                                 CODE OF VIRGINIA

DEFINITIONS (§ 18.2-340.16)

As used in this article, unless the context requires a different meaning:
		&#8220;Bingo&#8221; means a specific game of chance played with (i) individual
cards having randomly numbered squares ranging from one to 75, (ii)
Department-approved electronic devices that display facsimiles of bingo cards
and are used for the purpose of marking and monitoring players&#8217; cards as
numbers are called, or (iii) Department-approved cards, in which prizes are
awarded on the basis of designated numbers on such cards conforming to a
predetermined pattern of numbers selected at random.
		&#8220;Bona fide member&#8221; means an individual who participates in
activities of a qualified organization other than such organization&#8217;s
charitable gaming activities.
		&#8220;Charitable gaming&#8221; or &#8220;charitable games&#8221; means those
raffles, Texas Hold&#8217;em poker tournaments, and games of chance explicitly
authorized by this article. Unless otherwise specified, &#8220;charitable
gaming&#8221; includes electronic gaming authorized by this article.
		&#8220;Charitable gaming permit&#8221; or &#8220;permit&#8221; means a permit
issued by the Department to an organization that authorizes such organization to
conduct charitable gaming, and if such organization is qualified as a social
organization, electronic gaming.
		&#8220;Charitable gaming supplies&#8221; includes bingo cards or sheets,
devices for selecting bingo numbers, instant bingo cards, pull-tab cards and
seal cards, playing cards for Texas Hold&#8217;em poker, poker chips, and any
other equipment or product manufactured for or intended to be used in the
conduct of charitable games. However, for the purposes of this article,
charitable gaming supplies shall not include items incidental to the conduct of
charitable gaming such as markers, wands, or tape.
		&#8220;Commissioner&#8221; means the Commissioner of the Department of
Agriculture and Consumer Services.
		&#8220;Conduct&#8221; means the actions associated with the provision of a
gaming operation during and immediately before or after the permitted activity,
which may include (i) selling bingo cards or packs, electronic devices, instant
bingo or pull-tab cards, or raffle tickets, (ii) calling bingo games, (iii)
distributing prizes, and (iv) any other services provided by volunteer workers.
		&#8220;Department&#8221; means the Department of Agriculture and Consumer
Services.
		&#8220;Electronic gaming&#8221; or &#8220;electronic games&#8221; means any
instant bingo, pull tabs, or seal card gaming that is conducted primarily by use
of an electronic device. &#8220;Electronic gaming&#8221; does not include (i)
the game of chance identified in clause (ii) of the definition of
&#8220;bingo&#8221; or (ii) network bingo.
		&#8220;Electronic gaming adjusted gross receipts&#8221; means the gross
receipts derived from electronic gaming less the total amount in prize money
paid out to players.
		&#8220;Electronic gaming manufacturer&#8221; means a manufacturer of
electronic devices used to conduct electronic gaming.
		&#8220;Fair market rental value&#8221; means the rent that a rental property
will bring when offered for lease by a lessor who desires to lease the property
but is not obligated to do so and leased by a lessee under no necessity of
leasing.
		&#8220;Gaming expenses&#8221; means prizes, supplies, costs of publicizing
gaming activities, audit and administration or permit fees, and a portion of the
rent, utilities, accounting and legal fees, and such other reasonable and proper
expenses as are directly incurred for the conduct of charitable gaming.
		&#8220;Gross receipts&#8221; means the total amount of money generated by an
organization from charitable gaming before the deduction of expenses, including
prizes.
		&#8220;Instant bingo,&#8221; &#8220;pull tabs,&#8221; or &#8220;seal
cards&#8221; means specific games of chance played by the random selection of
one or more individually prepacked cards with winners being determined by the
preprinted or predetermined appearance of concealed letters, numbers, or symbols
that must be exposed by the player to determine wins and losses and may include
the use of a seal card that conceals one or more numbers or symbols that have
been designated in advance as prize winners. Such cards may be dispensed by
mechanical equipment.
		&#8220;Jackpot&#8221; means a bingo game that the organization has designated
on its game program as a jackpot game in which the prize amount is greater than
$100.
		&#8220;Landlord&#8221; means any person or his agent, firm, association,
organization, partnership, or corporation, employee, or immediate family member
thereof, which owns and leases, or leases any premises devoted in whole or in
part to the conduct of bingo games or other charitable gaming pursuant to this
article, and any person residing in the same household as a landlord.
		&#8220;Management&#8221; means the provision of oversight of a gaming
operation, which may include the responsibilities of applying for and
maintaining a permit or authorization, compiling, submitting, and maintaining
required records and financial reports, and ensuring that all aspects of the
operation are in compliance with all applicable statutes and regulations.
		&#8220;Network bingo&#8221; means a specific bingo game in which pari-mutuel
play is permitted.
		&#8220;Network bingo provider&#8221; means a person licensed by the Department
to operate network bingo.
		&#8220;Operation&#8221; means the activities associated with production of a
charitable gaming or electronic gaming activity, which may include (i) the
direct on-site supervision of the conduct of charitable gaming and electronic
gaming; (ii) coordination of volunteers; and (iii) all responsibilities of
charitable gaming and electronic gaming designated by the organization&#8217;s
management.
		&#8220;Organization&#8221; means any one of the following:

