                                 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.