Virginia 2025 Regular Session

Virginia House Bill HB2747 Compare Versions

Only one version of the bill is available at this time.

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1	1	2025 SESSION
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3	3	INTRODUCED
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5	5	25105308D
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7	7	HOUSE BILL NO. 2747
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9	9	Offered January 17, 2025
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11	11	A BILL to amend and reenact 2.2-510, 2.2-511, 18.2-325, 18.2-326, 18.2-329, 18.2-330, 18.2-331, 18.2-331.1 of the Code of Virginia, relating to regulating electronic gaming devices, licensees, taxation, placement and compliance; penalties.
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15	15	PatronFeggans
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19	19	Committee Referral Pending
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23	23	Be it enacted by the General Assembly of Virginia:
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25	25	1. That 2.2-510, 2.2-511, 18.2-325, 18.2-326, 18.2-329, 18.2-330, 18.2-331, 18.2-331.1 of the Code of Virginia are amended and reenacted as follows:
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27	27	CHAPTER 40 of Title 58.1 Article 3.
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29	29	58.1-4048. Definitions.
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31	31	There is hereby created in the state treasury a special nonreverting fund to be known as the Gaming Regulatory Fund, referred to in this section as "the Fund." The Fund shall be established on the books of the Comptroller. All funds appropriated for such purpose and any gifts, donations, grants, bequests, and other funds received on its behalf shall be paid into the state treasury and credited to the Fund. Interest earned on moneys in the Fund shall remain in the Fund and be credited to it. Any moneys remaining in the Fund, including interest thereon, at the end of each fiscal year shall not revert to the general fund but shall remain in the Fund. Moneys in the Fund shall be used solely to offset the Department's costs associated with (i) the conduct of investigations required by 58.1-4032, 58.1-4043, 58.1-4104, 58.1-4109, 58.1-4116, 58.1-4120, or 58.1-4121 or any other provision of this article or Chapter 41 ( 58.1-4100 et seq.) and (ii) the enforcement of regulations promulgated by the Virginia Lottery Board pursuant to subdivisions A 14 and 15 of 58.1-4007, subdivision 2 of 58.1-4102, and 58.1-4103. Expenditures and disbursements from the Fund shall be made by the State Treasurer on warrants issued by the Comptroller upon written request signed by the Director.
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33	33	Adjusted gross gaming revenue, the amount of revenue generated by an electronic gaming terminal remaining: (a) after payments of winnings to players; and, (b) after deduction by the Commission of that amount necessary to pay direct administrative costs for the operation of the centralized control system, but before deduction of the adjusted gross gaming revenue tax.
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35	35	"Adjusted gross gaming revenue tax means a tax of twenty percent (20%) imposed on adjusted gross gaming revenue.
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37	37	Net terminal income means the amount of adjusted gross gaming revenue remaining after deduction of adjusted gross gaming revenue tax to be divided between the retailer and the operator.
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39	39	Central control system means a computerized system developed or procured by the Commission to which electronic gaming terminals are connected, using standard industry protocols that can activate or deactivate a particular electronic gaming terminal from a remote location, and that is capable of monitoring and auditing electronic gaming terminal plays.
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41	41	Commission means Virginia Gaming Commission and any successor department(s) or agency(s) designated by the Virginia General Assembly to regulate electronic gaming terminals.
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43	43	"Distributor" means a person that manufactures, distributes, sells or leases electronic gaming terminals, electronic gaming terminal games, components or parts, and other ancillary components, software and hardware for electronic gaming terminals, to manufacturers, distributors or operators.
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45	45	Electronic gaming terminal means a device that: (a) exchanges currency, tickets, ticket vouchers, or electronic payment methods approved by the Commission for credit to play electronic gaming terminal games approved by the Commission the outcome of which are determined predominately by either chance or by the skill of the player; (b) uses a video display, computer, microprocessors, and a random number generator capable of randomly generating the outcome of electronic gaming terminal games; (c) is configured to print and issue a ticket at the conclusion of any electronic gaming terminal game play that may be redeemed at a redemption terminal for cash or may be reinserted into an electronic gaming terminal at the same retailer location for electronic gaming terminal game credit and game plays, commonly known as ticket-in ticket-out; and (d) meets the minimum requirements set forth in this Chapter. Electronic gaming terminal does not include any mobile telephone device, charitable games authorized pursuant to Article 1.1:1 ( 18.2-340.15 et seq.) of Chapter 8 of Title 18.2, sports betting authorized under Article 2 ( 58.1-4030 et seq.), casino gaming authorized under Chapter 41 ( 58.1-4100 et seq.), or historical horse racing authorized pursuant to Chapter 29 ( 59.1-364 et seq.) of Title 59.1.
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47	47	Electronic gaming terminal game means any game approved by the Commission for play on an electronic gaming terminal approved by the Commission.
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49	49	Electronic game credit or credit means a credit purchased or won on an electronic gaming terminal that may be used to play electronic gaming terminal games or converted into an electronic game ticket.
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51	51	Electronic game ticket or ticket means document printed at the conclusion of any electronic gaming terminal play or group of plays that is redeemable for cash utilizing a redemption terminal, or that may be reinserted into an electronic gaming terminal located in the retailer location for electronic gaming terminal game play, commonly known as ticket-in ticket-out.
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53	53	Gaming area means that area of the retailer's business location designated by the Operator and approved by the Commission for the placement and operation of the electronic gaming terminals. The gaming area shall be a designated area where all electronic gaming terminals, redemption terminals and ancillary equipment necessary for the operation of the electronic gaming terminals are located. The Commission shall adopt minimum standards for the gaming area.
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55	55	"Independent testing laboratory" means a laboratory selected by the Commission outside testing laboratories that have been accredited in accordance with ISO/IEC 17025 by an accreditation body that is a signatory to the International Laboratory Accreditation Cooperation Mutual Recognition Agreement signifying they are qualified to perform such examinations. Notwithstanding any law to the contrary, the Commission shall consider the licensing of independent outside testing laboratory applicants in accordance with procedures established by the Commission by rule. The Commission shall not withhold its approval of an independent outside testing laboratory license applicant that has been accredited as required by this Section and is licensed in lottery jurisdictions comparable to Virginia. Upon the finalization of required rules, the Commission shall license independent testing laboratories and accept the test reports of any licensed testing laboratory of the electronic gaming terminal or associated equipment manufacturer's choice, notwithstanding the existence of contracts between the Commission and any independent testing laboratory. Commission with a national reputation for honesty, independence, and timeliness that is demonstrably competent and qualified to scientifically test and evaluate electronic gaming devices for compliance with this article and to otherwise perform the functions assigned to it by this article. An independent testing laboratory shall not be owned or controlled by a manufacturer, distributor, operator, or host location licensee or the Commonwealth.
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57	57	"Individual" means a natural person.
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59	59	"Inducement" means anything of value offered, given, transferred, or paid, directly or indirectly, by an operator, or any employee, agent, contractor or other person acting on behalf of any operator, to any retailer, or any employee, investor, agent, owner or officer of any retailer to solicit, enter into, grant, execute, renew, extend or maintain a use agreement by and between the operator and the retailer, including but not limited to any cash, incentive, marketing and advertising cost, gift, food, beverage, loan, financing arrangement, prepayment of gross revenue, or any other contribution or payment that offsets a host's capital or operational costs, or as otherwise determined by the Commission.
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61	61	"Inducement" does not include the following costs paid by an operator:
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63	63	1. Costs for structural changes or modular materials or equipment used to segregate the gaming area, to meet minimum standards for the gaming area as established by the Commission or to maintain the security of the gaming area, the electronic gaming terminals and redemption terminals; provided, however, that such costs shall not exceed $5,000; provided further, however, that any costs in excess of $5,000 may be shared equally between the operator and the retailer, or the applicant for a retailer license.