1. A volunteer fire department or volunteer emergency medical services agency or
auxiliary unit thereof that has been recognized in accordance with &#xA7;
15.2-955 by an ordinance or resolution of the political subdivision where the
volunteer fire department or volunteer emergency medical services agency is
located as being a part of the safety program of such political subdivision;

2. An organization that is exempt from income tax pursuant to &#xA7; 501(c)(3)
of the Internal Revenue Code, is operated, and has always been operated,
exclusively for educational purposes, and awards scholarships to accredited
public institutions of higher education or other postsecondary schools licensed
or certified by the Board of Education or the State Council of Higher Education
for Virginia;

3. An athletic association or booster club or a band booster club established
solely to raise funds for school-sponsored athletic or band activities for a
public school or private school accredited pursuant to &#xA7; 22.1-19 or to
provide scholarships to students attending such school;

4. An association of war veterans or auxiliary units thereof organized in the
United States;

5. A fraternal association or corporation operating under the lodge system;

6. An organization that is exempt from income tax pursuant to &#xA7; 501(c)(3)
of the Internal Revenue Code and is operated, and has always been operated,
exclusively to provide services and other resources to older Virginians, as
defined in &#xA7; 51.5-116;

7. An organization that is exempt from income tax pursuant to &#xA7; 501(c)(3)
of the Internal Revenue Code and is operated, and has always been operated,
exclusively to foster youth amateur sports;

8. An organization that is exempt from income tax pursuant to &#xA7; 501(c)(3)
of the Internal Revenue Code and is operated, and has always been operated,
exclusively to provide health care services or conduct medical research;

9. An accredited public institution of higher education or other postsecondary
school licensed or certified by the Board of Education or the State Council of
Higher Education for Virginia that is exempt from income tax pursuant to &#xA7;
501(c)(3) of the Internal Revenue Code;

10. A church or religious organization that is exempt from income tax pursuant
to &#xA7; 501(c)(3) of the Internal Revenue Code;

11. An organization that is exempt from income tax pursuant to &#xA7; 501(c)(3)
or 501(c)(4) of the Internal Revenue Code and is operated, and has always been
operated, exclusively to (i) create and foster a spirit of understanding among
the people of the world; (ii) promote the principles of good government and
citizenship; (iii) take an active interest in the civic, cultural, social, and
moral welfare of the community; (iv) provide a forum for the open discussion of
matters of public interest; (v) encourage individuals to serve the community
without personal financial reward; and (vi) encourage efficiency and promote
high ethical standards in commerce, industries, professions, public works, and
private endeavors;

12. An organization that is exempt from income tax pursuant to &#xA7; 501(c)(3)
of the Internal Revenue Code and is operated, and has always been operated,
exclusively to (i) raise awareness of law-enforcement officers who died in the
line of duty; (ii) raise funds for the National Law Enforcement Officers
Memorial and Museum; and (iii) raise funds for the charitable causes of other
organizations that are exempt from income tax pursuant to &#xA7; 501(c)(3) of
the Internal Revenue Code;

