{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-4021.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-4021.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-4021.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-4021.html"}],"law_id":61896,"edition_id":1,"section_id":61896,"structure_id":13969,"section_number":"58.1-4021","catch_line":"Deposit of moneys received by agents; performance of functions, etc., in connection with operation of lottery; compensation of agents","history":"1987, c. 531; 1990, c. 732; 1990, Sp. Sess., c. 1; 2006, c. 598; 2014, c. 225.","full_text":"A\n\nThe Director shall require all lottery sales agents to deposit to the credit of the Virginia Lottery Fund in banks, designated by the State Treasurer, all moneys received by such agents from the sale of lottery tickets or shares, less any amount paid as prizes or retained as compensation to agents for the sale of the tickets or shares, and to file with the Director, or his designated agents, reports of their receipts, transactions and disbursements pertaining to the sale of lottery tickets in such form and containing such information as he may require. Such deposits and reports shall be submitted at such times and within such intervals as shall be prescribed by rule and regulation of the Department. The Director may arrange for any person, including a bank, to perform such functions, activities or services in connection with the operation of the lottery as he may deem advisable pursuant to this chapter and the rules and regulations of the Department, and such functions, activities and services shall constitute lawful functions, activities and services of the person.B\n\nThe rules and regulations of the Department shall provide for a service charge to the licensed agent if any payor bank dishonors a check or draft tendered for deposit to the credit of the Virginia Lottery Fund by a licensed agent or for an electronic transfer of funds to the Virginia Lottery Fund from the account of a licensed agent for money received from the sale of lottery tickets.\n\t\t\tThe regulations of the Department shall provide for a service charge and penalty to a licensed agent if any payor bank dishonors a check or draft from the account of a licensed agent tendered for payment of any prize by a licensed agent to any claimant. Any such charge or penalty so collected by the Department shall be used first to reimburse the claimant for any charges or penalties incurred by him as a result of the licensed agent’s dishonored check tendered as payment of any prize and the remainder to offset the Department’s administrative costs.C\n\nA licensed agent shall be charged interest as provided in § 58.1-15 on the money that is not timely paid to the Virginia Lottery Fund in accordance with the rules and regulations of the Department and shall in addition thereto pay penalties as provided by rules and regulations of the Department.D\n\nShould the Department refer the debt of any licensed agent to the Attorney General, the Department of Taxation as provided in § 58.1-520 et seq., or any other central collection unit of the Commonwealth, an additional service charge shall be imposed in the amount necessary to cover the administrative costs of the Department and agencies to which such debt is referred.E\n\nNotwithstanding the provisions of Chapter 5 (§ 8.01-257 et seq.) of Title 8.01, in any action for the collection of a debt owed by any licensed agent to the lottery, venue shall lie in the City of Richmond.F\n\nAll proceeds from the sale of lottery tickets or shares received by a person in the capacity of a sales agent shall constitute a trust fund until deposited into the Virginia Lottery Fund either directly or through the Department’s authorized collection representative. Proceeds shall include cash proceeds of the sale of any lottery products, less any amount paid as prizes or retained as compensation to agents for the sale of the tickets or shares. Sales agents shall be personally liable for all proceeds.G\n\nIf the Director determines that the deposit or collection from any sales agent of any moneys or proceeds under this section is or will be jeopardized or will otherwise be delayed, he may adjust either the time or the interval or both for such deposits or collections of any sales agent; require that all such moneys or proceeds shall be kept separate and apart from all other funds and assets and shall not be commingled with any other funds or assets prior to their deposit or collection under this section; and require such other security of any sales agent as he may deem advisable to ensure the timely deposit or collection of moneys or proceeds to the credit of the Virginia Lottery Fund.