab system or electronic gaming devices from a manufacturer or supplier who has a current permit issued by the department pursuant to § 18.2-340.34 of the Code of Virginia.

EE. An organization shall not tamper with bingo paper or any other charitable gaming supplies received from a supplier or distributed pull-tab system or electronic gaming devices received from a manufacturer or supplier.

FF. The total amount of all discounts given by any organization for bingo games during any fiscal year shall not exceed 1.0% of the organization's gross receipts.

GG. A social organization may place the same electronic gaming device in its social quarters that it places in the public space in its primary location when operating and conducting electronic gaming. A social organization shall notify the department and manufacturer prior to moving the device between its social quarters and the public space in its primary location and shall only move the device after the manufacturer ensures its system accurately reflects the qualified organization to which the electronic gaming sales must be attributed. The social organization shall ensure no cash is located in the device's bill acceptor prior to moving the device between its social quarters and the public space in its primary location.

History

Statutory Authority: § 18.2-340.15 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC20-20-70 Rules of play

A. Each organization shall adopt "house rules" regarding conduct of the session. The "house rules" for the network bingo game shall be adopted by a mutual agreement among all of the organizations participating in a particular network bingo or by the network bingo provider. Such rules shall be consistent with the provisions of the Charitable Gaming Law and regulations adopted pursuant thereto. "House rules" shall be conspicuously posted or printed on the game program.

B. All players shall be physically present at the location where the bingo numbers for a bingo game are drawn to play the game or to claim a prize, except when the player, who has purchased a network bingo card, is participating in network bingo. Seal card prizes that can only be determined after a seal is removed or opened must be claimed within 30 days of the close of a deal. All other prizes , except prizes for electronic gaming, must be claimed on the game date.

C. The following rules of play shall govern the sale of instant bingo, pull-tabs, and seal cards:

No cards that have been marked, defaced, altered, tampered with, or otherwise constructed in a manner that tends to deceive the public or affect the chances of winning or losing shall be placed into play.
Winning cards shall have the winning symbol or number defaced or punched immediately after redemption by the organization's authorized representative.
An organization may commingle unsold instant bingo cards and pull-tabs with no more than one additional deal. The practice of commingling deals shall be disclosed to the public via house rules or in a similar manner. Seal card deals shall not be commingled.
If a deal is not played to completion and unsold cards remain, the remaining cards shall be sold at the next session the same type of ticket is scheduled to be sold. If no future date is anticipated, the organization shall, after making diligent efforts to sell the entire deal, consider the deal closed or completed. The unsold cards shall be retained for a minimum of three years following the close of the fiscal year and shall not be opened.
All seal card games purchased shall contain the sign-up sheet, the seals, and the cards packaged together in each deal.
Progressive seal card prizes not claimed within 30 days shall be carried forward to the next progressive seal card game in progress and paid to the next progressive seal card game prize winner.

D. No one involved in the conduct of bingo may play bingo, play network bingo, or purchase network bingo cards at any session they have worked or intend to work. No one involved in the sale or redemption of any instant bingo, pull-tabs, seal cards, or electronic gaming may purchase directly or through others instant bingo, pull-tab, seal card, or electronic gaming products from organizations they assist on the day they have worked or from any deal they have helped sell or redeem, whichever occurs later.

E. Electronic bingo.

Electronic bingo devices may be used by bingo players in the following manner:

a. Players may input into the device each number called or the device may automatically daub each number as the number is called;

b. Players must notify the game operator or caller of a winning pattern of bingo by a means other than use of the electronic bingo device;

c. Players are limited to playing a maximum of 54 card faces per device per game;

d. Electronic bingo devices shall not be reserved for players. Each player shall have an equal opportunity to use the available electronic bingo devices on a first come, first served basis;

e. Each electronic bingo device shall produce a player receipt with the organization name, date, time, location, sequential transaction or receipt number, number of electronic bingo cards loaded, cost of electronic bingo cards loaded, and date and time of the transaction. Images of cards or faces stored in an electronic bingo device must be exact duplicates of the printed faces if faces are printed;

f. Department agents may examine and inspect any electronic bingo device and related system. Such examination and inspection shall include immediate access to the electronic bingo device and unlimited inspection of all parts and associated systems and may involve the removal of equipment from the game premises for further testing;

g. All electronic bingo devices must be loaded or enabled for play on the premises where the game will be played;

h. All electronic bingo devices shall be rented or otherwise provided to a player only by an organization and no part of the proceeds of the rental of such devices shall be paid to a landlord or the landlord's employee, agent, or member of the landlord's immediate family; and

i. If a player's call of a bingo is disputed by another player or if a department agent makes a request, one or more cards stored on an electronic bingo device shall be printed by the organization.

Players may exchange a defective electronic bingo device for another electronic bingo device provided a disinterested player verifies that the device is not functioning. A disinterested player shall also verify that no numbers called for the game in progress have been keyed into the replacement electronic bingo device prior to the exchange.

F. The following rules of play shall govern the conduct of raffles:

Before a prize drawing, each stub or other detachable section of each ticket sold shall be placed into a receptacle from which the winning tickets shall be drawn. The receptacle shall be designed so that each ticket placed in it has an equal chance to be drawn.
All prizes shall be valued at fair market value.

G. The following rules shall apply to decision bingo games:

Decision bingo shall be played on bingo cards in the conventional manner.
Players shall enter a game by paying a predetermined amount for each card face in play.
Players shall pay a predetermined fee for each set of three bingo numbers called for each card in play.
The prize amount shall be the total of all fees not to exceed the prize limit set forth for regular bingo in § 18.2-340.33 of the Code of Virginia. Any excess funds shall be retained by the organization.
The predetermined amounts in subdivisions 2 and 3 of this subsection shall be printed in the game program. The prize amount for a game shall be announced before the prize is paid to the winner.

H. The following rules shall apply to treasure chest games:

The organization shall list the treasure chest game on the bingo game program as a "Treasure Chest Raffle."
The organization shall have house rules posted that describe how the game is to be played.
The treasure chest participant shall only be selected through some other authorized charitable game at the same bingo session.
The organization shall account for all funds as treasure chest/raffle sales on the session reconciliation form.
If the player does not open the lock on the treasure chest, the game manager or the game manager's designee shall proceed to try every key until the correct key opens the treasure chest lock to show all players that one of the keys will open the lock.

I. The following rules shall apply to progressive bingo games:

Bingo paper sold for use in progressive bingo games shall conform to the standards set forth in 11VAC20-20-140.
Organizations shall not include in admission packs the bingo paper intended for use in progressive bingo games.
Any progressive bingo game, its prize, and the number of bingo numbers to be called shall be clearly announced before the progressive bingo game is played and shall be posted on the premises where the progressive bingo game is played during each session that a progressive bingo game is played.
Pricing for a progressive bingo game card or sheet shall be listed on the game program.
If the predetermined pattern is not covered within the predetermined number of bingo numbers to be called, then the number of bingo numbers called will increase by one number for each subsequent session the progressive bingo game is played.
If the predetermined pattern is not covered within the predetermined number of bingo numbers to be called for that progressive bingo game, then the game will continue as a regular bingo game until the predetermined pattern is covered and a regular bingo prize is awarded.
The prize for any progressive bingo game shall be in accordance with the provisions of subdivision 8 of § 18.2-340.33 of the Code of Virginia.

J. The following rules shall apply to WINGO:

WINGO shall be played only for the hearing-impaired players.
WINGO shall utilize a visual device such as an oversized deck of cards in place of balls selected from a blower.
A caller must be in an area visible to all players and shall randomly select cards or other visual devices one at a time and display them so that all players can see them.
The organization must have house rules for WINGO, and the rules shall identify how players indicate that they have won.
All financial reporting shall be consistent with reporting for a traditional bingo game.

K. The following rules of play shall apply to event games:

No instant bingo cards or pull-tabs that have been marked, defaced, altered, tampered with, or otherwise constructed in a manner that tends to deceive the public or affect the chances of winning or losing shall be placed into play.
Instant bingo cards and pull-tabs used in an event game shall not be offered for sale or sold at a purchase price other than the purchase price indicated on the flare for that particular deal.
The maximum prize amount for event games shall not exceed the amount set forth in subdivision 8 of § 18.2-340.33 of the Code of Virginia for instant bingo, pull-tab, or seal card.
A sign-up sheet is not required for event games in which the winners are determined using a seal card.
Organizations shall determine the winners of event games during the same bingo session in which the instant bingo cards or pull-tabs are sold.
An authorized representative of the organization shall deface or punch the winning instant bingo cards or winning pull-tabs immediately after redemption.
If unsold bingo cards or unsold pull-tabs remain, the unsold cards shall be retained for a minimum of three years following the close of the fiscal year and shall not be opened.

History

Statutory Authority: § 18.2-340.15 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

Article 3 Bank Accounts, Recordkeeping, Financial Reporting, Audits, Fees

11VAC20-20-80 Bank accounts

A. A qualified organization shall maintain a charitable gaming bank account that is separate from any other bank account, and all gaming receipts, except receipts from electronic gaming, shall be deposited into the charitable gaming bank account.

B. Disbursements for expenses other than prizes and reimbursement of meal expenses shall be made by check directly from a charitable gaming bank account or a bank account authorized pursuant to subsection A of this section. However, expenses related to a network bingo game, distributed pull tab system, or operator may be disbursed through an electronic fund transfer to the network bingo provider, the permitted manufacturer or supplier providing the distributed pull-tab system, or operator, provided that such an arrangement is agreed upon by both (i) the qualified or social organization and (ii) the network bingo provider, permitted manufacturer or supplier, or operator. A written agreement specifying the terms of this arrangement shall be required prior to any electronic fund transfer occurring between the two parties.

C. All records related to the charitable gaming bank account or the other bank account, authorized pursuant to subsection A of this section, including monthly bank statements, canceled checks or facsimiles thereof, and reconciliations, shall be maintained for a minimum of three years following the close of a fiscal year.

D. All receipts from each session of bingo games, network bingo games, raffles, instant bingo, pull-tabs, or seal cards shall be deposited by the second business day following the session at which they were received. All receipts from electronic gaming shall be deposited at least once every seven calendar days.

E. All receipts from a poker tournament shall be deposited by the second business day following the poker tournament at which they were received. However, receipts received by an operator for administering a poker tournament for a qualified organization may be deposited through an electronic fund transfer into the qualified organization's charitable gaming account provided that such an arrangement is agreed upon by both the qualified organization and the operator. A written agreement specifying the terms of this arrangement is required prior to any electronic fund transfer occurring between the two parties.

F. Raffle proceeds unrelated to a session shall be deposited into the qualified organization's charitable gaming bank account or a bank account authorized pursuant to subsection A of this section no later than the end of the calendar week following the week during which the organization received the proceeds.

G. A social organization operating and conducting electronic gaming or a qualified organization renting a premises from a social organization for the purpose of electronic gaming shall maintain a separate bank account for all receipts rebates, discounts, or refunds from electronic gaming.

History

Statutory Authority: § 18.2-340.19 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023; amended, Virginia Register Volume 40, Issue 17, eff. May 9, 2024.

11VAC20-20-90 Recordkeeping

A. In addition to the records required by § 18.2-340.30 D of the Code of Virginia, qualified organizations conducting a session of bingo or electronic gaming; managing, operating, and conducting a poker tournament; or contracting with an operator to administer a poker tournament shall maintain a system of records for a minimum of three years following the close of the fiscal year, unless otherwise specified, for each session on forms prescribed by the department or reasonable facsimiles of those forms approved by the department that include:

Charitable gaming supplies, including electronic gaming supplies, network bingo supplies, or poker tournament supplies purchased and used;
A session reconciliation form or an instant bingo, pull-tab, seal card, or poker tournament reconciliation form completed and signed within 48 hours of the end of the session by the game manager. For electronic gaming, an electronic gaming reconciliation form completed and signed within 48 hours of the deposit of receipts in accordance with 11VAC20-20-80 D;
All discounts provided;
A reconciliation to account for (i) cash received from floor workers for the sale of extra bingo sheets for any game or network bingo cards or (ii) cash received from dealers or game workers as payment from players for entry into the poker tournament or for add-ons;
The summary report that electronic bingo systems are required to maintain pursuant to 11VAC20-20-140 D 11;
An admissions control system that provides a cross-check on the number of players in attendance and admission sales. This may include a ticket control system, cash register, or any similar system. The requirements of this subdivision shall not apply to the operation and conduct of electronic gaming;
All operating expenses, including rent, advertising, and security. Copies of invoices for all such expenses shall also be maintained;
Expected and actual receipts from games played on hard bingo cards and number of games played on hard bingo cards;
A record of the name and address of each winner for all seal cards and poker tournaments. The winning ticket and seal card shall be maintained for a minimum of 90 days after the session;
For poker tournaments, an itemized record of all receipts and expenses associated with a poker tournament, including rent, advertisement, and security as well as an itemized record of all use of proceeds disbursements. Copies of invoices and other documentation for all such expenses shall also be maintained;
For poker tournaments, any other operating expenses for which receipts from a poker tournament were disbursed. Copies of invoices and other documentation for all such other expenses shall also be maintained;
A record of all door prizes awarded; and
For any prize or jackpot of a value that meets or exceeds the reporting requirements in the Internal Revenue Service's Publication 3079, the name and address of each individual to whom any such prize or jackpot is awarded and the amount of the award.

B. Qualified organizations conducting raffles unrelated to a session shall have a recordkeeping system to account for cash receipts, cash disbursements, raffle tickets purchased or sold, and prizes awarded. All records shall be maintained for a minimum of three years following the close of the fiscal year. The recordkeeping system shall include:

Invoices for the purchase of raffle tickets, which shall reflect the following information:

a. Name and address of supplier;

b. Name of purchaser;

c. Date of purchase;

d. Number of tickets printed;

e. Ticket number sequence for tickets printed; and

f. Sales price of individual ticket;

A record of cash receipts from raffle ticket sales by tracking the total number of tickets available for sale, the number issued to sellers, the number returned, the number sold, and reconciliation of all raffle sales to receipts;
Serial numbers of tickets for raffle sales initiated and concluded at a bingo game or sequentially numbered tickets, which shall state the name, address, and telephone number of the organization, the prize to be awarded, the date of the prize drawing or selection, the selling price of the raffle ticket, and the charitable gaming permit number;
For any raffle prize of a value that meets or exceeds the reporting requirements in the Internal Revenue Service's Publication 3079, receipts on which prize winners must provide printed name, residence address, and the amount and description of the prize received; and
Deposit records of the required weekly deposits of raffle receipts.

C. All raffle tickets shall have a detachable section; be consecutively numbered with the detachable section having the same number; provide space for the purchaser's name, complete address, and telephone number; and state (i) the name and address of the organization; (ii) the prize to be awarded; (iii) the date, time, and location of the prize drawing; (iv) the selling price of the ticket; and (v) the charitable gaming permit number. Winning tickets and unsold tickets shall be maintained for a minimum of three years following the close of the fiscal year.

