Virginia Law

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

"Adjusted gross receipts" means the gross receipts from casino gaming less winnings paid to winners.

"Annuity jackpot" means a casino game jackpot in which a player wins the right to receive fixed cash payments at specified intervals.

"Applicant" means a person who has submitted an application to the board.

"Application" means a written request for a license or permit that has been submitted to the board.

"Associated equipment" means hardware located on a facility operator's premises that is connected to the slot machine system for the purpose of performing communication, validation, or other functions, but not including the communication facilities of a regulated utility or the slot machines.

"Automated jackpot payout machine" means the collective hardware, software, communications technology, and other ancillary equipment used to facilitate the payment of a jackpot that is not totally and automatically paid directly from a casino gaming machine.

"Average payout percentage" means the average percentage of money used by players to play a slot machine or mechanical casino game that is returned to players of that game.

"Background investigation" means a security, criminal, and credit investigation of a person who applies for or who is granted a license or permit under this chapter.

"Board" means the Virginia Lottery Board established in the Virginia Lottery Law (§ 58.1-4100 et seq.) of Title 58.1 of the Code of Virginia.

"Books and records" means any document pertaining to, prepared in, or generated by a facility operator without regard to the medium through which the record is generated or maintained, including all general ledger records, subsidiary records and ledgers, computer-generated data, forms, documents, internal audit reports and work papers, correspondence, and personnel records.

"Cash" means currency and coin.

"Cashable credit" means a credit on a casino game that activates play and is convertible to cash at the conclusion of play.

"Cash equivalent" means a:

1. Certified check, cashier's check, treasurer's check, travelers check, or money order that is:

a. Payable to the facility operator, "bearer," or "cash,"

b. Drawn for a specific amount;

c. Currently dated not postdated;

d. Payable on demand; and

e. Without an endorsement; or

2. Certified check, cashier's check, treasurer's check, or money order that is:

a. Made payable to the presenting player;

b. Drawn for a specific amount;

c. Currently dated not postdated;

d. Payable on demand;

e. Endorsed by the presenting player; and

f. Without an endorsement other than that of the presenting player.

"Cashless funds transfer system" means the collective hardware, software, communications technology, and other ancillary equipment used to facilitate the electronic transfer of cashable or noncashable credits to a patron at a casino game.

"Cash storage box" means a secure tamper resistant container in a bill validator into which currency, gaming tickets, promotional play instruments, or other instruments authorized by the department are placed.

"Casino gaming" or "casino game" or "game" means baccarat, blackjack, twenty-one, poker, craps, dice, slot machines, roulette wheels, Klondike tables, punchboards, faro layouts, numbers tickets, push cards, jar tickets, or pull tabs and any other activity that is authorized by the board as a wagering game or device under this chapter. "Casino gaming" or "casino game" or "game" includes on-premises mobile casino gaming.

"Casino gaming law" or "gaming law" means Chapter 41 (§ 58.1-4100 et seq.) of Title 58.1 of the Code of Virginia.

"Casino gaming machine" means an electronic or mechanical device approved by the department that a player may use to gamble without the assistance of a dealer or other casino employee.

"Casino management system" means the collective hardware, software, communications technology, and other ancillary equipment used to collect, monitor, interpret, analyze, report, and audit data with regard to consumer gaming activity, inclusive of slot machine level accounting transactions, player tracking, and productivity analysis.

"Central monitor and control system" means a centralized computer system maintained or operated by or on behalf of the department that allows the department to monitor electronic gameplay and measure its share of gross revenue with respect to those games.

"Cheat" or "cheating" means to alter the selection criteria that determine the result of a game or the amount or frequency of payment in a game for the purpose of obtaining an advantage for one or more participants in a game over other participants in a game.

"Civil penalty" or "penalty" means a monetary enforcement action that the director or the board may impose on a licensee or permit holder under the casino gaming law and this chapter.

"Concessionaire" means a person who provides to a facility operator those services that do not require a supplier permit.