\n\t\t\tCollection of moneys or proceeds “is or will be jeopardized or will otherwise be delayed” when (i) a check, draft, or electronic funds transfer to the credit of the Virginia Lottery Fund is dishonored as described in subsection B; (ii) an independent auditor states that the lottery sales agent’s financial condition raises substantial doubt about its ability to continue as a going concern; or (iii) the lottery sales agent (a) closes for business or fails to maintain normal business hours without reasonable explanation, (b) has a credit record reflecting recent actions which cast doubt as to its creditworthiness, (c) states it has or may have cash flow problems or may be unable to meet its financial obligations, (d) states it may seek the protection of the federal bankruptcy or state insolvency law, (e) refuses to purchase additional lottery tickets or returns tickets ordered without good cause, or (f) does any other act tending to prejudice or to render wholly or partially ineffectual proceedings to collect moneys or proceeds which are or will become due and payable to the Virginia Lottery Fund.","order_by":null,"text":{"0":{"id":226012,"text":"The Director shall require all lottery sales agents to deposit to the credit of the Virginia Lottery Fund in banks, designated by the State Treasurer, all moneys received by such agents from the sale of lottery tickets or shares, less any amount paid as prizes or retained as compensation to agents for the sale of the tickets or shares, and to file with the Director, or his designated agents, reports of their receipts, transactions and disbursements pertaining to the sale of lottery tickets in such form and containing such information as he may require. Such deposits and reports shall be submitted at such times and within such intervals as shall be prescribed by rule and regulation of the Department. The Director may arrange for any person, including a bank, to perform such functions, activities or services in connection with the operation of the lottery as he may deem advisable pursuant to this chapter and the rules and regulations of the Department, and such functions, activities and services shall constitute lawful functions, activities and services of the person.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":226013,"text":"The rules and regulations of the Department shall provide for a service charge to the licensed agent if any payor bank dishonors a check or draft tendered for deposit to the credit of the Virginia Lottery Fund by a licensed agent or for an electronic transfer of funds to the Virginia Lottery Fund from the account of a licensed agent for money received from the sale of lottery tickets.\n\t\t\tThe regulations of the Department shall provide for a service charge and penalty to a licensed agent if any payor bank dishonors a check or draft from the account of a licensed agent tendered for payment of any prize by a licensed agent to any claimant. Any such charge or penalty so collected by the Department shall be used first to reimburse the claimant for any charges or penalties incurred by him as a result of the licensed agent’s dishonored check tendered as payment of any prize and the remainder to offset the Department’s administrative costs.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":226014,"text":"A licensed agent shall be charged interest as provided in § 58.1-15 on the money that is not timely paid to the Virginia Lottery Fund in accordance with the rules and regulations of the Department and shall in addition thereto pay penalties as provided by rules and regulations of the Department.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":226015,"text":"Should the Department refer the debt of any licensed agent to the Attorney General, the Department of Taxation as provided in § 58.1-520 et seq., or any other central collection unit of the Commonwealth, an additional service charge shall be imposed in the amount necessary to cover the administrative costs of the Department and agencies to which such debt is referred.