13. An organization that is exempt from income tax pursuant to &#xA7; 501(c)(3)
of the Internal Revenue Code and is operated, and has always been operated,
exclusively to (i) promote the conservation of the environment, caves, or other
natural resources; (ii) promote or develop opportunities for the use of science
and technology to advance the conservation of the environment, caves, or other
natural resources; and (iii) raise funds for the conservation of the
environment, caves, or other natural resources or provide grant opportunities to
other nonprofit organizations that are devoted to such conservation efforts;

14. An organization that is exempt from income tax pursuant to &#xA7; 501(c)(3)
of the Internal Revenue Code that manages a museum that is operated, and has
always been operated, exclusively for the purposes of musical heritage and the
legacy of the &#8220;1927 Bristol Sessions&#8221;;

15. An organization (i) established on or before December 31, 1963, as a result
of its members being prohibited from joining similar existing organizations
because of laws such as the Public Assemblages Act of 1926, which required the
racial segregation of all public events in the Commonwealth; (ii) that is exempt
from income tax pursuant to &#xA7; 501(c)(7) of the Internal Revenue Code; and
(iii) that is operated, and has always been operated, for community awareness
and action through educational, economic, and cultural service activities;

16. An organization established on or before December 31, 1977, that is exempt
from income tax pursuant to &#xA7; 501(c)(7) of the Internal Revenue Code and is
incorporated, in part, to raise funds for donation to organizations whose
missions include promoting early detection of and public education about and
supporting research and treatment options for heart disease and various cancers;

17. A local chamber of commerce; or

18. Any other nonprofit organization that is exempt from income tax pursuant to
&#xA7; 501(c) of the Internal Revenue Code and that raises funds by conducting
raffles, bingo, instant bingo, pull tabs, or seal cards that generate annual
gross receipts of $40,000 or less, provided that such gross receipts, less
expenses and prizes, are used exclusively for charitable, educational,
religious, or community purposes. Notwithstanding &#xA7; 18.2-340.26:1, proceeds
from instant bingo, pull tabs, and seal cards shall be included when calculating
an organization&#8217;s annual gross receipts for the purposes of this
subdivision.
			&#8220;Pari-mutuel play&#8221; means an integrated network operated by a
licensee of the Department comprised of participating charitable organizations
for the conduct of network bingo games in which the purchase of a network bingo
card by a player automatically includes the player in a pool with all other
players in the network, and where the prize to the winning player is awarded
based on a percentage of the total amount of network bingo cards sold in a
particular network.
			&#8220;Qualified organization&#8221; means any organization to which a valid
permit has been issued by the Department to conduct charitable gaming or any
organization that is exempt pursuant to &#xA7; 18.2-340.23.
			&#8220;Raffle&#8221; means a lottery in which the prize is won by (i) a
random drawing of the name or prearranged number of one or more persons
purchasing chances or (ii) a random contest in which the winning name or
preassigned number of one or more persons purchasing chances is determined by a
race involving inanimate objects floating on a body of water, commonly referred
to as a &#8220;duck race.&#8221;
			&#8220;Reasonable and proper business expenses&#8221; means business expenses
actually incurred by a qualified organization in the conduct of charitable
gaming and not otherwise allowed under this article or under Department
regulations on real estate and personal property tax payments, travel expenses,
payments of utilities and trash collection services, legal and accounting fees,
costs of business furniture, fixtures and office equipment and costs of
acquisition, maintenance, repair, or construction of an organization&#8217;s
real property. For the purpose of this definition, (i) salaries and wages of
employees whose primary responsibility is to provide services for the principal
benefit of an organization&#8217;s members or (ii) expenses for social or
recreational activities for the principal benefit of a social
organization&#8217;s members may qualify as a business expense, if so determined
by the Department. However, payments made pursuant to &#xA7; 51.1-1204 to the
Volunteer Firefighters&#8217; and Rescue Squad Workers&#8217; Service Award Fund
shall be deemed a reasonable and proper business expense.
			&#8220;Social organization&#8221; means any qualified organization that
provides certification to the Department that it is:

1. An accredited public institution of higher education or other postsecondary
school licensed or certified by the Board of Education or the State Council of
Higher Education for Virginia qualified under &#xA7; 501(c)(3) of the Internal
Revenue Code;

2. An organization established on or before November 10, 1922, that is qualified
under &#xA7; 501(c)(4) of the Internal Revenue Code, is the only federally
chartered Marine Corps-related veterans organization in the country, and is
operated for the purpose of promoting the interest and preserving the traditions
of the United States Marine Corps;

3. An organization established on or before December 31, 1963, as a result of
its members being prohibited from joining similar existing organizations because
of laws such as the Public Assemblages Act of 1926, which required the racial
segregation of all public events in the Commonwealth, that is qualified under
&#xA7; 501(c)(7) of the Internal Revenue Code;

4. An organization established on or before December 31, 1977, that is qualified
under &#xA7; 501(c)(7) of the Internal Revenue Code and is incorporated, in
part, to raise funds for donation to organizations whose missions include
promoting early detection of and public education about and supporting research
and treatment options for heart disease and various cancers;

5. A fraternal beneficiary society, order, or association qualified under &#xA7;
501(c)(8) of the Internal Revenue Code;

6. A domestic fraternal society, order, or association qualified under &#xA7;
501(c)(10) of the Internal Revenue Code; or

7. A post or organization of past or present members of the Armed Forces of the
United States, or an auxiliary unit or society of, or a trust or foundation for,
any such post or organization qualified under &#xA7; 501(c)(19) of the Internal
Revenue Code.
			&#8220;Social quarters&#8221; means, in addition to any specifications
prescribed by the Department, an area at a social organization&#8217;s primary
location that (i) such organization designates to be used predominantly by its
members for social and recreational activities, (ii) is accessible exclusively
to members of the social organization and their guests, and (iii) is not
advertised or open to the general public. It shall not disqualify the area from
being considered social quarters if guests occasionally accompany members into
the area, so long as such guests do not spend their own funds to participate in
charitable gaming or electronic gaming activities conducted in the area. In
determining if an area is social quarters for purposes of &#xA7; 18.2-340.26:3,
the Department may rely on publications of the Internal Revenue Service
regarding the allowable participation of guests in an organization&#8217;s
social and recreational activities for purposes of &#xA7; 501 of the Internal
Revenue Code.
			&#8220;Supplier&#8221; means any person who offers to sell, sells, or
otherwise provides charitable gaming supplies to any qualified organization.
			&#8220;Texas Hold&#8217;em poker game&#8221; means a variation of poker in
which (i) players receive two cards facedown that may be used individually, (ii)
five cards shown face up are shared among all players in the game, (iii) players
combine any number of their individual cards with the shared cards to make the
highest five-card hand to win the value wagered during the game, and (iv) the
ranking of hands and the rules of the game are governed by the official rules of
the Poker Tournament Directors Association.
			&#8220;Texas Hold&#8217;em poker tournament&#8221; or
&#8220;tournament&#8221; means an organized competition of players (i) who pay a
fixed fee for entry into the competition and for a certain amount of poker chips
for use in the competition; (ii) who may be allowed to pay an additional fee,
during set preannounced times of the competition, to receive additional poker
chips for use in the competition; (iii) who may be seated at one or more tables
simultaneously playing Texas Hold&#8217;em poker games; (iv) who upon running
out of poker chips are eliminated from the competition; and (v) a pre-set number
of whom are awarded prizes of value according to how long such players remain in
the competition.

HISTORY: 1995, c. 837; 1996, c. 919; 1997, cc. 777, 838; 1998, cc. 57, 398;
1999, c. 534; 2002, cc. 282, 340; 2003, c. 884; 2006, c. 644; 2007, cc. 160,
264; 2008, cc. 387, 689; 2009, c. 121; 2010, c. 429; 2013, cc. 36, 350; 2015,
cc. 502, 503; 2020, c. 982; 2021, Sp. Sess. I, c. 520; 2022, cc. 554, 609, 612,
722, 767; 2023, cc. 594, 787; 2024, cc. 445, 504.