D. All unused charitable gaming supplies, including network bingo supplies, shall either be returned for refund to the original supplier in unopened original packaging in resalable condition as determined by the supplier or destroyed following notification to the department on a form prescribed by the department. The organization shall maintain a receipt for all such supplies returned to the supplier or destroyed.

E. If a qualified organization uses an operator to administer its poker tournament, then the qualified organization and its operator shall each maintain independent records on each poker tournament. The qualified organization shall not have its records managed, maintained, or stored by an operator.

History

Statutory Authority: § 18.2-340.19 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023; amended, Virginia Register Volume 40, Issue 17, eff. May 9, 2024.

11VAC20-20-100 Financial reporting, penalties, inspections, and audits

A. Each holder of a charitable gaming permit or an authorization to operate and conduct electronic gaming shall file an annual report of receipts and disbursements by March 15 of each year on a form prescribed by the department. The annual report shall cover the activity for the fiscal year.

B. For all charitable gaming except electronic gaming, the annual report shall be accompanied by the audit and administration fee of 0.5% of the gross receipts and an additional fee of 0.25% for the fiscal year unless the fee has been remitted with quarterly reports, or the organization is exempt from payment of the fee pursuant to § 18.2-340.23 of the Code of Virginia.

C. For electronic gaming, the annual report shall be accompanied by the audit and administration fee of 0.5% of the adjusted gross receipts and an additional fee of 0.25% for the fiscal year unless the fee has been remitted with quarterly reports, remitted by the manufacturer pursuant to § 18.2-340.31 of the Code of Virginia. While the manufacturer may pay the audit and administration fee for the organization, it is the sole responsibility of the organization to ensure the fee is paid in full.

D. An organization desiring an extension to file its annual report for good cause shall, prior to the due date established in subsection A of this section, request the extension in writing on a form prescribed by the department and shall pay the projected audit and administration fee, unless remitted by the manufacturer pursuant to § 18.2-340.31 of the Code of Virginia or exempt from payment of the fee pursuant to § 18.2-340.23 of the Code of Virginia. The extension request and payment of projected fees shall be made in accordance with the provisions of § 18.2-340.30 of the Code of Virginia.

E. Unless exempted by § 18.2-340.23 of the Code of Virginia, qualified organizations realizing any gross gaming receipts in any calendar quarter shall file a quarterly report of receipts and disbursements on a form prescribed by the department as follows:

| Quarter Ending | Date Due | | --- | --- | | March 31 | June 1 | | June 30 | September 1 | | September 30 | December 1 | | December 31 | March 1 |

Qualified organizations shall submit quarterly reports with the appropriate audit and administration fee, as established in subsections B and C of this section, for the quarter unless remitted by the manufacturer pursuant to § 18.2-340.31 of the Code of Virginia, or the organization is exempt from payment of the fee pursuant to § 18.2-340.23 of the Code of Virginia. An annual financial report may substitute for a quarterly report if the organization has no further charitable gaming income during the remainder of the reporting period and the annual report is filed by the due date for the applicable calendar quarter.

F. An organization desiring an extension to file its quarterly report for good cause shall, prior to the due date as specified pursuant to subsection D of this section, request the extension in writing on a form prescribed by the department and shall pay the projected audit and administration fee, unless remitted by the manufacturer pursuant to § 18.2-340.31 of the Code of Virginia or exempt from payment of the fee pursuant to § 18.2-340.23 of the Code of Virginia. The extension request and payment of projected fees shall be made in accordance with the provisions of § 18.2-340.30 of the Code of Virginia.

G. Organizations failing to file required reports, request an extension, or make fee payments when due shall be charged a penalty of $25 per day from the due date until such time as the required report is filed.

H. Any qualified organization in possession of funds derived from charitable gaming or electronic gaming, including those who have ceased operations, regardless of when such funds may have been received or whether it has a valid permit or authorization to operate and conduct electronic gaming from the department, shall file an annual financial report on a form prescribed by the department on or before March 15 of each year until such funds are depleted. If an organization ceases the operation and conduct of charitable gaming or electronic gaming, it shall provide the department with the name of an individual who shall be responsible for filing financial reports. If no such information is provided, the president of an organization shall be responsible for filing reports until all charitable gaming or electronic gaming proceeds are depleted.

I. If an organization has been identified through inspection, audit, or other means as having deficiencies in complying with the Charitable Gaming Law and regulations adopted pursuant thereto or having ineffective internal controls, the department may impose restrictions or additional recordkeeping and financial reporting requirements.

J. Any records deemed necessary to complete an inspection, audit, or investigation may be collected by the department, its employees, or its agents from the premises of an organization or any location where charitable gaming is conducted. The department shall provide a written receipt of such records at the time of collection.

K. An organization that meets the requirements of 11VAC20-20-20 D 2 may use electronic gaming revenue for salaries and wages of employees whose primary responsibility is to provide services for the principal benefit of an organization's members.

History

Statutory Authority: § 18.2-340.15 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC20-20-110 Use of proceeds

A. All payments by an organization intended as use of proceeds, except for payments made from electronic gaming receipts, must be made by check written from the organization's charitable gaming account or a bank account authorized pursuant to 11VAC20-20-80 A.

B. All payments by an organization intended as use of proceeds that are made from electronic gaming receipts must be made by check or electronic funds transfer from the organization's charitable gaming account or a bank account authorized pursuant to 11VAC20-20-80 A.

C. Use of proceeds payments may be made for scholarship funds or for religious, charitable, educational, or community purposes. In addition, an organization may obtain department approval to establish a special fund account or an irrevocable trust fund for special circumstances. Transfers to such an account or an irrevocable trust fund from the organization's charitable gaming account may be included as a use of proceeds if the payment is authorized by the organization's board of directors.

No payments made to such a special fund account shall be withdrawn for other than the specified purpose, unless prior notification is made to the department.

D. Expenditures of charitable gaming funds for social or recreational activities or for events, activities, or programs that are open primarily to an organization's members and their families shall not qualify as use of proceeds unless substantial benefit to the community is demonstrated.

E. Payments made to or on behalf of indigent, sick, or deceased members or their immediate families shall be allowed as use of proceeds provided they are approved by the organization's board of directors and the need is documented.

F. Payments made directly for the benefit of an individual member, member of an individual member's family, or person residing in an individual member's household shall not be allowed as a use of proceeds unless authorized by the Charitable Gaming Law or regulations adopted pursuant thereto.

G. Use of proceeds payments by an organization shall not be made for any activity that is not permitted by federal, state, or local laws or for any activity that attempts to influence or finance directly or indirectly political persons or committees or the election or reelection of any person who is or has been a candidate for public office.

H. Organizations shall maintain details of all use of proceeds disbursements for a minimum of three years following the close of the fiscal year and shall make this information available to the department upon request.

I. The department may disallow a use of proceeds payment to be counted against the minimum percentage referred to in 11VAC20-20-20 D. If any payment claimed as use of proceeds is subsequently disallowed, an organization may be allowed additional time as specified by the department to meet minimum use of proceeds requirements.

History

Statutory Authority: § 18.2-340.15 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

Article 4 Rent

11VAC20-20-120 Requirements regarding renting premises, agreements, and landlord participation

A. No qualified organization shall lease, rent, or use any premises to operate or conduct charitable gaming unless all terms and conditions for lease, rental, or use are set forth in a written agreement and signed by the parties thereto prior to the issuance of a permit to operate and conduct charitable gaming or authorization to operate and conduct electronic gaming.

B. Organizations shall not make payments to a landlord or a landlord's agent or employee except by check drawn on the organization's charitable gaming account.

C. No landlord, landlord's agent or employee, member of a landlord's immediate family, or person residing in a landlord's household shall make, directly or indirectly, a loan to any of the organization's officers, directors, game managers, or operators, or to any organization involved in the management, operation, or conduct of charitable gaming or electronic gaming of an organization in Virginia that leases its charitable gaming premises from the landlord.

D. No landlord, landlord's agent or employee, member of a landlord's immediate family, or person residing in a landlord's household shall make any direct or indirect payment to any qualified organization or the organization's officers, directors, or game managers involved in the management, operation, or conduct of charitable gaming or electronic gaming conducted on a premise leased from the landlord in Virginia unless the payment is authorized by the lease agreement and is in accordance with the law.

E. No landlord, landlord's agent or employee, member of a landlord's immediate family, or person residing in a landlord's same household shall do any of the following at charitable games or electronic games operated and conducted on the landlord's premises:

Participate in the management, operation, or conduct of any charitable games or electronic games;
Sell, lease, or otherwise provide any charitable gaming supplies, including bingo cards, pull-tab cards, distributed pull-tab systems, electronic gaming devices, network bingo cards, playing cards, poker chips, or other game pieces;
Require as a condition of the lease that a particular manufacturer, distributor, network bingo provider, supplier of charitable gaming supplies or electronic gaming device, or operator is used by the organization; or
Provide, advise, or direct the qualified organization or its operator to use any particular person to manage, operate, conduct, or administer a poker tournament that is to be held in the landlord's premises.

"Charitable gaming supplies" as used in this chapter shall not include glue, markers, or tape sold from concession stands or from a location physically separated from the location where charitable gaming supplies are normally sold.

F. No member of an organization involved in the management, operation, or conduct of charitable gaming or electronic gaming shall provide any services to a landlord or a landlord's agents or employees or be remunerated in any manner by the landlord of the premises or such landlord's agents or employees where an organization is operating or conducting its charitable gaming or electronic gaming.

G. For the purpose of operating and conducting electronic gaming, a qualified organization shall only lease or rent the premises of a permitted and authorized social organization that is operating and conducting electronic gaming pursuant to §§ 18.2-340.25:1 and 18.2-340.26:3 of the Code of Virginia. All terms and conditions for leasing or renting of the premises shall be set forth in a written agreement and signed by the parties. No qualified organization shall operate and conduct electronic gaming until the written agreement is submitted to the department for review and the department issues a permit authorizing the qualified organization to conduct and operate electronic gaming.

H. The lease agreement between a social organization authorized to operate and conduct electronic gaming and a qualified organization that intends to lease or rent the social organization's public space in order to operate and conduct electronic gaming:

Shall not require the qualified organization to acquire, lease, obtain, purchase, rent, or use an electronic gaming device from a specific manufacturer;
Shall not provide for the employment or compensation of any member of the social organization for the purpose of organizing, managing, or conducting electronic gaming;
Shall establish a fixed rental or lease payment amount that reflects the fair market rental value, as defined in § 18.2-340.16 of the Code of Virginia. The fixed rental or lease payment amount shall not be based on a percentage of the qualified organization's electronic gaming receipts or the number of players at its electronic gaming session;
Shall not include a clause or condition that restricts the qualified organization from operating and conducting electronic gaming at the premises of another social organization; and
Shall not authorize the qualified organization to operate and conduct electronic gaming in the social organization's social quarters.

I. A social organization that is permitted and authorized to operate and conduct electronic gaming that leases its premises to a qualified organization so that the qualified organization may operate and conduct electronic gaming:

Shall not restrict a qualified organization's ability to conduct electronic gaming at the premise of another social organization;
Shall not lease or rent its social quarters to a qualified organization for the purpose of operating and conducting electronic gaming;
Shall not enter into any agreement that employs or otherwise compensates any person from the qualified organization to participate in the management, operation, or conduct of electronic gaming; and
Shall only lease or rent its premises by means of a fixed rental or lease payment amount that is established in the written agreement and reflects the fair market rental value, as defined in § 18.2-340.16 of the Code of Virginia. The fixed rental or lease payment amount shall not be based on a percentage of the qualified organization's receipts from electronic gaming or the number of players at its electronic gaming session.

History

Statutory Authority: § 18.2-340.19 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023; amended, Virginia Register Volume 40, Issue 17, eff. May 9, 2024.

Part III Suppliers

11VAC20-20-130 Suppliers of charitable gaming supplies: application, qualifications, suspension, revocation, or refusal to renew permit

A. Prior to providing any charitable gaming supplies, a supplier shall submit an application on a form prescribed by the department and receive a permit. A $1,000 application fee payable to the Treasurer of Virginia is required. In addition, a supplier must be authorized to conduct business in the Commonwealth of Virginia, which may include registration with the State Corporation Commission, the Department of Taxation, and the Virginia Employment Commission. The actual cost of background investigations for a permit may be billed by the department to an applicant.

B. The department may refuse to issue a permit or may suspend or revoke a permit if an officer, director, employee, agent, or owner:

Is operating without a valid license, permit, or certificate as a supplier, network bingo provider, or manufacturer in any state in the United States;
Fails or refuses to recall a product as directed by the department;
Conducts business with unauthorized entities or is not authorized to conduct business in the Commonwealth of Virginia;
Has been convicted of or pleaded nolo contendere to any crime as specified by § 18.2-340.34 B of the Code of Virginia; has had any license, permit, certificate, or other authority related to activities defined as charitable gaming in the Commonwealth suspended or revoked in the Commonwealth or in any other jurisdiction; has failed to file or has been delinquent in excess of one year in the filing of any tax returns or the payment of any taxes due the Commonwealth; or has failed to establish a registered office or registered agent in the Commonwealth if so required by § 13.1-634 or 13.1-763 of the Code of Virginia. As this provision relates to employees or agents, it shall only apply to individuals involved in sales to or solicitations of customers in the Commonwealth of Virginia;
Fails to notify the department within 20 days of the occurrence, knowledge, or receipt of the filing of any administrative or legal action relating to charitable gaming or the distribution of charitable gaming supplies involving or concerning the supplier, any officer or director, employee, agent, or owner during the term of its permit;
Fails to provide to the department upon request a current Letter for Company Registration on file with the U.S. Department of Justice if required in accordance with the Gambling Devices Act of 1962 (15 USC §§ 1171 through 1178) for any device that it sells, distributes, services, or maintains in the Commonwealth of Virginia; or
Has been engaged in conduct that would compromise the department's objective of maintaining the highest level of integrity in charitable gaming.

C. A supplier shall not sell, offer to sell, or otherwise provide charitable gaming supplies, distributed pull-tab systems, or electronic gaming devices for use by anyone in the Commonwealth of Virginia other than to an organization with a permit from the department or another permitted supplier. However, a supplier may:

Sell bingo cards and paper to persons or entities other than qualified organizations provided such supplies shall not be sold or otherwise provided for use in charitable gaming activities regulated by the department or in unlawful gambling activities. For each such sale, the supplier shall maintain the name, address, and telephone number of the purchaser. The supplier shall also obtain a written statement from the purchaser verifying that such supplies will not be used in charitable gaming or any unlawful gambling activity. Such a statement shall be dated and kept on file for a minimum of three years from the close of a fiscal year. Payment for such sales in excess of $50 shall be accepted in the form of a check.
Sell pull-tabs, seal cards, and electronic pull-tabs to organizations for use only upon the premises owned or exclusively leased by the organization and at such times as the portion of the premises in which the pull-tabs, seal cards, or electronic pull-tabs are sold is open only to members and their guests as authorized by § 18.2-340.26:1 of the Code of Virginia. Each such sale shall be accounted for separately and the accompanying invoice shall be clearly marked: "For Use in Social Quarters Only."
All such sales shall be documented pursuant to subsection G of this section and reported to the department pursuant to subsection I of this section. This provision shall not apply to the sale to landlords of equipment and video systems as defined in this chapter.