"Contractor" means a person or individual, other than an employee of a facility operator, who contracts with a facility operator or other person to:

1. Manage or operate a facility;

2. Provide security for a facility;

3. Perform service, maintenance, or repairs of a slot machine, mechanical casino game, table game device, central operating system, associated equipment, or software;

4. Own or control a person that performs or provides services as described in subdivisions 1, 2, and 3 of this definition;

5. Provide junket enterprise services; or

6. Provide any other service that is essential to operation of a casino gaming facility.

"Control" means the authority to direct the management and policies of an applicant, licensee, or permit holder.

"Controlling entity" means an entity that possesses, directly or indirectly, the power to direct or cause the direction of the management and policies of a person, whether through ownership of voting securities, by contract, by beneficial ownership, or otherwise.

"Date of final action on a civil penalty or sanction" means:

1. If, after the director sends a deficiency notice under the department's regulations, a licensee or permit holder fails to submit a timely, acceptable corrective action plan, the date the board adopts as final the director's deficiency notice; or

2. If the board holds a hearing on the director's recommendation to impose a civil penalty or sanction, the date of the board's written decision.

"Date of final action on a denial" means:

1. If, after the director sends written notice of license or permit denial or recommendation of denial, an applicant fails to timely request a reconsideration meeting, the date of the director's written notice;

2. If, after a reconsideration meeting, an applicant fails to timely request a board hearing, the date of the director's written notice after the reconsideration meeting; or

3. If the board holds a hearing on an appeal of the director's license, or permit denial or reconsideration of such a denial, the date of the board's written decision.

"Dealer" means an employee of a facility operator whose primary function is to directly operate and conduct table games.

"Department" or "lottery" means the Virginia Lottery Department, the independent department responsible under the casino gaming law for the administration of the casino gaming program in the Commonwealth of Virginia.

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

"Electronic table game system" means the collective hardware, software, communications technology, and other ancillary equipment used to permit wagering to be conducted on an electronic table game.

"Eligible host city" or "host city" means a city described in § 58.1-4107 of the Code of Virginia in which a casino gaming establishment is authorized to be located.

"Entity" means a person that is not a natural person.

"External bonusing system" means the collective hardware, software, communications technology, and other ancillary equipment used in conjunction with casino games to deliver randomly selected player incentives (bonus awards) to active players and to effect the accurate metering of the bonus award event on the casino game.

"Facility" or "casino gaming facility" or "casino gaming establishment" means the premises upon which lawful casino gaming is authorized and licensed under the casino gaming law and this chapter and does not include a riverboat or similar vessel.

"Facility general manager" means an individual who is:

1. Based for employment purposes at a casino gaming facility;

2. The holder of a supplier permit as key manager; and

3. Ultimately responsible for the daily conduct of all operations at the facility.

"Facility general manager" includes any individual approved by the department who acts as the facility general manager's designee.

"Facility operator" or "casino gaming operator" means a person who operates or manages the operation of a casino gaming establishment.

"Facility operator's license" means the authority given by the board to a facility operator for the legal operation of casino gaming.

"Fill" means the distribution of gaming chips, coins, and plaques to a gaming table to replenish the table inventory.

"Floorperson" means an employee of a facility operator whose primary function is to supervise the conduct of table games at multiple tables on the gaming floor.

"Gaming chip" means a roulette chip, poker rake chip, tournament chip, or value chip.

"Gaming day" means a period of time determined by the department not to exceed 24 hours marking the beginning and ending times of gaming activities for the purposes of accounting reports and determination by the central monitor and control system of daily proceeds.

"Gaming employee" means an individual who:

1. Is employed by or is seeking to be employed by an applicant for or holder of an operation license, whose duties relate or will relate to the operation of a facility, and who performs or supervises or will perform or supervise the performance of:

a. Operating, servicing, or maintaining a casino gaming machine, table game, or associated equipment;

b. Accounting, maintaining, or auditing a facility's financial records;

c. Counting or processing casino gaming machine or table game revenue;

d. Conducting security or surveillance in or around a facility; or

e. Operating or maintaining a facility's information systems;

2. Is employed by a permit holder and whose duties directly relate to the repair, service, or distribution of a casino gaming machine, table game, or associated equipment or is otherwise required to be present on the gaming floor or in a restricted area of the facility;

3. Is employed by a permit holder as a junket representative; and

4. Is otherwise required by the department to hold a service permit as a gaming employee.

"Gaming floor" means that part of a facility where casino gaming machines or table games have been installed for use or play.