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65	65	2. Surveillance equipment, alarm systems and similar equipment or systems intended to monitor and secure the gaming area, the electronic gaming terminals, redemption terminals, the perimeter of the retailer location and any means of ingress and egress thereto, and any means of ingress and egress to the gaming area.
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67	67	3. The wiring or rewiring of the gaming area necessary to operate electronic gaming terminals, redemption terminals or ancillary equipment; provided, however that such costs shall not exceed $5,000; provided further, however, that that any costs in excess of $5,000 may be shared equally between the operator and the retailer, or the applicant for a retailer license.
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69	69	4. Any software updates to electronic gaming terminals or redemption terminals, ongoing maintenance of electronic gaming terminals, redemption terminals, network connections, site controllers, chairs, tables, supports or other ancillary equipment necessary to operate the electronic gaming devices and the redemption terminals in the gaming area.
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71	71	5. Any requirement established by the Commission regarding minimum standards for the operation of electronic gaming terminals, redemption terminals or the gaming area that the Commission determines may be paid for, in whole or in part, by the operator.
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73	73	6. The operator and retailer shall report to the Commission all costs paid by the operator identified above pursuant to rules adopted by the Commission.
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75	75	"Institutional investor" means a retirement fund administered by a public agency for the exclusive benefit of federal, state or local public employees, an investment company registered under section 8 of the Investment Company Act of 1940 (15 U.S.C. 80a-8), a collective investment trust organized by a bank under Part 9 of the Rules of the Comptroller of the Currency (12 CFR 9.18), A closed end investment trust registered with the United States Securities and Exchange Commission, a chartered or licensed life insurance company or property and casualty insurance company; a federal or state bank, and investment advisor registered under the Investment Advisors Act of 1940 (15 U.S.C. 80b-1 through 80b-21); or such other person as the Commission may determine for reasons consistent with this Article.
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77	77	"Licensee" or "license holder" means any person holding a manufacturer, distributor, operator, or retailer license under this article.
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79	79	"Manufacturer" means a person that manufactures and sells or leases electronic gaming terminals, electronic gaming terminal games, components or parts, and other ancillary components, software and hardware for electronic gaming terminals, to distributors or operators.
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81	81	"Operator" means any person that owns, leases, operates, maintains and places electronic gaming terminals at retailer locations pursuant to use agreements by and between the operator and the retailer.
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83	83	"Person" means any natural person, individual, group of individuals, firm, company, corporation, limited liability company, partnership, business, trust, association, or other legal entity.
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85	85	"Player" means an individual who plays an electronic gaming terminal.
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87	87	Procurement agent means a person who is an employee or independent contractor of an operator to solicit and procure use agreements from retailers on behalf of an operator Procurement agents shall be licensed by the Commission pursuant to rules adopted by the Commission.
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89	89	"Publicly traded corporation" means a person, other than an individual, that (i) has a class or series of securities registered under the Securities Exchange Act of 1934 (48 Stat. 881, 15 U.S.C. 78a et seq.), (ii) is a registered management company under the Investment Company Act of 1940 (54 Stat. 789, 15 U.S.C. 80a-1 et seq.), or (iii) is subject to the reporting obligations imposed by 15(d) of the Securities Exchange Act of 1934 by reason of having filed a registration statement that has become effective under the Securities Act of 1933 (48 Stat. 74, 15 U.S.C. 77a et seq.).
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91	91	Redemption terminal means a device, software, communications technology, and other ancillary equipment used to facilitate the redemption and payment of tickets cashed out by players as a result of playing an electronic gaming terminal. All redemption devices shall be approved by the Commission.
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93	93	"Retailer" means any person authorized by the Virginia Lottery to offer and sell lottery games or products who is licensed by the Commission to host electronic gaming terminals in the gaming area at the retailer location, which are placed, operated and offered to the public for play by an operator pursuant to a use agreement between the retailer and the operator.
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95	95	Retailer location means the retailer's principal place of business.
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97	97	"Single play" means the period beginning when a player pays an electronic gaming terminal credit activating an electronic gaming terminal game play function and concludes upon the outcome of such electronic gaming terminal game play, and such game play function will not continue without payment by the player of an additional electronic gaming terminal credit.
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99	99	"Subsidiary" means a person, other than an individual, including (i) a corporation, a significant part of whose outstanding equity securities are owned, subject to a power or right of control or held with power to vote, by a holding company or an intermediary company; (ii) a significant interest in a person, other than an individual, that is owned, subject to a power or right of control or held with power to vote, by a holding company or an intermediary company; or (iii) a person deemed to be a subsidiary by the Commission.
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101	101	"Successful player" means an individual who wins on one or more plays of an electronic gaming terminal device.
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103	103	Use agreement a written contract executed by and between a retailer and an operator on that form approved by the Commission establishing the right of the operator to place and operate electronic gaming terminals on the location of a retailer.
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105	105	58.1-4049. Powers and duties of the Commission.
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107	107	A. The Commission shall have the following powers and duties related to the regulation of electronic gaming terminals:
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109	109	1. Issue licenses under this article, and regulated and supervise all activities licensed under the provisions of this article, including the manufacturing, distributing, operating, hosting, and playing of electronic gaming terminals;
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111	111	2. Impose fines, suspend, revoke, or refuse to renew any licensee or license or issued pursuant to this article or the rules and regulations adopted by the Commission pursuant to this article;
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113	113	3. Inspect, investigate, and have free access to the offices, facilities, or other places of business of any licensee, and compel the production of any books, documents, records, or memoranda of any licensee for the purpose of satisfying himself that this article and Commission regulations are strictly complied with;
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115	115	4. Order such audits as deemed necessary;
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117	117	5. Certify and report monthly to the Governor, the Secretary of Finance, and the Chairmen of the Senate Committee on Finance and Appropriations, House Committee on Finance, and House Committee on Appropriations State Comptroller and the Commission a full and complete statement of adjusted gross gaming revenue, and adjusted gross gaming revenue tax from electronic gaming terminals for the previous month;
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119	119	6. Conduct and perform all acts and adopt such regulations necessary and advisable to carry out the purposes of this article;
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121	121	7. Upon request by the assessing official of a county or municipality, the Commission shall provide to such assessing official of such municipality or county the adjusted gross gaming revenue generated by electronic gaming terminals located in such municipality or county pursuant to this article.
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123	123	58.1-4050. Additional powers and duties of the Commission related to electronic gaming devices.
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125	125	A. In addition to the regulations adopted pursuant to this article, the Commission shall promulgate regulations related to electronic gaming terminals that:
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127	127	1. Develop such forms, licenses, identification cards, and applications as are necessary or convenient for the administration of this article;
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129	129	2. Provide a schedule of application, license, and renewal fees that shall be sufficient to cover the costs of the administration and enforcement of electronic gaming terminals pursuant to this article;
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131	131	3. Establish requirements for all licensees under this article for the form, content, and retention of all records and accounts;
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133	133	4. Establish a process for the approval or disapproval of electronic gaming terminals, electronic gaming terminal games, and redemption devices;
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135	135	5. Establish cash handling and accounting procedures for operators that require such licensees to keep separate accounts for electronic gaming and nongaming transactions;
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137	137	6. Require inspections of all licensees at a frequency determined by the Commission;
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139	139	7. Establish a program of periodic testing and inspection for all electronic gaming terminals; and
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141	141	8. Prohibit licensees and their affiliates from advertising or marketing their products and services related to electronic gaming terminals to the public. However, (i) licensees shall be allowed to describe their products and services on a website and social media site operated and maintained by the licensee pursuant to rules adopted by the Commission; (ii) retailer licensees shall be allowed to advertise on one sign physically located at the retailer location, provided such sign is no larger than four feet in height by eight feet in width and containing messages approved by the Commission; and (iii) licensees shall be allowed to advertise and market their products and services through voluntary player rewards programs that allow players to opt out of such program, pursuant to rules adopted by the Commission.
