Administrative Code

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Virginia Administrative Code
Title 11. Gaming
Agency 5. Virginia Lottery Board
Chapter 90. Casino Gaming
7/13/2024

11VAC5-90-40. Licenses and permits generally.

A. Applications.

1. An applicant for a license or permit shall submit an electronic application in the form and format established by the department and, as required by the director, may include an original and copies.

2. Upon filing of an application for a license or permit under this chapter, the applicant shall pay by wire transfer the applicable investigation and nonrefundable application fees established by the director.

3. If a license or permit application or related documentation must be submitted to the director by a particular date, the application documents shall be delivered to the director not later than 11:59:59 p.m. local time at the headquarters of the department on the last day of the specified period, and an application or documents submitted after the deadline may not be accepted or considered.

4. A person may not submit an application earlier than one year after the board has:

a. Taken final action on a license or permit denial of a previous application involving the applicant;

b. Taken final action on a sanction resulting in revocation of a previous application involving the applicant; or

c. Provided a person with written notice of termination of a temporary permit.

5. Documents and information submitted to the director in a license or permit application shall be verified under oath or affirmation and sworn under the penalties of perjury as to their truth and validity by the applicant or, if the applicant is not an individual, by an officer or director of the applicant.

6. Upon receipt of an application by the department, department staff shall review the application to determine whether it contains all the information required under this chapter.

7. If the director determines that the required information has not been submitted, department staff shall notify the applicant in writing and state the nature of the deficiency.

8. An applicant notified in accordance with subdivision 7 of this subsection shall submit the information necessary to complete the application not later than 15 days after issuance of the notification.

9. Neither the director nor the board will consider the application of an applicant that is notified in accordance with subdivision 7 of this subsection but fails to submit the requested information in a timely manner.

10. The director and the board will consider only a timely, complete application.

B. Changes in application.

1. If information submitted by an applicant as part of a license or permit application changes or becomes inaccurate before the board acts on the application, the applicant shall immediately notify the department staff in writing of the change or inaccuracy.

2. After an application has been filed by an applicant, the applicant may not amend the application except:

a. To address a deficiency in accordance with a notice sent under subdivision A 7 of this section;

b. As required by the board or department staff for clarification of information contained in the application; or

c. To address a change in the circumstances surrounding the application that was outside the control of the applicant and that affects the ability of the applicant to comply with the law or the regulations of the board.

3. To amend an application under this subsection, an applicant shall submit to the department a written request to amend the application, stating:

a. The change in the circumstances surrounding the application that necessitates the amendment;

b. The nature of the amendment; and

c. The reason why the amendment is necessary to bring the application into compliance with the law or the regulations of the board.

4. The director or department staff shall grant or deny each request submitted under subdivision 2 c of this subsection.

5. A request shall be granted if the applicant demonstrates to the satisfaction of the director that:

a. Before the change in the circumstances surrounding the application, the application complied with the pertinent provisions of the law or the regulations of the board; and

b. The amendment is necessary to bring the application into compliance with the pertinent provisions of the law or the regulations of the board.

6. An application for a license or permit may be withdrawn if the:

a. Applicant submits a written request to the director to withdraw the application; and

b. Written request is submitted before the board has:

(1) Denied the application; or

(2) Terminated a temporary permit.

C. Burden of proof.

1. The burden of proof shall be on an applicant to show by clear and convincing evidence that:

a. The applicant complies with the laws of the Commonwealth of Virginia and the regulations of the board regarding eligibility and qualifications for the license or permit;

b. The applicant is not otherwise disqualified from holding a license or permit; and

c. Award of the license or permit will provide benefit to the people of the Commonwealth of Virginia and assist economic development, promote tourism, and provide for the implementation of casino gaming operations of the highest quality, honesty, integrity; free of any corrupt, incompetent, dishonest, or unprincipled practices.

2. The board may deny a license or permit to an applicant whose gaming license has been suspended or revoked in another jurisdiction.

3. The board may deny a license or permit to an applicant whose past or present conduct would bring the Commonwealth into disrepute.

D. Impact of sports betting permit or license.

1. The department may use or rely on any application, supporting documentation, or information submitted pursuant to § 58.1-4032 of the Code of Virginia and 11VAC5-70 in reviewing and verifying an application and to qualify and issue a license or permit under this chapter.

2. Subdivision 1 of this subsection does not prohibit the department from requiring additional information from an applicant or requiring the applicant to pay additional background investigation or other fees.

E. Bonds.

1. The department shall require an applicant for or holder of a facility operator's license to obtain a bond and submit the original to the director before the board issues or reissues the operator's license.

2. The department may require an applicant for or holder of a permit to obtain a bond and submit the original to the director before the license or permit is issued.