"Gaming operation" means the conduct of authorized casino gaming within a casino gaming establishment.

"Gaming ticket" means an instrument that upon insertion into a bill validator entitles the player inserting the gaming ticket to credits on a casino gaming machine corresponding to the amount printed on the gaming ticket. A gaming ticket may be an electronic ticket or card.

"Gaming ticket system" means the collective hardware, software, communications technology, and other ancillary equipment owned or leased by a facility operator to facilitate the issuance or redemption of a gaming ticket.

"Gross receipts" means the total amount of money exchanged for the purchase of chips, tokens, or electronic tickets or cards by casino gaming players.

"Immediate family" means

1. A spouse; and

2. Any other person residing in the same household as an officer or employee and who is a dependent of the officer or employee or of whom the officer or employee is a dependent.

"Independent certified testing laboratory" means a person engaged in the testing and verification of casino gaming machines and the equipment, systems, and software utilized to collect, monitor, interpret, analyze, authorize, issue, redeem, report, and audit data with regard to activity at casino gaming machines that:

1. Holds a certificate in good standing for compliance with:

a. International Organization for Standardization # 17025 -- General Requirements for the Competence of Testing and Calibration Laboratories; and

b. International Organization for Standardization # 17020 -- General Criteria for the Operation of Various Types of Bodies Performing Inspections;

2. Has performed testing and certification of gaming equipment, systems, and software on behalf of a state within the United States for a period of five or more years; and

3. Has been approved by the department to test and certify equipment, systems, and software used in the Commonwealth of Virginia.

"Individual" means a human being and not a corporation, partnership, association, trust, or other entity.

"Institutional investor" means:

1. A retirement fund administered by a public agency for the exclusive benefit of federal, state, or local public employees;

2. An investment company registered under the Investment Company Act of 1940 (15 USC § 80a et seq.);

3. A collective investment trust organized by banks under Part 9 of the rules of the Comptroller of the Currency;

4. A closed end investment trust;

5. A chartered or licensed life insurance company;

6. A property and casualty insurance company;

7. A banking or other chartered or licensed lending institution;

8. An investment advisor registered under the Investment Advisers Act of 1940 (15 USC § 80b et seq.); or

9. Any other person registered in any foreign jurisdiction and regulated in accordance with a statute of any foreign jurisdiction that the board determines to be substantially similar to that regulated by the Investment Company Act of 1940 or the Investment Advisors Act of 1940.

"Jackpot" means any cash, annuity, or merchandise to be paid to a player as a result of a specific combination of characters on a casino gaming machine.

"Junket" means an arrangement:

1. That is intended to induce an individual who is selected or approved for participation based on the individual's ability to satisfy financial qualification obligations, willingness to gamble, or any other basis related to propensity to gamble; and

2. Under which, or as consideration for which, any or all of the cost of transportation, food, lodging, and entertainment for an individual is directly or indirectly paid by a facility operator or an employee or agent of a facility operator.

"Junket enterprise" means a person, other than a facility operator, that employs or otherwise engages the services of a junket representative in connection with a junket to a facility, regardless of whether the activity occurs in the Commonwealth of Virginia.

"Junket representative" means an individual who negotiates the terms of, or engages in the referral or selection of an individual who may participate in, a junket to a facility, regardless of whether the activity occurs in the Commonwealth of Virginia.

"Key manager" means:

1. An individual who owns, controls, or manages a licensee or otherwise exercises control over the gaming functions of a licensee;

2. An employee of a permit holder who manages or operates the facility, supervises the security of the facility, or is otherwise considered by the department to be a key manager; and

3. Is not a gaming employee.

"Licensee" or "license holder" means a person holding an operator's license under § 58.1-4111 of the Code of Virginia.

