Proposed Charitable Gaming Regulations 11VAC20-20-10 through 11VAC20-20-610

The following comments and proposed solutions are offered for your review and consideration   regarding the proposed Charitable Gaming Regulations in VOL. 39 ISS. 5 of The Virginia Register of Regulations specifically in reference to electronic gaming provisions.

Proposed regulation:

11VAC20-20-20 D.2 “For electronic gaming, the minimum percentage shall be 40% of its electronic gaming adjusted gross receipts.”

11VAC20-20-40, K “A social organization authorized to operate and conduct electronic gaming shall expend, at a minimum, 40% of its electronic gaming adjusted gross receipts for those lawful religious, charitable, community, or educational purposes for which the organization is specifically chartered or organized.”

Comment:

Our Aerie is a primary source of assistance for the local community. Although we have a relatively small membership, our motto of “people helping people” is prevalent with various support to SERVE, who provide for children and families with food and general financial assistance, Toys for Tots, youth organizations, fellow non-profit organizations, members and their families. Over the last year we have donated over $20,000 in addition to food.

Our ability to continue this outreach support to the community will be adversely affected with reduced funds to offer those in need, jeopardize the overall operation of our club and sustainability for our membership, current and future.

Worst case scenario could ultimately lead to total closure resulting in no community support, an outcome we desire to avoid.

Proposed Solution:

We recommend a rate within a range of 15% to 20% to enable existing operations to continue.

Proposed Regulation:

11VAC20-20-100 K  “Salaries and wages of employees whose primary responsibility is to provide services for the principal benefit of an organization's members shall not qualify as a business expense.”

Comment:

Our Aerie is managed by volunteers with limited permanent employees. As we continue to expand our membership the need for more permanent employees grows. Day to day maintenance of our social club requires necessary and essential services including food ordering and preparation, stocking alcohol and serving, overall club cleanliness and managing special events for our membership. Funds are needed to pay the salaries as applicable.

Proposed solution:

Allow salaries and wages of all employees to be charged as a business expense of the electronic gaming account with the portion directly attributable to electronic gaming to be charged to "Use of Proceeds".

Proposed Regulation:

 In 11VAC20-20-70 Bank account section D – requires second business day requirement to make deposits.

Comment:

Our club is operated primarily by volunteers and the expectation for the Treasurer to make deposits every other day creates a burden with additional commuting time, expenses for transportation, school age children to care for and overall decrease in quality of life.

Proposed Solution:

Modify the requirement to a weekly deposit.

Proposed regulation:

In 11VAC20-20-40, section B, proposes an additional $200.00 fee specifically for electronic gaming.

Comment:

We currently pay a $200 general gaming fee. Adding an additional $200 fee is unwarranted just for electronic gaming.

Proposed Solution:

Eliminate the additional $200 fee from the guidance.