{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/59.1-392.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/59.1-392.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/59.1-392.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/59.1-392.html"}],"law_id":59836,"edition_id":1,"section_id":59836,"structure_id":13337,"section_number":"59.1-392","catch_line":"Percentage retained; tax","history":"1988, c. 855; 1991, c. 591; 1992, c. 820; 1995, c. 217; 1998, cc. 608, 619; 2000, c. 1031; 2007, c. 61; 2011, c. 732; 2015, cc. 731, 751; 2018, c. 811; 2022, c. 511; 2024, cc. 53, 506; 2025, c. 725.","full_text":"A\n\nAny person holding an operator’s license to operate a horse racetrack or satellite facility in the Commonwealth pursuant to this chapter shall be authorized to conduct pari-mutuel wagering on horse racing subject to the provisions of this chapter and the conditions and regulations of the Commission.B\n\nOn pari-mutuel pools generated by wagering at the racetrack on live horse racing conducted within the Commonwealth, involving win, place, and show wagering, the licensee shall retain a percentage amount approved by the Commission as jointly requested by a recognized majority horsemen’s group and a licensee and the legitimate breakage, out of which shall be paid 1.25 percent to be distributed as follows: 1.0 percent to the Commonwealth as a license tax and 0.25 percent to the locality in which the racetrack is located. The remainder of the retainage shall be paid as provided in subsection D, provided, however, that if the percentage amount approved by the Commission is other than percent, the amounts provided in subdivisions D 1, 2, and 3 shall be adjusted by the proportion that the approved percentage amount bears to 18 percent.C\n\nOn pari-mutuel pools generated by wagering at each Virginia satellite facility on live horse racing conducted within the Commonwealth, involving win, place, and show wagering, the licensee shall retain a percentage amount approved by the Commission as jointly requested by a recognized majority horsemen’s group and a licensee and the legitimate breakage, out of which shall be paid 1.25 percent to be distributed as follows: 0.75 percent to the Commonwealth as a license tax, 0.25 percent to the locality in which the satellite facility is located, and 0.25 percent to the locality in which the racetrack is located. The remainder of the retainage shall be paid as provided in subsection D, provided, however, that if the 25 percentage amount approved by the Commission is other than 18 percent, the amounts provided in subdivisions D 1, 2, and 3 shall be adjusted by the proportion that the approved percentage amount bears to 18 percent.D\n\nOn pari-mutuel pools generated by wagering at the racetrack and each Virginia satellite facility on live horse racing conducted within the Commonwealth, involving win, place, and show wagering, the licensee shall retain a percentage amount approved by the Commission as jointly requested by a recognized majority horsemen’s group and a licensee and the legitimate breakage, out of which shall be paid:1\n\nEight percent as purses or prizes to the participants in such race meeting;2\n\nSeven and one-half percent and all of the breakage and the proceeds of pari-mutuel tickets unredeemed 180 days from the date on which the race was conducted, to the operator;3\n\nOne percent to the Virginia Breeders Fund;4\n\nFifteen one-hundredths percent to the Virginia-Maryland Regional College of Veterinary Medicine;5\n\nFive one-hundredths percent to the Virginia Horse Center Foundation;6\n\nFive one-hundredths percent to the Virginia Horse Industry Board; and7\n\nThe remainder of the retainage shall be paid as appropriate under subsection B or C.E\n\nOn pari-mutuel pools generated by wagering at the racetrack on live horse racing conducted within the Commonwealth involving wagering other than win, place, and show wagering, the licensee shall retain a percentage amount approved by the Commission as jointly requested by a recognized majority horsemen’s group and a licensee and the legitimate breakage, out of which shall be paid 2.75 percent to be distributed as follows: 2.25 percent to the Commonwealth as a license tax, and 0.5 percent to the locality in which the racetrack is located. The remainder of the retainage shall be paid as provided in subsection G, provided, however, that if the percentage amount approved by the Commission is other than 22 percent, the amounts provided in subdivisions G 1, 2, and 3 shall be adjusted by the proportion that the approved percentage amount bears to 22 percent.F\n\nOn pari-mutuel pools generated by wagering at each Virginia satellite facility on live horse racing conducted within the Commonwealth involving wagering other than win, place, and show wagering, the licensee shall retain a percentage amount approved by the Commission as jointly requested by a recognized majority horsemen’s group and a licensee and the legitimate breakage, out of which shall be paid 2.75 percent to be distributed as follows: 1.75 percent to the Commonwealth as a license tax, 0.5 percent to the locality in which the satellite facility is located, and 0.5 percent to the locality in which the racetrack is located. The remainder of the retainage shall be paid as provided in subsection G, provided, however, that if the percentage amount approved by the Commission is other than 22 percent, the amounts provided in subdivisions G 1, 2, and 3 shall be adjusted by the proportion that the approved percentage amount bears to 22 percent.G\n\nOn pari-mutuel pools generated by wagering at the racetrack and each Virginia satellite facility on live horse racing conducted within the Commonwealth involving wagering other than win, place, and show wagering, the licensee shall retain a percentage amount approved by the Commission as jointly requested by a recognized majority horsemen’s group and a licensee and the legitimate breakage, out of which shall be paid:1\n\nNine percent as purses or prizes to the participants in such race meeting;2\n\nNine percent and the proceeds of the pari-mutuel tickets unredeemed 180 days from the date on which the race was conducted, to the operator;3\n\nOne percent to the Virginia Breeders Fund;4\n\nFifteen one-hundredths percent to the Virginia-Maryland Regional College of Veterinary Medicine;5\n\nFive one-hundredths percent to the Virginia Horse Center Foundation;6\n\nFive one-hundredths percent to the Virginia Horse Industry Board; and7\n\nThe remainder of the retainage shall be paid as appropriate under subsection E or F.H\n\nOn pari-mutuel wagering generated by simulcast horse racing transmitted from jurisdictions outside the Commonwealth, the licensee may, with the approval of the Commission, commingle pools with the racetrack where the transmission emanates or establish separate pools for wagering within the Commonwealth. All simulcast horse racing in this subsection must comply with the Interstate Horse Racing Act of 1978 (15 U.S.C. § 3001 et seq.).I\n\nOn pari-mutuel pools generated by wagering at the racetrack on simulcast horse racing transmitted from jurisdictions outside the Commonwealth, involving win, place, and show wagering, the licensee shall retain 1.25 percent of such pool to be distributed as follows: 0.75 percent to the Commonwealth as a license tax, and 0.5 percent to the Virginia locality in which the racetrack is located.J\n\nOn pari-mutuel pools generated by wagering at each Virginia satellite facility on simulcast horse racing transmitted from jurisdictions outside the Commonwealth, involving win, place, and show wagering, the licensee shall retain 1.25 percent of such pool to be distributed as follows: 0.75 percent to the Commonwealth as a license tax, 0.25 percent to the locality in which the satellite facility is located, and 0.25 percent to the Virginia locality in which the racetrack is located.K\n\nOn pari-mutuel pools generated by wagering at the racetrack and each Virginia satellite facility on simulcast horse racing transmitted from jurisdictions outside the Commonwealth, involving win, place, and show wagering, the licensee shall retain 1.3 percent of such pool to be distributed as follows:1\n\nOne percent of the pool to the Virginia Breeders Fund;2\n\nFifteen one-hundredths percent to the Virginia-Maryland Regional College of Veterinary Medicine;3\n\nFive one-hundredths percent to the Virginia Horse Center Foundation;4\n\nFive one-hundredths percent to the Virginia Horse Industry Board; and5\n\nFive one-hundredths percent to the Virginia Thoroughbred Association for the promotion of breeding in the Commonwealth.L\n\nOn pari-mutuel pools generated by wagering at the racetrack on simulcast horse racing transmitted from jurisdictions outside the Commonwealth, involving wagering other than win, place, and show wagering, the licensee shall retain 2.75 percent of such pool to be distributed as follows: 1.75 percent to the Commonwealth as a license tax, and 1.0 percent to the Virginia locality in which the racetrack is located.M\n\nOn pari-mutuel pools generated by wagering at each Virginia satellite facility on simulcast horse racing transmitted from jurisdictions outside the Commonwealth, involving wagering other than win, place, and show wagering, the licensee shall retain 2.75 percent of such pool to be distributed as follows: 1.75 percent to the Commonwealth as a license tax, 0.5 percent to the locality in which the satellite facility is located, and 0.5 percent to the Virginia locality in which the racetrack is located.N\n\nOn pari-mutuel pools generated by wagering at the racetrack and each Virginia satellite facility on simulcast horse racing transmitted from jurisdictions outside the Commonwealth, involving wagering other than win, place, and show wagering, the licensee shall retain 1.3 percent of such pool to be distributed as follows:1\n\nOne percent of the pool to the Virginia Breeders Fund;2\n\nFifteen one-hundredths percent to the Virginia-Maryland Regional College of Veterinary Medicine;3\n\nFive one-hundredths percent to the Virginia Horse Center Foundation;4\n\nFive one-hundredths percent to the Virginia Horse Industry Board; and5\n\nFive one-hundredths percent to the Virginia Thoroughbred Association for the promotion of breeding in the Commonwealth.O\n\nMoneys payable to the Commonwealth shall be deposited in the general fund. Gross receipts for license tax purposes under Chapter 37 (§ 58.1-3700 et seq.) of Title 58.1 shall not include pari-mutuel wagering pools and license taxes authorized by this section.P\n\nAll payments by the licensee to the Commonwealth or any locality shall be made within five days from the date on which such wagers are received by the licensee. All payments by the licensee to the Virginia Breeders Fund shall be made to the Commission within five days from the date on which such wagers are received by the licensee. All payments by the licensee to the Virginia-Maryland Regional College of Veterinary Medicine, the Virginia Horse Center Foundation, the Virginia Horse Industry Board, and the Virginia Thoroughbred Association shall be made by the first day of each quarter of the calendar year. All payments made under this section shall be used in support of the policy of the Commonwealth to sustain and promote the growth of a native industry.Q\n\nIf a satellite facility is located in more than one locality, any amount a licensee is required to pay under this section to the locality in which the satellite facility is located shall be prorated in equal shares among those localities.R\n\nAny contractual agreement between a licensee and other entities concerning the distribution of the remaining portion of the retainage under subsections I through N and subsection U shall be subject to the approval of the Commission.S\n\nThe recognized majority horsemen’s group racing at a licensed race meeting may, subject to the approval of the Commission, withdraw for administrative costs associated with serving the interests of the horsemen an amount not to exceed two percent of the amount in the horsemen’s account.T\n\nThe legitimate breakage from each pari-mutuel pool for live, historical, and simulcast horse racing shall be distributed