"Linked" means to be connected with.

"Manufacturer" means

1. A person:

a. That is engaged in the business of designing, building, constructing, assembling, manufacturing, or distributing a central monitor and control system, slot machines, associated equipment or software, mechanical casino games, or the cabinet in which a slot machine or mechanical casino game is housed;

b. That produces a product that is intended for sale, lease, or other assignment to the department or a licensee; and

c. That contracts with the board, a licensee, or permit holder for the sale, lease, or other assignment of a product described in subdivision 1 a of this definition.

2. A person:

a. That is engaged in the business of designing, building, constructing, assembling, manufacturing, or distributing table games or table game equipment;

b. That produces a product related to table games that is intended for sale, lease, or other assignment to a licensee or permit holder; and

c. That contracts with a licensee or permit holder for the sale, lease, or other assignment of a product described in subdivision 2 a of this definition.

"Mechanical casino gaming machine" or "mechanical casino game" means a device approved by the department for play on the gaming floor of a casino gaming facility that relies primarily on a non-electronic form of interaction with the player, and includes such devices as jar tickets and pull tabs. "Mechanical casino gaming machine" or "mechanical casino game" does not mean table game equipment.

"Merchandise" means goods, commodities, or other things of value.

"Merchandise jackpot" means a casino game jackpot in which a player wins:

1. Merchandise;

2. A combination of a cash payout and merchandise; or

3. An option to choose between a cash payout and merchandise.

"Minor" means an individual who is younger than 21 years of age.

"Mobile casino gaming" means any interactive platform for use through the Internet, mobile device, or computer, which has been approved by the Virginia Lottery Board for operation of gaming by a facility operator.

"Mobile casino gaming platform" means a website, mobile application, or other platform accessible via the Internet or mobile, wireless, or similar communications technology that players may use to participate in on-premises mobile casino gaming.

"Multi-factor authentication" means a strong procedure that requires more than one method to verify a player's identity through a combination of two or more independent credentials such as information known only to the player, such as a password, pattern or answers to challenge questions and a player's personal biometric data, such as fingerprints, facial, or voice recognition, to the extent it does not violate any privacy laws.

"Noncashable credit" means a credit on a casino game that activates play but is not convertible to cash at the conclusion of play.

"Nongaming employee" means an individual who is:

1. Employed or is seeking to be employed by an applicant for or holder of an operation license and whose duties are or will be other than the duties of a gaming employee; or

2. Otherwise required by the department to hold a service permit as a gaming employee.

"On-premises mobile casino gaming" means casino gaming offered by a casino gaming operator at a casino gaming establishment using a computer network of both federal and nonfederal interoperable packet-switched data networks through which the casino gaming operator may offer casino gaming to individuals who have established an on-premises mobile casino gaming account with the casino gaming operator and who are physically present on the premises of the casino gaming establishment, as authorized by the casino gaming law, this chapter, and department policy or directive.

"Operator's license," "facility operator's license," or "casino gaming facility license" means the formal permission granted by the board to legally operate a casino gaming establishment or facility in the Commonwealth of Virginia.

"Notice" or "written notice" means notice provided in paper or electronic form, including electronic mail.

"Permit" means the authority given by the department to a supplier or a service permit holder that authorizes that person or individual to perform the functions permitted by the department.

"Permit holder" means a person holding a supplier or service permit pursuant to this chapter.

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

"Plaque" means a rectangular, square, or oval marker that can be used instead of value chips.

"Player" means an individual who participates in casino gaming.

"Player account" means a specific account that (i) is managed by the facility operator, (ii) has a specific identifiable record of deposits, wagers, and withdrawals, and (iii) is established by a facility operator on behalf of an individual for the individual to use for casino gaming.

"Player tracking system" means the collective hardware, software, communications technology, and other ancillary equipment owned or leased by a facility operator to collect, monitor, interpret, analyze, authorize, report, and audit data pertaining to:

1. Player activity generally at casino games, onsite mobile casino games, or sports betting; and

2. Individual player activity at casino games where the player has registered with the facility operator for inclusion in the player tracking system.