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":226016,"text":"Notwithstanding the provisions of Chapter 5 (§ 8.01-257 et seq.) of Title 8.01, in any action for the collection of a debt owed by any licensed agent to the lottery, venue shall lie in the City of Richmond.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"5":{"id":226017,"text":"All proceeds from the sale of lottery tickets or shares received by a person in the capacity of a sales agent shall constitute a trust fund until deposited into the Virginia Lottery Fund either directly or through the Department’s authorized collection representative. Proceeds shall include cash proceeds of the sale of any lottery products, less any amount paid as prizes or retained as compensation to agents for the sale of the tickets or shares. Sales agents shall be personally liable for all proceeds.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"G"},"6":{"id":226018,"text":"If the Director determines that the deposit or collection from any sales agent of any moneys or proceeds under this section is or will be jeopardized or will otherwise be delayed, he may adjust either the time or the interval or both for such deposits or collections of any sales agent; require that all such moneys or proceeds shall be kept separate and apart from all other funds and assets and shall not be commingled with any other funds or assets prior to their deposit or collection under this section; and require such other security of any sales agent as he may deem advisable to ensure the timely deposit or collection of moneys or proceeds to the credit of the Virginia Lottery Fund.\n\t\t\tCollection of moneys or proceeds “is or will be jeopardized or will otherwise be delayed” when (i) a check, draft, or electronic funds transfer to the credit of the Virginia Lottery Fund is dishonored as described in subsection B; (ii) an independent auditor states that the lottery sales agent’s financial condition raises substantial doubt about its ability to continue as a going concern; or (iii) the lottery sales agent (a) closes for business or fails to maintain normal business hours without reasonable explanation, (b) has a credit record reflecting recent actions which cast doubt as to its creditworthiness, (c) states it has or may have cash flow problems or may be unable to meet its financial obligations, (d) states it may seek the protection of the federal bankruptcy or state insolvency law, (e) refuses to purchase additional lottery tickets or returns tickets ordered without good cause, or (f) does any other act tending to prejudice or to render wholly or partially ineffectual proceedings to collect moneys or proceeds which are or will become due and payable to the Virginia Lottery Fund.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F"}},"ancestry":[{"id":13969,"edition_id":1,"name":"Powers and Duties of Virginia Lottery Board; Administration of Tickets and Prizes","identifier":"1","label":"article","depth":4,"order_by":1,"parent_id":13968,"metadata":{},"date_created":"2026-06-26 03:46:27","date_modified":"2026-06-26 03:46:27","permalink":{"id":259077,"object_type":"structure","relational_id":13969,"identifier":"1","token":"58.1\/IV\/40\/1","url":"\/58.1\/IV\/40\/1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13968,"edition_id":1,"name":"Virginia Lottery Law; Sports Betting","identifier":"40","label":"chapter","depth":3,"order_by":1,"parent_id":13501,"metadata":{},"date_created":"2026-06-26 03:46:27","date_modified":"2026-06-26 03:46:27","permalink":{"id":259075,"object_type":"structure","relational_id":13968,"identifier":"40","token":"58.1\/IV\/40","url":"\/58.1\/IV\/40\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13501,"edition_id":1,"name":"Other Sources of State Revenue","identifier":"IV","label":"subtitle","depth":2,"order_by":1,"parent_id":12703,"metadata":{},"date_created":"2026-06-26 03:45:05","date_modified":"2026-06-26 03:45:05","permalink":{"id":259073,"object_type":"structure","relational_id":13501,"identifier":"IV","token":"58.1\/IV","url":"\/58.1\/IV\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12703,"edition_id":1,"name":"Taxation","identifier":"58.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":251959,"object_type":"structure","relational_id":12703,"identifier":"58.1","token":"58.1","url":"\/58.