D. A supplier shall not sell, offer to sell, or otherwise provide charitable gaming supplies to any individual or organization in the Commonwealth of Virginia unless the charitable gaming supplies are purchased or obtained from a manufacturer or another permitted supplier. Suppliers may take back for credit and resell supplies received from an organization with a permit that has ceased charitable gaming or is returning supplies not needed.

E. No supplier, supplier's agent, or supplier's employee may be involved in the management, operation, or conduct of charitable gaming in the Commonwealth of Virginia. No member of a supplier's immediate family or person residing in the same household as a supplier may be involved in the management, operation, or conduct of charitable gaming of any customer of the supplier in the Commonwealth of Virginia. No supplier, supplier's agent, or supplier's employee may participate in any charitable gaming of any customer of the supplier in the Commonwealth of Virginia. For the purposes of this regulation, servicing of electronic bingo devices or electronic gaming devices shall not be considered conduct or participation.

F. The department shall conduct a background investigation prior to the issuance of a permit to any supplier. The investigation may include the following:

A search of criminal history on all officers, directors, and owners; and
Verification of current compliance with Commonwealth of Virginia tax laws.

If the officers, directors, or owners are domiciled outside of the Commonwealth of Virginia or have resided in the Commonwealth of Virginia for fewer than five years, a criminal history search conducted by the appropriate authority in any state in which the officers, directors, or owners have resided during the previous five years shall be provided by the applicant.

G. Appropriate information and authorizations shall be provided to the department to verify information cited in subsection E of this section.

H. Suppliers shall document each sale or rental of charitable gaming supplies to an organization in the Commonwealth of Virginia on an invoice, which reflects the following:

Name, address, and organization number of the organization;
Date of sale or rental and location where charitable gaming supplies are shipped if different from the billing address;
Name, form number, and serial number of each deal of instant bingo, pull-tabs, seal cards, or bundles and the quantity of cards in each deal;
Quantity of deals sold, the cost per deal, the selling price per card, the cash take-in per deal, and the cash payout per deal;
Serial number of the top sheet in each pack of disposable bingo paper, the quantity of sheets in each pack or pad, the cut and color, and the quantity of packs or pads sold;
Serial number for each series of uncollated bingo paper and the number of sheets sold;
Detailed information concerning the type, quantity, and individual price of any other charitable gaming supplies or related items, including concealed face bingo cards, hard cards, markers or daubers and refills, or any other merchandise. For concealed face bingo cards, the quantity of sets, price per set, and the serial number of each set shall be included;
Serial number of each electronic gaming device, a description of the physical attributes of the electronic gaming device, the quantity of electronic gaming devices sold or rented, and the physical address to which each electronic gaming device is shipped or delivered;
Serial number and description of any other equipment sold or rented that is used to facilitate the distribution, play, and redemption of electronic gaming and the physical address to which the equipment is shipped or delivered;
Any type of equipment, device, or product manufactured for or intended to be used in the conduct of charitable games, including designators, designator receptacles, number display boards, selection devices, dispensing machines, and verification devices ; and
For electronic gaming, the gross receipts or ticket sales, prizes paid out, electronic gaming adjusted gross receipts, cost of the use of the distributed pull-tab system, rebates, discounts, refunds, and any other information deemed necessary by the department.

I. Suppliers shall ensure that two copies of the detailed invoice are provided to the customer for each sale of charitable gaming supplies.

J. Each supplier shall provide a report to the department by March 1 of each year on sales of charitable gaming supplies for the fiscal year ending December 31 of the previous year to each organization in the Commonwealth of Virginia. This report shall be provided to the department via a department-approved electronic medium. The report shall include the name, address, and organization number of each organization and the following information for each sale or transaction:

Bingo paper sales, including purchase price, description of paper to include quantity of sheets in pack and quantity of faces on sheet, and quantity of single sheets or packs shipped;
Deals of instant bingo, pull-tabs, seal cards, electronic pull-tabs, or any other raffle sales, including purchase price, deal name, deal form number, quantity of tickets in deal, ticket price, cash take-in per deal, cash payout per deal, and quantity of deals;
Electronic bingo device sales, including purchase or rental price and quantity of units;
Equipment used to facilitate the distribution, play, and redemption of electronic gaming, including purchase or rental price, description of equipment, quantity of units of each type of equipment, and the physical address to which the equipment is shipped or delivered; and
Sales of miscellaneous items such as daubers, markers, and other merchandise, including purchase price, description of product, and quantity of units.

K. The department shall set manufacturing and testing criteria for all electronic bingo devices and other equipment used in the conduct of charitable gaming. An electronic bingo device shall not be sold, leased, or otherwise furnished to any person in the Commonwealth of Virginia for use in the conduct of charitable gaming until an identical sample device containing identical proprietary software has been certified by a testing facility that has been formally recognized by the department as a testing facility that upholds the standards of integrity established by the department. The testing facility must certify that the device conforms, at a minimum, to the restrictions and conditions set forth in this chapter. Once the testing facility reports the test results to the department, the department will either approve or disapprove the submission and inform the manufacturer of the results. If any such equipment does not meet the department's criteria, it shall be recalled and shall not be distributed in the Commonwealth of Virginia. The cost of testing shall be borne by the manufacturer of such equipment.

L. Department employees shall have the right to inspect all electronic and mechanical equipment used in the conduct of charitable gaming.

M. Suppliers, supplier's agents and employees, members of the supplier's immediate family, or persons residing in a supplier's household shall not make any loan directly or indirectly to any organization or officer, director, game manager, or entity involved in the management, operation, or conduct of charitable gaming of a supplier's customer located in the Commonwealth of Virginia.

N. No supplier, supplier's agent, or supplier's employee shall directly or indirectly provide a rebate, discount, or refund to any person other than an organization that purchases supplies or leases or purchases equipment from the supplier. All such transactions shall be recorded on the supplier's account books and invoices provided to the organization.

O. A supplier shall not rent, sell, or otherwise provide electronic bingo devices or equipment used to distribute, play, or redeem electronic games unless the supplier possesses a valid permit in the Commonwealth of Virginia.

P. A written agreement specifying the terms of lease or rental shall be required for any electronic bingo devices or equipment used to distribute, play, or redeem electronic games provided to an organization.

History

Statutory Authority: § 18.2-340.15 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC20-20-140 Construction and other standards for bingo, instant bingo, pull-tabs, seal cards, raffles, electronic bingo devices, and dispensing devices

A. No supplier shall knowingly sell or otherwise provide to an organization and no organization shall knowingly use charitable gaming supplies unless they conform to the following construction standards:

Disposable paper sold shall be of sufficient weight and quality to allow for clearly readable numbers and to prevent ink from spreading, bleeding, or otherwise obscuring other numbers or cards.
Each sheet of disposable bingo paper shall be composed of cards bearing a serial number. No serial number shall be repeated on or in the same style, series, and color of cards within a three-year period.
Disposable bingo paper assembled in books or packs shall not be separated except for single-sheet specials. This provision does not apply to two-part cards on which numbers are filled by players and one part is separated and provided to an organization for verification purposes.
Each unit of disposable bingo paper shall have an exterior label listing the following information:

a. Description of product;

b. Number of packs or loose sheets;

c. Series numbers;

d. Serial number of the top sheet;

e. Number of cases;

f. Cut of paper; and

g. Color of paper.

"Lucky Seven" bingo cards or electronic facsimiles thereof shall have a single face where seven numbers shall be chosen. "Lucky Seven" sheets or electronic facsimiles thereof shall have multiple faces where seven numbers shall be chosen per face.
Disposable bingo paper shall have a number generally printed in the center space of a bingo card that identifies the unique pattern of numbers printed on that card. This number is commonly referred to as a free space number, perm number, center number, card number, or face number.

B. No supplier shall knowingly sell or otherwise provide to an organization and no organization shall knowingly use instant bingo, pull-tab, or seal cards unless they conform to the following construction standards:

Cards shall be constructed so that concealed numbers, symbols, or winner protection features cannot be viewed or determined from the outside of the card by using a high intensity lamp of 500 watts, with or without utilizing a focusing lens.
Deals shall be designed, constructed, glued, and assembled in a manner to prevent determination of a winning or losing ticket without removing the tabs or otherwise uncovering the symbols or numbers as intended.
Each card in a deal shall bear the same serial number. Only one serial number shall be used in a deal. No serial number used in a deal shall be repeated by the same manufacturer on that same manufacturer's form within a three-year period. The flare of each deal shall accompany the deal and shall have affixed to it the same serial number as the tickets in such deal.
Numbers or symbols on cards shall be fully visible in the window and shall be placed so that no part of a number or symbol remains covered when the tab is removed.
Cards shall be glued on all edges and around each window. Glue shall be of sufficient strength and type to prevent the undetectable separation or delamination of the card. For banded tickets, the glue must be of sufficient strength and quality to prevent the separation of the band from the ticket.
The following minimum information shall be printed on a card:

a. Break open pull-tab and instant bingo cards:

(1) Name of the manufacturer or its distinctive logo;

(2) Name of the game;

(3) Manufacturer's form number;

(4) Price per individual card or bundle;

(5) Unique minimum five-digit game serial number printed on the game information side of the card; and

(6) Number of winners and respective winning number or symbols and specific prize amounts unless accompanied by a manufacturer's preprinted publicly posted flare with that information.

b. Banded pull-tabs:

(1) Manufacturer;

(2) Serial number;

(3) Price per individual card or bundle unless accompanied by a manufacturer's preprinted publicly posted flare with that information; and

(4) Number of winners and respective winning numbers or symbols and prize amounts or a manufacturer's preprinted publicly posted flare giving that information.

All seal card games sold to organizations shall contain the sign-up sheet, seals, and cards packaged together in each deal.

C. Raffle tickets used independent of a session must conform to the following construction standards:

Each ticket shall have a detachable section and shall be consecutively numbered.
Each section of a ticket shall bear the same number. The section retained by the organization shall provide space for the purchaser's name, complete address, and telephone number.
The following information shall be printed on the purchaser's section of each ticket:

a. Dates and times of drawings;

b. Locations of the drawings;

c. Name of the charitable organization conducting the raffle;

d. Price of the ticket;

e. Charitable gaming permit number; and

f. Prizes.

Exceptions to these construction standards are allowed only with prior written approval from the department.

D. Electronic bingo.

The department, at its discretion, may require additional testing of electronic bingo devices at any time. Such additional testing shall be at the manufacturer's expense and shall be a condition of the continued use of such device.
All electronic bingo devices shall use proprietary software and hardware or commonly available software and hardware and shall be enabled for play on the premises where the game is to be played.
Each electronic bingo device shall have a unique identification number securely encoded into the software of the device. The unique identification number shall not be alterable by anyone other than the manufacturer of the electronic bingo device. Manufacturers of electronic bingo devices shall employ sufficient security safeguards in designing and manufacturing the devices such that it may be verified that all proprietary software components are authentic copies of the approved software components and all functioning components of the device are operating with identical copies of approved software programs. The electronic bingo device must also have sufficient security safeguards so that any restrictions or requirements authorized by the department or any approved proprietary software are protected from alteration by unauthorized personnel. The electronic bingo device shall not contain hard-coded or unchangeable passwords. Security measures that may be employed to comply with these provisions include the use of dongles, digital signature comparison hardware and software, secure boot loaders, encryption, and key and callback password systems.
A firewall or equivalent hardware device configured to block all inbound and outbound traffic that has not been expressly permitted and is not required for the continued use of the electronic bingo system must exist between the electronic bingo system and any external point of access.
Electronic bingo devices shall not allow a player to create a card by the input of specific numbers on each card. Manufacturers shall ensure that an electronic bingo device does not allow for the play of any bingo card faces other than those verifiably purchased by the patron.
Electronic bingo devices shall not accept cash, currency, or tokens for play.
Electronic bingo devices shall require the manual entry of numbers as they are called, the manual verification of numbers as they have been electronically transmitted to the device, or the full automatic daubing of numbers as each number is called. During the play of a bingo game, the transmission of data to electronic bingo devices shall be limited to one-way communication to the electronic bingo device and shall consist only of publicly available information regarding the current game.
A device shall not allow the play of more than 54 cards per device per game.
The electronic bingo device system shall record a sequential transaction number or audit tracking number for each transaction. The system shall not allow the manual resetting or changing of this number.
The system shall produce a receipt for each electronic bingo device rented or otherwise provided containing the following:

a. Organization name;

b. Location of bingo game;

c. Date and time of the transaction;

d. Sequential transaction or receipt number;

e. Description of each electronic bingo product loaded. The description must include the quantity of bingo card faces that appear on each electronic bingo product (i.e., 9 Jackpot) and the sales price of each electronic bingo product;

f. Quantity of each electronic bingo product loaded; and

g. Total sales price of the transaction.

The system shall maintain and make available on demand a summary report for each session that includes the following:

a. Organization name;

b. Location of bingo game;

c. Date and time of each transaction;

d. Sequential transaction or receipt number of each transaction;

e. Description of each electronic bingo product loaded each session. The description must include the quantity of bingo card faces that appear on each electronic bingo product and the sales price of each electronic bingo product;

f. Quantity of each electronic bingo product loaded;

g. Total sales price of each electronic bingo product loaded;

h. Total sales price for each transaction;

i. A transaction history correlating the sequential transaction number of each electronic bingo device sale to the unique identification number of the electronic bingo device on which the sale was played;

j. Sufficient information to identify voids and returns, including the date and time of each voided transaction and return, the sequential transaction number, and the cost of voided transactions and returns; and

k. Total gross receipts for each session.

Each electronic bingo device shall be programmed to automatically erase all stored electronic bingo cards at the end of the last game of a session, within a set time from their rental to a player, or by some other clearance method approved by the department.
All electronic bingo devices shall be reloaded with another set of electronic bingo cards at the beginning of each session if the devices are to be reused at the same location.

E. In instances where a defect in packaging or in the construction of deals or electronic bingo devices is discovered by or reported to the department, the department shall notify the manufacturer of the deals or electronic bingo devices containing the alleged defect. Should the department, in consultation with the manufacturer, determine that a defect exists and should the department determine that the defect affects game security or otherwise threatens public confidence in the game, the department may, with respect to deals or electronic bingo devices for use still located within the Commonwealth of Virginia, require the supplier to:

Recall the deals or electronic bingo devices affected that have not been sold or otherwise provided; or
Issue a total recall of all affected deals or electronic bingo devices.