"Preferred casino gaming operator" means the proposed casino gaming establishment and operator thereof submitted by an eligible host city to the board for licensure.

"Principal" means an individual who, solely or together with the individual's immediate family members, (i) owns or controls, directly or indirectly, 5.0% or more of the pecuniary interest in any entity that is a licensee or (ii) has the power to vote or cause the vote of 5.0% or more of the voting securities or other ownership interests of such entity, and any person that manages a gaming operation on behalf of a licensee.

"Prize" means:

1. A monetary award;

2. Merchandise; or

3. An experiential award, such as:

a. A trip;

b. An outing; or

c. A designated activity involving personal participation.

"Progressive controller" means a device independent of the operating system of a slot machine that calculates and transmits to a slot machine the amount of an available progressive jackpot based on:

1. A preestablished rate of progression; and

2. Denomination of the slot machine.

"Progressive jackpot" means a jackpot offered by a casino game that may increase uniformly in value based on wagers as the casino game is played.

"Progressive jackpot system" means a system capable of linking one or more casino games in one or more licensed facilities and offering one or more common progressive jackpots.

"Promotional play" means an award by a facility operator of noncashable credits on a casino game:

1. Directly or indirectly to a player; and

2. With or without regard to the:

a. Identity of the player; or

b. Player's level of gaming activity.

"Promotional play system" means the collective hardware, software, communications technology, and other ancillary equipment owned or leased by a facility operator to facilitate the award of promotional play by means of a:

1. Promotional play instrument; or

2. Download from the system to the casino game.

"Restricted area" means that part of a facility directly related to the operation of the gaming floor where access is specifically designated by the department as restricted, including:

1. Cashier's cage, including a satellite cashiers' cage and ancillary offices;

2. Computer space allocated to the central monitor and control system;

3. Count room and trolley storage areas;

4. Areas designated for the storage or repair of equipment of casino gaming machines or table game devices;

5. Information technology department operations centers;

6. Progressive controller locations;

7. Surveillance monitoring rooms;

8. Vault and armored car bay locations; and

9. Any area that the facility operator has designated as restricted in its department-approved accounting and internal control systems.

"Retailer" or "lottery retailer" means a business or person that has been licensed by the department to sell lottery tickets.

"Sanction" means a nonmonetary enforcement action that the director or the board may take against a licensee or permit holder for a violation of the casino gaming law, this chapter, and any other law, regulation, or condition of the department related to casino gaming and includes suspension, revocation, or nonrenewal of a license or permit, reprimand, or imposition of a condition on a licensee or permit holder.

"Security" has the same meaning as provided in § 13.1-501 of the Code of Virginia and, if the department finds that any obligation, stock, or other equity interest creates control of or voice in the management operations of an entity in the manner of a security, then such interest shall be considered a security.

"Service permit" means the authority given by the department to a casino employee or a concessionaire or concessionaire employee that authorizes that person or individual to perform the functions permitted by the department.

"Signature" for a facility employee or contractor, means:

1. At a minimum, the first initial, last name, and department license or permit identification number, written by the facility employee or contractor; or

2. The unique identification code issued to the facility employee or contractor by the facility operator if the document to be signed is authorized by the department to be generated by a system and the method of signature is approved or required by the department.

"Slot machine" means a machine or other device that:

1. On insertion of a token, voucher, gaming ticket, coupon, or similar item, or on payment of any consideration is available to play or simulate the play of any game of chance in which the results, including the options available to the player, are randomly determined by the machine or other device; and

2. By the element of chance, may deliver or entitle the player who operates the machine or device to receive cash, premiums, merchandise, tokens, or anything of value, whether the payout is made automatically from the device or in any other manner.

"Slot machine" includes a machine or device that (i) does not directly dispense money, tokens, or anything of value to winning players; and (ii) uses a cashless funds transfer system making the deposit of bills, coins, or tokens unnecessary.