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":56298,"structure_id":13969,"section_number":"58.1-4000","catch_line":"Short title","url":"\/58.1-4000\/","token":"58.1\/IV\/40\/1\/58.1-4000","metadata":false},{"id":66405,"structure_id":13969,"section_number":"58.1-4001","catch_line":"Establishment of state lottery","url":"\/58.1-4001\/","token":"58.1\/IV\/40\/1\/58.1-4001","metadata":false},{"id":70493,"structure_id":13969,"section_number":"58.1-4002","catch_line":"Definitions","url":"\/58.1-4002\/","token":"58.1\/IV\/40\/1\/58.1-4002","metadata":false},{"id":78216,"structure_id":13969,"section_number":"58.1-4003","catch_line":"Virginia Lottery established","url":"\/58.1-4003\/","token":"58.1\/IV\/40\/1\/58.1-4003","metadata":false},{"id":59963,"structure_id":13969,"section_number":"58.1-4004","catch_line":"Membership of Board; appointment; terms; vacancies; removal; expenses","url":"\/58.1-4004\/","token":"58.1\/IV\/40\/1\/58.1-4004","metadata":false},{"id":55760,"structure_id":13969,"section_number":"58.1-4005","catch_line":"Appointment, qualifications and salary of Director","url":"\/58.1-4005\/","token":"58.1\/IV\/40\/1\/58.1-4005","metadata":false},{"id":75231,"structure_id":13969,"section_number":"58.1-4006","catch_line":"Powers of the Director","url":"\/58.1-4006\/","token":"58.1\/IV\/40\/1\/58.1-4006","metadata":false},{"id":77989,"structure_id":13969,"section_number":"58.1-4006.1","catch_line":"Use of the phrase \"Virginia is for Bettors\" prohibited; civil penalty","url":"\/58.1-4006.1\/","token":"58.1\/IV\/40\/1\/58.1-4006.1","metadata":false},{"id":74431,"structure_id":13969,"section_number":"58.1-4007","catch_line":"Powers of the Board","url":"\/58.1-4007\/","token":"58.1\/IV\/40\/1\/58.1-4007","metadata":false},{"id":86024,"structure_id":13969,"section_number":"58.1-4007.1","catch_line":"Lottery tickets to bear telephone number for compulsive gamblers","url":"\/58.1-4007.1\/","token":"58.1\/IV\/40\/1\/58.1-4007.1","metadata":false},{"id":62905,"structure_id":13969,"section_number":"58.1-4007.2","catch_line":"Repealed","url":"\/58.1-4007.2\/","token":"58.1\/IV\/40\/1\/58.1-4007.2","metadata":false},{"id":85895,"structure_id":13969,"section_number":"58.1-4007.3","catch_line":"Posting of illegal gaming tip line; problem gambling helpline","url":"\/58.1-4007.3\/","token":"58.1\/IV\/40\/1\/58.1-4007.3","metadata":false},{"id":60211,"structure_id":13969,"section_number":"58.1-4008","catch_line":"Employees of the Department; background investigations of employees","url":"\/58.1-4008\/","token":"58.1\/IV\/40\/1\/58.1-4008","metadata":false},{"id":86133,"structure_id":13969,"section_number":"58.1-4009","catch_line":"Licensing of lottery sales agents; penalty","url":"\/58.1-4009\/","token":"58.1\/IV\/40\/1\/58.1-4009","metadata":false},{"id":77230,"structure_id":13969,"section_number":"58.1-4010","catch_line":"Authority of persons licensed as lottery sales agents; annual fee","url":"\/58.1-4010\/","token":"58.1\/IV\/40\/1\/58.1-4010","metadata":false},{"id":64463,"structure_id":13969,"section_number":"58.1-4011","catch_line":"Meaning of \"gross receipts.\"","url":"\/58.1-4011\/","token":"58.1\/IV\/40\/1\/58.1-4011","metadata":false},{"id":83782,"structure_id":13969,"section_number":"58.1-4012","catch_line":"Suspension and revocation of licenses","url":"\/58.1-4012\/","token":"58.1\/IV\/40\/1\/58.1-4012","metadata":false},{"id":83088,"structure_id":13969,"section_number":"58.1-4013","catch_line":"Right to prize not assignable; exceptions","url":"\/58.1-4013\/","token":"58.1\/IV\/40\/1\/58.1-4013","metadata":false},{"id":55730,"structure_id":13969,"section_number":"58.1-4014","catch_line":"Price of tickets or shares; who may sell; penalty","url":"\/58.1-4014\/","token":"58.1\/IV\/40\/1\/58.1-4014","metadata":false},{"id":72082,"structure_id":13969,"section_number":"58.1-4014.1","catch_line":"Method of payment for purchase of tickets or shares","url":"\/58.1-4014.1\/","token":"58.1\/IV\/40\/1\/58.1-4014.1","metadata":false},{"id":72946,"structure_id":13969,"section_number":"58.1-4015","catch_line":"Sale of ticket or share to person under eighteen prohibited; penalty","url":"\/58.1-4015\/","token":"58.1\/IV\/40\/1\/58.1-4015","metadata":false},{"id":85845,"structure_id":13969,"section_number":"58.1-4015.1","catch_line":"Voluntary