                                 CODE OF VIRGINIA

PERCENTAGE RETAINED; TAX (§ 59.1-392)

A. Any person holding an operator&#8217;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. 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&#8217;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. 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&#8217;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. 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&#8217;s group and a licensee and the legitimate breakage, out of which
shall be paid:

   1. Eight percent as purses or prizes to the participants in such race meeting;

   2. 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;

   3. One percent to the Virginia Breeders Fund;

   4. Fifteen one-hundredths percent to the Virginia-Maryland Regional College of
   Veterinary Medicine;

   5. Five one-hundredths percent to the Virginia Horse Center Foundation;

   6. Five one-hundredths percent to the Virginia Horse Industry Board; and

   7. The remainder of the retainage shall be paid as appropriate under
   subsection B or C.

E. 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&#8217;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. 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&#8217;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. 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&#8217;s group and a licensee and the legitimate
breakage, out of which shall be paid:

   1. Nine percent as purses or prizes to the participants in such race meeting;

   2. 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;

   3. One percent to the Virginia Breeders Fund;

   4. Fifteen one-hundredths percent to the Virginia-Maryland Regional College of
   Veterinary Medicine;

   5. Five one-hundredths percent to the Virginia Horse Center Foundation;

   6. Five one-hundredths percent to the Virginia Horse Industry Board; and

   7. The remainder of the retainage shall be paid as appropriate under
   subsection E or F.

H. 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. &#xA7; 3001 et seq.).

I. 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.

J. 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.

K. 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:

   1. One percent of the pool to the Virginia Breeders Fund;

   2. Fifteen one-hundredths percent to the Virginia-Maryland Regional College of
   Veterinary Medicine;

   3. Five one-hundredths percent to the Virginia Horse Center Foundation;

   4. Five one-hundredths percent to the Virginia Horse Industry Board; and

   5. Five one-hundredths percent to the Virginia Thoroughbred Association for
   the promotion of breeding in the Commonwealth.

L. 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.

M. 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.

N. 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:

   1. One percent of the pool to the Virginia Breeders Fund;

   2. Fifteen one-hundredths percent to the Virginia-Maryland Regional College of
   Veterinary Medicine;

   3. Five one-hundredths percent to the Virginia Horse Center Foundation;

   4. Five one-hundredths percent to the Virginia Horse Industry Board; and

   5. Five one-hundredths percent to the Virginia Thoroughbred Association for
   the promotion of breeding in the Commonwealth.

O. Moneys payable to the Commonwealth shall be deposited in the general fund.
Gross receipts for license tax purposes under Chapter 37 (&#xA7; 58.1-3700 et
seq.) of Title 58.1 shall not include pari-mutuel wagering pools and license
taxes authorized by this section.

P. 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.

Q. 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.

R. 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.

S. The recognized majority horsemen&#8217;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&#8217;s account.

T. The legitimate breakage from each pari-mutuel pool for live, historical, and
simulcast horse racing shall be distributed as follows:

   1. Seventy percent to be retained by the licensee to be used for capital
   improvements that are subject to approval of the Commission; and

   2. Thirty percent to be deposited in the Racing Benevolence Fund, administered
   jointly by the licensee and the recognized majority horsemen&#8217;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. 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:

   1. a. If generated at a racetrack, 0.56 percent to the locality in which the
   racetrack is located; or
   				b. 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. To the Problem Gambling Treatment and Support Fund established pursuant to
   &#xA7; 37.2-314.2, 0.01 percent;

   3. 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

   4. The remainder to the Commonwealth as a license 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.