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143	143	B. There is hereby created a Special Gaming Enforcement Fund. Ten percent (10%) of all fees collected by the Commission pursuant to this Article shall be deposited into the Special Gaming Enforcement Fund for use by the Attorney General in funding enforcement actions involving violations of Chapter 40 of Title 58.1 Article 3 and violations of Chapter 8 of Title 18.2, Article 1.
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145	145	58.1-4051. Licenses.
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147	147	A. The Commission may grant the following licenses:
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149	149	1. Manufacturer license, which shall authorize the licensee to function and operate as a manufacturer pursuant to this article.
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151	151	2. Distributor license, which shall authorize the licensee to function and operator as a distributor pursuant to this article.
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153	153	3. Operator license, which shall authorize the licensee to function and operate as an operator pursuant to this article.
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155	155	4. Retailer license, which shall authorize the licensee to function and operate as a retailer pursuant to this article.
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157	157	B. Notwithstanding the provisions of subsection A, no application or license shall be required by the Commission for an institutional investor if the institutional investor holding securities or other ownership interests in a licensee were purchased for investment purposes only. No application or license shall be required for an institutional investor that holds securities or other ownership interests, so long as such institutional investor files with the Commission a certified statement that: (1) it has no intention of influencing or affecting, directly or indirectly, the affairs of the licensee, provided, however, that such institutional investor shall be permitted to vote on matters put to the vote of the outstanding security holders; and (2) such other matters determined necessary for the administration of this article by the Commission pursuant to rules promulgated by the Commission.
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159	159	58.1-4052. General licensing requirements; penalty.
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161	161	A. An applicant for a manufacturer, distributor, operator, or retailer host license shall submit an application to the Commission on forms provided by the Commission, accompanied by any fees required by the Commission.
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163	163	B. The chief security officer of the Commission shall conduct a background investigation, to include a Virginia Criminal History Records search and fingerprinting, that shall be submitted to the Federal Bureau of Investigation if the Commission deems a national criminal history records search is necessary, on applicants for licensure pursuant to this article.
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165	165	C. The Commission shall refuse to grant a license to any person, and shall suspend, revoke, or refuse to renew a license issued pursuant to this article to any person, who has been (i) convicted of any crime involving moral turpitude, (ii) convicted of illegal gambling, (iii) convicted of fraud or misrepresentation, (iv) convicted of any felony, or (v) found to have engaged in conduct prejudicial to public confidence in the Commission, or any activity regulated by the Commission, including but not limited to the manufacture, distribution, operation, placing or hosting electronic gaming terminals.
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167	167	D. The Commission shall refuse to grant a license or shall suspend, revoke, or refuse to renew a license issued pursuant to this article to a partnership or corporation if he determines that any general or limited partner, or officer or Commission of such partnership or corporation, has been (i) convicted of a crime involving moral turpitude, (ii) convicted of bookmaking or other forms of illegal gambling, (iii) found guilty of any fraud or misrepresentation in any connection, (iv) convicted of a felony, or (v) found to have engaged in conduct prejudicial to public confidence in electronic gaming devices.
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169	169	E. The Commission may also refuse to grant a license pursuant to this article if:
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171	171	1. The Commission reasonably believes that the applicant or any general or limited partner, or officer or director of such applicant lacks good character, honesty, or integrity;
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173	173	2. The Commission reasonably believes that the applicant's prior activities, criminal record, reputation, or associations are likely to either (i) pose a threat to the public interest, (ii) impede the regulation of electronic gaming terminals, or (iii) promote unfair or illegal activities in the conduct of electronic gaming terminals;
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175	175	3. The applicant or any general or limited partner or any agent, officer or director of such applicant knowingly makes a false statement of material fact to the Commission, or deliberately fails to disclose information requested by the Commission;
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177	177	4. The applicant or any general or limited partner or any officer or Commission of such applicant knowingly fails to comply with the provisions of this article or any requirements of the Commission;
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179	179	5. The applicant's license to manufacture, distribute, operate, or offer to the public for play an electronic gaming terminal or similar gambling device, or to otherwise engage in regulated, legal gambling activity issued by any other jurisdiction has been suspended or revoked;
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181	181	6. The applicant defaults in payment of any obligation or debt due to the Commonwealth.
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183	183	F. Any person who knowingly and willfully falsifies, conceals, or misrepresents a material fact or knowingly and willfully makes a false, fictitious, or fraudulent statement or representation in any application pursuant to this article is guilty of a Class 1 misdemeanor. The Commission shall revoke the license of a licensee if, subsequent to the issuance of the license, the Commission determines that the licensee knowingly made a false statement of material fact to the Commission in applying for the license.
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185	185	58.1-4053. License posting; expiration.
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187	187	A. Each license granted by the Commission shall designate the place where the business of the licensee will be carried out.
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189	189	B. Each license shall be posted in a location conspicuous to the public at the place where the licensee carries out the business for which the license is granted.
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191	191	C. The privileges conferred by any license granted by the Commission shall continue until the last day of the twelfth month next ensuing or the last day of the designated month and year of expiration, except the license may be sooner terminated for any cause for which the Commission would be entitled to refuse to grant a license or by operation of law, voluntary surrender, or order of the Commission.
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193	193	D. The Commission may grant licenses for one year or for multiple years, not to exceed five years. Qualifications for a multiyear license shall be determined on the basis of criteria established by the Commission. Fees for multiyear licenses shall not be refundable.
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195	195	E. 60 days before the expiration of a license, the license holder may submit a renewal application on forms prescribed by the Commission. The Commission may deny a license renewal if the Commission finds grounds for denial as described in 58.1-4052.
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197	197	58.1-4054. Prohibition against the issuance of multiple licenses to one person.
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199	199	A. For purposes of this section, interest means the direct or indirect ownership, equity ownership, stock ownership, financial interest, loan, financial arrangement, investment, employment, management or other similar interest by a person, including but not limited to being an investor, shareholder, member, partner, lender, officer, director, or employee, in a licensee licensed pursuant to this article.
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201	201	B. No licensee that has been issued a manufacturer license or a distributor license shall be issued an operator license or a retailer license. A person licensed as a manufacturer or a distributor shall not have any interest in any operator, or retailer. A licensee that has been issued a manufacturer license may also be issued a distributor license or have an interest in a distributor. A licensee that has been issued a distributor license may also be issued a manufacturer license or have an interest in a manufacturer licensee.
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203	203	C. No licensee that has been issued an operator license shall be issued a manufacturer, distributor or retailer license. A person licensed as an operator shall not have any interest in any manufacturer, distributor or retailer.
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205	205	D. No licensee that has been issued a retailer license shall be issued a manufacturer, distributor or operator license. A person licensed as a retailer shall not have any interest in any manufacturer, distributor or operator.
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207	207	58.1-4055. Prohibition against transferring licenses or use agreements without approval of Commission.
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209	209	A licensee shall not transfer, directly or indirectly, its license or assign responsibility for compliance with the conditions of its license, in whole or in part, to any party without approval of the Commission. An operator, manufacturer, or distributor shall not transfer any electronic gaming terminal to any other operator, manufacturer or distributor without approval of the Commission. An operator or a retailer shall not transfer any use agreement to any other operator or retailer without the approval of the Commission. The Commission shall promulgate rules for the transfer of licenses, electronic gaming terminals and use agreements.
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211	211	58.1-4056. Suspension and revocation of licenses; civil penalties; hearing and appeal.
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213	213	A. If the Commission determines that any provision of this article, or any regulation of the Commission, has not been complied with or has been violated by a licensee, the Commission may, with at least 15 days' notice and a hearing, (i) assess a civil penalty against the holder thereof in a sum not to exceed $100,000 or as otherwise set in this article; or (ii) suspend or revoke the license holder's license. If any license is suspended or revoked, the Commission shall state the reasons for doing so, which shall be entered of record.