3. A bond shall be for the benefit of the Commonwealth for the faithful performance of the requirements imposed by the laws of the Commonwealth and this chapter, shall be renewable annually, and may not be canceled without at least a 30-day written notice submitted to the director.

4. A bond shall be issued only by a company that is financially rated A or better by a nationally recognized rating agency and that is permitted to transact business in the Commonwealth of Virginia.

5. The amount of the bond shall be in an amount determined by the director to be sufficient to cover any loss or indebtedness to the Commonwealth incurred by the licensee or permit holder.

6. For a facility operator or supplier, the amount of the bond may not exceed $50 million.

7. For a service permit holder, the amount of the bond may not exceed $100,000.

8. The bond for a facility operator or supplier shall include coverage for all its officers, principals, managers, directors, and employees.

9. The director may apply a bond to the payment of an unpaid liability of the facility operator or permit holder associated with the casino gaming law or this chapter.

10. On an annual basis, the director shall review the amount of bonds required of a facility operator.

F. Denial of license or permit.

1. In addition to the hearing requirements in subdivision 3 of this subsection, the process set out in subdivision 2 of this subsection shall precede a hearing by the board on the denial or nonrenewal of a license or permit.

2. After reviewing an application submitted for a license or permit, department staff may recommend that the director or board deny the application or renewal of an applicant that:

a. Has not established by clear and convincing evidence that the applicant meets applicable qualifications set out in the casino gaming law and this chapter, including demonstration of the good character, honesty, and integrity of the applicant and its officers, principals, managers and directors.

b. Is prohibited from holding a license or permit by the casino gaming law or this chapter.

c. Has violated:

(1) A provision of the casino gaming law of this or any other jurisdiction; or

(2) A provision of this chapter or any other law, regulation, or condition of the department related to casino gaming.

d. If department staff recommends that the director or board deny or refuse to renew a license or permit, the director or the director's designee shall promptly provide the applicant with written notice of:

(1) The recommendation and the basis therefor; and

(2) The applicant's right to request an informal fact-finding conference with the director or the director's designee as provided by § 58.1-4007 of the Code of Virginia.

e. An applicant may submit to the director a written request for an informal fact-finding conference within 15 days of the date of the notice described in subdivision d of this subsection.

f. If an applicant fails to timely submit a request, the director:

(1) May adopt as final the recommendation of department staff;

(2) Shall refuse to renew a license or permit;

(3) Shall forward a denial recommendation to the board for final action; and

(4) Notify the applicant of the director's actions and the applicant's appeal rights.

g. During an informal fact-finding conference, an applicant may:

(1) Be represented by counsel; and

(2) Present evidence as to why the license or permit should be granted or renewed.

h. If after the informal fact-finding conference, the applicant is dissatisfied with the decision of the director, the applicant may submit to the board, in writing:

(1) A request for hearing before the board on the decision; and

(2) The applicant's legal and factual bases for disagreeing with the recommendation of the director.

i. An applicant may submit a hearing request to the board within 15 days of the date of notice of the recommendation of the director after an informal fact-finding conference.

j. If an applicant fails to timely submit a request for an informal fact-finding conference or a written hearing request, the director's recommendation for denial shall be adopted by the board as final.

3. Board process.

a. Upon receipt of a timely written hearing request, the board shall provide the applicant a hearing notice for a hearing before the board.

b. The board's hearing notice, and the board's hearing at which the director's denial will be considered, shall comply with the requirements of the Virginia Administrative Process Act, Chapter 40 (§ 2.2-4000 et seq.) of Title 2.2 of the Code of Virginia.

c. Following a hearing, the board shall:

(1) Grant the license or permit after determining that the applicant is qualified for and not prohibited from holding a license or permit; or

(2) Deny the license or permit after determining that the applicant:

(a) Is not qualified for a license or permit or is disqualified from holding a permit or license;

(b) Has violated a provision described in subdivision F 2 of this section; or

(c) Has failed to demonstrate by clear and convincing evidence that its application or renewal request should be granted.

d. Following a hearing, if the board decides to uphold the decision of the director on a renewal or on a recommendation to deny a license or permit, the board shall:

(1) Prepare an order denying the license or permit with a statement of the reasons and specific findings of fact; and

(2) Provide the applicant with written notice of its final action.

e. The board's final action on a license or permit denial is subject to judicial review as provided in § 58.1-4105 of the Code of Virginia.

f. Unless a waiver under 11VAC5-90-30 has been granted, a person may not reapply for a permit that has been denied any sooner than five years after the date of final action on the denial or nonrenewal.