exclusion program","url":"\/58.1-4015.1\/","token":"58.1\/IV\/40\/1\/58.1-4015.1","metadata":false},{"id":78837,"structure_id":13969,"section_number":"58.1-4016","catch_line":"Gift to minor prohibited","url":"\/58.1-4016\/","token":"58.1\/IV\/40\/1\/58.1-4016","metadata":false},{"id":59245,"structure_id":13969,"section_number":"58.1-4017","catch_line":"Alteration and forgery; presentation of counterfeit or altered ticket or share; penalty","url":"\/58.1-4017\/","token":"58.1\/IV\/40\/1\/58.1-4017","metadata":false},{"id":57248,"structure_id":13969,"section_number":"58.1-4018","catch_line":"Prohibited actions; penalty","url":"\/58.1-4018\/","token":"58.1\/IV\/40\/1\/58.1-4018","metadata":false},{"id":56776,"structure_id":13969,"section_number":"58.1-4018.1","catch_line":"Larceny of tickets; fraudulent notification of prizes; penalty","url":"\/58.1-4018.1\/","token":"58.1\/IV\/40\/1\/58.1-4018.1","metadata":false},{"id":55029,"structure_id":13969,"section_number":"58.1-4018.2","catch_line":"Ticket discounting; civil penalties","url":"\/58.1-4018.2\/","token":"58.1\/IV\/40\/1\/58.1-4018.2","metadata":false},{"id":60303,"structure_id":13969,"section_number":"58.1-4019","catch_line":"Certain persons ineligible to purchase tickets or shares or receive prizes","url":"\/58.1-4019\/","token":"58.1\/IV\/40\/1\/58.1-4019","metadata":false},{"id":81045,"structure_id":13969,"section_number":"58.1-4019.1","catch_line":"License required for \"instant ticket\" games or contests","url":"\/58.1-4019.1\/","token":"58.1\/IV\/40\/1\/58.1-4019.1","metadata":false},{"id":75369,"structure_id":13969,"section_number":"58.1-4020","catch_line":"Unclaimed prizes","url":"\/58.1-4020\/","token":"58.1\/IV\/40\/1\/58.1-4020","metadata":false},{"id":62937,"structure_id":13969,"section_number":"58.1-4020.1","catch_line":"Voluntary assignment of lottery prizes or pledge as collateral for a loan; requirements for the assignees and lenders","url":"\/58.1-4020.1\/","token":"58.1\/IV\/40\/1\/58.1-4020.1","metadata":false},{"id":61896,"structure_id":13969,"section_number":"58.1-4021","catch_line":"Deposit of moneys received by agents; performance of functions, etc., in connection with operation of lottery; compensation of agents","url":"\/58.1-4021\/","token":"58.1\/IV\/40\/1\/58.1-4021","metadata":false},{"id":84585,"structure_id":13969,"section_number":"58.1-4022","catch_line":"Virginia Lottery Fund","url":"\/58.1-4022\/","token":"58.1\/IV\/40\/1\/58.1-4022","metadata":false},{"id":77736,"structure_id":13969,"section_number":"58.1-4022.1","catch_line":"Lottery Proceeds Fund","url":"\/58.1-4022.1\/","token":"58.1\/IV\/40\/1\/58.1-4022.1","metadata":false},{"id":63848,"structure_id":13969,"section_number":"58.1-4023","catch_line":"Post-audit of accounts and transactions of Department; post-compliance audits","url":"\/58.1-4023\/","token":"58.1\/IV\/40\/1\/58.1-4023","metadata":false},{"id":78705,"structure_id":13969,"section_number":"58.1-4024","catch_line":"Employees of the Department","url":"\/58.1-4024\/","token":"58.1\/IV\/40\/1\/58.1-4024","metadata":false},{"id":69602,"structure_id":13969,"section_number":"58.1-4025","catch_line":"Exemption of lottery prizes and sales of tickets from state and local taxation","url":"\/58.1-4025\/","token":"58.1\/IV\/40\/1\/58.1-4025","metadata":false},{"id":56528,"structure_id":13969,"section_number":"58.1-4026","catch_line":"Set-off of debts to the Commonwealth from prizes","url":"\/58.1-4026\/","token":"58.1\/IV\/40\/1\/58.1-4026","metadata":false},{"id":75836,"structure_id":13969,"section_number":"58.1-4027","catch_line":"Judicial review","url":"\/58.1-4027\/","token":"58.1\/IV\/40\/1\/58.1-4027","metadata":false},{"id":84494,"structure_id":13969,"section_number":"58.1-4028","catch_line":"Repealed","url":"\/58.1-4028\/","token":"58.1\/IV\/40\/1\/58.1-4028","metadata":false},{"id":78868,"structure_id":13969,"section_number":"58.1-4029","catch_line":"Disclosure of identity of winners by the Department","url":"\/58.1-4029\/","token":"58.1\/IV\/40\/1\/58.1-4029","metadata":false}],"previous_section":{"id":62937,"structure_id":13969,"section_number":"58.1-4020.1","catch_line":"Voluntary assignment of lottery prizes or pledge as collateral for a loan; requirements for the assignees and lenders","url":"\/58.1-4020.1\/","token":"58.1\/IV\/40\/1\/58.1-4020.1","metadata":false},"next_section":{"id":84585,"structure_id":13969,"section_number":"58.1-4022","catch_line":"Virginia Lottery Fund","url":"\/58.1-4022\/","token":"58.1\/IV\/40\/1\/58.1-4022","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/58.1-4021\/","history_text":"

