Illegal gambling; online sweepstakes games, civil penalty.

Plain English Breakdown

The candidate explanation included details about forming a work group that are not supported by the official source material provided. The bill summary and text do not mention specific penalties for supporting or assisting in illegal gambling activities, only those who operate, conduct, or promote such games.

Online Sweepstakes Games; Civil Penalty

This bill changes Virginia law to include online sweepstakes games as illegal gambling, sets penalties for those who run or support these games.

What This Bill Does

• Adds the operation, conduct, or promotion of any online sweepstakes game and supporting or assisting in such activities to the definition of 'illegal gambling'.
• Defines an 'online sweepstakes game' as a contest available on the internet where players can win prizes through chance using a dual currency system that simulates casino-style gaming.
• Imposes civil penalties ranging from $10,000 to $100,000 for anyone who operates, conducts, or promotes online sweepstakes games.

Who It Names or Affects

• People who run or support online sweepstakes games in Virginia.

Terms To Know

Civil Penalty

A fine imposed by law for breaking a rule, but not considered a criminal offense.

Dual Currency System

An exchange system where players can trade one type of currency for another to win prizes or cash.

Limits and Unknowns

• The bill does not specify the exact penalties for supporting or assisting in illegal gambling activities.
• It is unclear how the findings and recommendations from the work group will be used after their report is submitted.

Official Summary Text

Illegal gambling; online sweepstakes games; civil penalty.
Includes the (i) operating, conducting, or promoting of any online sweepstakes games and (ii) supporting or assisting in the operating, conducting, or promoting of any online sweepstakes game in the definition of "illegal gambling." The bill defines an "online sweepstakes game" as any game, contest, or promotion in which a prize is awarded based on chance that (a) is available on the internet and accessible on a mobile phone, computer, or similar device; (b) utilizes a dual currency system of payment allowing the player to exchange the currency for any prize, award, cash, or cash equivalent; and (c) simulates casino-style gaming, including slot machines, video poker, table games, lottery games, and sports betting. Persons who operate, conduct, or promote online sweepstakes games or take any action to support or assist in the operation, conduct, or promotion of online sweepstakes games shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 per violation. The bill contains technical amendments.

Current Bill Text

SENATE BILL NO. 579

AMENDMENT IN THE NATURE OF A SUBSTITUTE

(Proposed by the Senate Committee for Courts of Justice

on ________________)

(Patron Prior to Substitute--Senator Reeves)

A BILL to direct the Virginia Lottery Board to convene a work group to study interactive online sweepstakes games; report.

Be it enacted by the General Assembly of Virginia:

1.
§ 1.
That the
Virginia
Lottery Board shall convene a work group of relevant stakeholders
, including representatives from
the online sweepstakes and social games industry,
to study the legal, economic,
technological, and public policy implications of interactive online sweepstakes games
and to
report its findings and any
recommendation
s resulting from such study
. In conducting such study
, the work group shall
(i)
re
view the ways in which sweepstakes have been used as a marketing and promotional tool for online and retail busines
ses, including online social games and licensed casino operators; (ii) determine and identify any differences between o
nline sweepstakes games and real-money gambling or internet gaming;

(iii)
develop a definition for "online sweepstakes games
"; and (iv) conduct any other r
elevant research as necessary.

The work group shall report
its
findings and recommendations
by
December 1, 2026
to
the Chairs of the Senate Committees on General L
aws
and
Technology and for Courts of Justice and
the House Co
mmittees
on General Laws and
for Courts of Justice.