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215	215	B. Any person aggrieved by a refusal of the Commission to issue or re-issue any license, the suspension or revocation of a license, the imposition of a fine, or any other action of the Commission may seek review of such action in accordance with Article 5 ( 2.2-4025 et seq.) of the Administrative Process Act in the Circuit Court of the City of Richmond. Further appeals shall also be in accordance with Article 5 of the Administrative Process Act.
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217	217	C. Suspension or revocation of a license by the Commission for any violation shall not preclude criminal liability for such violation. The Commission shall adopt rules for the administration of this section.
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219	219	58.1-4057. Minimum requirements for use agreements between operator licensee and host location licensee; division of revenue; procurement agents.
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221	221	A. No retailer shall allow the placement or operation of an electronic gaming terminal, and no operator shall place or operate an electronic gaming terminal at a retailer location unless the operator and the retailer have entered into a use agreement. All use agreements shall be on forms proscribed by the Commission.
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223	223	B. A copy of the use agreement shall be maintained in the business office of both the operator and the retailer and shall be available at all times for inspection by the Commission. A copy of the use agreement shall be filed with the Commission by the operator within thirty (30) days after the execution of the use agreement by the operator and retailer.
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225	225	C. The use agreement shall be exclusive between one operator and one retailer.
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227	227	D. The use agreement shall be valid for a term of not less than five years, and not more than ten years, and shall not contain an automatic renewal clause, or any clause requiring the retailer to provide notice of such retailer's intent to renew or not renew such use agreement. A first in time use agreement executed in compliance with this section shall control over subsequently executed use agreements.
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229	229	E. The use agreement shall provide that adjusted gross gaming revenue remaining after remittance of the adjust gross gaming revenue tax shall be divided equally between the retailer and the operator. No person shall receive any portion of adjusted gros gaming revenue except for the operator and retailer, except as approved by the Commission in compliance with rules promulgated by the Commission.
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231	231	G. Pursuant to a written commission agreement approved by the Commission in compliance with rules promulgated by the Commission, a procurement agent may be paid a commission for the solicitation and procurement of a use agreement in an amount not to exceed $5,000 per month during the term of the use agreement. The Commission may increase or decrease the amount of such commission by regulation. The procurement agent representing the operator shall be identified on the use agreement.
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233	233	H. Any use agreement, or any other agreement, option, contract or other similar instrument regarding the placement and operation of an electronic gaming terminal shall be invalid, null and void unless executed by a licensed operator and an applicant for a retailer license or a licensed retailer after the effective date of this Article.
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235	235	I. Any rent provision in any lease of real estate for a retailer location that requires, directly or indirectly, the payment of rent tied to the generation of adjusted gross gaming revenue or in any way tied, directly or indirectly, the play of or generation of revenue from an electronic gaming terminal is prohibited and shall be invalid. An operator, or any affiliate of any operator, a manufacturer, or any affiliate of any manufacturer, and a distributor, or any affiliate of any distributor, shall not lease real estate to a retailer.
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237	237	58.1-4058. Approval of electronic gaming terminals by the Commission.
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239	239	A. No electronic gaming terminal or electronic gaming terminal game shall be offered for play by the public in the Commonwealth unless such electronic gaming terminal or electronic gaming terminal game has first been approved by the Commission.
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241	241	B. Before selling, leasing, or otherwise providing an electronic gaming terminal or electronic gaming terminal game to an operator, a manufacturer shall provide a prototype or production sample of such electronic gaming terminal or electronic gaming terminal game to an independent testing laboratory that has been approved by the Commission, which shall evaluate and certify whether such electronic gaming terminal or electronic gaming terminal game meets the definition of electronic gaming terminal or electronic gaming terminal game under 58.1-4048, the requirements of 58.1-4059, and any other requirements established by the Commission by rule. Along with the prototype or production sample of the electronic gaming terminal, the manufacturer shall provide the following information concerning the electronic gaming terminal to the independent testing laboratory:
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243	243	1. The method of determining the game outcome;
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245	245	2. The available wagering denominations;
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247	247	3. The minimum wager amount;
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249	249	4. The maximum wager amount per play;
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251	251	5. The amount of takeout for each wager;
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253	253	6. The method of calculating winning payouts;
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255	255	7. Payout calculations set forth in sufficient detail to audit a payout through manual calculation;
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257	257	8. The minimum payouts and the method of guaranteeing minimum payouts; and
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259	259	9. Any other information requested by the independent testing laboratory or required by the Commission for use in the testing of the electronic gaming terminal or the electronic gaming terminal game.
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261	261	The report of the independent testing laboratory shall be submitted by the manufacturer to the Commission. The Commission shall use the report in evaluating whether the electronic gaming terminal or electronic gaming terminal game shall be approved under this article.
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263	263	If at any time a manufacturer makes a substantive change to any electronic gaming terminal or electronic gaming terminal game that has previously been approved by the Commission, such manufacturer shall resubmit the electronic gaming terminal to the Commission in a manner established by the Commission by rule.
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265	265	58.1-4059. Minimum requirements of electronic gaming terminals; maximum credit and maximum win; maximum number of electronic gaming terminals.
266	266
267	267	All electronic gaming terminals, electronic gaming terminal games, and redemption devices shall be tested and approved pursuant to the rules adopted by the Commission, and each electronic gaming terminal and each electronic gaming terminal game offered in the Commonwealth for play shall conform to a model approved by the Commission. For the examination of electronic gaming terminals, electronic gaming terminal games, and redemption terminals as required by this Section, the Commission shall utilize the services of independent outside testing laboratories that have been accredited in accordance with ISO/IEC 17025 by an accreditation body that is a signatory to the International Laboratory Accreditation Cooperation Mutual Recognition Agreement signifying they are qualified to perform such examinations. Notwithstanding any law to the contrary, the Commission shall consider the licensing of independent outside testing laboratory applicants in accordance with procedures established by the Commission by rule. The Commission shall not withhold its approval of an independent outside testing laboratory license applicant that has been accredited as required by this Section and is licensed in gaming jurisdictions comparable to the Commonwealth. Upon the finalization of required rules, the Commission shall license independent testing laboratories and accept the test reports of any licensed testing laboratory of the electronic gaming terminal or associated equipment manufacturer's choice, notwithstanding the existence of contracts between the Commission and any independent testing laboratory. The commission shall cause all keys and other required devices to be provided to operators necessary to allow the operator access to the logic door to the electronic gaming terminal. Every electronic gaming terminal offered in the Commonwealth for play must meet minimum standards approved by the Commission. Each approved model shall, at a minimum, meet the following criteria:
268	268
269	269	1. The electronic gaming terminal must conform to all requirements of federal law and regulations, including FCC Class A Emissions Standards.
270	270
271	271	2. The electronic gaming terminal must theoretically pay out a mathematically demonstrable percentage during the expected lifetime of the machine of all amounts played, which must not be less than 80%. The Commission shall establish a maximum payout percentage for approved models by rule. Electronic gaming terminals that may be affected by skill must meet this standard when using a method of play that will provide the greatest return to the player over a period of continuous play.
272	272
273	273	3. The electronic gaming terminals must use a random number generator computer, software, or similar random selection process to generate and produce an independent and random outcome of each play of an electronic gaming terminal game. The random selection process must meet 99% confidence limits using a standard chi-squared test for (randomness) goodness of fit.
274	274
275	275	4. The electronic gaming terminal must display an accurate representation of the game outcome.
276	276
277	277	5. The electronic gaming terminal must not automatically alter pay tables or any function of the electronic gaming terminal based on internal computation of hold percentage or have any means of manipulation that affects the random selection process or probabilities of winning a game.
278	278
279	279	6. The electronic gaming terminal must not be adversely affected by static discharge or other electromagnetic interference.
280	280
281	281	7. The electronic gaming terminal must be capable of detecting and displaying the following conditions during idle states or on demand: power reset; door open; and door just closed.
282	282
283	283	8. The electronic gaming terminal must have the capacity to display complete play history (outcome, intermediate play steps, credits available, bets placed, credits paid, and credits cashed out) for the most recent game played and 10 games prior thereto.