This law was first created in 1987. The record of its establishment is cataloged in chapter 531 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1987 \u201cActs\u201d aren\u2019t available online. It has been modified 3 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1990, chapter 732; in 2006, chapter 598<\/a>; in 2014, chapter 225<\/a>.<\/p>","references":false,"refers_to":[{"id":77006,"section_number":"58.1-15","catch_line":"Rate of interest","order_by":null,"url":"\/58.1-15\/"},{"id":57268,"section_number":"58.1-520","catch_line":"(Contingent effective date) Definitions","order_by":null,"url":"\/58.1-520\/"},{"id":77027,"section_number":"8.01-257","catch_line":"Venue generally","order_by":null,"url":"\/8.01-257\/"}],"permalink":{"id":259203,"object_type":"law","relational_id":61896,"identifier":"58.1-4021","token":"58.1\/IV\/40\/1\/58.1-4021","url":"\/58.1-4021\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-4021\/","token":"58.1\/IV\/40\/1\/58.1-4021","dublin_core":{"Title":"Deposit of moneys received by agents; performance of functions, etc., in connection with operation of lottery; compensation of agents","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-4021","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> The Director<\/span> shall require all lottery<\/span> sales agents to deposit to the credit of the Virginia Lottery<\/span> Fund in banks, designated by the State Treasurer, all moneys received by such agents from the sale of lottery<\/span> tickets or shares, less any amount paid as prizes or retained as compensation to agents for the sale of the tickets or shares, and to file with the Director<\/span>, or his designated agents, reports of their receipts, transactions and disbursements pertaining to the sale of lottery<\/span> tickets in such form and containing such information as he may require. Such deposits and reports shall be submitted at such times and within such intervals as shall be prescribed by rule and regulation of the Department<\/span>. The Director<\/span> may arrange for any person, including a bank, to perform such functions, activities or services in connection with the operation of the lottery<\/span> as he may deem advisable pursuant to this chapter and the rules and regulations of the Department<\/span>, and such functions, activities and services shall constitute lawful functions, activities and services of the person. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The rules and regulations of the Department<\/span> shall provide for a service charge to the licensed agent if any payor bank dishonors a check or draft tendered for deposit to the credit of the Virginia Lottery<\/span> Fund by a licensed agent or for an electronic transfer of funds to the Virginia Lottery<\/span> Fund from the account of a licensed agent for money received from the sale of lottery<\/span> tickets.\n\t\t\tThe regulations of the Department<\/span> shall provide for a service charge and penalty<\/span> to a licensed agent if any payor bank dishonors a check or draft from the account of a licensed agent tendered for payment of any prize by a licensed agent to any claimant. Any such charge or penalty<\/span> so collected by the Department<\/span> shall be used first to reimburse the claimant for any charges or penalties incurred by him as a result of the licensed agent’s dishonored check tendered as payment of any prize and the remainder to offset the Department<\/span>’s administrative costs. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> A licensed agent shall be charged interest as provided in § 58.1-15<\/a> on the money that is not timely paid to the Virginia Lottery<\/span> Fund in accordance with the rules and regulations of the Department<\/span> and shall in addition thereto pay penalties as provided by rules and regulations of the Department<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> Should the Department<\/span> refer the debt of any licensed agent to the Attorney General<\/span>, the Department<\/span> of Taxation as provided in § 58.1-520<\/a> et seq., or any other central collection unit of the Commonwealth, an additional service charge shall be imposed in the amount necessary to cover the administrative costs of the Department<\/span> and agencies to which such debt is referred. