|Action||Promulgation of Charitable Gaming Regulations by Department of Agriculture and Consumer Services, including electronic gaming provisions|
|Comment Period||Ends 11/23/2022|
D. In accordance with § 18.2-340.19 A 1 of the Code of Virginia, as a condition of receiving a charitable gaming permit or authorization to conduct electronic gaming, an organization shall use a minimum percentage of its charitable gaming receipts for those lawful religious, charitable, community, or educational purposes for which the organization is specifically chartered or organized as follows:
1. For all charitable gaming other than electronic gaming, the minimum percentage shall be 10% of its gross receipts.
2. For electronic gaming, the minimum percentage shall be 40% of its electronic gaming adjusted gross receipts.
How did you come up with these figures and why? It is my understanding that to be classified as a non-profit organization, we are required to use 10% of our profits for charitable causes. More times than not we exceed the required 10%. In other words, we are already using at least 10% of our charitable gaming funds for lawful religious, charitable, community or educational purposes and now you want more? Why? Clubs like ours rely heavily on our charitable gaming funds for business expenses.
Here is how your figures will work out for us…
Charitable Electronic Gaming Adjusted Gross Receipts = $2,000
40% of Charitable Electronic Gaming Adjusted Gross Receipts to charity = $800
$2,000 - $800 = $1,200
50% of Charitable Electronic Gaming Adjusted Gross Receipts to gaming vendor = $1,000
$2,000 - $1,000 = $1,000
Out of $2,000 we are left with $200 which to my understanding we cannot use for business expenses outside charitable gaming, which wouldn’t matter because $200 wouldn’t be enough to pay our electric bill. In short, this law is leaving us with next to nothing and making it so that we cannot stay open.