F. No supplier shall knowingly sell or otherwise provide to an organization and no organization shall knowingly use an instant bingo, pull-tab, or seal card dispenser unless the dispenser conforms to the following standards:

Each dispenser shall be manufactured in a manner that ensures a pull-tab ticket is dispensed only after insertion of United States currency or coinage into the dispenser. Such tickets and any change due shall be the only items dispensed from the machine.
Each dispenser shall be manufactured in a manner that ensures the dispenser neither displays nor has the capability of displaying or otherwise identifying an instant bingo, pull-tab, or seal card winning or nonwinning ticket.
Each dispenser shall be manufactured in such a manner that any visual animation does not simulate or display rolling or spinning reels or produce audible music or enhanced sound effects.
Each dispenser shall be equipped with separate locks for the instant bingo, pull-tab, or seal card supply modules and money boxes. Locks shall be configured so that no one key will operate both the supply modules and money boxes.

G. The department may require testing of a dispensing device at any time to ensure that it meets construction standards and allows for fair play. Such tests shall be conducted at the cost of the manufacturer of such dispensing devices.

H. The face value of the instant bingo, pull-tab, or seal cards being dispensed shall match the amount deposited in the currency acceptor or coin acceptor less change provided.

I. A dispensing device shall only dispense instant bingo, pull-tab, or seal cards that conform to the construction standards established in subsection B of this section and the randomization standards established in 11VAC20-20-150.

J. Suppliers and manufacturers of instant bingo, pull-tab, or seal card dispensers shall comply with the requirements of the Gambling Devices Act of 1962 (15 USC §§ 1171 through 1178).

History

Statutory Authority: § 18.2-340.15 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC20-20-150 Instant bingo, pull-tabs, or seal card randomization standards

All instant bingo, pull-tabs, or seal cards shall meet the following randomization standards:

Deals shall be assembled so that winning tickets are placed throughout each deal.
Deals shall be assembled and packaged in a manner that prevents isolation of winning cards due to variations in printing, graphics, colors, sizes, appearances of cut edges, or other markings of cards.
Winning cards shall be distributed and mixed among all other cards in a deal so as to eliminate any pattern between deals or portions of deals from which the location or approximate location of any winning card may be determined.

History

Statutory Authority: § 18.2-340.15 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC20-20-160 Electronic random number generator standards

A. Electronic random number generators shall not be sold, leased, or otherwise furnished to an organization for use in the conduct of bingo until an identical sample device containing identical proprietary software has been certified by a testing facility that has been formally recognized by the department as a testing facility that upholds the standards of integrity established by the department. The cost of testing shall be borne by the manufacturer of such equipment.

B. An electronic random number generator used in the conduct of bingo shall produce output that is statistically random.

Numbers produced by an electronic random number generator used in the conduct of bingo shall be statistically random individually and in the permutations and combinations used in the application under the rules of the game.
Numbers produced by an electronic random number generator used in the conduct of bingo shall pass the statistical tests for randomness to a 99% confidence level. Statistical tests for randomness may include:

a. Chi-square test;

b. Equi-distribution (frequency) test;

c. Gap test;

d. Poker test;

e. Coupon collector's test;

f. Permutation test;

g. Run test (patterns of occurrences shall not be recurrent);

h. Spectral test;

i. Serial correlation test potency and degree of serial correlation (outcomes shall be independent from the previous game); and

j. Test on subsequences.

C. An electronic random number generator used in the conduct of bingo shall produce output that is unpredictable.

It shall not be feasible to predict future outputs of a random number generator even if the algorithm and the past sequence of outputs are known.
Unpredictability shall be ensured by reseeding or by continuously cycling the random number generator and by a sufficient number or random number generator states for the applications supported.
Reseeding may be used where the reseeding input is at least as statistically random as and independent of the output of the random number generator being reseeded.

D. An electronic random number generator used in the conduct of bingo shall produce output that is nonrepeating. A random number generator shall not be initialized to reproduce the same output stream that it has produced before nor shall any two instances of a random number generator produce the same stream as each other.

E. Software that calls an electronic random number generator used in the conduct of bingo to derive game outcome events shall immediately use the output returned in accordance with the game rules.

F. The outputs of an electronic random number generator used in the conduct of bingo shall not be arbitrarily discarded or selected.

G. Where a sequence of outputs is required, the whole of the sequence in the order generated shall be used in accordance with the game rules.

H. An electronic random number generator used in the conduct of bingo that provides output scaled to given ranges shall:

Be independent and uniform over the range;
Provide numbers scaled to the ranges required by game rules and, notwithstanding the requirements of subdivision 3 of this subsection, may discard numbers that do not map uniformly onto the required range but shall use the first number in sequence that does map correctly to the range; and
Be capable of producing every possible outcome of a game according to its rules and use an unbiased algorithm. A scaling algorithm is considered to be unbiased if the measured bias is no greater than one in 100 million.

I. An electronic random number generator that an organization is using to conduct bingo prior to November 7, 2012, is not required to be certified.

History

Statutory Authority: § 18.2-340.15 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

Article 1 Electronic Gaming Manufacturers

11VAC20-20-170 Manufacturers of electronic gaming devices: application, qualifications, suspension, revocation, or refusal to renew permit

A. As used in this section, "manufacturer" means an "electronic gaming manufacturer" as defined in § 18.2-340.16 of the Code of Virginia.

B. Prior to providing any electronic gaming device or distributed pull-tab system, a manufacturer shall submit an application on a form prescribed by the department and receive a permit. A $1,000 application fee payable to the Treasurer of Virginia is required. In addition, a manufacturer must be authorized to conduct business in the Commonwealth of Virginia, which may include registration with the State Corporation Commission, the Department of Taxation, and the Virginia Employment Commission. The actual cost of background investigations for a permit may be billed by the department to an applicant.

C. The department may refuse to issue a permit or may suspend or revoke a permit if an officer, director, employee, agent, or owner:

Is operating without a valid license, permit, or certificate as a supplier, network bingo provider, or manufacturer in any state in the United States;
Fails or refuses to recall a product as directed by the department;
Conducts business with unauthorized entities or is not authorized to conduct business in the Commonwealth of Virginia;
Has been convicted of or pleaded nolo contendere to any crime as specified by § 18.2-340.34 B of the Code of Virginia; has had any license, permit, certificate, or other authority related to activities defined as charitable gaming in the Commonwealth suspended or revoked in the Commonwealth or in any other jurisdiction; has failed to file or has been delinquent in excess of one year in the filing of any tax returns or the payment of any taxes due the Commonwealth; or has failed to establish a registered office or registered agent in the Commonwealth if so required by § 13.1-634 or 13.1-763 of the Code of Virginia. As this provision relates to employees or agents, it shall only apply to individuals involved in sales to or solicitations of customers in the Commonwealth of Virginia;
Fails to notify the department within 20 days of the occurrence, knowledge, or receipt of the filing of any administrative or legal action relating to charitable gaming or the distribution of a distributed pull-tab system involving or concerning the manufacturer, any officers or directors, employees, agent, or owner during the term of its permit;
Fails to provide to the department upon request a current Letter for Company Registration on file with the U.S. Department of Justice if required in accordance with the Gambling Devices Act of 1962 (15 USC §§ 1171 through 1178) for any device that it distributes in the Commonwealth of Virginia;
Has been engaged in conduct that would compromise the department's objective of maintaining the highest level of integrity in charitable gaming; or
Violates any provision of the Charitable Gaming Law or regulation adopted pursuant thereto.

D. Before denying, suspending, or revoking a manufacturer's permit, the department shall give the manufacturer a statement documenting the grounds for such action and an opportunity for a hearing as outlined in Part VI (11VAC20-20-600 et seq.) of this chapter.

E. A manufacturer shall not distribute a distributed pull-tab system for use by anyone in the Commonwealth of Virginia other than to an authorized social organization, qualified organization operating and conducting electronic gaming in accordance with the Charitable Gaming Law and regulations established thereto or a permitted supplier.

All such distributions shall be documented pursuant to subsection I of this section and reported to the department pursuant to subsection K of this section.

F. No manufacturer of a distributed pull-tab system, the manufacturer's agent, or the manufacturer's employee shall be involved in the management, operation, or conduct of charitable gaming in the Commonwealth of Virginia. No member of a manufacturer's immediate family or person residing in the same household as a manufacturer may be involved in the management, operation, or conduct of charitable gaming of any customer of the manufacturer in the Commonwealth of Virginia. No manufacturer of a distributed pull-tab system, the manufacturer's agent, or the manufacturer's employee may participate in any charitable gaming of any customer of the manufacturer in the Commonwealth of Virginia. For the purposes of this chapter, servicing a distributed pull-tab system shall not be considered conduct or participation.

G. The department shall conduct a background investigation prior to the issuance of a permit to any manufacturer. The investigation may include the following:

A search of criminal history records on all officers, directors, and owners;
Verification of current compliance with Commonwealth of Virginia tax laws; and
Verification of current compliance with Virginia gaming laws or the gaming laws of any other state.

H. Appropriate information and authorizations shall be provided to the department to verify information cited in subsection F of this section.

I. Manufacturers shall document each distribution of a distributed pull-tab system to any person for use in the Commonwealth of Virginia on an invoice that reflects the following:

Name, address, and organization number of the organization or supplier;
Date of sale or rental and location where the distributed pull-tab system is shipped or delivered if different from the billing address;
Name, form number, and serial number of each deal of electronic gaming;
Quantity of deals sold, the cost per deal, the selling price per card, the cash take-in per deal, and the cash payout per deal;
Serial number of each electronic gaming device, a description of the physical attributes of the electronic gaming device, the quantity of electronic gaming devices sold or rented, and the physical address to which each electronic gaming device is shipped or delivered;
Serial number and description of any other equipment sold or rented that is used to facilitate the distribution, play, and redemption of electronic gaming and the physical address to which the equipment is shipped or delivered ; and
For electronic gaming, the gross receipts or ticket sales, prizes paid out, electronic gaming adjusted gross receipts, cost of the use of the distributed pull-tab system, rebates, discounts, refunds, and any other information deemed necessary by the department.

J. Manufacturers shall ensure that two copies of the detailed invoice are provided to the customer for each distribution of a distributed pull-tab system.

K. Each manufacturer shall provide a report to the department by March 1 of each year on the distribution of a distributed pull-tab system for the fiscal year ending December 31 of the previous year to each organization and permitted supplier in the Commonwealth of Virginia. This report shall be provided to the department via a department-approved electronic medium. The report shall include the name, address, and organization number of each organization and permitted supplier and the following information for each sale or transaction:

Deals of electronic games, including purchase price, deal name, deal form number, quantity of electronic gaming in deal, electronic pull-tab price, cash take-in per deal, cash payout per deal, and quantity of deals;
Equipment used to facilitate the distribution, play, and redemption of electronic games, including purchase or rental price, description of equipment, quantity of units of each type of equipment, and the physical address to which the equipment is shipped or delivered; and
Complete record of all electronic gaming adjusted gross receipts, itemized by organization.

L. A manufacturer that fails to file the annual sales report in accordance with subsection J of this section shall be subject to a penalty of $25 per day for each day following the report's due date until such time as the report is filed.

M. A manufacturer, a manufacturer's agents and employees, members of a manufacturer's immediate family, or persons residing in a manufacturer's household shall not make any loan directly or indirectly to any organization or officer, director, game manager, or entity involved in the management, operation, or conduct of charitable gaming of the manufacturer's customer located in the Commonwealth of Virginia.

N. A manufacturer, a manufacturer's agent, or a manufacturer's employee shall not directly or indirectly provide a rebate, discount, or refund to any person other than an organization that purchases, rents, or leases a distributed pull-tab system from the manufacturer. All such transactions shall be recorded on the manufacturer's account books and invoices provided to the organization.

O. A written agreement specifying the terms of lease or rental shall be required for any equipment used to distribute, play, or redeem electronic gaming provided to an organization or permitted supplier.

P. A manufacturer shall notify the department when an electronic gaming device bearing a device tag affixed by the department is moved from one location to any other location.

History

Statutory Authority: § 18.2-340.15 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

Article 2 General Requirements

11VAC20-20-180 Approval of distributed pull-tab systems, validation systems, point-of-sale stations, and redemption terminals; approval of game themes and sounds

A. The department shall set manufacturing and testing criteria for all distributed pull-tab systems, validation systems, point-of-sale stations, redemption terminals, and other equipment used in the conduct of charitable gaming. A distributed pull-tab system, validation system, point-of-sale station, redemption terminal, or other equipment shall not be sold, leased, or otherwise furnished to any person in the Commonwealth of Virginia for use in the conduct of charitable gaming until an identical sample system or equipment containing identical software has been certified by a testing facility that has been formally recognized by the department as a testing facility that upholds the standards of integrity established by the department. The testing facility must certify that the distributed pull-tab system and associated hardware and software conform, at a minimum, to the requirements set forth in this chapter. Once the testing facility reports the test results to the department, the department will either approve or disapprove the distributed pull-tab system or system components and inform the manufacturer of the results. If any such system or equipment does not meet the department's criteria, it shall be recalled and shall not be distributed in the Commonwealth of Virginia. The cost of testing shall be borne by the manufacturer of such equipment.

B. No supplier or manufacturer shall knowingly sell or otherwise provide to an organization and no organization shall knowingly use a distributed pull-tab system, validation system, point-of- sale station, redemption terminal, or other equipment used to conduct charitable gaming unless it conforms to the requirements set forth in this chapter.

C. If a defect in a distributed pull-tab system, validation system, point-of-sale station, redemption terminal, or other equipment used to conduct charitable gaming is discovered by or reported to the department, the department shall notify the manufacturer of the system or equipment containing the alleged defect. Should the department, in consultation with the manufacturer, determine that a defect exists and should the department determine the defect affects game security or otherwise threatens public confidence in the game, the department may, with respect to any distributed pull-tab system, validation system, point of sale station, redemption terminal, or other equipment used to conduct charitable gaming still located within the Commonwealth of Virginia, require the supplier or manufacturer to issue a recall of all affected distributed pull-tab systems, validation systems, point-of-sale stations, redemption terminals, or other equipment.

D. All game themes, sounds, and music shall be approved by the department prior to being available for play on an electronic gaming device in the Commonwealth of Virginia.

E. All distributed pull-tab systems and electronic gaming devices, including the device's internal system and records, shall be fully accessible to the department at all times upon request.

History

Statutory Authority: § 18.2-340.15 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

Article 3 System Requirements

11VAC20-20-190 Distributed pull-tab system

A distributed pull-tab system shall be dedicated primarily to electronic accounting, reporting, and the presentation, randomization, and transmission of electronic gaming to the electronic gaming devices. It shall also be capable of generating the data necessary to provide the reports required within this article or otherwise specified by the department.