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> Notwithstanding the provisions of Chapter 5 (§ 8.01-257<\/a> et seq.) of Title 8.01, in any action for the collection of a debt owed by any licensed agent to the lottery<\/span>, venue<\/span> shall lie in the City of Richmond. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> All proceeds from the sale of lottery<\/span> tickets or shares received by a person in the capacity of a sales agent shall constitute a trust fund until deposited into the Virginia Lottery<\/span> Fund either directly or through the Department<\/span>’s authorized collection representative. Proceeds shall include cash proceeds of the sale of any lottery<\/span> products, less any amount paid as prizes or retained as compensation to agents for the sale of the tickets or shares. Sales agents shall be personally liable for all proceeds. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> If the Director<\/span> determines that the deposit or collection from any sales agent of any moneys or proceeds under this section is or will be jeopardized or will otherwise be delayed, he may adjust either the time or the interval or both for such deposits or collections of any sales agent; require that all such moneys or proceeds shall be kept separate and apart from all other funds and assets<\/span> and shall not be commingled with any other funds or assets<\/span> prior to their deposit or collection under this section; and require such other security of any sales agent as he may deem advisable to ensure the timely deposit or collection of moneys or proceeds to the credit of the Virginia Lottery<\/span> Fund.\n\t\t\tCollection of moneys or proceeds “is or will be jeopardized or will otherwise be delayed” when (i) a check, draft, or electronic funds transfer to the credit of the Virginia Lottery<\/span> Fund is dishonored as described in subsection B; (ii) an independent auditor states that the lottery<\/span> sales agent’s financial condition raises substantial doubt about its ability to continue as a going concern; or (iii) the lottery<\/span> sales agent (a) closes for business or fails to maintain normal business hours without reasonable explanation, (b) has a credit record reflecting recent actions which cast doubt as to its creditworthiness, (c) states it has or may have cash flow problems or may be unable to meet its financial obligations, (d) states it may seek the protection of the federal bankruptcy<\/span> or state insolvency law<\/span>, (e) refuses to purchase additional lottery<\/span> tickets or returns tickets ordered without good cause, or (f) does any other act tending to prejudice or to render wholly or partially ineffectual proceedings to collect moneys or proceeds which are or will become due and payable to the Virginia Lottery<\/span> Fund. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nDEPOSIT OF MONEYS RECEIVED BY AGENTS; PERFORMANCE OF FUNCTIONS, ETC., IN\nCONNECTION WITH OPERATION OF LOTTERY; COMPENSATION OF AGENTS (\u00a7 58.1-4021)\n\nA. The Director shall require all lottery sales agents to deposit to the credit\nof the Virginia Lottery Fund in banks, designated by the State Treasurer, all\nmoneys received by such agents from the sale of lottery tickets or shares, less\nany amount paid as prizes or retained as compensation to agents for the sale of\nthe tickets or shares, and to file with the Director, or his designated agents,\nreports of their receipts, transactions and disbursements pertaining to the sale\nof lottery tickets in such form and containing such information as he may\nrequire. Such deposits and reports shall be submitted at such times and within\nsuch intervals as shall be prescribed by rule and regulation of the Department.\nThe Director may arrange for any person, including a bank, to perform such\nfunctions, activities or services in connection with the operation of the\nlottery as he may deem advisable pursuant to this chapter and the rules and\nregulations of the Department, and such functions, activities and services shall\nconstitute lawful functions, activities and services of the person.