as follows:1\n\nSeventy percent to be retained by the licensee to be used for capital improvements that are subject to approval of the Commission; and2\n\nThirty percent to be deposited in the Racing Benevolence Fund, administered jointly by the licensee and the recognized majority horsemen’s group racing at a licensed race meeting, to be disbursed with the approval of the Commission for gambling addiction and substance abuse counseling, recreational, educational, or other related programs.U\n\nOn pari-mutuel pools generated by wagering on historical horse racing, the licensee shall retain 1.30 percent of such pool to be distributed as follows:1\n\na. If generated at a racetrack, 0.56 percent to the locality in which the racetrack is located; or\n\t\t\t\tb. If generated at a satellite facility before July 1, 2026, 0.28 percent to the locality in which the satellite facility is located and 0.28 percent to the Virginia locality in which the racetrack is located. If generated at a satellite facility on and after July 1, 2026, 0.56 percent to the locality in which the satellite facility is located;2\n\nTo the Problem Gambling Treatment and Support Fund established pursuant to § 37.2-314.2, 0.01 percent;3\n\nTo the (i) Virginia Breeders Fund, (ii) Virginia-Maryland Regional College of Veterinary Medicine for its equine programs, (iii) Virginia Horse Center Foundation, and (iv) Virginia Horse Industry Board, 0.025 percent each; and4\n\nThe remainder to the Commonwealth as a license tax.","order_by":null,"text":{"0":{"id":219148,"text":"Any person holding an operator’s license to operate a horse racetrack or satellite facility in the Commonwealth pursuant to this chapter shall be authorized to conduct pari-mutuel wagering on horse racing subject to the provisions of this chapter and the conditions and regulations of the Commission.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":219149,"text":"On pari-mutuel pools generated by wagering at the racetrack on live horse racing conducted within the Commonwealth, involving win, place, and show wagering, the licensee shall retain a percentage amount approved by the Commission as jointly requested by a recognized majority horsemen’s group and a licensee and the legitimate breakage, out of which shall be paid 1.25 percent to be distributed as follows: 1.0 percent to the Commonwealth as a license tax and 0.25 percent to the locality in which the racetrack is located. The remainder of the retainage shall be paid as provided in subsection D, provided, however, that if the percentage amount approved by the Commission is other than percent, the amounts provided in subdivisions D 1, 2, and 3 shall be adjusted by the proportion that the approved percentage amount bears to 18 percent.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":219150,"text":"On pari-mutuel pools generated by wagering at each Virginia satellite facility on live horse racing conducted within the Commonwealth, involving win, place, and show wagering, the licensee shall retain a percentage amount approved by the Commission as jointly requested by a recognized majority horsemen’s group and a licensee and the legitimate breakage, out of which shall be paid 1.25 percent to be distributed as follows: 0.75 percent to the Commonwealth as a license tax, 0.25 percent to the locality in which the satellite facility is located, and 0.25 percent to the locality in which the racetrack is located. The remainder of the retainage shall be paid as provided in subsection D, provided, however, that if the 25 percentage amount approved by the Commission is other than 18 percent, the amounts provided in subdivisions D 1, 2, and 3 shall be adjusted by the proportion that the approved percentage amount bears to 18 percent.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":219151,"text":"On pari-mutuel pools generated by wagering at the racetrack and each Virginia satellite facility on live horse racing conducted within the Commonwealth, involving win, place, and show wagering, the licensee shall retain a percentage amount approved by the Commission as jointly requested by a recognized majority horsemen’s group and a licensee and the legitimate breakage, out of which shall be paid:","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"D1"},"4":{"id":219152,"text":"Eight percent as purses or prizes to the participants in such race meeting;","type":"section","prefixes":["D","1"],"prefix":"1","entire_prefix":"D1","prefix_anchor":"D1","level":2,"prior_prefix":"D","next_prefix":"D2"},"5":{"id":219153,"text":"Seven and one-half percent and all of the breakage and the proceeds of pari-mutuel tickets unredeemed 180 days from the date on which the race was conducted, to the operator;","type":"section","prefixes":["D","2"],"prefix":"2","entire_prefix":"D2","prefix_anchor":"D2","level":2,"prior_prefix":"D1","next_prefix":"D3"},"6":{"id":219154,"text":"One percent to the Virginia Breeders Fund;","type":"section","prefixes":["D","3"],"prefix":"3","entire_prefix":"D3","prefix_anchor":"D3","level":2,"prior_prefix":"D2","next_prefix":"D4"},"7":{"id":219155,"text":"Fifteen one-hundredths percent to the Virginia-Maryland Regional College of Veterinary Medicine;","type":"section","prefixes":["D","4"],"prefix":"4","entire_prefix":"D4","prefix_anchor":"D4","level":2,"prior_prefix":"D3","next_prefix":"D5"},"8":{"id":219156,"text":"Five one-hundredths percent to the Virginia Horse Center Foundation;","type":"section","prefixes":["D","5"],"prefix":"5","entire_prefix":"D5","prefix_anchor":"D5","level":2,"prior_prefix":"D4","next_prefix":"D6"},"9":{"id":219157,"text":"Five one-hundredths percent to the Virginia Horse Industry Board; and","type":"section","prefixes":["D","6"],"prefix":"6","entire_prefix":"D6","prefix_anchor":"D6","level":2,"prior_prefix":"D5","next_prefix":"D7"},"10":{"id":219158,"text":"The remainder of the retainage shall be paid as appropriate under subsection B or C.","type":"section","prefixes":["D","7"],"prefix":"7","entire_prefix":"D7","prefix_anchor":"D7","level":2,"prior_prefix":"D6","next_prefix":"E"},"11":{"id":219159,"text":"On pari-mutuel pools generated by wagering at the racetrack on live horse racing conducted within the Commonwealth involving wagering other than win, place, and show wagering, the licensee shall retain a percentage amount approved by the Commission as jointly requested by a recognized majority horsemen’s group and a licensee and the legitimate breakage, out of which shall be paid 2.75 percent to be distributed as follows: 2.25 percent to the Commonwealth as a license tax, and 0.5 percent to the locality in which the racetrack is located. The remainder of the retainage shall be paid as provided in subsection G, provided, however, that if the percentage amount approved by the Commission is other than 22 percent, the amounts provided in subdivisions G 1, 2, and 3 shall be adjusted by the proportion that the approved percentage amount bears to 22 percent.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D7","next_prefix":"F"},"12":{"id":219160,"text":"On pari-mutuel pools generated by wagering at each Virginia satellite facility on live horse racing conducted within the Commonwealth involving wagering other than win, place, and show wagering, the licensee shall retain a percentage amount approved by the Commission as jointly requested by a recognized majority horsemen’s group and a licensee and the legitimate breakage, out of which shall be paid 2.75 percent to be distributed as follows: 1.75 percent to the Commonwealth as a license tax, 0.5 percent to the locality in which the satellite facility is located, and 0.5 percent to the locality in which the racetrack is located. The remainder of the retainage shall be paid as provided in subsection G, provided, however, that if the percentage amount approved by the Commission is other than 22 percent, the amounts provided in subdivisions G 1, 2, and 3 shall be adjusted by the proportion that the approved percentage amount bears to 22 percent.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"G"},"13":{"id":219161,"text":"On pari-mutuel pools generated by wagering at the racetrack and each Virginia satellite facility on live horse racing conducted within the Commonwealth involving wagering other than win, place, and show wagering, the licensee shall retain a percentage amount approved by the Commission as jointly requested by a recognized majority horsemen’s group and a licensee and the legitimate breakage, out of which shall be paid:","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F","next_prefix":"G1"},"14":{"id":219162,"text":"Nine percent as purses or prizes to the participants in such race meeting;","type":"section","prefixes":["G","1"],"prefix":"1","entire_prefix":"G1","prefix_anchor":"G1","level":2,"prior_prefix":"G","next_prefix":"G2"},"15":{"id":219163,"text":"Nine percent and the proceeds of the pari-mutuel tickets unredeemed 180 days from the date on which the race was conducted, to the operator;","type":"section","prefixes":["G","2"],"prefix":"2","entire_prefix":"G2","prefix_anchor":"G2","level":2,"prior_prefix":"G1","next_prefix":"G3"},"16":{"id":219164,"text":"One percent to the Virginia Breeders Fund;","type":"section","prefixes":["G","3"],"prefix":"3","entire_prefix":"G3","prefix_anchor":"G3","level":2,"prior_prefix":"G2","next_prefix":"G4"},"17":{"id":219165,"text":"Fifteen one-hundredths percent to the Virginia-Maryland Regional College of Veterinary Medicine;","type":"section","prefixes":["G","4"],"prefix":"4","entire_prefix":"G4","prefix_anchor":"G4","level":2,"prior_prefix":"G3","next_prefix":"G5"},"18":{"id":219166,"text":"Five one-hundredths percent to the Virginia Horse Center Foundation;","type":"section","prefixes":["G","5"],"prefix":"5","entire_prefix":"G5","prefix_anchor":"G5","level":2,"prior_prefix":"G4","next_prefix":"G6"},"19":{"id":219167,"text":"Five one-hundredths percent to the Virginia Horse Industry Board; and","type":"section","prefixes":["G","6"],"prefix":"6","entire_prefix":"G6","prefix_anchor":"G6","level":2,"prior_prefix":"G5","next_prefix":"G7"},"20":{"id":219168,"text":"The remainder of the retainage shall be paid as appropriate under subsection E or F.","type":"section","prefixes":["G","7"],"prefix":"7","entire_prefix":"G7","prefix_anchor":"G7","level":2,"prior_prefix":"G6","next_prefix":"H"},"21":{"id":219169,"text":"On pari-mutuel wagering generated by simulcast horse racing transmitted from jurisdictions outside the Commonwealth, the licensee may, with the approval of the Commission, commingle pools with the racetrack where the transmission emanates or establish separate pools for wagering within the Commonwealth. All simulcast horse racing in this subsection must comply with the Interstate Horse Racing Act of 1978 (15 U.S.C. § 3001 et seq.).","type":"section","prefixes":["H"],"prefix":"H","entire_prefix":"H","prefix_anchor":"H","level":1,"prior_prefix":"G7","next_prefix":"I"},"22":{"id":219170,"text":"On pari-mutuel pools generated by wagering at the racetrack on simulcast horse racing transmitted from jurisdictions outside the Commonwealth, involving win, place, and show wagering, the licensee shall retain 1.25 percent of such pool to be distributed as follows: 0.75 percent to the Commonwealth as a license tax, and 0.5 percent to the Virginia locality in which the racetrack is located.","type":"section","prefixes":["I"],"prefix":"I","entire_prefix":"I","prefix_anchor":"I","level":1,"prior_prefix":"H","next_prefix":"J"},"23":{"id":219171,"text":"On pari-mutuel pools generated by wagering at each Virginia satellite facility on simulcast horse racing transmitted from jurisdictions outside the Commonwealth, involving win, place, and show wagering, the licensee shall retain 1.25 percent of such pool to be distributed as follows: 0.75 percent to the Commonwealth as a license tax, 0.25 percent to the locality in which the satellite facility is located, and 0.25 percent to the Virginia locality in which the racetrack is located.","type":"section","prefixes":["J"],"prefix":"J","entire_prefix":"J","prefix_anchor":"J","level":1,"prior_prefix":"I","next_prefix":"K"},"24":{"id":219172,"text":"On pari-mutuel pools generated by wagering at the racetrack and