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2020 SESSION

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Senate Committee on General Laws and Technology
Subcommittee Gaming

McPike (Chair), Ebbin, Mason, Boysko, Bell, Ruff, Dunnavant, Pillion, Kiggans

Date of Meeting: January 23, 2020
Time and Place: Upon Adjournment of Senate Transportation / SR 3, The Capitol

S.B. 199

Patron: Barker

Conduct of charitable gaming. Removes restrictions regarding (i) the number of calendar days that charitable gaming may be conducted, (ii) the number of bingo sessions that may be played in any calendar day and the number of bingo games that may be played during each session, and (iii) the locations at which games may be played.

A BILL to amend and reenact §§ 18.2-340.19, 18.2-340.24, 18.2-340.25, 18.2-340.27, 18.2-340.28, 18.2-340.28:1, and 18.2-340.33 of the Code of Virginia and to repeal § 18.2-340.27:1 of the Code of Virginia, relating to the conduct of charitable gaming.

20101909D

S.B. 384

Patron: McPike


Virginia Lottery; repeal prohibition against sale of lottery tickets over the Internet; sports betting; Problem Gambling Treatment and Support Fund; Sports Betting Operations Fund; penalties. Directs the Virginia Lottery to regulate sports betting. Before administering a sports betting operation, an entity is required to apply for a three-year permit and pay an application fee of $250,000. Permit holders must apply for renewal of a permit every three years, which includes a renewal fee of $200,000. The Director may issue up to 10 permits at one time but is directed to issue an amount of permits that would maximize tax revenue collected pursuant to the bill.

Under the provisions of the bill, betting on an athletic event with a participant under age 18 is prohibited unless such event is a college or professional event. The bill prohibits betting by Lottery employees, permit holders and certain related persons, participants in athletic events on which the bet is placed, and persons under age 21. The penalty for engaging in prohibited betting is a Class 1 misdemeanor.

The bill directs the Lottery to establish a voluntary exclusion program, which would allow individuals to request that the Lottery exclude them from buying lottery tickets or participating in sports betting. The bill directs the Lottery to implement consumer protection measures.

The bill allows the governing body of a sports league to request that the Lottery (i) limit or prohibit people from betting on events of the league that it governs and (ii) restrict the information sources used to resolve bets that are placed after a sports event has begun.

The bill imposes a 20 percent tax on a permit holder's adjusted gross revenue, defined in the bill. The Lottery would retain 2.5 percent of the tax revenue to defray its costs of administering the program.

The bill creates the Problem Gambling Treatment and Support Fund, administered by the Department of Behavioral Health and Developmental Services. The Fund would be used to provide counseling to compulsive gamblers, implement problem gambling treatment and prevention programs, and provide grants to organizations that assist problem gamblers. The Fund would be funded by 2.5 percent of the revenue generated from sports betting. The remaining 95 percent of tax revenue generated from sports betting accrues to the Revenue Reserve Fund.

The bill authorizes the Lottery to sell tickets over the Internet. Under current law, it is prohibited from doing so.

A BILL to amend and reenact §§ 2.2-3711, 18.2-334.3, 37.2-304, 58.1-4000, 58.1-4002, 58.1-4007, 58.1-4027, 59.1-364, and 59.1-569 of the Code of Virginia; to amend the Code of Virginia by adding in Chapter 3 of Title 11 a section numbered 11-16.1, by adding in Article 1 of Chapter 3 of Title 37.2 a section numbered 37.2-314.1, by adding a section numbered 58.1-4015.1, and by adding in Chapter 40 of Title 58.1 an article numbered 2, consisting of sections numbered 58.1-4030 through 58.1-4048; and to repeal § 58.1-4007.2 of the Code of Virginia, relating to Virginia Lottery; repeal prohibition against sale of lottery tickets over the Internet; sports betting; Problem Gambling Treatment and Support Fund; Sports Betting Operations Fund; penalties.