G. Effect of license or permit.

1. Participation in casino gaming operations by a licensee or permit holder shall be deemed a revocable privilege and shall be conditioned on the proper and continued qualification of the licensee or permit holder and on the discharge of the affirmative responsibility of each licensee and permit holder to provide to the regulatory and investigatory authorities under this chapter or any other provision of law, any assistance and information necessary to assure that the policies underlying this chapter are achieved.

2. Consistent with the policy described in subdivision 1 of this subsection, this chapter:

a. Precludes:

(1) The creation of any property right in any license or permit required under this chapter;

(2) The accrual of any monetary value to the privilege of participation in casino gaming operations; and

(3) Except as specifically provided by the casino gaming law and this chapter, the transfer of any license or permit issued under this chapter; and

b. Requires that participation in casino gaming operations be conditioned solely on the continuing qualifications of the person that seeks the privilege.

3. The holder of a facility operator's license may sublicense, convey, concede, or otherwise transfer its license to a third party only after the transferee:

a. Applies and pays all application and background investigation fees for a license;

b. Receives the approval of the board; and

c. Pays to the department a nonrefundable transfer fee of $15 million.

H. Continuing obligations.

1. Applicants who are awarded a license or permit shall, during the term of their license or permit, conform to all of the information contained in their applications, including all information submitted by a license applicant to a host city.

2. If information submitted by an applicant that is issued a license or permit changes during the term of the license or permit, the licensee or permit holder shall immediately submit to the department notice in writing of the change.

3. Every five years after the date a license is issued, a facility operator shall submit to the department for review and approval a reinvestment projection related to the casino gaming establishment to cover the succeeding five-year period of operations.

4. As a condition of holding a license or permit, a licensee or permit holder must comply with all requirements of the casino gaming law, this chapter, and any other law, regulation, or condition of the department related to casino gaming.

5. Failure to comply with the obligations of subdivision 1, 2, 3, or 4 of this subsection shall be grounds for the director taking enforcement action against the licensee or permit holder.

I. Identification cards.

1. The director shall issue an identification card to an individual who has been issued a supplier or service permit.

2. An identification card shall display a photograph of the individual and, at a minimum, indicate:

a. The individual's name;

b. By color, pattern, or symbol, the permit category; and

c. The permit expiration date.

3. An identification card is evidence that the individual is authorized to be employed in the designated permit category by a facility operator, supplier, or service permit holder.

4. An identification card is the property of the director.

5. An individual issued an identification card:

a. Shall wear or otherwise prominently display the identification card at all times while working unless otherwise approved by the director for a specific date and time;

b. Shall immediately report a loss or theft of the card to the individual's employer and the director;

c. May not allow another individual to possess the card; and

d. Shall comply with an order of the director to surrender the card.

6. If an identification card issued under this section is lost or stolen:

a. The individual shall immediately report the loss or theft to the individual's employer;

b. In a form or format designated by the director, the individual shall submit to the director a written description of the circumstances of the loss or theft; and

c. After verifying the permit holder's identity, the director may issue a new identification card to the individual.

7. If an identification card issued under this section is temporarily unavailable to the individual:

a. The individual shall immediately report the temporary unavailability of the card to the individual's employer;

b. In a form or format designated by the director, the individual shall submit to the director or department staff a written description as to why the card is temporarily unavailable;

c. After verifying the permit holder's identity, the director may issue an emergency credential that is valid for one day; and

d. The individual shall surrender the emergency credential to the director or department staff at the end of the shift on the day when the individual received the card.

8. If the director issues a replacement or temporary identification card to an individual, the individual's employer shall pay the director:

a. $40 for the cost of a replacement identification card; or

b. $20 for the cost of a temporary identification card.

9. The employer of an individual issued an identification card under this section shall ensure that the employee's identification card is surrendered to the director if the:

a. Director suspends or revokes the individual's service permit;

b. Service permit is not renewed;

c. Individual separates from employment with the individual's employer; or

d. The individual is otherwise ordered by the department to surrender the identification card.

10. If an identification card is not surrendered as required under this section, the individual's employer may be subject to enforcement action under this chapter.

11. If an identification card was surrendered when an individual separated employment from the individual's employer, the director may issue that individual another identification card if the:

a. Individual obtains employment with a facility operator, supplier, or service permit holder;

b. Term of the individual's service permit has not expired; and

c. Director verifies the individual's identity and confirms that the individual's service permit was in good standing when the card was surrendered, has not expired, and remains in good standing.

12. There is no fee for an identification card issued under subdivision 11 of this subsection.

13. Nothing in subdivision 11 of this subsection shall preclude the director from taking enforcement action against a service permit holder based on the circumstances related to the individual's separation from employment.

Statutory Authority

§§ 58.1-4101 and 58.1-4102 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 38, Issue 13, eff. March 16, 2022.

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