each Virginia satellite facility on simulcast horse racing transmitted from jurisdictions outside the Commonwealth, involving win, place, and show wagering, the licensee shall retain 1.3 percent of such pool to be distributed as follows:","type":"section","prefixes":["K"],"prefix":"K","entire_prefix":"K","prefix_anchor":"K","level":1,"prior_prefix":"J","next_prefix":"K1"},"25":{"id":219173,"text":"One percent of the pool to the Virginia Breeders Fund;","type":"section","prefixes":["K","1"],"prefix":"1","entire_prefix":"K1","prefix_anchor":"K1","level":2,"prior_prefix":"K","next_prefix":"K2"},"26":{"id":219174,"text":"Fifteen one-hundredths percent to the Virginia-Maryland Regional College of Veterinary Medicine;","type":"section","prefixes":["K","2"],"prefix":"2","entire_prefix":"K2","prefix_anchor":"K2","level":2,"prior_prefix":"K1","next_prefix":"K3"},"27":{"id":219175,"text":"Five one-hundredths percent to the Virginia Horse Center Foundation;","type":"section","prefixes":["K","3"],"prefix":"3","entire_prefix":"K3","prefix_anchor":"K3","level":2,"prior_prefix":"K2","next_prefix":"K4"},"28":{"id":219176,"text":"Five one-hundredths percent to the Virginia Horse Industry Board; and","type":"section","prefixes":["K","4"],"prefix":"4","entire_prefix":"K4","prefix_anchor":"K4","level":2,"prior_prefix":"K3","next_prefix":"K5"},"29":{"id":219177,"text":"Five one-hundredths percent to the Virginia Thoroughbred Association for the promotion of breeding in the Commonwealth.","type":"section","prefixes":["K","5"],"prefix":"5","entire_prefix":"K5","prefix_anchor":"K5","level":2,"prior_prefix":"K4","next_prefix":"L"},"30":{"id":219178,"text":"On pari-mutuel pools generated by wagering at the racetrack on simulcast horse racing transmitted from jurisdictions outside the Commonwealth, involving wagering other than win, place, and show wagering, the licensee shall retain 2.75 percent of such pool to be distributed as follows: 1.75 percent to the Commonwealth as a license tax, and 1.0 percent to the Virginia locality in which the racetrack is located.","type":"section","prefixes":["L"],"prefix":"L","entire_prefix":"L","prefix_anchor":"L","level":1,"prior_prefix":"K5","next_prefix":"M"},"31":{"id":219179,"text":"On pari-mutuel pools generated by wagering at each Virginia satellite facility on simulcast horse racing transmitted from jurisdictions outside the Commonwealth, involving wagering other than win, place, and show wagering, the licensee shall retain 2.75 percent of such pool to be distributed as follows: 1.75 percent to the Commonwealth as a license tax, 0.5 percent to the locality in which the satellite facility is located, and 0.5 percent to the Virginia locality in which the racetrack is located.","type":"section","prefixes":["M"],"prefix":"M","entire_prefix":"M","prefix_anchor":"M","level":1,"prior_prefix":"L","next_prefix":"N"},"32":{"id":219180,"text":"On pari-mutuel pools generated by wagering at the racetrack and each Virginia satellite facility on simulcast horse racing transmitted from jurisdictions outside the Commonwealth, involving wagering other than win, place, and show wagering, the licensee shall retain 1.3 percent of such pool to be distributed as follows:","type":"section","prefixes":["N"],"prefix":"N","entire_prefix":"N","prefix_anchor":"N","level":1,"prior_prefix":"M","next_prefix":"N1"},"33":{"id":219181,"text":"One percent of the pool to the Virginia Breeders Fund;","type":"section","prefixes":["N","1"],"prefix":"1","entire_prefix":"N1","prefix_anchor":"N1","level":2,"prior_prefix":"N","next_prefix":"N2"},"34":{"id":219182,"text":"Fifteen one-hundredths percent to the Virginia-Maryland Regional College of Veterinary Medicine;","type":"section","prefixes":["N","2"],"prefix":"2","entire_prefix":"N2","prefix_anchor":"N2","level":2,"prior_prefix":"N1","next_prefix":"N3"},"35":{"id":219183,"text":"Five one-hundredths percent to the Virginia Horse Center Foundation;","type":"section","prefixes":["N","3"],"prefix":"3","entire_prefix":"N3","prefix_anchor":"N3","level":2,"prior_prefix":"N2","next_prefix":"N4"},"36":{"id":219184,"text":"Five one-hundredths percent to the Virginia Horse Industry Board; and","type":"section","prefixes":["N","4"],"prefix":"4","entire_prefix":"N4","prefix_anchor":"N4","level":2,"prior_prefix":"N3","next_prefix":"N5"},"37":{"id":219185,"text":"Five one-hundredths percent to the Virginia Thoroughbred Association for the promotion of breeding in the Commonwealth.","type":"section","prefixes":["N","5"],"prefix":"5","entire_prefix":"N5","prefix_anchor":"N5","level":2,"prior_prefix":"N4","next_prefix":"O"},"38":{"id":219186,"text":"Moneys payable to the Commonwealth shall be deposited in the general fund. Gross receipts for license tax purposes under Chapter 37 (§ 58.1-3700 et seq.) of Title 58.1 shall not include pari-mutuel wagering pools and license taxes authorized by this section.","type":"section","prefixes":["O"],"prefix":"O","entire_prefix":"O","prefix_anchor":"O","level":1,"prior_prefix":"N5","next_prefix":"P"},"39":{"id":219187,"text":"All payments by the licensee to the Commonwealth or any locality shall be made within five days from the date on which such wagers are received by the licensee. All payments by the licensee to the Virginia Breeders Fund shall be made to the Commission within five days from the date on which such wagers are received by the licensee. All payments by the licensee to the Virginia-Maryland Regional College of Veterinary Medicine, the Virginia Horse Center Foundation, the Virginia Horse Industry Board, and the Virginia Thoroughbred Association shall be made by the first day of each quarter of the calendar year. All payments made under this section shall be used in support of the policy of the Commonwealth to sustain and promote the growth of a native industry.","type":"section","prefixes":["P"],"prefix":"P","entire_prefix":"P","prefix_anchor":"P","level":1,"prior_prefix":"O","next_prefix":"Q"},"40":{"id":219188,"text":"If a satellite facility is located in more than one locality, any amount a licensee is required to pay under this section to the locality in which the satellite facility is located shall be prorated in equal shares among those localities.","type":"section","prefixes":["Q"],"prefix":"Q","entire_prefix":"Q","prefix_anchor":"Q","level":1,"prior_prefix":"P","next_prefix":"R"},"41":{"id":219189,"text":"Any contractual agreement between a licensee and other entities concerning the distribution of the remaining portion of the retainage under subsections I through N and subsection U shall be subject to the approval of the Commission.","type":"section","prefixes":["R"],"prefix":"R","entire_prefix":"R","prefix_anchor":"R","level":1,"prior_prefix":"Q","next_prefix":"S"},"42":{"id":219190,"text":"The recognized majority horsemen’s group racing at a licensed race meeting may, subject to the approval of the Commission, withdraw for administrative costs associated with serving the interests of the horsemen an amount not to exceed two percent of the amount in the horsemen’s account.","type":"section","prefixes":["S"],"prefix":"S","entire_prefix":"S","prefix_anchor":"S","level":1,"prior_prefix":"R","next_prefix":"T"},"43":{"id":219191,"text":"The legitimate breakage from each pari-mutuel pool for live, historical, and simulcast horse racing shall be distributed as follows:","type":"section","prefixes":["T"],"prefix":"T","entire_prefix":"T","prefix_anchor":"T","level":1,"prior_prefix":"S","next_prefix":"T1"},"44":{"id":219192,"text":"Seventy percent to be retained by the licensee to be used for capital improvements that are subject to approval of the Commission; and","type":"section","prefixes":["T","1"],"prefix":"1","entire_prefix":"T1","prefix_anchor":"T1","level":2,"prior_prefix":"T","next_prefix":"T2"},"45":{"id":219193,"text":"Thirty percent to be deposited in the Racing Benevolence Fund, administered jointly by the licensee and the recognized majority horsemen’s group racing at a licensed race meeting, to be disbursed with the approval of the Commission for gambling addiction and substance abuse counseling, recreational, educational, or other related programs.","type":"section","prefixes":["T","2"],"prefix":"2","entire_prefix":"T2","prefix_anchor":"T2","level":2,"prior_prefix":"T1","next_prefix":"U"},"46":{"id":219194,"text":"On pari-mutuel pools generated by wagering on historical horse racing, the licensee shall retain 1.30 percent of such pool to be distributed as follows:","type":"section","prefixes":["U"],"prefix":"U","entire_prefix":"U","prefix_anchor":"U","level":1,"prior_prefix":"T2","next_prefix":"U1"},"47":{"id":219195,"text":"a. If generated at a racetrack, 0.56 percent to the locality in which the racetrack is located; or\n\t\t\t\tb. If generated at a satellite facility before July 1, 2026, 0.28 percent to the locality in which the satellite facility is located and 0.28 percent to the Virginia locality in which the racetrack is located. If generated at a satellite facility on and after July 1, 2026, 0.56 percent to the locality in which the satellite facility is located;","type":"section","prefixes":["U","1"],"prefix":"1","entire_prefix":"U1","prefix_anchor":"U1","level":2,"prior_prefix":"U","next_prefix":"U2"},"48":{"id":219196,"text":"To the Problem Gambling Treatment and Support Fund established pursuant to § 37.2-314.2, 0.01 percent;","type":"section","prefixes":["U","2"],"prefix":"2","entire_prefix":"U2","prefix_anchor":"U2","level":2,"prior_prefix":"U1","next_prefix":"U3"},"49":{"id":219197,"text":"To the (i) Virginia Breeders Fund, (ii) Virginia-Maryland Regional College of Veterinary Medicine for its equine programs, (iii) Virginia Horse Center Foundation, and (iv) Virginia Horse Industry Board, 0.025 percent each; and","type":"section","prefixes":["U","3"],"prefix":"3","entire_prefix":"U3","prefix_anchor":"U3","level":2,"prior_prefix":"U2","next_prefix":"U4"},"50":{"id":219198,"text":"The remainder to the Commonwealth as a license tax.","type":"section","prefixes":["U","4"],"prefix":"4","entire_prefix":"U4","prefix_anchor":"U4","level":2,"prior_prefix":"U3"}},"ancestry":[{"id":13337,"edition_id":1,"name":"Taxation and Audit","identifier":"5","label":"article","depth":3,"order_by":1,"parent_id":13336,"metadata":{},"date_created":"2026-06-26 03:44:40","date_modified":"2026-06-26 03:44:40","permalink":{"id":261181,"object_type":"structure","relational_id":13337,"identifier":"5","token":"59.1\/29\/5","url":"\/59.1\/29\/5\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13336,"edition_id":1,"name":"Horse Racing and Pari-Mutuel Wagering","identifier":"29","label":"chapter","depth":2,"order_by":1,"parent_id":12809,"metadata":{},"date_created":"2026-06-26 03:44:40","date_modified":"2026-06-26 03:44:40","permalink":{"id":261047,"object_type":"structure","relational_id":13336,"identifier":"29","token":"59.1\/29","url":"\/59.1\/29\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12809,"edition_id":1,"name":"Trade and Commerce","identifier":"59.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:54","date_modified":"2026-06-26 03:43:54","permalink":{"id":259521,"object_type":"structure","relational_id":12809,"identifier":"59.1","token":"59.1","url":"\/59.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":59836,"structure_id":13337,"section_number":"59.1-392","catch_line":"Percentage retained; tax","url":"\/59.1-392\/","token":"59.1\/29\/5\/59.1-392","metadata":false},{"id":65648,"structure_id":13337,"section_number":"59.1-392.1","catch_line":"Advance deposit account wagering revenues; distribution","url":"\/59.1-392.1\/","token":"59.1\/29\/5\/59.1-392.1","metadata":false},{"id":54320,"structure_id":13337,"section_number":"59.1-393","catch_line":"Admissions tax","url":"\/59.1-393\/","token":"59.1\/29\/5\/59.1-393","metadata":false},{"id":60086,"structure_id":13337,"section_number":"59.1-394","catch_line":"Audit required","url":"\/59.1-394\/","token":"59.1\/29\/5\/59.1-394","metadata":false}],"next_section":{"id":65648,"structure_id":13337,"section_number":"59.1-392.1","catch_line":"Advance deposit account wagering revenues; distribution","url":"\/59.1-392.1\/","token":"59.1\/29\/5\/59.1-392.1","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/59.1-392\/","history_text":"