20102548D

S.B. 387

Patron: McPike

Charitable gaming; special permit for the play of electronic versions of instant bingo, pull tabs, or seal cards on certain premises. Creates a special permit that shall be granted to a qualified organization that has already received a general permit for the conduct of charitable gaming from the Department of Agriculture and Consumer Services to allow such organization to place Department-approved electronic versions of instant bingo, pull tabs, or seal cards on the licensed premises of an entity licensed to sell alcoholic beverages for on-premises consumption with the consent of such licensee. The bill also exempts qualified organizations that are granted such special permit from certain requirements relating to (i) limits on the number of organizations for which a person may manage, operate, or conduct charitable games; (ii) prohibitions on providing compensation or any other remuneration to persons for organizing, managing, or conducting charitable games; or (iii) the use of proceeds derived from the conduct of charitable games, as those requirements relate to the management, operation, or conduct of charitable games pursuant to such special permit.

A BILL to amend and reenact §§ 18.2-340.27:1 and 18.2-340.28 of the Code of Virginia, relating to charitable gaming; special permit for the play of electronic versions of instant bingo, pull tabs, or seal cards on certain premises.

20102349D

S.B. 751

Patron: Reeves

Charitable gaming; regulations of the Charitable Gaming Board; creation of systems to ensure the integrity of certain games. Requires the Charitable Gaming Board to adopt regulations that create a system for ensuring the integrity of the management, operation, and conduct of instant bingo, pull tabs, and seal cards. The bill also requires the Board to adopt regulations that create a system that requires each electronic game of chance device approved by the Department of Agriculture and Consumer Services to be connected to a central monitoring and audit system for the purpose of ensuring the integrity of such devices. The bill requires that such system provide the ability to audit and account for device revenues and distributions in a timely and accurate manner. The bill requires that each electronic game of chance device store certain specified information, and that such information also be stored on a server, which shall be backed up at least once per day to an offsite storage facility controlled by the qualified organization. The bill provides that the regulations shall require that the server and offsite backup storage be accessible to the Board and employees of the Board and subject to third-party checks and validation as may be required by the Board. Finally, the bill requires the Board to adopt regulations that prohibit the remote modification or manipulation of Department-approved electronic games of chance.

A BILL to amend and reenact § 18.2-340.19 of the Code of Virginia, relating to charitable gaming; regulations of the Charitable Gaming Board; creation of systems to ensure the integrity of certain games.

20105103D

S.B. 752

Patron: Reeves

Virginia Fraud Against Taxpayers Act; illegal gambling device. Adds possession of an illegal gambling device to the list of violations for which a civil penalty may be assessed against a person who is found to have committed any such violation. The bill further permits the Attorney General to bring a criminal action for violations of illegal gambling laws.

A BILL to amend and reenact §§ 2.2-511, 8.01-216.3, and 18.2-338 of the Code of Virginia, relating to Virginia Fraud Against Taxpayers Act; illegal gambling device.

20104992D

S.B. 908

Patron: Norment

Illegal gambling; skill games; exception. Includes the playing or offering for play of any skill game in the definition of "illegal gambling." The bill also includes skill games within the definition of "gambling devices." The bill defines a "skill game" as an electronic, computerized, or mechanical contrivance, terminal, machine, or other device that requires the insertion of a coin, currency, ticket, token, or similar object to operate, activate, or play a game, the outcome of which is determined by any element of skill of the player and that may deliver or entitle the person playing or operating the device to receive cash; cash equivalents, gift cards, vouchers, billets, tickets, tokens, or electronic credits to be exchanged for cash; merchandise; or anything of value whether the payoff is made automatically from the device or manually. The bill exempts family entertainment centers from the prohibition against the playing or offering of any skill game, provided the prize won or distributed to a player by the skill games offered by such centers is a noncash, merchandise prize or a voucher, billet, ticket, token, or electronic credit redeemable only for a noncash, merchandise prize that also meets certain other requirements.

A BILL to amend and reenact § 18.2-325 of the Code of Virginia and to amend the Code of Virginia by adding a section numbered 18.2-334.5, relating to illegal gambling; skill games; exception.