History

Statutory Authority: § 18.2-340.15 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC20-20-200 Dispensing of electronic pull-tabs

A distributed pull-tab system shall dispense, upon request, an electronic pull-tab. All games must be played without replacement, drawing from a single finite game set.

History

Statutory Authority: § 18.2-340.15 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC20-20-210 Game set requirements

Each game set shall meet the following minimum requirements:

Each game set shall be made up of a finite number of electronic pull-tabs;
The game set shall consist of a maximum of 25,000 electronic pull-tabs;
All electronic pull-tabs in a particular game set shall be of the same purchase price;
The maximum win amount awarded per any one electronic pull-tab shall not exceed the value set forth for pull-tabs by § 18.2-340.33 of the Code of Virginia;
Each game set shall be assigned a unique serial number;
After randomization, game sets may be broken into subsets of equal size. If game subsets are used, they shall each be assigned a unique serial number and be traceable to a parent game set; and
Game sets shall not be commingled.

History

Statutory Authority: § 18.2-40.15 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC20-20-220 Game set definition

If the system has the capability to create a game set from a predefined set of criteria, the criteria must contain the following information:

Game identification;
Game set version;
Manufacturer;
Game name;
Paytable identification;
Purchase price per electronic pull-tab;
Subset size;
Total number of subsets; and
Prize values with an associated index and frequency.

History

Statutory Authority: § 18.2-340.15 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC20-20-230 Data required to be available for each game set

A. The following data shall be available prior to the opening of a game set for distribution and shall be maintained and be viewable both electronically and, if requested, by printed report, upon demand:

A unique serial number identifying each game set or subset;
A description of the game set sufficient to categorize the game set or subset relative to other game sets;
The total number of electronic pull-tabs in the game set;
The number of game subsets to be created from the game set and the number of electronic pull-tabs in each subset when applicable;
The payout percentage of the entire game set;
The purchase price per electronic pull-tab assigned to the game set; and
Prize values with an associated index and frequency.

B. The following data shall be available subsequent to the completion of a game set and shall be maintained and viewable both electronically and, if requested, by printed report, upon demand:

A unique serial number identifying each game set or subset;
Description of the game set sufficient to categorize the game set relative to other game sets;
The total number of electronic pull-tabs unsold;
The total number of electronic pull-tabs purchased;
The time and date that the game set or each game subset became available for play;
The time and date that the game set or each game subset was completed or removed from play;
Location where game set or subset was played;
The final payout percentage of the game set when removed from play; and
The purchase price per electronic pull-tab assigned to the game set.

C. In order to provide maximum game integrity, no audit or other determination of the status of any game set or any subset, including a determination of the prizes won or prizes remaining to be won, shall be conducted by anyone while a game set or subset is in play without causing termination of the entire game set or subset. Only upon game set termination shall the details of the associated game set and subsets be revealed to the individual performing the audit.

D. Once terminated, a game set shall not be able to be reopened.

History

Statutory Authority: § 18.2-340.15 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC20-20-240 Security requirements

A. A distributed pull-tab system computer must be in a locked, secure enclosure with key controls in place.

B. A distributed pull-tab system shall provide a means for terminating the game set if information about electronic pull-tabs in an open game set has been accessed or at the discretion of the department. In such cases, traceability of unauthorized access, including time and date, users involved, and any other relevant information shall be available.

C. A distributed pull-tab system shall not permit the alteration of any accounting or significant event information that was communicated from the electronic gaming device without supervised access controls. In the event financial data is changed, an automated audit log must be capable of being produced to document the following:

Data element altered;
Data element value prior to alteration;
Data element value after alteration;
Time and date of alteration; and
Personnel that performed alteration.

D. A distributed pull-tab system must provide password security or other secure means of ensuring data integrity and enforcing user permissions for all system components through the following means:

All programs and data files must only be accessible via the entry of a password that will be known only to authorized personnel;
The distributed pull-tab system must have multiple security access levels to control and restrict different classes;
The distributed pull-tab system access accounts must be unique when assigned to the authorized personnel and shared accounts amongst authorized personnel must not be allowed;
The storage of passwords and personal identification numbers must be in an encrypted, nonreversible form; and
A program or report must be available that will list all registered users on the distributed pull-tab system, including the registered user's privilege level.

E. All components of a distributed pull-tab system that allow access to users, other than end- users for game play, must have a password sign-on with two-level codes comprising the personal identification code and a personal password.

The personal identification code must have a length of at least six American Standard Code for Information Interchange (ASCII) characters; and
The personal password must have a minimum length of six alphanumeric characters, which should include at least one nonalphabetic character.

F. A distributed pull-tab system must have the capability to control potential data corruption that can be created by multiple simultaneous log-ons by system management personnel.

A distributed pull-tab system shall specify which of the access levels allow for multiple simultaneous sign-ons by different users and which of the access levels do not allow for multiple sign-ons, and if multiple sign-ons are possible, what restrictions, if any, exist; or
If a distributed pull-tab system does not provide adequate control, a comprehensive procedural control document must be drafted for the department's review and approval.

G. Distributed pull-tab system software components or modules shall be verifiable by a secure means at the system level. A distributed pull-tab system shall have the ability to allow for an independent integrity check of the components or modules from an outside source, and an independent integrity check is required for all control programs that may affect the integrity of the distributed pull-tab system. This must be accomplished by being authenticated by a third-party device, which may be embedded within the distributed pull-tab system software or having an interface or procedure for a third-party application to authenticate the component. This integrity check will provide a means for field verification of the distributed pull-tab system components.

H. A distributed pull-tab system may be used to configure and perform security checks on electronic gaming devices, provided such functions do not affect the security, integrity, or outcome of any game and meets the requirements set forth in this chapter regarding program storage devices.

History

Statutory Authority: § 18.2-340.15 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC20-20-250 Backup and recovery

A. A distributed pull-tab system computer shall have a separate physical medium for securely storing game sets or subsets on the computer, which shall be mirrored in real time by a backup medium.

B. All data required to be available or reported by this chapter must be retained for a period of not less than three years from the close of the fiscal year.

C. All storage of critical data shall utilize error checking and be stored on a nonvolatile physical medium.

D. The database shall be stored on redundant media so that no single failure of any portion of the system would result in the loss or corruption of data.

E. In the event of a catastrophic failure when the distributed pull-tab system cannot be restarted in any other way, it shall be possible to reload the distributed pull-tab system from the last viable backup point and fully recover the contents of that backup, to consist of at least the following information:

All significant events;
All accounting information;
Auditing information, including all open game sets and the summary of completed game sets; and
Employee files with access levels.

History

Statutory Authority: § 18.2-340.15 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC20-20-260 Electronic accounting and reporting

A. One or more electronic accounting systems shall be required to perform reporting and other functions in support of distributed pull-tab systems. The electronic accounting system shall not interfere with the outcome of any gaming function.

B. The following reporting capabilities must be provided by the electronic accounting system:

Electronic pull-tab game set report – game sets in play. An electronic pull-tab game set report must be available on demand for each game set currently in play. Game cards, outcomes, or prizes must not be revealed. The report must contain the following information:

a. A unique serial number identifying each game set or subset;

b. A description of the game set sufficient to categorize the game set or subset relative to other game sets;

c. The total number of electronic pull-tabs in the game set;

d. The number of game subsets to be created from the game set and the number of electronic pull-tabs in each subset when applicable;

e. The theoretical payout percentage of the entire game set;

f. The purchase price per electronic pull-tab assigned to the game set;

g. The time and date that the game set or each game subset became available for play; and

h. The location where the game set or subset is being played.

Electronic pull-tab game set report – completed game set. An electronic pull-tab game set report must be available on demand, for each completed game set. The report must contain the following information:

a. A unique serial number identifying each game set or subset;

b. Description of the game set sufficient to categorize the game set relative to other game sets;

c. The total number of electronic pull-tabs unsold;

d. The total number of electronic pull-tabs purchased;

e. The time and date that the game set or each game subset became available for play;

f. The time and date that the game set or each game subset was completed or removed from play;

g. The location where game set or subset was played;

h. The final payout percentage of the game set when removed from play; and

i. The purchase price per electronic pull-tab assigned to the game set.

A report that shall indicate all prizes that exceed the threshold that triggers additional procedures to be followed for the purpose of compliance with federal tax reporting requirements. At a minimum, on a daily and monthly basis, the report shall provide the following information per electronic gaming device:

a. The date and time won;

b. The location of prize award; and

c. The amount of each prize occurrence.

Liability report. A liability report shall provide a summary of the outstanding funds that carry from business day to business day. At a minimum, this report shall include:

a. Amount of prizes or vouchers that were awarded in dollars and cents, but have not yet been claimed that have not yet expired; and

b. Summary of all outstanding accounts.

C. A distributed pull-tab system shall be capable of providing an electronic file in a format specified by the department on a periodic basis to a location specified by the department. The data to be reported will contain, at a minimum, the following items per session:

Organization information;
Session date;
Total cash in;
Total cash out;
Total cash played;
Total cash won;
For all game sets on the system in play or in inventory:

a. Serial number;

b. Description;

c. Ticket price;

d. Number of subsets if applicable;

e. Number of tickets or number of tickets per subset;

f. Theoretical return percentage; and

g. Date game set was opened for play, when applicable; and

For all game sets completed or close since the previous reporting date:

a. Serial number;

b. Description;

c. Ticket price;

d. Number of subsets, if applicable;

e. Number of tickets or number of tickets per subset;

f. Theoretical return percentage;

g. Date game set was opened;

h. Date game set was closed;

i. Total tickets sold;

j. Total dollars in;

k. Total prizes paid; and

l. Actual return percentage.

History

Statutory Authority: § 18.2-340.15 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC20-20-270 Randomization

A. As used in this section, unless the context requires a different meaning:

"Card position" means the first card dealt, second card dealt in sequential order.

"Number position" means the first number drawn in sequential order.

B. A distributed pull-tab system shall utilize randomizing procedures in the creation of game sets for electronic pull-tabs or externally generated randomized game sets that have been created using a method previously approved by the department.

C. Any random number generation, shuffling, or randomization of outcomes used in connection with a distributed pull-tab system must be by use of a random number generation application that has successfully passed standard tests for randomness and unpredictability including:

Each card position or number position satisfies the 99% confidence limit using the standard chi-squared analysis. "Chi-squared analysis" is the sum of the ratio of the square difference between the expected result and the observed result to the expected result.
Each card position or number position does not produce a significant statistic with regard to producing patterns of occurrences. Each card position or number position will be considered random if it meets the 99% confidence level with regard to the "run test" or any similar pattern testing statistic. The "run test" is a mathematical statistic that determines the existence of recurring patterns within a set of data.
Each card position or number position is independently chosen without regard to any other card or number drawn within that game play. This test is the "correlation test." Each pair of card positions or number positions is considered random if it meets the 99% confidence level using standard correlation analysis.
Each card position or number position is independently chosen without reference to the same card position or number position in the previous game. This test is the "serial correlation test." Each card position or number position is considered random if it meets the 99% confidence level using standard serial correlation analysis.

History

Statutory Authority: § 18.2-340.15 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC20-20-280 Communications and network requirements

A. Where the distributed pull-tab system components are linked with one another in a network, communication protocols shall be used that ensure that erroneous data or signals will not adversely affect the operations of any such system components.

B. All data communication shall incorporate an error detection and correction scheme to ensure the data is transmitted and received accurately.

C. Connections between all components of the distributed pull-tab system shall only be through the use of secure communication protocols that are designed to prevent unauthorized access or tampering, employing Advanced Encryption Standard (AES) or equivalent encryption.

D. A firewall or equivalent hardware device configured to block all inbound and outbound traffic that has not been expressly permitted and is not required for continued use of the distributed pull-tab system must exist between the distributed pull-tab system and any external point of access.

E. The minimum width (size) for encryption keys is 112 bits for symmetric algorithms and 1024 bits for public keys.

F. There must be a secure method implemented for changing the current encryption key set. It is not acceptable to only use the current key set to "encrypt" the next set.

G. There must be a secure method in place for the storage of any encryption keys. Encryption keys must not be stored without being encrypted themselves.

H. If a wireless network is used, wireless products used in conjunction with any gaming system or system component must meet the following minimum standards:

Employ a security process that complies with the Federal Information Processing Standard 140-2 (FIPS 140-2); or
Employ an alternative method, as approved by the department.

History

Statutory Authority: § 18.2-340.15 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC20-20-290 Significant events

The following significant events, if applicable, shall be collected from the electronic gaming device or point of sale and communicated to the system for storage and a report of the occurrence of the significant event must be made available upon request:

Power resets or power failure.
Communication loss between an electronic gaming device and any component of the distributed pull-tab system.
Electronic gaming device jackpot (any award in excess of the single win limit of the electronic gaming device).
Door openings (any external door that accesses a critical area of the electronic gaming device).
Bill validator errors:

a. Stacker full (if supported); and

b. Bill jam.

Printer errors:

a. Printer empty; and

b. Printer disconnect or failure.

Corruption of the electronic gaming device RAM or program storage device.
Any other significant events as defined by the protocol employed by the distributed pull-tab system.

History

Statutory Authority: § 18.2-340.15 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC20-20-300 Validation system and redemption

A distributed pull-tab system may utilize a voucher validation system to facilitate gaming transactions. The validation system may be entirely integrated into a distributed pull-tab system or exist as a separate entity.

A distributed pull-tab system may allow voucher out only; vouchers shall not be inserted, scanned, or used in any way at the electronic gaming device for redemption.
The validation system must process voucher redemption correctly according to the secure communication protocol implemented.
The algorithm or method used by the validation system or distributed pull-tab system to generate the voucher validation numbers must guarantee an insignificant percentage of repetitive validation numbers.
The validation system must retrieve the voucher information correctly based on the secure communication protocol implemented and store the voucher information in a database. The voucher record on the host system must contain, at a minimum, the following voucher information:

a. Validation number;

b. Date and time the electronic gaming device printed the voucher;

c. Value of voucher in dollars and cents;

d. Status of voucher;

e. Date and time the voucher will expire;

f. Serial number of electronic gaming device; and

g. Location name or site identifier.

The validation system or distributed pull-tab system must have the ability to identify the following occurrences and notify the cashier when the following conditions exist:

a. Voucher cannot be found on file;

b. Voucher has already been paid; or

c. Amount of the voucher differs from the amount on file (requirement may be met by display of voucher amount for confirmation by cashier during the redemption process).

If the connection between the validation system and the distributed pull-tab system fails, an alternate method or procedure of payment must be available and shall include the ability to identify duplicate vouchers and prevent fraud by redeeming vouchers that were previously issued by the electronic gaming device.
The following reports related to vouchers shall be generated on demand:

a. Voucher Issuance Report shall be available from the validation system that shows all vouchers generated by an electronic gaming device; and

b. Voucher Redemption Report shall detail individual vouchers and the sum of the vouchers paid by the validation terminal or point of sale by session and shall include the following information:

(1) The date and time of the transaction;

(2) The dollar value of the transaction;

(3) The validation number;

(4) A transaction number; and

(5) The point-of-sale identification number or name.

