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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: February 19, 2020
Time and Place: 8:00 am Senate Room A

H.B. 4 Lottery Board; regulation of casino gaming.

Patron: Knight

Lottery Board; regulation of casino gaming. Authorizes casino gaming in the Commonwealth to be regulated by the Virginia Lottery Board. The bill specifies the requirements for licensure of casino gaming operators and the conduct of casino gaming and imposes criminal and civil penalties for violations of the casino gaming law. The location of casino gaming establishments shall be limited to eligible host cities that meet specified criteria: the Cities of Portsmouth, Richmond, Norfolk, Danville, and Bristol. The bill requires each eligible host city to hold a referendum on the question of whether to allow casino gaming in the city and to hold such referendum at the November 2020 general election. The bill imposes a two-tier tax structure, with taxes ranging from 15 to 28 percent of the adjusted gross receipts of licensees based on the amount of capital investment that the licensee has made in the casino gaming establishment, and provides for the disbursement of tax revenues. The bill requires the Board to establish a voluntary exclusion program allowing individuals to voluntarily list themselves as being barred from entering a casino gaming establishment or other facility under the jurisdiction of the Board. The bill establishes the Problem Gambling Treatment and Support Fund, administered by the Commissioner of Behavioral Health and Developmental Services, and the Virginia Indigenous People's Trust Fund, both of which are funded by proceeds from the casino gaming tax revenues. The bill also establishes the Regional Improvement Commission, consisting of a representative of each jurisdiction composing the transportation district in which the City of Bristol is located, to receive disbursements of gaming tax revenues and to prioritize and fund improvements in those jurisdictions. The bill requires the Virginia Racing Commission to authorize an additional 600 historical horse racing terminals each time a local referendum held by an eligible host city is approved, provided that the total number of additional machines shall not exceed 2,500 statewide, and includes other provisions relating to the placement of horse racing terminals in the Commonwealth. The bill incorporates HB 374, HB 428, HB 560, HB 1343, and HB 1661.

A BILL to amend and reenact §§ 2.2-401.01, 2.2-3711, 15.2-2825, 19.2-389, as it is currently effective and as it shall become effective, 37.2-304, 58.1-4002, 58.1-4004, 58.1-4006, and 59.1-364 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 a section numbered 18.2-334.5, 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, containing articles numbered 1 through 10, consisting of sections numbered 58.1-4100 through 58.1-4130, relating to regulation of casino gaming by Virginia Lottery Board; Regional Improvement Commission; penalties.

20107727D

H.B. 881 Illegal gambling; skill games, exception.

Patron: Bulova

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.

20104783D

H.B. 896 Virginia Lottery; repeals prohibition against sale of lottery tickets over the Internet.

Patron: Sickles

Virginia Lottery; repeal prohibition against sale of lottery tickets over the Internet; sports betting; Problem Gambling Treatment and Support Fund; penalties. Directs the Virginia Lottery (the Lottery) to regulate sports betting. The bill prohibits the Lottery from issuing any permits to conduct sports betting until it has developed and published a consumer protection bill of rights.

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 from four to twelve permits at one time and is directed to issue an amount of permits that would maximize tax revenue collected pursuant to the bill. The Director also is authorized to issue a permit for a major league franchise to conduct in-person sports betting at a newly constructed facility.

The bill prohibits betting on Virginia college sports and youth sports. It also prohibits in-play bets on all college sports. 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 prohibits betting on the biometric data of an athlete and includes provisions for Lottery to investigate prohibited conduct, such as attempting to influence an athlete or the outcome of an athletic event.

The bill directs the Lottery to establish a voluntary exclusion program, which would allow individuals to request that the Lottery exclude them from engaging in various kinds of betting activity.

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 bill authorizes permit holders to carry over and deduct net losses for up to 12 months.

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 97.5 percent of tax revenue generated from sports betting would accrue to the general fund.

The bill authorizes the Lottery to sell tickets over the Internet. Under current law, it is prohibited from doing so. This bill incorporates HB 911.

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 58.1-4047; 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; penalties.

20107404D

H.B. 1681 Virginia Charitable Gaming Board; electronic versions of instant bingo, pull tabs or seal cards.

Patron: Willett

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 18.

 A BILL to amend and reenact § 18.2-340.26:1 of the Code of Virginia, relating to the Virginia Charitable Gaming Board; electronic versions of instant bingo, pull tabs or seal cards.

20106720D

H.B. 1690 Charitable gaming; increase in certain maximum allowable prize amounts.

Patron: Keam

Charitable gaming; increase in certain maximum allowable prize amounts. Increases the maximum allowable amount for a single bingo door prize from $50 to $250 and the maximum allowable cumulative door prizes in any one bingo session from $250 to $500. The bill also increases the maximum allowable regular bingo or special bingo game prize from $100 to $200 and the prize for a single instant bingo, pull tab, or seal card from $1,000 to $2,000. The bill increases the maximum allowable prize for a bingo jackpot from $1,000 to $2,000 and the total allowable amount of bingo jackpot prizes awarded in any one session from $1,000 to $2,000. Finally, the bill increases from $100 to $200 the allowable amount of increase of a progressive prize per session in certain progressive bingo games.

A BILL to amend and reenact § 18.2-340.33 of the Code of Virginia, relating to charitable gaming; increase in certain maximum allowable prize amounts.

20104802D