This law was first created in 1988. The record of its establishment is cataloged in chapter 855 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 1988 \u201cActs\u201d aren\u2019t available online. It has been modified 12 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 1991, chapter 591; in 1992, chapter 820; in 1995, chapter 217<\/a>; in 1998, chapters 608<\/a> and 619<\/a>; in 2000, chapter 1031<\/a>; in 2007, chapter 61<\/a>; in 2011, chapter 732<\/a>; in 2015, chapters 731<\/a> and 751<\/a>; in 2018, chapter 811<\/a>; in 2022, chapter 511<\/a>; in 2024, chapters 53<\/a> and 506<\/a>; in 2025, chapter 725<\/a>.<\/p>","references":[{"id":66276,"section_number":"58.1-3732.1","catch_line":"Limitation on gross receipts; pari-mutuel wagering","order_by":null,"url":"\/58.1-3732.1\/"},{"id":65648,"section_number":"59.1-392.1","catch_line":"Advance deposit account wagering revenues; distribution","order_by":null,"url":"\/59.1-392.1\/"}],"refers_to":[{"id":67219,"section_number":"37.2-314.2","catch_line":"Problem Gambling Treatment and Support Fund","order_by":null,"url":"\/37.2-314.2\/"},{"id":71581,"section_number":"58.1-3700","catch_line":"License requirement; requiring evidence of payment of business license, business personal property, meals and admissions taxes","order_by":null,"url":"\/58.1-3700\/"}],"permalink":{"id":261183,"object_type":"law","relational_id":59836,"identifier":"59.1-392","token":"59.1\/29\/5\/59.1-392","url":"\/59.1-392\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/59.1-392\/","token":"59.1\/29\/5\/59.1-392","dublin_core":{"Title":"Percentage retained; tax","Type":"Text","Format":"text\/html","Identifier":"\u00a7 59.1-392","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Any person<\/span> holding an operator’s license to operate a horse racetrack<\/span> or satellite facility<\/span> in the Commonwealth pursuant to this chapter shall be authorized to conduct pari-mutuel wagering<\/span> on horse racing<\/span> subject to the provisions of this chapter and the conditions and regulations of the Commission<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> On pari-mutuel pools<\/span> generated by wagering at the racetrack<\/span> on live horse racing<\/span> conducted within the Commonwealth, involving win, place, and show wagering, the licensee<\/span> shall retain a percentage amount approved by the Commission<\/span> as jointly requested by a recognized majority horsemen’s group and a licensee<\/span> and the legitimate breakage<\/span>, out of which shall be paid 1.25 percent to be distributed as follows: 1.0 percent to the Commonwealth as a license tax and 0.25 percent to the locality in which the racetrack<\/span> is located. The remainder of the retainage<\/span> shall be paid as provided in subsection D, provided, however, that if the percentage amount approved by the Commission<\/span> is other than percent, the amounts provided in subdivisions D 1, 2, and 3 shall be adjusted by the proportion that the approved percentage amount bears to 18 percent. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> On pari-mutuel pools<\/span> generated by wagering at each Virginia satellite facility<\/span> on live horse racing<\/span> conducted within the Commonwealth, involving win, place, and show wagering, the licensee<\/span> shall retain a percentage amount approved by the Commission<\/span> as jointly requested by a recognized majority horsemen’s group and a licensee<\/span> and the legitimate breakage<\/span>, out of which shall be paid 1.25 percent to be distributed as follows: 0.75 percent to the Commonwealth as a license tax, 0.25 percent to the locality in which the satellite facility<\/span> is located, and 0.25 percent to the locality in which the racetrack<\/span> is located. The remainder of the retainage<\/span> shall be paid as provided in subsection D, provided, however, that if the 25 percentage amount approved by the Commission<\/span> is other than 18 percent, the amounts provided in subdivisions D 1, 2, and 3 shall be adjusted by the proportion that the approved percentage amount bears to 18 percent. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> On pari-mutuel pools<\/span> generated by wagering at the racetrack<\/span> and each Virginia satellite facility<\/span> on live horse racing<\/span> conducted within the Commonwealth, involving win, place, and show wagering, the licensee<\/span> shall retain a percentage amount approved by the Commission<\/span> as jointly requested by a recognized majority horsemen’s group and a licensee<\/span> and the legitimate breakage<\/span>, out of which shall be paid: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Eight percent as purses or prizes to the participants<\/span> in such race meeting<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Seven and one-half percent and all of the breakage<\/span> and the proceeds of pari-mutuel tickets unredeemed 180 days from the date on which the race was conducted, to the operator; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> One percent to the Virginia Breeders Fund<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Fifteen one-hundredths percent to the Virginia-Maryland Regional College of Veterinary Medicine; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Five one-hundredths percent to the Virginia Horse Center Foundation; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Five one-hundredths percent to the Virginia Horse Industry Board; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> The remainder of the retainage<\/span> shall be paid as appropriate under subsection B or C. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> On pari-mutuel pools<\/span> generated by wagering at the racetrack<\/span> on live horse racing<\/span> conducted within the Commonwealth involving wagering other than win, place, and show wagering, the licensee<\/span> shall retain a percentage amount approved by the Commission<\/span> as jointly requested by a recognized majority horsemen’s group and a licensee<\/span> and the legitimate breakage<\/span>, out of which shall be paid 2.75 percent to be distributed as follows: 2.25 percent to the Commonwealth as a license tax, and 0.5 percent to the locality in which the racetrack<\/span> is located. The remainder of the retainage<\/span> shall be paid as provided in subsection G, provided, however, that if the percentage amount approved by the Commission<\/span> is other than 22 percent, the amounts provided in subdivisions G 1, 2, and 3 shall be adjusted by the proportion that the approved percentage amount bears to 22 percent. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> On pari-mutuel pools<\/span> generated by wagering at each Virginia satellite facility<\/span> on live horse racing<\/span> conducted within the Commonwealth involving wagering other than win, place, and show wagering, the licensee<\/span> shall retain a percentage amount approved by the Commission<\/span> as jointly requested by a recognized majority horsemen’s group and a licensee<\/span> and the legitimate breakage<\/span>, out of which shall be paid 2.75 percent to be distributed as follows: 1.75 percent to the Commonwealth as a license tax, 0.5 percent to the locality in which the satellite facility<\/span> is located, and 0.5 percent to the locality in which the racetrack<\/span> is located. The remainder of the retainage<\/span> shall be paid as provided in subsection G, provided, however, that if the percentage amount approved by the Commission<\/span> is other than 22 percent, the amounts provided in subdivisions G 1, 2, and 3 shall be adjusted by the proportion that the approved percentage amount bears to 22 percent. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> On pari-mutuel pools<\/span> generated by wagering at the racetrack<\/span> and each Virginia satellite facility<\/span> on live horse racing<\/span> conducted within the Commonwealth involving wagering other than win, place, and show wagering, the licensee<\/span> shall retain a percentage amount approved by the Commission<\/span> as jointly requested by a recognized majority horsemen’s group and a licensee<\/span> and the legitimate breakage<\/span>, out of which shall be paid: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Nine percent as purses or prizes to the participants<\/span> in such race meeting<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Nine percent and the proceeds of the pari-mutuel tickets unredeemed 180 days from the date on which the race was conducted, to the operator; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> One percent to the Virginia Breeders Fund<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Fifteen one-hundredths percent to the Virginia-Maryland Regional College of Veterinary Medicine; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Five one-hundredths percent to the Virginia Horse Center Foundation; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Five one-hundredths percent to the Virginia Horse Industry Board; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> The remainder of the retainage<\/span> shall be paid as appropriate under subsection E or F. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