The validation system database must be encrypted and password protected and should possess an unalterable user audit trail to prevent unauthorized access.
The normal operation of any device that holds voucher information shall not have any options or method that may compromise voucher information. Any device that holds voucher information in its memory shall not allow removal of the information unless it has first transferred that information to the ticketing database or other secured component of the validation system.

History

Statutory Authority: § 18.2-340.15 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC20-20-310 Point of sale; validation terminal

A. A distributed pull-tab system may utilize a point-of-sale or validation terminal that is capable of facilitating the sale of the organization's pull tab outcomes or used for the redemption of credits from player accounts or vouchers. The point of sale may be entirely integrated into a distributed pull-tab system or exist as a separate entity.

B. Point-of-sale use is only permissible when the device is linked to an approved validation system or distributed pull-tab system.

C. If a distributed pull-tab system utilizes a point of sale, it shall be capable of printing a receipt for each sale, void, or redemption. The receipt shall contain the following information:

Date and time of the transaction;
Dollar value of the transaction;
Validation number, if applicable;
Quantity of associated products, if applicable;
Transaction number;
Account number, if applicable; and
Point-of-sale identification number or name.

D. The following point-of-sale or validation terminal reports shall be generated on demand:

Sales transaction history report shall show all sales and voids by session and include the following information:

a. Date and time of the transaction;

b. Dollar value of the transaction;

c. Quantity of associated products;

d. Transaction number; and

e. Point of sale identification number or name.

Voucher redemption report shall detail individual voucher redemptions paid by the validation terminal or point of sale by session and include the following information:

a. Date and time of the transaction;

b. Dollar value of the transaction;

c. Validation number;

d. Transaction number; and

e. Point of sale identification number or name.

History

Statutory Authority: § 18.2-340.15 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC20-20-320 Location of equipment

All equipment used to facilitate the distribution, play, or redemption of electronic games must be physically located within the boundaries of the Commonwealth of Virginia. This includes the distributed pull-tab system, electronic gaming devices, redemption terminals, and point-of-sale stations.

History

Statutory Authority: § 18.2-340.15 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

Article 4 Electronic Gaming Devices

11VAC20-20-330 Electronic gaming device general requirements

A. Each electronic gaming device shall bear a tamper evident seal and individual serial number affixed by the department.

B. An electronic gaming device shall only be used for electronic gaming.

C. In addition to a video monitor or touch screen, each electronic gaming device may have one or more of the following: a bill acceptor, printer, and electromechanical buttons for activating the game and providing player input, including a means for the player to make selections and choices in games.

D. For each electronic gaming device, there shall be located anywhere within the distributed pull-tab system, nonvolatile memory or its equivalent. The memory shall be maintained in a secure location for the purpose of storing and preserving a set of critical data that has been error checked in accordance with the critical memory requirements of this chapter.

E. An electronic gaming device shall not have any switches, jumpers, wire posts, or other means of manipulation that could affect the operation or outcome of a game. The electronic gaming device may not have any functions or parameters adjustable through any separate video display or input codes except for the adjustment of features that are wholly cosmetic.

F. An electronic gaming device shall not have any of the following attributes: spinning or mechanical reels, pull handle, sounds or music solely intended to entice a player to play, flashing lights, tower light, top box, coin tray, ticket acceptance, hopper, coin acceptor, enhanced animation, cabinet or payglass artwork, or any other attribute identified by the department.

G. An electronic gaming device shall be robust enough to withstand forced illegal entry that would leave behind physical evidence of the attempted entry or such entry that causes an error code that is displayed and transmitted to the distributed pull-tab system. Any such entry attempt shall inhibit game play until cleared and shall not affect the subsequent play or any other play, prize, or aspect of the game.

H. The quantity of electronic gaming devices present at a social organization's location at which electronic gaming is operated and conducted shall not exceed the number authorized by the department for such location.

History

Statutory Authority: § 18.2-340.15 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC20-20-340 Cabinet wiring

A. Proof of Underwriter Laboratories (UL) or equivalent certification shall be required for all submitted electronic devices.

B. An electronic gaming device shall be designed so that power and data cables into and out of the electronic gaming device can be routed so that the cables are not accessible to the general public.

History

Statutory Authority: § 18.2-340.15 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC20-20-350 Electronic gaming device identification

An electronic gaming device shall have a permanently affixed device identifier that cannot be removed without leaving evidence of tampering. This device identifier shall be affixed to the exterior of the electronic gaming device and shall include the following information:

The manufacturer name;
A unique serial number;
The electronic gaming device model number;
The date of manufacture; and
Any other information required by the department.

History

Statutory Authority: § 18.2-340.15 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC20-20-360 Doors; compartments

A. If an electronic gaming device possesses an external door that allows access to the interior of the machine the following rules shall apply:

Doors and their associated hinges shall be capable of withstanding determined illegal efforts to gain access to the inside of the electronic gaming device and shall leave evidence of tampering if an illegal entry is made;
All external doors shall be locked and monitored by door access sensors that shall detect and report all external door openings by way of an audible alarm, on-screen display, or both;
The electronic gaming device shall cease play when any external door is opened;
It shall not be possible to disable a door open sensor when the machine's door is closed without leaving evidence of tampering;
The sensor system shall register a door as being open when the door is moved from its fully closed and locked position; and
Door open conditions shall be recorded in an electronic log that includes a date and time stamp.

B. Electronic gaming devices that contain control programs located within an accessible area shall have a separate internal locked logic compartment that shall be keyed differently than the front door access lock. The logic compartment shall be a locked cabinet area with its own locked door that houses critical electronic components that have the potential to significantly influence the operation of the electronic gaming device. There may be more than one such logic area in an electronic gaming device. Electronic component items that are required to be housed in one or more logic areas are:

Central processing units and other electronic components involved in the operation and calculation or display of game play;
Communication controller electronics and components housing the communication program storage media or the communication board for the online system may reside outside the electronic gaming device; and
Logic compartment door open conditions shall be recorded in a log that includes a date and time stamp.

C. Electronic gaming devices that do not contain a door shall have adequate security for any panels or entry points that allow access to the interior of the device.

History

Statutory Authority: § 18.2-340.15 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC20-20-370 Memory clear

A. Following the initiation of a memory reset procedure utilizing a certified reset method, the program shall execute a routine that initializes the entire contents of memory to the default state. For electronic gaming devices that allow for partial memory clears, the methodology in doing so must be accurate and the game application must validate the uncleared portions of memory. The electronic gaming device display after a memory reset shall not be the top award.

B. It shall not be possible to change a configuration setting that causes an alteration or obstruction to the electronic accounting meters without a memory clear.

History

Statutory Authority: § 18.2-340.15 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC20-20-380 Critical memory

A. Critical memory shall be used to store all data that is considered vital to the continued operation of the electronic gaming device. Critical memory storage shall be maintained by a methodology that enables errors to be identified and corrected in most circumstances. This methodology may involve signatures, checksums, partial checksums, multiple copies, timestamps, or use of validity codes. This includes:

All electronic meters required in 11VAC20-20-440 E;
Current unused credits;
Electronic gaming device or game configuration data;
Recall of all wagers and other information necessary to fully reconstruct the game outcome associated with the last 10 plays;
Software state, which is the last state the electronic gaming device software was in before interruption; and
Error conditions that may have occurred on the electronic gaming device that may include:

a. Memory error or control program error;

b. Low memory battery, for batteries external to the memory itself or low power source;

c. Program error or authentication mismatch; and

d. Power reset.

B. Comprehensive checks of critical memory shall be made continually to test for possible corruption. In addition, all critical memory:

Shall have the ability to retain data for a minimum of 180 days after power is discontinued from the electronic gaming device. If the method used is an off-chip battery source, it shall recharge itself to its full potential in a maximum of 24 hours. The shelf life shall be at least five years. Memory that uses an off-chip back-up power source to retain its contents when the main power is switched off shall have a detection system that will provide a method for software to interpret and act upon a low battery condition;
Shall only be cleared by a department certified memory clear method; and
Shall result in an error if the control program detects an unrecoverable memory error.

History

Statutory Authority: § 18.2-340.15 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC20-20-390 Program storage devices

A. All program storage devices (writable/nonwritable), including erasable programmable read only memory (EPROM), DVD, CD-ROM, compact flash, and any other type of program storage device shall be clearly marked with sufficient information to identify the software and revision level of the information stored in the devices.

B. Program storage devices shall meet the following requirements:

Program storage, including CD-ROM, shall meet the following rules:

a. The control program shall authenticate all critical files by employing a hashing algorithm that produces a "message digest" output of at least 128 bits at minimum, as certified by the recognized independent test laboratory and agreed upon by the department. Any message digest shall be stored on a read-only memory device within the electronic gaming device. Any message digest that resides on any other medium shall be encrypted using a public/private key algorithm with a minimum of a 512-bit key or an equivalent encryption algorithm with similar security certified by the independent test laboratory and agreed upon by the department.

b. The electronic gaming device shall authenticate all critical files against the stored message digests. In the event of a failed authentication, the electronic gaming device should immediately enter an error condition with the appropriate indication, such as an audible signal, on-screen display, or both. This error shall require operator intervention to clear. The electronic gaming device shall display specific error information and shall not clear until the file authenticates properly or the electronic gaming device's memory is cleared, the game is restarted, and all files authenticate correctly.

CD-ROM specific based program storage shall:

a. Not be a rewritable disk; and

b. The "write session" shall be closed to prevent any further writing to the storage device.

C. Electronic gaming devices where the control program is capable of being erased and reprogrammed without being removed from the electronic gaming device or other equipment or related peripheral devices shall meet the following requirements:

Reprogrammable program storage shall only write to alterable storage media containing data, files, and programs that are not critical to the basic operation of the game.
Notwithstanding subdivision 1 of this subsection, data may be written to media containing critical data, files, and programs provided that:

a. A log of all information that is added, deleted, and modified be stored on the media;

b. The control program verifies the validity of all data, files, and programs that reside on the media using the methods required herein;

c. The electronic gaming device's program contains appropriate security to prevent unauthorized modifications; and

d. The electronic gaming device's program does not allow game play while the media containing the critical data, files, and programs is being modified.

D. The control program shall ensure the integrity of all critical program components during the execution of said components and the first time the files are loaded for use even if only partially loaded. Space that is not critical to machine security (e.g., video or sound) is not required to be validated, although the department recommends a method be in place for the files to be tested for corruption. If any of the video or sound files contain payout amounts or other information needed by the player, the files are to be considered critical.

History

Statutory Authority: § 18.2-340.15 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC20-20-400 Touch screens

Any touch screen must meet the following rules:

A touch screen shall be accurate once calibrated;
A touch screen shall be able to be recalibrated; and
A touch screen shall have no hidden or undocumented buttons or touch points anywhere on the touch screen, except as provided for by the game rules that affect game play.

History

Statutory Authority: § 18.2-340.15 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC20-20-410 Bill acceptors

A. An electronic gaming device may have a mechanism that accepts United States currency and provides a method to enable the electronic gaming device software to interpret and act appropriately upon a valid or invalid input.

B. An acceptance device shall be electronically based and be configured to ensure that it only accepts valid bills and rejects all others in a highly accurate manner.

C. A bill input system shall be constructed in a manner that protects against vandalism, abuse, or fraudulent activity. In addition, a bill acceptance device shall only register credits when:

The bill has passed the point where it is accepted and stacked; and
The bill acceptor has sent the "irrevocably stacked" message to the machine.

D. A bill acceptor shall communicate to the electronic gaming device using a bidirectional protocol.

E. A bill acceptor shall be designed to prevent the use of cheating methods such as stringing, the insertion of foreign objects, and any other manipulation that may be deemed as a cheating technique.

F. If a bill acceptor is designed to be factory set only, it shall not be possible to access or conduct maintenance or adjustments to that bill acceptor in the field, other than:

The selection of bills and their limits;
Changing of a certified erasable programmable read-only memory or downloading of certified software;
The method for adjustment of the tolerance level for accepting bills of varying quality should not be accessible from the exterior of the electronic gaming device. Adjustments of the tolerance level should only be allowed with adequate levels of security in place. This can be accomplished through lock and key, physical switch settings, or other accepted methods approved on a case-by-case basis;
The maintenance, adjustment, and repair per approved factory procedures; and
The options that set the direction or orientation of bill acceptance.

G. An electronic gaming device equipped with a bill acceptor shall have the capability of detecting and displaying an error condition for the following events:

Stacker full (it is recommended that an explicit "stacker full" error message not be utilized since this may cause a security issue);
Bill jams;
Bill acceptor door open. If a bill acceptor door is a machine door, a door open signal is sufficient;
Stacker door open; and
Stacker removed.

H. An electronic gaming device equipped with a bill acceptor shall maintain sufficient electronic metering to be able to report the following:

Total monetary value of all bills accepted;
Total number of all bills accepted;
A breakdown of the bills accepted for each denomination; and
The value of the last five items accepted by the bill acceptor.

History

Statutory Authority: § 18.2-340.15 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC20-20-420 Payment by voucher printers

A. If the electronic gaming device has a printer that is used to issue payment to the player by issuing a printed voucher for any unused game plays or winnings, the electronic gaming device shall meet the following rules:

The printer shall be located in a secure area of the electronic gaming device, but shall not be located in the logic area or any cash storage area. The bill acceptor stacker or logic areas containing critical electronic components shall not be accessed when the printer paper is changed; and
Data printed on a voucher shall include the following information regarding each voucher printed:

a. Value of unused game plays or winnings in United States currency, in numerical form;

b. Time the voucher was printed;

c. Date the voucher was printed;

d. Location name or site identifier;

e. Serial number of electronic gaming device;

f. Unique validation number or barcode if used in conjunction with a validation system; and

g. Expiration date and time.

B. If the electronic gaming device is capable of printing a duplicate voucher, the duplicate voucher shall clearly state the word "DUPLICATE" on its face.

C. The printer shall use printer paper containing security features such as a watermark as approved by the department.

D. A printer shall have mechanisms to allow the electronic gaming device to interpret and act upon the following conditions that must disable the game, and produce an error condition that requires attendant intervention to resume play:

Out of paper;
Printer jam or failure; and
Printer disconnect. The electronic gaming device may detect this error condition when the game tries to print.

E. An electronic gaming device that uses a voucher printer shall maintain a minimum of the last 25 transactions in critical memory. All voucher transactions shall be logged with a date and time stamp.

History

Statutory Authority: § 18.2-340.15 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC20-20-430 Payment by account

A. Credit may be added to a player account via a cashier or point of sale station. Credit may also be added by any supporting electronic gaming device through credits won or bills.