20101803D

S.B. 909

Patron: Norment

Virginia Lottery Board; regulation of the manufacturing, distributing, owning, hosting, and playing of electronic gaming devices; penalties. Authorizes the manufacture, distribution, owning, hosting, and playing of electronic gaming devices in the Commonwealth, to be regulated by the Virginia Lottery Board. The bill specifies the licensing requirements for the manufacture, distribution, owning, and hosting of electronic gaming devices and imposes criminal and civil penalties for violations of the law and regulations related to electronic gaming devices. The bill directs the Board to establish a maximum combined number of electronic gaming devices that may be hosted at host locations throughout the Commonwealth. The bill prohibits any host location from being located within a one-mile radius of any lottery sales agent and prohibits any host location licensee from offering more than nine electronic gaming devices to the public for play at such host location's establishment. The bill imposes a 12 percent tax on all gross profits from the play of electronic gaming devices and provides for how the tax proceeds are disbursed. The bill also establishes the Problem Gambling Treatment and Support Fund, administered by the Commissioner of Behavioral Health and Developmental Services to provide counseling and other support services for compulsive and problem gamblers, develop problem gambling treatment and prevention programs, and provide grants to support organizations that provide assistance to compulsive gamblers.

A BILL to amend and reenact §§ 2.2-3711, 18.2-334.3, 19.2-389, as it is currently effective and as it shall become effective, 37.2-304, 58.1-4000, 58.1-4002, 58.1-4006, 58.1-4007, 58.1-4012, and 58.1-4027 of the Code of Virginia and to amend the Code of Virginia by adding in Chapter 3 of Title 11 a section numbered 11-16.1, by adding in Article 1 of Chapter 3 of Title 37.2 a section numbered 37.2-314.1, and by adding in Chapter 40 of Title 58.1 an article numbered 2, consisting of sections numbered 58.1-4030 through 58.1-4056, relating to the Virginia Lottery Board; regulation of the manufacturing, distributing, owning, hosting, and playing of electronic gaming devices; penalties.

20101806D

S.B. 922

Patron: Norment

Virginia Lottery; Internet sales. Repeals the prohibition on selling lottery tickets over the Internet.

A BILL to amend and reenact § 58.1-4007 of the Code of Virginia and to repeal § 58.1-4007.2 of the Code of Virginia, relating to Virginia lottery; Internet sales.

20104700D

S.B. 936

Patron: Petersen

Charitable Gaming Board; Texas Hold'em poker events. Allows certain qualified organization to conduct Texas Hold'em poker events in conjunction with its charitable gaming activities. The conditions under which a qualified organization may manage, operate, or contract with operators of or conduct Texas Hold'em poker games and tournaments shall be prescribed by the Charitable Gaming Board. In addition, the bill establishes the Problem Gambling Treatment and Support Fund administered by the Commissioner of Behavioral Health and Developmental Services to provide counseling and other support services for compulsive and problem gamblers, develop problem gambling treatment and prevention programs, and provide grants to supporting organizations that provide assistance to compulsive gamblers.

A BILL to amend and reenact §§ 18.2-334.2, 18.2-340.16, 18.2-340.19, 18.2-340.22, and 37.2-304 of the Code of Virginia and to amend the Code of Virginia by adding a section numbered 18.2-340.28:2 and by adding in Article 1 of Chapter 3 of Title 37.2 a section numbered 37.2-314.1, relating to charitable gaming; Texas Hold'em poker tournaments.

20104840D

S.B. 959

Patron: Barker

Lottery; repeal prohibition of Internet sales of lottery tickets. Authorizes the Lottery to sell tickets over the Internet. Under current law, it is prohibited from doing so.

A BILL to amend and reenact § 58.1-4007 of the Code of Virginia and to repeal § 58.1-4007.2 of the Code of Virginia, relating to Lottery; repeal prohibition of Internet sales of lottery tickets.

