Virginia Law

A. In addition to the processes and requirements set out in 11VAC5-90-40 and 11VAC5-90-50, the requirements set out in this section shall apply to the applications for a service permit and the applicant's related entities and individuals.

B. There are four categories of service permits:

1. Gaming employee;

2. Nongaming employee;

3. Vendor-major; and

4. Vendor-minor.

C. The two categories of vendor described in subsection B of this section are meant to incorporate the types of concessionaires for which service permits are required under § 58.1-4118 of the Code of Virginia.

D. An applicant for a service permit shall submit with its application all required fees and applications for:

1. The applicant itself;

2. Any employees who require a service permit under this chapter; and

3. If applicable, all principals and key managers.

E. The fee for each service applicant shall be a:

1. Nonrefundable $500 application fee for the service permit applicant, plus any applicable fingerprinting fees; and

2. Unless such fee has been submitted on behalf of the same applicant pursuant to another related or contemporaneously filed application, $50,000 background investigation fee for any principal not the holder of or applicant for a supplier permit, including any applicable key manager.

F. The director shall deny a service permit if the director finds that:

1. The issuance of the service permit would not be in the best interests of the Commonwealth or would reflect negatively on the honesty and integrity of casino gaming in the Commonwealth;

2. The granting of the service permit is not consistent with the provisions of the casino gaming law or this chapter, the department's responsibilities, or any regulations promulgated by any other agency of the Commonwealth; or

3. That the applicant:

a. Has knowingly made a false statement of a material fact in the application or has deliberately failed to disclose any information requested by the department;

b. Is or has been guilty of any corrupt or fraudulent practice or conduct in connection with gaming operations in the Commonwealth or any other state;

c. Has knowingly failed to comply with the provisions of the casino gaming law, this chapter, or any other law, regulation, or condition of the department related to casino gaming;

d. Has had a service permit or license to engage in activity related to casino gaming denied for cause, suspended, or revoked in the Commonwealth or any other state, and such denial, suspension, or revocation is still in effect;

e. Is unqualified to perform the duties required for the service permit sought; or

f. Has been convicted of a misdemeanor or felony involving unlawful conduct of wagering, fraudulent use of a gaming credential, unlawful transmission of information, touting, bribery, embezzlement, distribution or possession of drugs, or any crime considered by the director to be detrimental to the honesty and integrity of casino gaming in the Commonwealth.

G. Issuance.

1. The department shall consider all information submitted in the service permit application and any information discovered as a result of the department's background investigation.

2. As a condition of accepting a service permit, permit holders shall expressly acknowledge their duty to adhere to all requirements of the casino gaming law, this chapter, and any other law, regulation, or condition of the department related to casino gaming.

3. Upon request of an applicant, the director may in his sole discretion issue a temporary or conditional service permit to an apparently-qualified applicant pending final board approval of the permit.

4. An applicant for a service permit may not be considered to be apparently-qualified if:

a. The applicant has an immediately known present or prior activity, criminal record, reputation, habit, or association that would disqualify the applicant from holding a permit or license under the casino gaming law or this chapter;

b. The applicant poses a serious imminent risk of harm to the integrity, security, or profitability of the Commonwealth of Virginia's casino gaming program; or

c. There are reasonable grounds to believe that the applicant will not be able to establish the applicant's qualifications by clear and convincing evidence under this chapter.

5. A temporary or conditional service permit holder whose permanent service permit is denied shall not receive a refund of any fees paid toward the application and the costs of the department's background investigation.

6. A temporary or conditional service permit:

a. May not be issued until the applicant has acknowledged in writing that the Commonwealth of Virginia is not financially responsible for any consequences resulting from termination of a temporary or conditional service permit, or a denial of the application;

b. Expires 60 days after the date of issuance; and

c. May be extended by the director for one period of up to 60 days.

7. When the board changes a temporary or conditional service permit into permanent status, the date of issuance of the permanent service permit shall be deemed to be the date that the director issued the temporary service permit.

8. If, during the course of conducting an applicant's background investigation, department staff reasonably believes that there is a basis for recommending denial of a permanent service permit to a temporary or conditional service permit holder, department staff shall:

a. Notify the director and the temporary or conditional service permit holder; and

b. If the board has not yet issued a final decision on the application, allow the application to be withdrawn.

9. By written notice to a temporary or conditional service permit holder, the director may terminate, without a hearing and without following the denial process under 11VAC5-90-40, the temporary or conditional service permit of an applicant for:

a. Failure to pay a required fee;

b. Failure to submit required information and documentation to department staff within 15 days of responding to a request for additional information or documents;

c. Failure to comply with any other request of department staff;

d. Engaging in conduct that obstructs department staff from completing the applicant's background investigation;

e. Failure to comply with the conditions imposed by the director, or

f. Violating any provision of the casino gaming law or this chapter, or any other law, regulation, or condition of the department related to casino gaming.

10. Unless the applicant withdraws the application within seven days of the notice provided under subdivision 8 or 9 of this subsection, the director's written notice of termination of a temporary or conditional service permit shall be deemed a denial and referred to the board for completion of the process set out in 11VAC5-90-40 F.

11. A decision by the department not to issue or renew a temporary or conditional service license is not appealable.

H. Suspension, civil penalties, revocation, and nonrenewal.

1. In addition to any other sanctions or civil penalties, including those set out in 11VAC5-90-90, the director may impose a civil penalty or suspend, revoke, or refuse to renew a service permit for:

a. Failure to comply with, or violation of, any provision of the casino gaming law, this chapter, or any other law, regulation, or condition of the department related to casino gaming;

b. Failure to disclose facts during the application process that indicate that the service permit should not have been issued;

c. Conviction of a felony under the laws of the Commonwealth of Virginia or any other state, or of the United States subsequent to issuance of the service permit;

d. Failure to file any return or report, keep any record, or pay any fee or other charges required by the casino gaming law, this chapter, or any other law, regulation, or condition of the department related to casino gaming;

e. Any act of fraud, deceit, misrepresentation, or conduct prejudicial to public confidence in the integrity of gaming operations; or

f. A material change, since issuance of the service permit, with respect to any matters required to be considered by the director under the casino gaming law, this chapter, or any other law, regulation, or condition of the department related to casino gaming.

2. The director may temporarily suspend a service permit without notice pending any prosecution, hearing, or investigation, whether by a third party or by the director.

3. Disputes related to a suspension, revocation, or refusal to renew a service permit shall be conducted pursuant to the procedures set out in 11VAC5-90-40 F.

I. Portability.

1. A service permit holder who wishes to perform the functions approved by the department pursuant to its initial permit application at a different location or for a different licensee or permit holder shall inform the department in advance.

2. The department shall freely authorize transfers requested pursuant to subdivision 1 of this subsection.

3. The permit holder shall comply with the requirements set out in 11VAC5-90-40 for the replacement of identification cards.

J. Renewal term.

1. The term of a service permit shall be five years.

2. A holder of a service permit who wishes to renew the permit shall:

a. Submit a renewal application three to two months before the expiration date of the permit term; and

b. Pay any fees associated with the application and background investigation as required by the director.