284	284
285	285	9. The theoretical payback percentage of an electronic gaming terminal must not be capable of being changed without making a hardware or software change in the electronic game terminal, either on site or via the central control system.
286	286
287	287	10. Electronic gaming terminals must be designed so that replacement of parts or modules required for normal maintenance does not necessitate replacement of the electromechanical meters.
288	288
289	289	11. The electronic gaming terminal must have non-resettable meters housed in a locked area of the electronic gaming terminal that keep a permanent record of all cash inserted into the machine, all winnings made by the terminal printer, credits played in the electronic gaming terminal, and credits won by players. The electronic gaming terminal must provide the means for on-demand display of stored information as determined by the Commission.
290	290
291	291	12. Electronically stored meter information required by this Section must be preserved for a minimum of 180 days after a power loss to the service.
292	292
293	293	13. The electronic gaming terminal must have one or more mechanisms that accept cash in the form of bills. The mechanisms shall be designed to prevent obtaining credits without paying by stringing, slamming, drilling, or other means. If such attempts at physical tampering are made, the electronic gaming terminal shall suspend itself from operating until reset.
294	294
295	295	14. The electronic gaming terminals may be capable of operating on a cashless basis pursuant to rules adopted by the Commission.
296	296
297	297	15. The electronic gaming terminal shall have accounting software that keeps an electronic record which includes, but is not limited to, the following: total cash inserted into the electronic gaming terminal; the value of winning tickets claimed by players; the total credits played; the total credits awarded by an electronic gaming terminal; and pay back percentage credited to players of each electronic gaming terminal game; the electronic gaming terminal shall be capable of issuing and accepting tickets for play, commonly known as ticket-in, ticket-out.
298	298
299	299	16. The electronic gaming terminal shall be linked by a central control system to provide auditing program information as approved by the Commission. The central control system shall use a standard industry protocol, as defined by the Gaming Standards Association, and shall have the functionality to enable the Commission or its designee to activate or deactivate electronic gaming terminals from the central control system. In no event may the communications system approved by the Commission limit participation to only one manufacturer of electronic gaming terminals by either the cost in implementing the necessary program modifications to communicate or the inability to communicate with the central control system.
300	300
301	301	17. Electronic gaming terminals and redemption terminals shall be connected to a centralized control system developed or procured by the Commission.The Commission shall provide operators with the necessary protocols to connect electronic gaming terminals to the central control system after such electronic gaming terminals have been approved by the commission. No electronic gaming terminal or redemption terminals shall be placed in operation unless connected to the central control system.
302	302
303	303	18. Electronic gaming terminals shall not directly dispense anything of value except for tickets representing credits purchased or won on an electronic game terminal. The ticket shall indicate the total amount of award, the time of day in a twenty-four-hour format showing hours and minutes, the date, the electronic gaming terminal serial number, the sequential number of the ticket, and an encrypted validation number from which the validity of the prize may be determined.
304	304
305	305	19. Such other requirements as established by the Commission by rule.
306	306
307	307	20. An electronic gaming terminal may not directly dispense coins, cash, tokens, or any other article of exchange or value except for tickets. Tickets shall be dispensed by pressing the ticket dispensing button on the electronic gaming terminal at the end of a player's play. The cost of the credit shall be one cent, five cents, ten cents, twenty-five cents, or one dollar. The maximum credits played per play shall not exceed four dollars ($4). No cash award for the maximum wager on any individual play shall exceed one thousand one hundred ninety-nine dollars ($1,199), or one dollar ($1) less than reporting threshold established under IRS FORM W2G.
308	308
309	309	21. No more than eight (8) electronic gaming terminals shall be placed and operated by an operator at a retailer location. A retailer shall not allow the placement of more than eight (8) electronic gaming terminals at a retailer location.
310	310
311	311	58.1-4060. Independent integrity checks of electronic gaming terminals and games.
312	312
313	313	A prototype or production sample of each type, version, or model of electronic gaming terminal or electronic gaming terminal game being operated in the Commonwealth shall be tested by an independent testing laboratory approved by the Commission to ensure its integrity and proper working order. This evaluation shall include a review of installed software periodically within a timeframe established by the Commission. The independent testing laboratory's software may be embedded within the game software, utilize an interface port to communicate with the device, or require the removal of device media for external verification. The manufacturer licensee shall pay the cost of the independent testing laboratory's review and testing, and the reports of the same shall be delivered to the licensee and the Commission.
314	314
315	315	58.1-4061. Requirement for central control system.
316	316
317	317	Each electronic gaming terminal and redemption terminal being operated in the Commonwealth shall be connected to a central control system established and operated by the Commission. All electronic gaming terminals shall become disabled upon being disconnected from the central control system. The central control system shall collect the following minimum information from each device: (i) cash in, (ii) payouts, (iii) points, credits or amounts played, (iv) points, credits or amounts won, (v) gross profit (vi) the number of plays of the game, (viii) the amounts paid to play the game, (ix) the amount of gaming tax accrued, (x) door openings, (xi) power failures, disconnections from the central control system and malfunctions, (xii) remote activations and disabling, and (xiii) any other information required by Commission regulations. The Commission shall provide operators with the necessary protocols to connect electronic gaming terminal and redemption terminals to the centralized control system upon approval by the Commission. No electronic gaming terminal or redemption terminal shall be placed in operation without first connecting to the centralized control system. A vendor that provides the centralized control system shall not be eligible to be licensed as an operator or retailer.
318	318
319	319	58.1-4062. Requirements of operator licensees.
320	320
321	321	A. No operator shall own, place, or operate an electronic gaming terminal unless it is approved by the Commission, and purchased or leased from a manufacturer or distributor. No contract between a distributor and a manufacturer or between an operator and a manufacturer shall grant the distributor or operator exclusive rights to own, maintain, or place a type, model, or brand of electronic gaming terminal, electronic gaming terminal game, or redemption terminal in the Commonwealth.
322	322
323	323	B. No operator shall place or operate an electronic gaming terminal at any location except in the operator's warehouse facilities approved by the Commission, or retailer locations.
324	324
325	325	C. All operators shall comply with this article and the regulations of the Commission.
326	326
327	327	58.1-4063. Requirements of retailers.
328	328
329	329	A. The following persons are eligible to receive a retailer license: any person licensed by the Virginia Lottery pursuant to Chapter 31 of Agency 5 of Title 11to offer and sell lottery games or products.
330	330
331	331	B. No retailer shall allow an electronic gaming terminal to be operated or placed upon the retailer location unless such electronic gaming terminals operated and placed by an operator pursuant to a use agreement.
332	332
333	333	C. Except for qualified organizations permitted to conduct charitable gaming pursuant to Article 1.1:1 ( 18.2-340.15 et seq.) of Chapter 8 of Title 18.2, the primary business of a retailer shall not be the offering for play of electronic gaming terminals.
334	334
335	335	D. All retailers shall comply with this article and the regulations of the Commission.
336	336
337	337	58.1-4064. Responsible gaming.
338	338
339	339	A. In an effort to promote responsible gaming by players, pursuant to rules adopted by the Commission:
340	340
341	341	1. Operators shall post in the gaming area in a conspicuous place a sign that bears a toll-free number for problem gambling assistance that has been approved by the Virginia Council on Problem Gambling or other organizations that provide assistance to problem gamblers;
342	342
343	343	2. Operators shall provide informational materials in the gaming area on the dangers associated with problem gambling;
344	344
345	345	3. If the retailer holds a license from the Virginia Alcoholic Beverage Control Authority to serve alcoholic beverages, the retailer shall train its employees to identify patrons who have consumed excessive amounts of alcohol to prevent such patrons from continuing to engage in wagering activity while impaired; and
346	346
347	347	4. Operators and retailers shall comply with regulations regarding player self-exclusion programs adopted by the Commission.