B. Money may be removed from a player account either through downloading of credits to the electronic gaming device or by cashing out at a cashier's or point-of-sale station.

C. All monetary transactions between a supporting electronic gaming device and the distributed pull-tab system must be secured by means of a card insertion into a magnetic card reader and personal identification number (PIN) entry or by other protected means.

History

Statutory Authority: § 18.2-340.15 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

Article 5 Game Requirements

11VAC20-20-440 Game play requirements

A. A player receives an electronic pull-tab in return for consideration. A player wins if the player's electronic pull-tab contains a combination of symbols or numbers that was designated in advance of the game as a winning combination. There may be multiple winning combinations in each game. Electronic versions of instant bingo and pull-tabs, as authorized by the department, shall only utilize electronic gaming devices that allow players to play electronic pull-tabs. An electronic gaming device shall meet the following minimum requirements:

A player may purchase an opportunity to play an electronic pull-tab by:

a. Insertion of United States currency (bills only);

b. Purchase made at a point of sale terminal; or

c. Withdrawing deposits available in a player account.

The available games, flare, and rules of play shall be displayed on the electronic gaming device's video screen. Rules of play shall include all winning combinations.
Any number of game themes may be selectable for play on any given electronic gaming device. Only one of the game themes shall be playable at any given time.
An electronic gaming device shall be clearly labeled so as to inform the public that no one younger than 21 years of age is allowed to play.
An electronic gaming device shall not be capable of displaying any enticing animation while in an idle state. An electronic gaming device may use simple display elements or screen savers to prevent monitor damage.
The results of the electronic pull-tab shall be shown to the player using a video display. No rolling, flashing, or spinning animations are permitted. No rotating reels marked into horizontal segments by varying symbols are permitted.
Any sound or music solely intended to entice a player to play is prohibited. Any sound or music emitted by an electronic gaming device must not be played at a level sufficient to disturb other players or patrons.
The electronic gaming device shall have one or more buttons, electromechanical or touch screen, to facilitate the following functions:

a. Viewing of the game "help" screens;

b. Viewing of the game rules;

c. Initiating game play;

d. Cashout or logout; and

e. One or more buttons designated to reveal the pull-tab or instant bingo windows.

Following play on an electronic gaming device, the result shall be clearly shown on the video display along with any prizes that may have been awarded. Prizes may be dispensed in the form of:

a. Voucher;

b. Added to the machine balance meter; or

c. Added to the player's account balance.

An available balance may be collected from the electronic gaming device by the player pressing the "cashout" button or logging off of the electronic gaming device at any time other than during:

a. A game being played;

b. While in an audit mode or screen;

c. Any door open;

d. Test mode;

e. A machine balance meter or win meter incrementation unless the entire amount is placed on the meter when the "cashout" button is pressed; or

f. An error condition.

The default electronic gaming device display, upon entering game play mode, shall not be the top award.

B. An electronic gaming device shall not have hardware or software that determines the outcome of any electronic pull-tab, produce its own outcome, or affect the order of electronic pull-tabs as dispensed from the distributed pull-tab system. The game outcome shall be determined by the distributed pull-tab system as outlined within this chapter.

C. Game themes shall not contain obscene or offensive graphics, animations, or references. The department shall determine what constitutes obscene or offensive graphics, animations, or references.

D. Prior to approval for use, each electronic gaming device must meet the following specifications with respect to its operation:

After accepting an allowable cash payment from the player, the player shall press a "play" button to initiate a game.
The electronic gaming device shall not display in any manner, the number of electronic pull-tabs of each finite category, or how many cards remain.
Awards of merchandise prizes in lieu of cash are prohibited.
The player must interact with the device to initiate a game and reveal a win or loss. This may involve a button press on the console or on the touch screen.
The electronic pull-tab must be initially displayed with a cover and require player interaction to reveal the symbols and game outcome.
In no event may an electronic gaming device simulate play of roulette, poker, keno, lotto or lottery, twenty-one, blackjack, or any other card game, or simulate play of any type of slot machine game, regardless of whether the machine has a payback feature or extra play awards.
Card symbols such as ace, king, queen, or heart are acceptable, provided the device abides by the prohibition in subdivision 6 of this subsection.
Games must not contain any elements of skill.

E. Each electronic gaming device must meet the following specifications with respect to its metering system:

An electronic gaming device shall contain electronic metering whereby meters record and display on the video screen the following information at a minimum:

a. Total cash in for the bill acceptor if equipped with a bill acceptor;

b. Total cash played;

c. Total cash won;

d. Total cash removed from electronic gaming device;

e. Total count of electronic pull-tabs played; and

f. Total count of electronic pull-tabs won.

An electronic meter shall be capable of maintaining correct totals and be of no less than 10 digits in length.
An electronic gaming device shall not be capable of displaying the number of electronic pull-tabs that remain in the game set or the number of winners or losers that have been drawn or still remain in the game set while the game set is still being played.
An electronic meter shall not be capable of being automatically reset or cleared, whether due to an error in any aspect of the meter's or a game's operation or otherwise.
Currency meters shall be maintained in dollars and cents.

History

Statutory Authority: § 18.2-340.15 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

Article 1 Network Bingo Providers

11VAC20-20-450 Network bingo providers: application, qualifications, suspension, revocation or refusal to renew permit, maintenance, and production of records

A. Prior to providing network bingo, a network bingo provider shall submit an application on a form prescribed by the department and receive a permit. A $500 application fee payable to the Treasurer of Virginia is required. In addition, a network bingo provider must be authorized to conduct business in the Commonwealth of Virginia, which may include registration with the State Corporation Commission, the Department of Taxation, and the Virginia Employment Commission. The actual cost of background investigations for a permit may be billed by the department to an applicant.

B. The department may refuse to issue a permit or may suspend or revoke a permit if an officer, director, partner, employee, agent, or owner:

Is operating without a valid license, permit, or certificate as a supplier, manufacturer, or network bingo provider in any state in the United States;
Fails or refuses to recall a product as directed by the department;
Conducts business with unauthorized entities or is not authorized to conduct business in the Commonwealth of Virginia;
Has been convicted of or pleaded nolo contendere to any crime as specified by § 18.2- 340.34:2 B of the Code of Virginia; has had any license, permit, certificate, or other authority related to activities defined as charitable gaming in the Commonwealth suspended or revoked in the Commonwealth or in any other jurisdiction; has failed to file or has been delinquent in excess of one year in the filing of any tax returns or the payment of any taxes due the Commonwealth; or has failed to establish a registered office or registered agent in the Commonwealth if so required by § 13.1-634 or 13.1-763 of the Code of Virginia. As this provision relates to employees or agents, it shall only apply to individuals involved in sales to or solicitations of customers in the Commonwealth of Virginia;
Fails to notify the department within 20 days of the occurrence, knowledge, or receipt of the filing of any administrative or legal action relating to charitable gaming or network bingo involving or concerning the network bingo provider, any officer or director, employees, agent, or owner during the term of its permit;
Fails to provide to the department upon request a current Letter for Company Registration on file with the U.S. Department of Justice if required in accordance with the Gambling Devices Act of 1962 (15 USC §§ 1171 through 1178) for any device that it distributes in the Commonwealth of Virginia; or
Has been engaged in conduct that would compromise the department's objective of maintaining the highest level of integrity in charitable gaming.

C. A network bingo provider shall not distribute a network bingo system, network bingo supplies, or other incidental items to perform network bingo to anyone in the Commonwealth of Virginia or to an organization for use upon the premises owned or exclusively leased by the organization in which the portion of the premises are qualified to sell pull-tabs to members and their guests only as authorized by § 18.2-340.26:1 of the Code of Virginia. However, a network bingo provider may:

Distribute such a system, supply, or item to a qualified organization authorized to conduct charitable gaming for use during a session that is open to the public and not limited to members and their guests only.
Distribute such a system, supply, or item to an organization that expects to gross the amount set forth in § 18.2-340.23 of the Code of Virginia or less in any 12-month period, providing that the amount of such purchase would not be reasonably expected to produce more than the amount set forth in § 18.2-340.23 of the Code of Virginia in gross sales. For each such organization, the network bingo provider shall maintain the name, address, and telephone number. The network bingo provider shall also obtain a written and signed statement from an officer or game manager of such organization confirming that gross receipts are expected to be the amount set forth in § 18.2-340.23 of the Code of Virginia or less. Such statements shall be dated and kept on file for a minimum of three years from the close of a fiscal year.

All such distributions shall be documented pursuant to subsection G of this section and reported to the department pursuant to subsection I of this section.

D. No network bingo provider, its agents, or its employees may be involved in the management, operation, or conduct of charitable gaming in the Commonwealth of Virginia. A network bingo provider, its agents, or its employees may call a network bingo game or distribute network bingo prizes associated with the network bingo provider's network bingo system. No member of a network bingo provider's immediate family or person residing in the same household as a network bingo provider may be involved in the management, operation, or conduct of charitable gaming of any customer of the network bingo provider in the Commonwealth of Virginia. No network bingo provider, its agents, or its employees may participate in any charitable gaming of any customer of the network bingo provider in the Commonwealth of Virginia. For the purposes of this chapter, servicing of the network bingo system shall not be considered conduct or participation.

E. The department shall conduct a background investigation prior to the issuance of a permit to any network bingo provider. The investigation may include the following:

A search of criminal history records on all officers, directors, and owners; and
Verification of current compliance with Commonwealth of Virginia tax laws.

If the officers, directors, owners, or partners are domiciled outside of the Commonwealth of Virginia or have resided in the Commonwealth of Virginia for fewer than five years, a criminal history search conducted by the appropriate authority in any state in which the officers, directors, owners, or partners have resided during the previous five years shall be provided by the applicant.

F. Appropriate information and authorizations shall be provided to the department to verify information cited in subsection E of this section.

G. Network bingo providers shall document each sale of network bingo supplies, equipment, and other incidental items to perform network bingo to any person for use in the Commonwealth of Virginia on an invoice, which reflects the following:

Name, address, and organization number of the organization;
Date of sale, lease, or rental and location where the network bingo supplies, equipment, and other incidental items to perform network bingo is shipped or delivered if different from the billing address;
Form number, serial number, quantity, and purchase or rental price of the network bingo supplies, equipment, and other incidental items to perform network bingo;
Quantity of network bingo cards sold, the cost per card, and the selling price per card; and
Date of the network bingo game in which the qualified organization participated, the start time and end time of the game, and the number of balls called during the game.

H. Network bingo providers shall ensure that two copies of the detailed invoice are provided to the customer for the sale of network bingo supplies, equipment, and other incidental items to perform network bingo.

I. Each network bingo provider shall provide a report to the department by March 1 of each year on the sale of network bingo supplies, equipment, and other incidental items to perform network bingo for the fiscal year ending December 31 of the previous year to each organization in the Commonwealth of Virginia. This report shall be provided to the department via a department-approved electronic medium. The report shall include the name, address, and organization number of each organization and the following information for each sale or transaction:

Date of sale, lease, or rental and location where the network bingo supplies, equipment, and other incidental items to perform network bingo is shipped or delivered if different from the billing address;
Serial number, quantity, and purchase or rental price of the network bingo supplies, equipment, and other incidental items to perform network bingo;
Quantity of network bingo cards sold, the cost per card, and the selling price per card;
Date of the network bingo game in which qualified organizations participated, the start time and end time of the game, the number of balls called during the game, the total gross receipts for the game; and
Prize amount awarded to the winning player and which organization sold the winning network bingo card.

J. A network bingo provider shall maintain documentation on all deposits and disbursements into the prize pool for the network bingo game.

K. A network bingo provider, its agents, and its employees; members of a network bingo provider's immediate family; or persons residing in a network bingo provider's household shall not make any loan directly or indirectly to any organization or officer, director, game manager, or entity involved in the management, operation, or conduct of charitable gaming of the network bingo provider's customer located in the Commonwealth of Virginia.

L. A network bingo provider, its agent, or its employee shall not directly or indirectly provide a rebate, discount, or refund to any person other than an organization that purchases, rents, or leases network bingo supplies, equipment, and other incidental items to perform network bingo. All such transactions shall be recorded on the network bingo provider's account books.

M. A network bingo provider shall not rent, sell, or otherwise provide network bingo supplies, equipment, and other incidental items to perform network bingo unless the network bingo provider possesses a valid permit in the Commonwealth of Virginia.

N. A written agreement specifying the terms of lease or rental between the network bingo provider and the qualified organization shall be required for any equipment used to perform network bingo.

O. A network bingo provider shall record the following information on each winner of a network bingo game:

Name and address of the winner;
Name of the qualified organization that sold the winning network bingo card;
Date and time when the winning network bingo card was purchased by the winner; and
Location where the winning network bingo card was purchased by the winner.

History

Statutory Authority: § 18.2-340.15 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

Article 2 General Requirements

11VAC20-20-460 Approval of equipment used to perform network bingo

A. The department shall set manufacturing and testing criteria for all equipment used to perform network bingo. Equipment used to perform network bingo shall not be sold, leased, or otherwise furnished to any person in the Commonwealth of Virginia for use as part of network bingo until an identical sample of equipment containing identical proprietary software has been certified by a testing facility that has been formally recognized by the department as a testing facility that upholds the standards of integrity established by the department. The testing facility must certify that the equipment conforms, at a minimum, to the requirements set forth in this chapter. Once the testing facility reports the test results to the department, the department will either approve or disapprove the equipment and inform the network provider of the results. If any such equipment does not meet the department's criteria, it shall be recalled and shall not be distributed in the Commonwealth of Virginia. The cost of testing shall be borne by the network provider of such equipment.

B. No network bingo provider shall knowingly sell or otherwise provide to an organization and no organization shall knowingly use equipment to perform network bingo unless it conforms to the requirements set forth in this chapter.

C. If a defect in any equipment used to perform network bingo is discovered by or reported to the department, the department shall notify the network bingo provider that is using the equipment containing the alleged defect. Should the department, in consultation with the network bingo provider, determine that a defect exists and should the department determine the defect affects game security or otherwise threatens public confidence in the game, the department may, with respect to any equipment used to perform network bingo still located within the Commonwealth of Virginia, require the network bingo provider to issue a recall of all affected equipment.

D. Department employees shall have the right to inspect all equipment used to perform network bingo. The department, at its discretion, may require additional testing of any equipment to perform network bingo at any time. Such additional testing shall be at the network provider's expense and shall be a condition of the continued use of such equipment.

E. Equipment used to perform network bingo shall have a permanently affixed identification badge that cannot be removed without leaving evidence of tampering. This badge shall be affixed to the exterior of the equipment and shall include the following information:

The manufacturer name;
A unique serial number;
The equipment model number;
The date of manufacture; and
Any other information required by the department.

History

Statutory Authority: § 18.2-340.15 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

Article 3 System Requirements

11VAC20-20-470 Location of equipment

All equipment used to perform network bingo must be physically located within the boundaries of the Commonwealth of Virginia.