\n\nB. The rules and regulations of the Department shall provide for a service\ncharge to the licensed agent if any payor bank dishonors a check or draft\ntendered for deposit to the credit of the Virginia Lottery Fund by a licensed\nagent or for an electronic transfer of funds to the Virginia Lottery Fund from\nthe account of a licensed agent for money received from the sale of lottery\ntickets.\n\t\t\tThe regulations of the Department shall provide for a service charge and\npenalty to a licensed agent if any payor bank dishonors a check or draft from\nthe account of a licensed agent tendered for payment of any prize by a licensed\nagent to any claimant. Any such charge or penalty so collected by the Department\nshall be used first to reimburse the claimant for any charges or penalties\nincurred by him as a result of the licensed agent’s dishonored check\ntendered as payment of any prize and the remainder to offset the\nDepartment’s administrative costs.\n\nC. A licensed agent shall be charged interest as provided in § 58.1-15 on\nthe money that is not timely paid to the Virginia Lottery Fund in accordance\nwith the rules and regulations of the Department and shall in addition thereto\npay penalties as provided by rules and regulations of the Department.\n\nD. Should the Department refer the debt of any licensed agent to the Attorney\nGeneral, the Department of Taxation as provided in § 58.1-520 et seq., or\nany other central collection unit of the Commonwealth, an additional service\ncharge shall be imposed in the amount necessary to cover the administrative\ncosts of the Department and agencies to which such debt is referred.\n\nE. Notwithstanding the provisions of Chapter 5 (§ 8.01-257 et seq.) of\nTitle 8.01, in any action for the collection of a debt owed by any licensed\nagent to the lottery, venue shall lie in the City of Richmond.\n\nF. All proceeds from the sale of lottery tickets or shares received by a person\nin the capacity of a sales agent shall constitute a trust fund until deposited\ninto the Virginia Lottery Fund either directly or through the Department’s\nauthorized collection representative. Proceeds shall include cash proceeds of\nthe sale of any lottery products, less any amount paid as prizes or retained as\ncompensation to agents for the sale of the tickets or shares. Sales agents shall\nbe personally liable for all proceeds.\n\nG. If the Director determines that the deposit or collection from any sales\nagent of any moneys or proceeds under this section is or will be jeopardized or\nwill otherwise be delayed, he may adjust either the time or the interval or both\nfor such deposits or collections of any sales agent; require that all such\nmoneys or proceeds shall be kept separate and apart from all other funds and\nassets and shall not be commingled with any other funds or assets prior to their\ndeposit or collection under this section; and require such other security of any\nsales agent as he may deem advisable to ensure the timely deposit or collection\nof moneys or proceeds to the credit of the Virginia Lottery Fund.\n\t\t\tCollection of moneys or proceeds “is or will be jeopardized or will\notherwise be delayed” when (i) a check, draft, or electronic funds\ntransfer to the credit of the Virginia Lottery Fund is dishonored as described\nin subsection B; (ii) an independent auditor states that the lottery sales\nagent’s financial condition raises substantial doubt about its ability to\ncontinue as a going concern; or (iii) the lottery sales agent (a) closes for\nbusiness or fails to maintain normal business hours without reasonable\nexplanation, (b) has a credit record reflecting recent actions which cast doubt\nas to its creditworthiness, (c) states it has or may have cash flow problems or\nmay be unable to meet its financial obligations, (d) states it may seek the\nprotection of the federal bankruptcy or state insolvency law, (e) refuses to\npurchase additional lottery tickets or returns tickets ordered without good\ncause, or (f) does any other act tending to prejudice or to render wholly or\npartially ineffectual proceedings to collect moneys or proceeds which are or\nwill become due and payable to the Virginia Lottery Fund.\n\nHISTORY: 1987, c. 531; 1990, c. 732; 1990, Sp. Sess., c. 1; 2006, c. 598; 2014,\nc. 225.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}