"Slot machine management system provider" means an entity that operates or manages the department's central monitor and control system or a casino management system.

"Sports betting" means the same as such term is defined in § 58.1-4030 of the Code of Virginia and is regulated under 11VAC5-70 and this chapter.

"Sports betting facility" means an area, kiosk, or device located inside a casino gaming establishment that is designated for sports betting.

"State" means any state in the United States of America and includes any United States territories and the District of Columbia.

"Submit" means to deliver a document:

1. In a manner that ensures its receipt by the party to whom it is addressed; and

2. That is considered complete only upon actual receipt by that party.

"Supplier" means any person that sells or leases, or contracts to sell or lease, any casino gaming equipment, devices, or supplies, or provides any management services, to a licensee.

"Table games" means:

1. Roulette, baccarat, blackjack, craps, big six wheel, poker, pai gow, and sic bo shakers, pai gow tiles, any variation and composites of such games, and other games that the department has approved for play in a casino; and

2. Gaming tournaments in which players compete against one another in one or more of the games authorized under this chapter.

"Table game equipment" means equipment that is related to the operation of table games and that is owned or leased by a facility operator and located on the casino's premises and includes table layouts, cards, dice, chips, shufflers, tiles, wheels, or any mechanical, electrical, or computerized device, apparatus, or supplies used to conduct a table game or designated by the department as table game equipment.

"Table game equipment" does not mean (i) a table or base that does not have a device that is attributable to a specific table game or is not identified with the facility operator's logo on the layout; or (ii) an item described in clause (i) of this definition that is unfinished or inoperable.

"Terminal" means a computerized unit specifically designed for issuing and processing tickets and for printing of special reports.

"Ticket redemption unit" means the collective hardware, software, communications technology, and other ancillary equipment used to facilitate the payment of gaming tickets and that may be configured to function as a bill breaker changing bills of one denomination into bills of a smaller denomination.

"Transport" or "transportation" means any shipping, transfer, delivery, or other movement of a slot machine, mechanical casino gaming machine, or table game equipment into or out of the state, or between facilities within the state. "Transport" or "transportation" does not include the movement of a slot machine, mechanical gaming device, or table game equipment within a casino gaming facility.

"Unclaimed jackpot" means any cash, annuity, merchandise, cashable credit, table game payout, or gaming ticket to be paid or dispensed to a player.

"Value chip" means a chip that contains a denomination on each face.

"Vendor" means a person that provides goods or services to a casino gaming facility applicant or licensee and that is not required to be licensed as a manufacturer or contractor under the gaming law, this chapter, or department policy and directive, and includes:

1. Except for Virginia Alcoholic Beverage Control, providers of alcoholic beverages;

2. Providers of food and nonalcoholic beverages;

3. Refuse handlers;

4. Vending machine providers and service personnel;

5. Janitorial and maintenance companies;

6. Tenant businesses or franchises located within facilities if such goods and services are not gaming related;

7. Providers of transportation services if such services are not gaming related;

8. Persons involved in the construction of a facility;

9. Lessors of real property or goods;

10. Payroll services and other employer related services;

11. Employee recruiting services; and

12. Persons whose services the board reviews and determines must be registered or certified under this regulation.

"Virginia Indian tribe" means an Indian tribe recognized in House Joint Resolution No. 54 (1983) and acknowledged by the Assistant Secretary-Indian Affairs for the U.S. Department of the Interior as an Indian tribe within the meaning of federal law that has the authority to conduct gaming activities as a matter of claimed inherent authority or under the authority of the federal Indian gaming law.

"Voluntary exclusion program" means the self-exclusion program maintained by the department under 11VAC5-60.

"Wide area progressive system" means a system independent of the operating system of a casino game that calculates and transmits to casino games linked in two or more facilities in or outside the Commonwealth of Virginia the amount of an available progressive jackpot based on:

1. A preestablished rate of progression; and

2. Denomination of the casino game.

"Wire transfer" means a transfer of funds by means of the Federal Reserve Bank wire system in accordance with the requirements of 12 CFR 210.25 et seq.