348	348
349	349	B. Nothing contained in this section shall be construed to create any cause of action against the Commission for the failure of an operator to comply with the requirements of this section.
350	350
351	351	58.1-4065. Local regulation of electronic gaming terminals.
352	352
353	353	A. A municipality may adopt and enforce a local ordinance prohibiting the manufacturing, distributing, operating, placing, hosting, and playing of electronic gaming devices within such municipality, provided that such ordinance is passed no later than six months after the effective date of this article. If the municipality passes such an ordinance and later chooses to allow the manufacturing, distributing, operating, placing, hosting, and playing of electronic gaming devices within such municipality, the municipality may pass an ordinance to that effect; however, such municipality shall thereafter be prohibited from passing any ordinance to prohibit any activities authorized under this article.
354	354
355	355	B. A county may adopt and enforce a local ordinance prohibiting the manufacturing, distributing, operating, placing, hosting, and playing of electronic gaming terminals within the unincorporated area of such county, provided that such ordinance is adopted by such county no later than six months after the effective date of this article. If the county adopts such an ordinance and later chooses to allow the manufacturing, distributing, operating, placing, hosting, and playing of electronic gaming terminals within the unincorporated areas of such county, the county may pass an ordinance to that effect; however, such county shall thereafter be prohibited from passing any ordinance to prohibit any activities authorized under this article.
356	356
357	357	C. No license, permit, license fee, permit fee, sticker fee, or tax shall be required or imposed by any municipality or county upon an electronic gaming terminal, electronic gaming terminal game, redemption device, or ancillary equipment, manufacturer, distributor, operator, or retailer relating to the ownership, placement, transfer, sale, use, play, or operation of electronic gaming terminals, electronic gaming terminal games, redemption device, or ancillary equipment.
358	358
359	359	58.1-4066. Adjusted gross gaming revenue tax.
360	360
361	361	A. 1. An adjusted gross gaming revenue tax of Twenty Percent (20%) is hereby imposed.
362	362
363	363	2. The adjusted gross gaming revenue tax imposed pursuant to this section shall not apply to any activity regulated under Article 2 ( 58.1-4030 et seq.) of this chapter or Chapter 41 ( 58.1-4100 et seq.).
364	364
365	365	B. The adjusted gross gaming revenue tax imposed pursuant to this section shall be collected and remitted by the operator to the Commission pursuant to rules established by Commission. The operator shall collect and deposit all adjusted gross gaming revenue tax in a separate account in compliance with rules established by the Commission.
366	366
367	367	C. The adjusted gross gaming revenue tax collected by the Commission pursuant to this section shall be distributed pursuant to 58.1-4067.
368	368
369	369	D. After the remittance of adjusted gross gaming revenue tax by the operator, the remaining adjusted gross gaming revenue shall be divided between that operator and the retailer equally, which shall be disbursed by the operator pursuant to rules established by the Commission.
370	370
371	371	58.1-4067. Distribution of adjusted gross gaming revenue tax.
372	372
373	373	A. The Commission shall allocate adjusted gross gaming revenue tax collected pursuant to 58.1-4066 as follows:
374	374
375	375	1. Fifteen percent (15%) to the locality or county in which the electronic gaming terminal is located;
376	376
377	377	2. One percent (1%) to the Problem Gambling Treatment and Support Fund established pursuant to 37.2-314.2;
378	378
379	379	3. Four percent (4%) to the Commission, from which amount a sum sufficient shall be appropriated to fund its operations related to the administration and regulation of electronic gaming terminals pursuant to this article;
380	380
381	381	4. Twenty percent (20%) to the I-81 Corridor Improvement Plan Fund established pursuant to ______________;
382	382
383	383	5. Ten percent (10%) to Virginia Law Enforcement Support Fund established pursuant to _____________________;
384	384
385	385	6. Twenty-five percent (25%) to the State office of Rural Health at the Virginia Department of Health to support the implementation of the Virginia Rural Health Plan.;
386	386
387	387	7. Twenty-five percent (25%) to the Child Care Subsidy Program and preschool programs for at-risk three and four year old children;
388	388
389	389	B. Allocation of funds by the Commission pursuant to this section shall occur no later than 60 days after such funds are collected, and only after the Commission has verified the accuracy of the collected balances.
390	390
391	391	58.1-4068. Illegal manufacturing, distributing, or operating; penalty.
392	392
393	393	A. No person shall:
394	394
395	395	1. Manufacture, distribute, transport, possess, sell or lease to any person an electronic gaming terminal or major components or parts, including software and hardware, for an electronic gaming terminal in the Commonwealth without a manufacturer, distributor or operator license issued by the Commission.
396	396
397	397	2. Purchase, own, operate, possess or place in the Commonwealth electronic gaming terminal, or maintain and service such devices without an operator license issued by the Commission.
398	398
399	399	3. Own or operate a retailer location where one or more electronic gaming terminals are made available for play by the public without a retailer license issued by the Commission.
400	400
401	401	4. Offer or provide for play by any person one or more electronic gaming terminals without a retail license issued by the Commission.
402	402
403	403	B. A violation of this section is a Class 6 felony.
404	404
405	405	58.1-4069. Underage play prohibited; penalty.
406	406
407	407	A. No person shall play or operate any electronic gaming terminal unless such person is 21 years of age or older.
408	408
409	409	B. No person who is not 21 years of age or older shall redeem any ticket generated from an electronic gaming terminal.
410	410
411	411	C. A violation of this section is a Class 1 misdemeanor.
412	412
413	413	58.1-4070. Prohibited acts by retailer; penalty.
414	414
415	415	A. No retailer shall:
416	416
417	417	1. Permit any person who is not 21 years of age or older to play or operate any electronic gaming terminal;
418	418
419	419	2. Give any reward for the play of an electronic gaming terminal that is not authorized by this article; or
420	420
421	421	3. Give any reward for the play of an electronic gaming terminal that is redeemable at a location other than the host location's ticket redemption terminal.
422	422
423	423	4. The Commission shall: (a) impose a fine on a retailer for a violation of this section of up to $1,000 for any first violation in any consecutive twelve month period; (b) impose a fine on a retailer for violation of this section of up to $5,000 for any second violation in any consecutive twelve month period; and (c) impose a suspension of the retailers license for up to one year for violation of this section for any third violation in any consecutive twelve month period.
424	424
425	425	B. No retailer shall:
426	426
427	427	1. Solicit, request, offer or accept any inducement from an operator.
428	428
429	429	2. The Commission shall: (a) impose a suspension of the retailers license for up to one year for the first violation of this section; and, (b) revoke the retailers license for any second or subsequent violation of this section.
430	430
431	431	C. No operator shall:
432	432
433	433	1. Solicit, request, provide, pay, transfer, offer or accept any inducement from a retailer.
434	434
435	435	2. The Commission shall: (a) impose a suspension of the operators license for up to one year for the first violation of this section; and, (b) revoke the operators license for any second or subsequent violation of this section.
436	436
437	437	58.1-4071. Illegal tampering with electronic gaming devices; penalty.
438	438
439	439	No person other than a manufacturer, distributor or operator shall possess or use any key or device designed for the purpose of opening, entering, or affecting the operation of an electronic gaming device, or otherwise tamper with an electronic gaming device. A violation of this section is a Class 6 felony.
440	440
441	441	58.1-4072. Conspiracies and attempts to commit violations; penalty.
442	442
443	443	A. Any person who conspires, confederates, or combines with another, either within or outside the Commonwealth, to commit a felony prohibited by this article is guilty of a Class 6 felony.
444	444
445	445	B. Any person who attempts to commit any act prohibited by this article is guilty of a criminal offense and shall be punished as provided in 18.2-26, 18.2-27, or 18.2-28, as appropriate.
446	446
447	447	58.1-4073. Exclusion from the applicability of this article.