20104906D

S.B. 960

Patron: Ruff

Virginia Lottery Board; regulation of the manufacturing, distributing, operating, hosting, and playing of dominant skill video games; penalties. Authorizes the manufacture, distribution, operation, hosting, and playing of dominant skill video games, defined in the bill, in the Commonwealth, to be regulated by the Virginia Lottery Board. The bill specifies the licensing requirements for the manufacture, distribution, operation, and hosting of dominant skill video games and imposes criminal and civil penalties for violations of the law and regulations related to dominant skill video games. The bill imposes a 20 percent tax on all gross profits generated from the play of dominant skill video games and the sale of fills, defined in the bill, by distributor licensees to operator licensees and provides for how the tax proceeds are disbursed. The bill also establishes the Problem Gambling Treatment and Support Fund, administered by the Commissioner of Behavioral Health and Developmental Services to provide counseling and other support services for compulsive and problem gamblers, develop problem gambling treatment and prevention programs, and provide grants to support organizations that provide assistance to compulsive gamblers.

A BILL to amend and reenact §§ 2.2-3705.6, 2.2-3711, 18.2-334.3, 19.2-389, as it is currently effective and as it shall become effective, 37.2-304, 58.1-4000, 58.1-4002, 58.1-4006, 58.1-4007, 58.1-4012, and 58.1-4027 of the Code of Virginia and to amend the Code of Virginia by adding in Chapter 3 of Title 11 a section numbered 11-16.1, by adding in Article 1 of Chapter 3 of Title 37.2 a section numbered 37.2-314.1, and by adding in Chapter 40 of Title 58.1 an article numbered 2, consisting of sections numbered 58.1-4030 through 58.1-4056, relating to the Virginia Lottery Board; regulation of the manufacturing, distributing, operating, hosting, and playing of dominant skill video games; penalties.

20104736D

S.B. 971

Patron: Howell

Gaming in Virginia; penalties. Authorizes the manufacture, distribution, owning, hosting, and playing of electronic gaming devices in the Commonwealth, to be regulated by the Virginia Lottery Board. The bill specifies the licensing requirements for the manufacture, distribution, owning, and hosting of electronic gaming devices and imposes criminal and civil penalties for violations of the law and regulations related to electronic gaming devices. The bill prohibits any host location licensee from offering more than nine electronic gaming devices to the public for play at such host location's establishment. The bill imposes a 10 percent tax on all gross profits from the play of electronic gaming devices and provides for how the tax proceeds are disbursed. The bill also establishes the Problem Gambling Treatment and Support Fund, administered by the Commissioner of Behavioral Health and Developmental Services to provide counseling and other support services for compulsive and problem gamblers, develop problem gambling treatment and prevention programs, and provide grants to support organizations that provide assistance to compulsive gamblers.

A BILL to amend and reenact §§ 2.2-3711, 18.2-334.3, 19.2-389, as it is currently effective and as it shall become effective, 37.2-304, 58.1-4000, 58.1-4002, 58.1-4006, 58.1-4007, 58.1-4012, and 58.1-4027 of the Code of Virginia and to amend the Code of Virginia by adding in Chapter 3 of Title 11 a section numbered 11-16.1, by adding in Article 1 of Chapter 3 of Title 37.2 a section numbered 37.2-314.1, and by adding in Chapter 40 of Title 58.1 an article numbered 2, consisting of sections numbered 58.1-4030 through 58.1-4056, relating to the gaming in Virginia; penalties.

20105453D

S.B. 1052

Patron: Reeves

Virginia Charitable Gaming Board; regulations of the Board; electronic or mechanical equipment used in the conduct of charitable gaming. Increases the number of electronic pull tabs that may be placed in the social quarters of a qualified organization from nine, as currently provided by Virginia Charitable Gaming Board regulations, to 28.

A BILL to amend and reenact § 18.2-340.19 of the Code of Virginia, relating to the Virginia Charitable Gaming Board; regulations of the Board; electronic or mechanical equipment used in the conduct of charitable gaming.

