The Virginia Charitable Gaming Board of the Commonwealth of Virginia (the "Board") officially met to advise VDACS regarding the proposed regulations on October 25, 2022 and again on November 16, 2022.

On Oct. 25th, the Board unanimously voted to object to the following elements in the proposed regulations:

• Change the definition of "immediate family" in the proposed Charitable Gaming Regulations.
  • Note: On the Nov 16th meeting, it was noted that charities should not be treated more poorly than casinos. It is understood that the update with respect to bingo requires going through the APA process, which should be undertaken. Nonetheless, this update to treat Charities on par with casinos may, and should, be made regarding electronic gaming.
• Acknowledge the allowance of the use of receipts from charitable gaming to be used in relation to the acquisition, construction, maintenance, or repair of any interest in real property in the operations of the organization for which is used for the organization's religious, community, educational or charitable purposes, as part of meeting its use of proceeds requirement.
  • Note: It is understood that the regulations in no way preclude this usage. However, there seemed to be confusion, and the Board wishes to be clear on the matter.
• Change the percentage for use of proceeds requirements for electronic gaming.
• Permit the classification of salaries and wages of employees whose primary responsibility is to provide services for the principal benefit of an organization's members and their guests as a reasonable and proper business expense.
  • Note: On the Nov 16th meeting, it was noted the VA Code provides that the Commissioner may qualify this as a business expense. To fail to do so is to fail to understand or care for the operation of charities. Certainly fraternal organizations pay staff to execute upon their fraternal function for their members and should do so.