448	448
449	449	This article shall not apply to sports betting authorized under Article 2 ( 58.1-4030 et seq.) of this chapter or casino gaming authorized under Chapter 41 ( 58.1-4100 et seq.).
450	450
451	451	58.1-4074. Certain provisions in Article 1 ( 58.1-4000 et seq.) to apply, mutatis mutandis.
452	452
453	453	Except as provided in this article, the provisions of Article 1 ( 58.1-4000 et seq.) shall apply mutatis mutandis to electronic gaming devices under this article. The Commission shall promulgate regulations to interpret and clarify the applicability of Article 1 to this article.
454	454
455	455	NOTE TO DRAFT:
456	456
457	457	The following amendments to existing Virginia law are necessary to provide for effective enforcement of the Commonwealth's anti-gambling statutes. Highlighted portion reflects the proposed amendatory language.
458	458
459	459	1. Amendment to VA Code Ann. 2.2-511
460	460
461	461	2.2-511. Criminal cases.
462	462
463	463	A. Unless specifically requested by the Governor to do so, the Attorney General shall have no authority to institute or conduct criminal prosecutions in the circuit courts of the Commonwealth except in cases involving (i) violations of the Alcoholic Beverage Control Act ( 4.1-100 et seq.), (ii) violation of laws relating to elections and the electoral process as provided in 24.2-104, (iii) violation of laws relating to motor vehicles and their operation, (iv) the handling of funds by a state bureau, institution, commission or department, (v) the theft of state property, (vi) violation of the criminal laws involving child pornography and sexually explicit visual material involving children, (vii) the practice of law without being duly authorized or licensed or the illegal practice of law, (viii) violations of 3.2-4212 or 58.1-1008.2, (ix) with the concurrence of the local attorney for the Commonwealth, violations of the Virginia Computer Crimes Act ( 18.2-152.1 et seq.), (x) with the concurrence of the local attorney for the Commonwealth, violations of the Air Pollution Control Law ( 10.1-1300 et seq.), the Virginia Waste Management Act ( 10.1-1400 et seq.), and the State Water Control Law ( 62.1-44.2 et seq.), (xi) with the concurrence of the local attorney for the Commonwealth, violations of Chapters 2 ( 18.2-18 et seq.), 3 ( 18.2-22 et seq.), and 10 ( 18.2-434 et seq.) of Title 18.2, if such crimes relate to violations of law listed in clause (x) of this subsection, (xii) with the concurrence of the local attorney for the Commonwealth, criminal violations by Medicaid providers or their employees in the course of doing business, or violations of Chapter 13 ( 18.2-512 et seq.) of Title 18.2, in which cases the Attorney General may leave the prosecution to the local attorney for the Commonwealth, or he may institute proceedings by information, presentment or indictment, as appropriate, and conduct the same, (xiii) with the concurrence of the local attorney for the Commonwealth, violations of Article 9 ( 18.2-246.1 et seq.) of Chapter 6 of Title 18.2, (xiv) with the concurrence of the local attorney for the Commonwealth, assisting in the prosecution of violations of 18.2-186.3 and 18.2-186.4, (xv) with the concurrence of the local attorney for the Commonwealth, assisting in the prosecution of violations of 18.2-46.2, 18.2-46.3, or 18.2-46.5 when such violations are committed on the grounds of a state correctional facility, and (xvi) with the concurrence of the local attorney for the Commonwealth, assisting in the prosecution of violations of Article 10 ( 18.2-246.6 et seq.) of Chapter 6 of Title 18.2, (xv) with the concurrence of the Virginia Gaming Commission, violations of Chapter 40 of Title 58.1 Article 3, (xvi) with the concurrence of the local attorney for the Commonwealth, violations of chapter 8 of Title 18.2, Article 1.
464	464
465	465	In all other criminal cases in the circuit courts, except where the law provides otherwise, the authority of the Attorney General to appear or participate in the proceedings shall attach when the appellate court receives the record after a notice of appeal has been filed with the clerk of the circuit court noting an appeal to the Court of Appeals or the Supreme Court. In all criminal cases before the Court of Appeals or the Supreme Court in which the Commonwealth is a party or is directly interested, the Attorney General shall appear and represent the Commonwealth upon receipt of the record in the appellate court, unless, and with the consent of the Attorney General, the attorney for the Commonwealth who prosecuted the underlying criminal case files a notice of appearance to represent the Commonwealth in any such appeal. However, in an appeal regarding bail, bond, or recognizance pursuant to Article 1 ( 19.2-119 et seq.) of Chapter 9 of Title 19.2 or subsection B of 19.2-398, the attorney for the Commonwealth who prosecuted the underlying criminal case shall continue to represent the Commonwealth on appeal.
466	466
467	467	B. The Attorney General shall, upon request of a person who was the victim of a crime and subject to such reasonable procedures as the Attorney General may require, ensure that such person is given notice of the filing, of the date, time and place and of the disposition of any appeal or habeas corpus proceeding involving the cases in which such person was a victim. For the purposes of this section, a victim is an individual who has suffered physical, psychological or economic harm as a direct result of the commission of a crime; a spouse, child, parent or legal guardian of a minor or incapacitated victim; or a spouse, child, parent or legal guardian of a victim of a homicide. Nothing in this subsection shall confer upon any person a right to appeal or modify any decision in a criminal, appellate or habeas corpus proceeding; abridge any right guaranteed by law; or create any cause of action for damages against the Commonwealth or any of its political subdivisions, the Attorney General or any of his employees or agents, any other officer, employee or agent of the Commonwealth or any of its political subdivisions, or any officer of the court.
468	468
469	469	2. Amendment to VA Code Ann. 2.2-510. Employment of special counsel generally.
470	470
471	471	No special counsel shall be employed for or by the Governor or any state department, institution, division, commission, board, bureau, agency, entity, official, justice of the Supreme Court, or judge of any circuit court or district court except in the following cases:
472	472
473	473	1. When the Governor determines that, because of the nature of the legal service to be performed, the Attorney General's office is unable to render such service, then the Governor shall issue an exemption order stating with particularity the facts and reasons leading to the conclusion that the Attorney General's office is unable to render such service. The Governor may then employ special counsel to render such service as he may deem necessary and proper. The compensation for such special counsel shall be paid out of the funds appropriated for the administration of the board, commission, division, or department to be represented or whose members, officers, inspectors, investigators, or other employees are to be represented pursuant to this section.
474	474
475	475	2. In cases of legal services in civil matters to be performed for the Commonwealth, where it is impracticable or uneconomical for the Attorney General to render such service, he may employ special counsel whose compensation shall be paid out of the appropriation for the Attorney General's office.
476	476
477	477	3. In cases of legal services in civil matters to be performed for any state department, institution, division, commission, board, bureau, agency, entity, official, member of the General Assembly, justice of the Supreme Court, or judge of any circuit court or district court where it is impracticable or uneconomical for the Attorney General's office to render such service, special counsel may be employed but only as set forth in subsection C of 2.2-507, upon the written recommendation of the Attorney General, who shall approve all requisitions drawn upon the Comptroller for warrants as compensation for such special counsel before the Comptroller shall have authority to issue such warrants.
478	478
479	479	4. In cases where the Attorney General certifies to the Governor that he is unable to render certain legal services, the Governor may employ special counsel or other assistance to render such services as may be necessary.
480	480
481	481	5. In cases involving violations of Chapter 40 of Title 58.1 Article 3 and violations of Chapter 8 of Title 18.2, Article 1 where the Attorney General determines that it is impracticable or uneconomical for the Attorney General's office to render service, special counsel may be employed whose compensation shall be paid out of the Special Gaming Enforcement Fund created pursuant to Chapter 40 of Title 58.1, Article 3, Section 58.1-4050.
482	482
483	483
484	484
485	485	3. Amendment to VA Code Ann Section 18.2-325
486	486
487	487	18.2-325. Definitions.