H.<\/span> On pari-mutuel wagering<\/span> generated by simulcast horse racing<\/span> transmitted from jurisdictions<\/span> outside the Commonwealth, the licensee<\/span> may, with the approval of the Commission<\/span>, commingle pools<\/span> with the racetrack<\/span> where the transmission emanates or establish separate pools<\/span> for wagering within the Commonwealth. All simulcast horse racing<\/span> in this subsection must comply with the Interstate Horse Racing Act of 1978 (15 U.S.C. § 3001 et seq.). <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

I.<\/span> On pari-mutuel pools<\/span> generated by wagering at the racetrack<\/span> on simulcast horse racing<\/span> transmitted from jurisdictions<\/span> outside the Commonwealth, involving win, place, and show wagering, the licensee<\/span> shall retain 1.25 percent of such pool<\/span> to be distributed as follows: 0.75 percent to the Commonwealth as a license tax, and 0.5 percent to the Virginia locality in which the racetrack<\/span> is located. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

J.<\/span> On pari-mutuel pools<\/span> generated by wagering at each Virginia satellite facility<\/span> on simulcast horse racing<\/span> transmitted from jurisdictions<\/span> outside the Commonwealth, involving win, place, and show wagering, the licensee<\/span> shall retain 1.25 percent of such pool<\/span> to be distributed as follows: 0.75 percent to the Commonwealth as a license tax, 0.25 percent to the locality in which the satellite facility<\/span> is located, and 0.25 percent to the Virginia locality in which the racetrack<\/span> is located. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

