|Action||Promulgation of Charitable Gaming Regulations by Department of Agriculture and Consumer Services, including electronic gaming provisions|
|Comment Period||Ends 11/23/2022|
Summary: The proposed regulatory action moves the Charitable Gaming Regulations from 11VAC15-40 to 11VAC20-20, under the Department of Agriculture and Consumer Services (VDACS), and establishes provisions regarding electronic gaming. The new provisions for electronic gaming include (i) a requirement that 40% of an organization's electronic gaming adjusted gross receipts must be used for the organization's charitable purpose; (ii) a requirement that 10% of an organization's gross receipts from all other charitable gaming must be used for the organization's charitable purpose; (iii) provisions requiring that the social organizations obtain and maintain authorization from VDACS to conduct electronic gaming, including documents that must be provided to VDACS, prohibited acts, and recordkeeping and bank account requirements; (iv) a process by which VDACS will suspend, revoke, or reinstate authorizations to conduct electronic gaming; (v) a fee of $200 to obtain an authorization to conduct electronic gaming in addition to the required charitable gaming permit fee; (vi) a requirement that a qualified organization that leases from a social organization to conduct electronic gaming to obtain a charitable gaming permit prior to conducting electronic gaming; (vii) the conditions under which a social organization may lease its premises to a qualified organization to conduct electronic gaming, including required documentation and requirements for the lease agreement between the social organization and qualified organization that intends to lease the social organization's premises to conduct charitable gaming and that the lease agreement must be provided to VDACS for review; (viii) clarification that salaries and wages of employees whose primary responsibility is to provide services for the principal benefit of the organization's members do not qualify as a reasonable and proper business expense; (ix) in accordance with § 18.2-340.31 of the Code of Virginia, establishment of an audit and administration fee of 0.5% of an organization's electronic gaming adjusted gross receipts, which is in addition to the fee of 0.25% prescribed in statute; and (x) a late fee to be assessed on an electronic gaming manufacturer that fails to submit required reports.
Section i and ii I will discuss below.
Section v, why the $200 fee in addition to the existing permit fee? What is this additional fee for?
Section viii, I truly do not understand how salaries and wages for employees are not considered to be a proper business expense when employees are a business expense. Employees are just as essential for business operation as having electricity and water is essential for business operation.