History

Statutory Authority: § 18.2-340.15 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC20-20-480 Communications and network requirements

A. Where the network bingo system components are linked with one another in a network, communication protocols shall be used that ensure that erroneous data or signals will not adversely affect the operations of any such system components.

B. All data communication shall incorporate error detection and correction schemes to ensure the data is transmitted and received accurately.

C. Connections between all components of the network bingo system shall only be through the use of secure communication protocols that are designed to prevent unauthorized access or tampering, employing Advanced Encryption Standard (AES) or equivalent encryption.

D. A firewall or equivalent hardware device configured to block all inbound and outbound traffic that has not been expressly permitted and is not required for continued use of the network bingo system must exist between the network bingo system and any external point of access.

E. The minimum width (size) for encryption keys is 112 bits for symmetric algorithms and 1024 bits for public keys.

F. There must be a secure method implemented for changing the current encryption key set. It is not acceptable to only use the current key set to encrypt the next set.

G. There must be a secure method in place for the storage of encryption keys. Encryption keys must not be stored without being encrypted themselves.

H. If a wireless network is used, wireless products used in conjunction with any gaming system or system component must meet the following minimum standards:

Employ a security process that complies with the Federal Information Processing Standard 140-2 (FIPS 140-2); or
Employ an alternative method, as approved by the department.

History

Statutory Authority: § 18.2-340.15 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC20-20-490 Backup and recovery

A. A network bingo system shall have a separate physical medium for securely storing data for the network bingo game, which shall be mirrored in real time by a backup medium.

B. All data required to be available or reported by this chapter must be retained for a period of not less than three years from the close of the fiscal year.

C. All storage of critical data shall utilize error checking and be stored on a nonvolatile physical medium.

D. The database shall be stored on redundant media so that no single failure of any portion of the system would result in the loss or corruption of data.

E. In the event of a catastrophic failure when the network bingo system cannot be restarted in any other way, it shall be possible to reload the network bingo system from the last viable backup point and fully recover the contents of that backup, to consist of at least the following information:

All significant events;
All accounting information;
Auditing information, including all sales and disbursements; and
Employee files with access levels.

History

Statutory Authority: § 18.2-340.15 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC20-20-500 Security requirements

A. A network bingo system shall not permit the alteration of any accounting or significant event information that was communicated from a point-of-sale terminal without supervised access controls. In the event financial data is changed, an automated audit log must be capable of being produced to document the following:

Data element altered;
Data element value prior to alteration;
Data element value after alteration;
Time and date of alteration; and
Personnel that performed alteration.

B. A network bingo system must provide password security or other secure means of ensuring data integrity and enforcing user permissions for all system components through the following means:

All programs and data files must only be accessible via the entry of a password that will be known only to authorized personnel;
The network bingo system must have multiple security access levels to control and restrict different classes;
The network bingo system access accounts must be unique when assigned to the authorized personnel and shared accounts amongst authorized personnel must not be allowed;
The storage of passwords and personal identification numbers (PINs) must be in an encrypted, nonreversible form; and
A program or report must be available that will list all registered users on the network bingo system, including their privilege level.

C. All components of a network bingo system that allow access to users, other than the player, must have a password sign-on with at least two-level codes comprising the personal identification code and a personal password.

The personal identification code must have a length of at least six American Standard Code for Information Interchange (ASCII) characters; and
The personal password must have a minimum length of six alphanumeric characters, which should include at least one nonalphabetic character.

D. A network bingo system must have the capability to control potential data corruption that can be created by multiple simultaneous log-ons by system management personnel.

A network bingo system shall specify which of the access levels allow for multiple simultaneous sign-ons by different users and which of the access levels do not allow for multiple sign-ons, and if multiple sign-ons are possible, what restrictions, if any, exist; or
If a network bingo system does not provide adequate control, a comprehensive procedural control document must be drafted for the department's review and approval.

E. Network bingo system software components or modules shall be verifiable by a secure means at the system level. A network bingo system shall have the ability to allow for an independent integrity check of the components or modules from an outside source and an independent integrity check is required for all control programs that may affect the integrity of the network bingo system. This must be accomplished by being authenticated by a third-party device, which may be embedded within the network bingo system software or having an interface or procedure for a third-party application to authenticate the component. This integrity check will provide a means for field verification of the network bingo system components.

F. A network bingo system may be used to configure and perform security checks on the point-of-sale terminals, provided such functions do not affect the security, integrity, or outcome of any game and meets the requirements set forth in this chapter regarding program storage devices.

History

Statutory Authority: § 18.2-340.15 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC20-20-510 Randomization

A. As used in this section, unless the context requires a different meaning:

"Card position" means the first card dealt, second card dealt in sequential order.
"Number position" means the first number drawn in sequential order.

B. A network bingo system shall utilize randomizing procedures in the creation of network bingo cards.

C. Any random number generation, shuffling, or randomization of network bingo cards used in connection with a network bingo system must be by use of a random number generation application that has successfully passed standard tests for randomness and unpredictability including:

Each card position or number position satisfies the 99% confidence limit using the standard chi-squared analysis. "Chi-squared analysis" is the sum of the ratio of the square difference between the expected result and the observed result to the expected result.
Each card position or number position does not produce a significant statistic with regard to producing patterns of occurrences. Each card position or number position will be considered random if it meets the 99% confidence level with regard to the "run test" or any similar pattern testing statistic. The "run test" is a mathematical statistic that determines the existence of recurring patterns within a set of data.
Each card position or number position is independently chosen without regard to any other card or number drawn within that game play. This test is the "correlation test." Each pair of card positions or number positions is considered random if it meets the 99% confidence level using standard correlation analysis.
Each card position or number position is independently chosen without reference to the same card position or number position in the previous game. This test is the "serial correlation test." Each card position or number position is considered random if it meets the 99% confidence level using standard serial correlation analysis.

History

Statutory Authority: § 18.2-340.15 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC20-20-520 Point of sale terminal

A. A network bingo system may utilize a point-of-sale terminal that is capable of facilitating the sale of network bingo cards. The point of sale may be entirely integrated into a network bingo system or exist as a separate entity.

B. Point-of-sale use is only permissible when the device is linked to an approved network bingo system.

C. If a network bingo system utilizes a point of sale, it shall be capable of printing a receipt for each sale or void. The receipt shall contain the following information:

Date and time of the transaction;
Dollar value of the transaction;
Validation number, if applicable;
Quantity of network bingo cards purchased;
Transaction number;
Point-of-sale identification number or name; and
Date and time when the network bingo game will begin.

D. The following point-of-sale report shall be generated on demand. Sales transaction history report shall show all sales and voids by session and include the following information:

Date and time of the transaction;
Dollar value of the transaction;
Quantity of network bingo cards sold;
Transaction number;
Point of sale identification number or name; and
Date and time of the network bingo game.

History

Statutory Authority: § 18.2-340.15 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

11VAC20-20-530 Game play requirements

A. Any device that sells network bingo cards shall be clearly labeled so as to inform the public or game worker that no one younger than 18 years of age is allowed to play or redeem a network bingo card.

B. A network bingo provider shall have physical on-site independent supervision while the numbers for a network bingo game are called by a live caller. This independent supervision shall be unbiased in verifying the outcome of the network bingo game and uphold the department's objective of maintaining the highest level of integrity in charitable gaming. A written agreement specifying the terms of any arrangement between the entity or person providing the physical on-site independent supervision and the network bingo provider shall be required prior to any supervision being performed on the network bingo game. This written agreement shall be maintained by the network bingo provider for a minimum of three years from the close of the fiscal year, unless otherwise specified.

C. A network bingo provider shall ensure qualified organizations participating in its network bingo comply with § 18.2-340.28:1 F of the Code of Virginia.

D. A network bingo provider or the live caller shall announce the prize amount and the predetermined pattern to players immediately before the start of the network bingo game. Each location where a qualified organization is selling network bingo cards shall be equipped to visually display the broadcast or signal of the numbers as they are being called by a live caller.

E. Gross receipts from the sale of network bingo cards shall be allocated in the following manner:

Up to 50% of such receipts to the organization selling network bingo cards;
Up to 50% of gross receipts to the prize pool; and
Any remaining amount to the network bingo provider.

However, if the prize pool reaches the maximum prize limitation, then the network bingo provider shall enable the organization to retain those gross receipts normally allocated to the prize pool.

F. All written agreements specifying the terms of any arrangement between the qualified organization and network bingo provider shall be maintained by both parties for a minimum of three years from the close of the fiscal year, unless otherwise specified.

G. Network bingo prizes must be claimed by the player within 30 days of winning the game and if not, the network bingo provider shall roll the unclaimed prize into the prize pool for the next network bingo game. The network bingo provider shall pay the prize by check to the winning player within 30 days. If the outcome of a network bingo game results in multiple winning players, then the prize amount shall be equally divided among them.

H. No single network bingo prize shall exceed the prize limitation set forth in § 18.2-340.28:1 H of the Code of Virginia.

History

Statutory Authority: § 18.2-340.15 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.

Part VI Administrative Process

11VAC20-20-600 Procedural rules for the conduct of fact-finding conferences and hearings

A. As used in this part, "manufacturer" means a person or entity that assembles from raw materials or subparts a distributed pull-tab system.

B. Fact-finding conference; notification, appearance, and conduct.

Unless automatic revocation or immediate suspension is required by law, no permit to conduct charitable gaming, sell charitable gaming supplies, or distribute a distributed pull-tab system; no registration to lease a facility for the purpose of holding a poker tournament; or no authorization to operate and conduct electronic gaming shall be denied, suspended, or revoked except upon notice stating the basis for such proposed action and the time and place for a fact-finding conference as set forth in § 2.2-4019 of the Administrative Process Act.
If a basis exists for a refusal to renew, suspend, or revoke a permit or authorization, the department shall notify by certified mail or by hand delivery the interested persons at the address of record maintained by the department.
Notification shall include the basis for the proposed action and afford interested persons the opportunity to present written and oral information to the department that may have a bearing on the proposed action at a fact-finding conference. If there is no withdrawal, a fact-finding conference shall be scheduled at the earliest mutually agreeable date, but no later than 60 days from the date of the notification. Organizations; suppliers; persons who manage, operate, conduct, or administer poker tournaments; landlords leasing a facility for a poker tournament; or manufacturers who wish to waive their right to a conference shall notify the department at least 14 days before the scheduled conference.
If after consideration of evidence presented during an informal fact-finding conference, a basis for action still exists, the interested persons shall be notified in writing within 60 days of the fact-finding conference via certified or hand-delivered mail of the decision and the right to a formal hearing. Parties to the conference may agree to extend the report deadline if more time is needed to consider relevant evidence.

C. Hearing; notification, appearance, and conduct.

If after a fact-finding conference, a sufficient basis still exists to deny, suspend, or revoke a permit or authorization, interested persons shall be notified by certified or hand-delivered mail of the proposed action and of the opportunity for a hearing on the proposed action. If an organization; supplier; person who manages, operates, conducts, or administers a poker tournament; landlord leasing a facility for a poker tournament; or manufacturer desires to request a hearing, such party shall notify the department within 14 days of receipt of a report on the conference. Parties may enter into a consent agreement to settle the issues at any time prior to or subsequent to an informal fact-finding conference.
If an interested party or representative fails to appear at a hearing, the hearing officer may proceed in the interested party's or representative's absence and make a recommendation.
Oral and written arguments may be submitted to and limited by the hearing officer. Oral arguments shall be recorded in an appropriate manner.

D. Hearing location. Hearings before a hearing officer shall be held, insofar as practicable, in the county or city in which the organization; supplier; person who manages, operates, conducts, or administers a poker tournament; landlord leasing a facility for a poker tournament; or manufacturer is located. If the parties agree, hearing officers may conduct hearings at locations convenient to the greatest number of persons or by telephone conference, video conference, or similar technology, in order to expedite the hearing process.

E. Hearing decisions.

Recommendations of the hearing officer shall be a part of the record and shall include a written statement of the hearing officer's findings of fact and recommendations as well as the reasons or basis for the recommendations. Recommendations shall be based upon all the material issues of fact, law, or discretion presented on the record.
The department shall review the recommendation of the hearing officer and render a decision on the recommendation within 30 days of receipt. The decision shall cite the appropriate rule, relief, or denial thereof as to each issue.

F. Agency representation. The commissioner's designee may represent the department in an informal conference or at a hearing.

History

Statutory Authority: § 18.2-340.19 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023; amended, Virginia Register Volume 40, Issue 17, eff. May 9, 2024.

11VAC20-20-610 Reporting violations

A. Unless otherwise required by law, the identity of any individual who provides information to the department or its agents regarding alleged violations shall be held in strict confidence.

B. Any officer, director, or game manager of a qualified organization or social organization; officer or director of a supplier or manufacturer; person who manages, operates, conducts, or administers a poker tournament; or landlord leasing a facility for a poker tournament shall immediately report to the department any information pertaining to the suspected misappropriation or theft of funds or any other violation of the Charitable Gaming Law or regulations promulgated pursuant thereto.

C. Failure to report the information required by subsection B of this section may result in the denial, suspension, or revocation of a permit to conduct charitable gaming, permit to sell charitable gaming supplies, registration as a landlord, or authorization to operate and conduct electronic gaming.

D. Any officer, director, or game manager of a qualified organization or social organization involved in the management, operation, or conduct of charitable gaming or electronic gaming shall immediately notify the department upon being convicted of a felony or a crime involving fraud, theft, or financial crimes.

E. Any officer, director, partner, or owner of a supplier or manufacturer; person who manages, operates, conducts, or administers a poker tournament; or landlord leasing a facility for a poker tournament shall immediately notify the department upon being convicted or of pleading nolo contendere to a felony or a crime involving gambling or an action against any license or certificate held by the supplier or manufacturer in any state in the United States.

F. Failure to report information required by subsection D or E of this section by any officer, director, or game manager of a qualified organization or social organization or by any supplier or manufacturer may result in the denial, suspension, or revocation of a permit to conduct charitable gaming, permit to sell charitable gaming supplies, or authorization to operate and conduct electronic gaming.

G. Any officer, director, or game manager of a qualified organization involved in charitable gaming or electronic gaming shall immediately report to the department any change the IRS makes in the tax status of the organization, or if the organization is a chapter of a national organization covered by a group tax exempt determination, the tax status of the national organization.

H. All organizations regulated by the department shall display prominently a (i) poster advising the public of a telephone number where complaints relating to charitable gaming may be made and (ii) poster that bears a toll-free telephone number for "Gamblers Anonymous" or other organization that provides assistance to compulsive gamblers. Such posters shall be in a format prescribed by the department.

History

Statutory Authority: § 18.2-340.19 of the Code of Virginia.
Historical Notes: Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023; amended, Virginia Register Volume 40, Issue 17, eff. May 9, 2024.