K.<\/span> On pari-mutuel pools<\/span> generated by wagering at the racetrack<\/span> and each Virginia satellite facility<\/span> on simulcast horse racing<\/span> transmitted from jurisdictions<\/span> outside the Commonwealth, involving win, place, and show wagering, the licensee<\/span> shall retain 1.3 percent of such pool<\/span> to be distributed as follows: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> One percent of the pool<\/span> to the Virginia Breeders Fund<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Fifteen one-hundredths percent to the Virginia-Maryland Regional College of Veterinary Medicine; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Five one-hundredths percent to the Virginia Horse Center Foundation; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Five one-hundredths percent to the Virginia Horse Industry Board; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Five one-hundredths percent to the Virginia Thoroughbred Association for the promotion of breeding in the Commonwealth. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

L.<\/span> On pari-mutuel pools<\/span> generated by wagering at the racetrack<\/span> on simulcast horse racing<\/span> transmitted from jurisdictions<\/span> outside the Commonwealth, involving wagering other than win, place, and show wagering, the licensee<\/span> shall retain 2.75 percent of such pool<\/span> to be distributed as follows: 1.75 percent to the Commonwealth as a license tax, and 1.0 percent to the Virginia locality in which the racetrack<\/span> is located. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

M.<\/span> On pari-mutuel pools<\/span> generated by wagering at each Virginia satellite facility<\/span> on simulcast horse racing<\/span> transmitted from jurisdictions<\/span> outside the Commonwealth, involving wagering other than win, place, and show wagering, the licensee<\/span> shall retain 2.75 percent of such pool<\/span> to be distributed as follows: 1.75 percent to the Commonwealth as a license tax, 0.5 percent to the locality in which the satellite facility<\/span> is located, and 0.5 percent to the Virginia locality in which the racetrack<\/span> is located. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

N.<\/span> On pari-mutuel pools<\/span> generated by wagering at the racetrack<\/span> and each Virginia satellite facility<\/span> on simulcast horse racing<\/span> transmitted from jurisdictions<\/span> outside the Commonwealth, involving wagering other than win, place, and show wagering, the licensee<\/span> shall retain 1.3 percent of such pool<\/span> to be distributed as follows: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> One percent of the pool<\/span> to the Virginia Breeders Fund<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Fifteen one-hundredths percent to the Virginia-Maryland Regional College of Veterinary Medicine; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Five one-hundredths percent to the Virginia Horse Center Foundation; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Five one-hundredths percent to the Virginia Horse Industry Board; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Five one-hundredths percent to the Virginia Thoroughbred Association for the promotion of breeding in the Commonwealth. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

O.<\/span> Moneys payable to the Commonwealth shall be deposited in the general fund. Gross receipts for license tax purposes under Chapter 37 (§ 58.1-3700<\/a> et seq.) of Title 58.1 shall not include pari-mutuel wagering<\/span> pools<\/span> and license taxes authorized by this section. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