20104738D

S.B. 1059

Patron: Petersen


Sports betting; Virginia Sports Betting Department created; Problem Gambling Treatment and Support Fund; Sports Betting Operations Fund; penalties. Establishes the Virginia Sports Betting Department and authorizes it to regulate sports betting. Before administering a sports betting operation, an entity is required to apply for a one-year license and pay an application fee of $50,000 to operate a sports betting facility or $100,000 to operate a sports betting platform. An entity could apply for a license to operate only (i) at a racetrack or off-track betting facility in a locality that as of 2020 had approved such facilities at referendum or (ii) in a locality that votes to allow sports betting at referendum. The Department could issue up to five licenses to operate a sports betting facility; however, this limit would not apply to a facility at an existing racetrack or off-track betting facility. The Department could issue up to three licenses to operate a sports betting platform.

Under the provisions of the bill, betting on college sports and youth sports is prohibited, and betting on professional sports is allowed. The bill prohibits betting by Department employees, participants in athletic events on which the bet is placed, and persons under age 18. The penalty for engaging in prohibited betting is a Class 1 misdemeanor.

The bill directs the Department to establish a voluntary exclusion program, which would allow individuals to request that the Department exclude them from participating in sports betting.

The bill imposes a 15 percent tax on revenue from sports betting facilities and a sports betting platforms. The bill uses part of the tax revenue to fund the Department's operating costs, treatment of problem gambling, and contributions to the horsemen's purse account. Such initiatives are funded by an aggregate of five percent of the tax revenue. Fifty percent of tax revenue would accrue to the locality in which it was generated, and 45 percent would accrue to the Virginia Foundation for Community College Education Fund, which is used to provide monetary assistance to Virginia residents who are enrolled in a Virginia community college.

A BILL to amend and reenact §§ 2.2-3705.3, 2.2-3711, 18.2-334.3, 37.2-304, 59.1-364, and 59.1-569 of the Code of Virginia and to amend the Code of Virginia by adding in Chapter 3 of Title 11 a section numbered 11-16.1, by adding in Article 1 of Chapter 3 of Title 37.2 a section numbered 37.2-314.1, and by adding in Title 58.1 a chapter numbered 41, consisting of sections numbered 58.1-4100 through 58.1-4124, relating to sports betting; Virginia Sports Betting Department created; Problem Gambling Treatment and Support Fund; Sports Betting Operations Fund; penalties.

20105418D

S.B. 1063

Patron: McPike

Virginia Lottery Board; regulation of the manufacturing, distributing, operating, servicing, hosting, and playing of video game terminals; penalties. Authorizes the manufacturing, distributing, operating, servicing, hosting, and playing of video game terminals in the Commonwealth, to be regulated by the Virginia Lottery Board. The bill specifies the licensing requirements for the manufacture, distribution, operating, servicing, and hosting of video game terminals, requires employees of such licensees to be registered with the Lottery Department, and imposes criminal and civil penalties for violations of the law and regulations related to video game terminals. The bill prohibits any host location licensee from offering more than five electronic gaming devices to the public for play at such host location's establishment. The bill imposes a 10 percent tax on all gross profits from the play of video game terminals and provides for how the tax proceeds are disbursed. The bill also establishes the Problem Gambling Treatment and Support Fund, administered by the Commissioner of Behavioral Health and Developmental Services, to provide counseling and other support services for compulsive and problem gamblers, develop problem gambling treatment and prevention programs, and provide grants to support organizations that provide assistance to compulsive gamblers.

A BILL to amend and reenact §§ 2.2-3711, 18.2-334.3, 19.2-389, as it is currently effective and as it shall become effective, 37.2-304, 58.1-4000, 58.1-4002, 58.1-4006, 58.1-4007, 58.1-4012, and 58.1-4027 of the Code of Virginia and to amend the Code of Virginia by adding in Chapter 3 of Title 11 a section numbered 11-16.1, by adding in Article 1 of Chapter 3 of Title 37.2 a section numbered 37.2-314.1, and by adding in Chapter 40 of Title 58.1 an article numbered 2, consisting of sections numbered 58.1-4030 through 58.1-4057, relating to the Virginia Lottery Board; regulation of the manufacturing, distributing, operating, servicing, hosting, and playing of video game terminals; penalties.

20105580D