488	488
489	489	1. "Illegal gambling" means the making, placing, or receipt of any bet or wager in the Commonwealth of money or other consideration or thing of value, made in exchange for a chance to win a prize, stake, or other consideration or thing of value, dependent upon the result of any game, contest, or any other event the outcome of which is determined by any element of change, regardless of whether the outcome is partially or predominately determined by skill of the player uncertain or a matter of chance, whether such game, contest, or event occurs or is to occur inside or outside the limits of the Commonwealth.
490	490
491	491	For the purposes of this subdivision and notwithstanding any provision in this section to the contrary, the making, placing, or receipt of any bet or wager of money or other consideration or thing of value shall include the purchase of a product, Internet access, or other thing made in exchange for a chance to win a prize, stake, or other consideration or thing of value by means of the operation of a gambling device as described in subdivision 3 b, regardless of whether the chance to win such prize, stake, or other consideration or thing of value may be offered in the absence of a purchase.
492	492
493	493	"Illegal gambling" also means the playing or offering for play of any skill game.
494	494
495	495	2. "Interstate gambling" means the conduct of an enterprise for profit that engages in the purchase or sale within the Commonwealth of any interest in a lottery of another state or country whether or not such interest is an actual lottery ticket, receipt, contingent promise to pay, order to purchase, or other record of such interest.
496	496
497	497	3. "Gambling device" includes:
498	498
499	499	a. Any device, machine, paraphernalia, equipment, or other thing, including books, records, and other papers, which are actually used in an illegal gambling operation or activity;
500	500
501	501	b. Any device, machine, apparatus, implement, instrument, contrivance, board, or other thing, or electronic or video versions thereof, including but not limited to those that require the direct or indirect payment of consideration in any form, including but not limited to dependent upon the insertion of a coin, currency, ticket, token or other similar object, or by depositing consideration in any such form with the operator or owner of the device for the their operation of such device, which operates, either completely automatically or with the aid of some physical act by the player or operator, in such a manner that, depending upon any element of chance and regardless of whether the outcome may also be partially or predominantly based on skill elements of chance, it may eject something of value or determine the prize or other thing of value to which the player is entitled, provided, however, that the return to the user of nothing more than additional chances or the right to use such device machine is not deemed something of value within the meaning of this subsection; and provided further, that machines that only sell, or entitle the user to, items of merchandise of equivalent value that may differ from each other in composition, size, shape, or color, shall not be deemed gambling devices within the meaning of this subsection; and
502	502
503	503	c. Skill games.
504	504
505	505	Such devices are no less gambling devices regardless of whether if they indicate to the player before the play of the device beforehand the definite or likely result of one or more operations of the game to be played on the device but not all the operations. Nor are they any less a gambling device because, apart from their use or adaptability as such, they may also sell or deliver something of value on a basis other than chance.
506	506
507	507	4. "Operator" includes any person, firm, or association of persons, who conducts, finances, manages, supervises, directs, or owns all or part of an illegal gambling enterprise, activity, or operation.
508	508
509	509	5. "Skill" means the knowledge, dexterity, or any other ability or expertise of a natural person.
510	510
511	511	6. "Skill game" means 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 or cash equivalents, gift cards, vouchers, billets, tickets, tokens, or electronic credits to be exchanged for cash or cash equivalents whether the payoff is made automatically from the device or manually. "Skill game" includes (i) a device that contains a meter or measurement device that records the number of free games or portions of games that are rewarded and (ii) a device designed or adapted to enable a person using the device to increase the chances of winning free games or portions of games by paying more than the amount that is ordinarily required to play the game. "Gambling deviceSkill game" does not include any amusement device, as defined in 18.2-334.6.
512	512
513	513	7. "Unregulated location" means any location that is not regulated or operated by the Virginia Lottery or Virginia Lottery Board, the Department of Agriculture and Consumer Services, the Virginia Alcoholic Beverage Control Authority, the Virginia Gaming Commission, or the Virginia Racing Commission.
514	514
515	515	4. Amendment to VA Code Ann. 18.2-326
516	516
517	517	18.2-326. Penalty for illegal gambling.
518	518
519	519	Except as otherwise provided in this article, any person who illegally gambles or engages in interstate gambling as defined in 18.2-325 shall be guilty of a Class 6 felony Class 3 misdemeanor. If an association or pool of persons illegally gamble, each person therein shall be guilty of illegal gambling.
520	520
521	521	However, if any person makes, places, or receives any bet or wager of money or other thing of value on a horse race in the Commonwealth, whether the race is inside or outside the limits of the Commonwealth at any place or through any means other than (i) at a racetrack licensed by the Virginia Racing Commission pursuant to Chapter 29 ( 59.1-364 et seq.) of Title 59.1 or (ii) at a satellite facility or through advance deposit account wagering, as those terms are defined in 59.1-365, licensed by the Virginia Racing Commission pursuant to Chapter 29 ( 59.1-364 et seq.) of Title 59.1, such person shall be guilty of a Class 1 misdemeanor. For the purposes of this paragraph, venue shall be in any county or city in which any act was performed in furtherance of any course of conduct constituting illegal gambling.
522	522
523	523	5. Amendment to VA Code Ann. 18.2-329
524	524
525	525	18.2-329. Owners, etc., of gambling place permitting its continuance; penalty.
526	526
527	527	If the owner, lessee, tenant, occupant or other person in control of any place or conveyance, knows, or reasonably should know, that it is being used for illegal gambling, and permits such gambling to continue without having notified a law-enforcement officer of the presence of such illegal gambling activity, he shall be guilty of a Class 6 felony 1 misdemeanor.
528	528
529	529	6. Amendment to VA Code Ann. 18.2-330
530	530
531	531	18.2-330. Accessories to gambling activity; penalty.
532	532
533	533	Any person, firm or association of persons, other than those persons specified in other sections of this article, who knowingly aids, abets or assists in the operation of an illegal gambling enterprise, activity or operation, shall be guilty of a Class 6 felony Class 1 misdemeanor.
534	534
535	535	7. VA Code Ann. 18.2-331
536	536
537	537	18.2-331. Illegal possession, etc., of gambling device; penalty.
538	538
539	539	A person is guilty of illegal possession of a gambling device when he manufactures, sells, transports, rents, gives away, places or possesses, or conducts or negotiates any transaction affecting or designed to affect ownership, custody or use of any gambling device, believing or having reason to believe that the same is to be used in the advancement of unlawful gambling activity. Violation of any provision of this section shall constitute a Class 6 felony 1 misdemeanor.
540	540
541	541	8. VA Code Ann. 18.2-331.1
542	542
543	543	18.2-331.1. Operation of gambling devices at unregulated locations; civil penalty.
544	544
545	545	A. A person who conducts, finances, manages, supervises, directs, sells, or owns a gambling device that is located in an unregulated location is guilty of illegal possession of gambling device. Violation of this shall constitute a Class 6 felony. In addition to any other penalty provided by law, any person who conducts, finances, manages, supervises, directs, sells, or owns a gambling device that is located in an unregulated location is subject to a civil penalty of up to $25,000 for each gambling device located in such unregulated location.
546	546
547	547	B. The Attorney General, an attorney for the Commonwealth, or the attorney for any locality may cause an action in equity to be brought in the name of the Commonwealth or of the locality, as applicable, to immediately enjoin the operation of a gambling device in violation of this section and to request an attachment against all such devices and any moneys within such devices pursuant to Chapter 20 ( 8.01-533 et seq.) of Title 8.01, and to recover the civil penalty of up to $25,000 per device.
548	548
549	549	C. In any action brought under this section, the Attorney General, the attorney for the Commonwealth, or the attorney for the locality may recover reasonable expenses incurred by the state or local agency in investigating and preparing the case, and attorney fees.
550	550
551	551	D. Any civil penalties assessed under this section in an action in equity brought in the name of the Commonwealth shall be paid into the Literary Fund. Any civil penalties assessed under this section in an action in equity brought in the name of a locality shall be paid into the general fund of the locality.