P.<\/span> All payments by the licensee<\/span> to the Commonwealth or any locality shall be made within five days from the date on which such wagers are received by the licensee<\/span>. All payments by the licensee<\/span> to the Virginia Breeders Fund<\/span> shall be made to the Commission<\/span> within five days from the date on which such wagers are received by the licensee<\/span>. All payments by the licensee<\/span> to the Virginia-Maryland Regional College of Veterinary Medicine, the Virginia Horse Center Foundation, the Virginia Horse Industry Board, and the Virginia Thoroughbred Association shall be made by the first day of each quarter of the calendar year. All payments made under this section shall be used in support of the policy of the Commonwealth to sustain<\/span> and promote the growth of a native industry. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

Q.<\/span> If a satellite facility<\/span> is located in more than one locality, any amount a licensee<\/span> is required to pay under this section to the locality in which the satellite facility<\/span> is located shall be prorated in equal shares among those localities. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

R.<\/span> Any contractual agreement between a licensee<\/span> and other entities concerning the distribution of the remaining portion of the retainage<\/span> under subsections I through N and subsection U shall be subject to the approval of the Commission<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

S.<\/span> The recognized majority horsemen’s group racing at a licensed race meeting<\/span> may, subject to the approval of the Commission<\/span>, withdraw for administrative costs associated with serving the interests of the horsemen an amount not to exceed two percent of the amount in the horsemen’s account. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

T.<\/span> The legitimate breakage<\/span> from each pari-mutuel pool<\/span> for live, historical, and simulcast horse racing<\/span> shall be distributed as follows: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Seventy percent to be retained by the licensee<\/span> to be used for capital improvements that are subject to approval of the Commission<\/span>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Thirty percent to be deposited in the Racing Benevolence Fund, administered jointly by the licensee<\/span> and the recognized majority horsemen’s group racing at a licensed race meeting<\/span>, to be disbursed with the approval of the Commission<\/span> for gambling addiction and substance abuse counseling, recreational, educational, or other related programs. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

