Charitable gaming; conduct of athletic event drawings.
HB2167 expands Virginia’s charitable gaming laws to expressly authorize a new form of fundraising called an “athletic event drawing,” which is a 50/50-style drawing conducted at home games or team events by certain affiliated nonprofit organizations. The bill defines who may conduct these drawings, where they may be held, how tickets may be sold, how prizes are split, and how unclaimed prizes must be handled. It also allows athletic event drawings to be conducted with mechanical or electronic devices under Department regulations and permits institutions of higher education to conduct these drawings for public-interest purposes.
The bill also revises several existing charitable gaming definitions and regulatory provisions to integrate athletic event drawings into the broader charitable gaming framework. It updates the Department of Agriculture and Consumer Services’ rulemaking authority over permits, fees, recordkeeping, audits, prize limits, and operational requirements, and it adds specific rules for the use of proceeds, including a requirement that a predetermined percentage of receipts be donated to designated charitable purposes within seven days. Related amendments also clarify limits on who may participate, where gaming may occur, and how proceeds from charitable gaming may be used.
The bill would amend multiple sections of the charitable gaming article in Title 18.2 and add a new section, 18.2-340.28:3, creating a statutory structure for athletic event drawings and tying them to existing permit, reporting, and enforcement provisions. It would expand the Department of Agriculture and Consumer Services’ regulatory responsibilities to include fees, recordkeeping, audits, prize distribution, and operational rules for these drawings, while also adjusting definitions and prohibited-practice rules to account for the new activity. The bill affects qualified charitable organizations, affiliated nonprofit organizations, institutions of higher education, and athletic teams/facilities that host the events.
The bill appears to have had strong support in the House, passing 96-1 after advancing through committee with large margins. It also cleared the General Laws and Technology Committee in the Senate unanimously before being referred onward, suggesting broad agreement on the concept of allowing charitable athletic event drawings. However, the bill ultimately stalled in the Senate Finance and Appropriations Committee, where it was passed by indefinitely, indicating that fiscal, regulatory, or policy concerns remained despite the generally favorable reception.
The main points of contention likely centered on the expansion of gambling-like fundraising activity and the details of how proceeds would be regulated and distributed. Potential concerns include whether athletic event drawings should be treated as charitable gaming, the use of electronic or mechanical devices, the involvement of minors and nonmembers, and the extent to which organizations may pay workers or vendors from gaming proceeds. The bill also preserves and reinforces restrictions on prize limits, landlord involvement, and use of proceeds, reflecting an effort to balance fundraising flexibility with anti-abuse safeguards.