U.<\/span> On pari-mutuel pools<\/span> generated by wagering on historical horse racing<\/span>, the licensee<\/span> shall retain 1.30 percent of such pool<\/span> to be distributed as follows: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> a. If generated at a racetrack<\/span>, 0.56 percent to the locality in which the racetrack<\/span> is located; or\n\t\t\t\tb. If generated at a satellite facility<\/span> before July 1, 2026, 0.28 percent to the locality in which the satellite facility<\/span> is located and 0.28 percent to the Virginia locality in which the racetrack<\/span> is located. If generated at a satellite facility<\/span> on and after July 1, 2026, 0.56 percent to the locality in which the satellite facility<\/span> is located; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> To the Problem Gambling Treatment and Support Fund established pursuant to § 37.2-314.2<\/a>, 0.01 percent; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> To the (i) Virginia Breeders Fund<\/span>, (ii) Virginia-Maryland Regional College of Veterinary Medicine for its equine programs, (iii) Virginia Horse Center Foundation, and (iv) Virginia Horse Industry Board, 0.025 percent each; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> The remainder to the Commonwealth as a license tax. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nPERCENTAGE RETAINED; TAX (\u00a7 59.1-392)\n\nA. Any person holding an operator’s license to operate a horse racetrack\nor satellite facility in the Commonwealth pursuant to this chapter shall be\nauthorized to conduct pari-mutuel wagering on horse racing subject to the\nprovisions of this chapter and the conditions and regulations of the Commission.\n\nB. On pari-mutuel pools generated by wagering at the racetrack on live horse\nracing conducted within the Commonwealth, involving win, place, and show\nwagering, the licensee shall retain a percentage amount approved by the\nCommission as jointly requested by a recognized majority horsemen’s group\nand a licensee and the legitimate breakage, out of which shall be paid 1.25\npercent to be distributed as follows: 1.0 percent to the Commonwealth as a\nlicense tax and 0.25 percent to the locality in which the racetrack is located.\nThe remainder of the retainage shall be paid as provided in subsection D,\nprovided, however, that if the percentage amount approved by the Commission is\nother than percent, the amounts provided in subdivisions D 1, 2, and 3 shall be\nadjusted by the proportion that the approved percentage amount bears to 18\npercent.\n\nC. On pari-mutuel pools generated by wagering at each Virginia satellite\nfacility on live horse racing conducted within the Commonwealth, involving win,\nplace, and show wagering, the licensee shall retain a percentage amount approved\nby the Commission as jointly requested by a recognized majority horsemen’s\ngroup and a licensee and the legitimate breakage, out of which shall be paid\n1.25 percent to be distributed as follows: 0.75 percent to the Commonwealth as a\nlicense tax, 0.25 percent to the locality in which the satellite facility is\nlocated, and 0.25 percent to the locality in which the racetrack is located. The\nremainder of the retainage shall be paid as provided in subsection D, provided,\nhowever, that if the 25 percentage amount approved by the Commission is other\nthan 18 percent, the amounts provided in subdivisions D 1, 2, and 3 shall be\nadjusted by the proportion that the approved percentage amount bears to 18\npercent.\n\nD. On pari-mutuel pools generated by wagering at the racetrack and each Virginia\nsatellite facility on live horse racing conducted within the Commonwealth,\ninvolving win, place, and show wagering, the licensee shall retain a percentage\namount approved by the Commission as jointly requested by a recognized majority\nhorsemen’s group and a licensee and the legitimate breakage, out of which\nshall be paid:\n\n 1. Eight percent as purses or prizes to the participants in such race meeting;\n\n 2. Seven and one-half percent and all of the breakage and the proceeds of\n pari-mutuel tickets unredeemed 180 days from the date on which the race was\n conducted, to the operator;\n\n 3. One percent to the Virginia Breeders Fund;\n\n 4. Fifteen one-hundredths percent to the Virginia-Maryland Regional College of\n Veterinary Medicine;\n\n 5. Five one-hundredths percent to the Virginia Horse Center Foundation;\n\n 6. Five one-hundredths percent to the Virginia Horse Industry Board; and\n\n 7. The remainder of the retainage shall be paid as appropriate under\n subsection B or C.\n\nE. On pari-mutuel pools generated by wagering at the racetrack on live horse\nracing conducted within the Commonwealth involving wagering other than win,\nplace, and show wagering, the licensee shall retain a percentage amount approved\nby the Commission as jointly requested by a recognized majority horsemen’s\ngroup and a licensee and the legitimate breakage, out of which shall be paid\n2.75 percent to be distributed as follows: 2.25 percent to the Commonwealth as a\nlicense tax, and 0.5 percent to the locality in which the racetrack is located.\nThe remainder of the retainage shall be paid as provided in subsection G,\nprovided, however, that if the percentage amount approved by the Commission is\nother than 22 percent, the amounts provided in subdivisions G 1, 2, and 3 shall\nbe adjusted by the proportion that the approved percentage amount bears to 22\npercent.\n\nF. On pari-mutuel pools generated by wagering at each Virginia satellite\nfacility on live horse racing conducted within the Commonwealth involving\nwagering other than win, place, and show wagering, the licensee shall retain a\npercentage amount approved by the Commission as jointly requested by a\nrecognized majority horsemen’s group and a licensee and the legitimate\nbreakage, out of which shall be paid 2.75 percent to be distributed as follows:\n1.75 percent to the Commonwealth as a license tax, 0.5 percent to the locality\nin which the satellite facility is located, and 0.5 percent to the locality in\nwhich the racetrack is located. The remainder of the retainage shall be paid as\nprovided in subsection G, provided, however, that if the percentage amount\napproved by the Commission is other than 22 percent, the amounts provided in\nsubdivisions G 1, 2, and 3 shall be adjusted by the proportion that the approved\npercentage amount bears to 22 percent.\n\nG. On pari-mutuel pools generated by wagering at the racetrack and each Virginia\nsatellite facility on live horse racing conducted within the Commonwealth\ninvolving wagering other than win, place, and show wagering, the licensee shall\nretain a percentage amount approved by the Commission as jointly requested by a\nrecognized majority horsemen’s group and a licensee and the legitimate\nbreakage, out of which shall be paid:\n\n 1. Nine percent as purses or prizes to the participants in such race meeting;\n\n 2. Nine percent and the proceeds of the pari-mutuel tickets unredeemed 180\n days from the date on which the race was conducted, to the operator;\n\n 3. One percent to the Virginia Breeders Fund;\n\n 4. Fifteen one-hundredths percent to the Virginia-Maryland Regional College of\n Veterinary Medicine;\n\n 5. Five one-hundredths percent to the Virginia Horse Center Foundation;\n\n 6. Five one-hundredths percent to the Virginia Horse Industry Board; and\n\n 7. The remainder of the retainage shall be paid as appropriate under\n subsection E or F.\n\nH. On pari-mutuel wagering generated by simulcast horse racing transmitted from\njurisdictions outside the Commonwealth, the licensee may, with the approval of\nthe Commission, commingle pools with the racetrack where the transmission\nemanates or establish separate pools for wagering within the Commonwealth. All\nsimulcast horse racing in this subsection must comply with the Interstate Horse\nRacing Act of 1978 (15 U.S.C. § 3001 et seq.).\n\nI. On pari-mutuel pools generated by wagering at the racetrack on simulcast\nhorse racing transmitted from jurisdictions outside the Commonwealth, involving\nwin, place, and show wagering, the licensee shall retain 1.25 percent of such\npool to be distributed as follows: 0.75 percent to the Commonwealth as a license\ntax, and 0.5 percent to the Virginia locality in which the racetrack is located.\n\nJ. On pari-mutuel pools generated by wagering at each Virginia satellite\nfacility on simulcast horse racing transmitted from jurisdictions outside the\nCommonwealth, involving win, place, and show wagering, the licensee shall retain\n1.25 percent of such pool to be distributed as follows: 0.75 percent to the\nCommonwealth as a license tax, 0.25 percent to the locality in which the\nsatellite facility is located, and 0.25 percent to the Virginia locality in\nwhich the racetrack is located.\n\nK. On pari-mutuel pools generated by wagering at the racetrack and each Virginia\nsatellite facility on simulcast horse racing transmitted from jurisdictions\noutside the Commonwealth, involving win, place, and show wagering, the licensee\nshall retain 1.3 percent of such pool to be distributed as follows:\n\n 1. One percent of the pool to the Virginia Breeders Fund;\n\n 2. Fifteen one-hundredths percent to the Virginia-Maryland Regional College of\n Veterinary Medicine;\n\n 3. Five one-hundredths percent to the Virginia Horse Center Foundation;\n\n 4. Five one-hundredths percent to the Virginia Horse Industry Board; and\n\n 5. Five one-hundredths percent to the Virginia Thoroughbred Association for\n the promotion of breeding in the Commonwealth.\n\nL. On pari-mutuel pools generated by wagering at the racetrack on simulcast\nhorse racing transmitted from jurisdictions outside the Commonwealth, involving\nwagering other than win, place, and show wagering, the licensee shall retain\n2.75 percent of such pool to be distributed as follows: 1.75 percent to the\nCommonwealth as a license tax, and 1.0 percent to the Virginia locality in which\nthe racetrack is located.\n\nM. On pari-mutuel pools generated by wagering at each Virginia satellite\nfacility on simulcast horse racing transmitted from jurisdictions outside the\nCommonwealth, involving wagering other than win, place, and show wagering, the\nlicensee shall retain 2.75 percent of such pool to be distributed as follows:\n1.75 percent to the Commonwealth as a license tax, 0.5 percent to the locality\nin which the satellite facility is located, and 0.5 percent to the Virginia\nlocality in which the racetrack is located.\n\nN. On pari-mutuel pools generated by wagering at the racetrack and each Virginia\nsatellite facility on simulcast horse racing transmitted from jurisdictions\noutside the Commonwealth, involving wagering other than win, place, and show\nwagering, the licensee shall retain 1.3 percent of such pool to be distributed\nas follows:\n\n 1. One percent of the pool to the Virginia Breeders Fund;\n\n 2. Fifteen one-hundredths percent to the Virginia-Maryland Regional College of\n Veterinary Medicine;\n\n 3. Five one-hundredths percent to the Virginia Horse Center Foundation;\n\n 4. Five one-hundredths percent to the Virginia Horse Industry Board; and\n\n 5. Five one-hundredths percent to the Virginia Thoroughbred Association for\n the promotion of breeding in the Commonwealth.\n\nO. Moneys payable to the Commonwealth shall be deposited in the general fund.\nGross receipts for license tax purposes under Chapter 37 (§ 58.1-3700 et\nseq.) of Title 58.1 shall not include pari-mutuel wagering pools and license\ntaxes authorized by this section.\n\nP. All payments by the licensee to the Commonwealth or any locality shall be\nmade within five days from the date on which such wagers are received by the\nlicensee. All payments by the licensee to the Virginia Breeders Fund shall be\nmade to the Commission within five days from the date on which such wagers are\nreceived by the licensee. All payments by the licensee to the Virginia-Maryland\nRegional College of Veterinary Medicine, the Virginia Horse Center Foundation,\nthe Virginia Horse Industry Board, and the Virginia Thoroughbred Association\nshall be made by the first day of each quarter of the calendar year. All\npayments made under this section shall be used in support of the policy of the\nCommonwealth to sustain and promote the growth of a native industry.\n\nQ. If a satellite facility is located in more than one locality, any amount a\nlicensee is required to pay under this section to the locality in which the\nsatellite facility is located shall be prorated in equal shares among those\nlocalities.\n\nR. Any contractual agreement between a licensee and other entities concerning\nthe distribution of the remaining portion of the retainage under subsections I\nthrough N and subsection U shall be subject to the approval of the Commission.\n\nS. The recognized majority horsemen’s group racing at a licensed race\nmeeting may, subject to the approval of the Commission, withdraw for\nadministrative costs associated with serving the interests of the horsemen an\namount not to exceed two percent of the amount in the horsemen’s account.\n\nT. The legitimate breakage from each pari-mutuel pool for live, historical, and\nsimulcast horse racing shall be distributed as follows:\n\n 1. Seventy percent to be retained by the licensee to be used for capital\n improvements that are subject to approval of the Commission; and\n\n 2. Thirty percent to be deposited in the Racing Benevolence Fund, administered\n jointly by the licensee and the recognized majority horsemen’s group\n racing at a licensed race meeting, to be disbursed with the approval of the\n Commission for gambling addiction and substance abuse counseling,\n recreational, educational, or other related programs.\n\nU. On pari-mutuel pools generated by wagering on historical horse racing, the\nlicensee shall retain 1.30 percent of such pool to be distributed as follows:\n\n 1. a. If generated at a racetrack, 0.56 percent to the locality in which the\n racetrack is located; or\n \t\t\t\tb. If generated at a satellite facility before July 1, 2026, 0.28 percent\n to the locality in which the satellite facility is located and 0.28 percent to\n the Virginia locality in which the racetrack is located. If generated at a\n satellite facility on and after July 1, 2026, 0.56 percent to the locality in\n which the satellite facility is located;\n\n 2. To the Problem Gambling Treatment and Support Fund established pursuant to\n § 37.2-314.2, 0.01 percent;\n\n 3. To the (i) Virginia Breeders Fund, (ii) Virginia-Maryland Regional College\n of Veterinary Medicine for its equine programs, (iii) Virginia Horse Center\n Foundation, and (iv) Virginia Horse Industry Board, 0.025 percent each; and\n\n 4. The remainder to the Commonwealth as a license tax.\n\nHISTORY: 1988, c. 855; 1991, c. 591; 1992, c. 820; 1995, c. 217; 1998, cc. 608,\n619; 2000, c. 1031; 2007, c. 61; 2011, c. 732; 2015, cc. 731, 751; 2018, c. 811;\n2022, c. 511; 2024, cc. 53, 506; 2025, c. 725.","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}}