Title of Regulation: 11VAC10-40. Satellite Facilities (amending 11VAC10-40-10, 11VAC10-40-60).

Statutory Authority: § 59.1-369 of the Code of Virginia.

Effective Date: September 9, 2015.

Agency Contact: David S. Lermond, Jr., Regulatory Coordinator, Virginia Racing Commission, 5707 Huntsman Road, Suite 201-B, Richmond, VA 23250, telephone (804) 966-7404, FAX (804) 966-7418, or email david.lermond@vrc.virginia.gov.

Summary:

The amendments conform to changes enacted by Chapters 731 and 751 of the 2015 Acts of Assembly, which revised the Virginia horse racing statute. The amendments (i) revise the definition of "licensee" to permit any licensee to own or operate a racetrack and (ii) modify the requirements for majority ownership of satellite facilities.

Part I
General Provisions

11VAC10-40-10. Definitions.

The following words and terms, when used in these regulations, shall have the following meaning, unless the context clearly indicates otherwise:

"Commission" means the Virginia Racing Commission.

"Licensee" includes any person holding an owner's, or operator's, or limited license under §§ Article 2 (§ 59.1-375 through 59.1-386 et seq.) of Chapter 29 of Title 59.1 of the Code of Virginia. The licensee under a limited license shall not be deemed an owner for the purposes of owning or operating a satellite facility.

"Satellite facility" means all areas of the property at which simulcast horse racing is received for the purposes of pari-mutuel wagering, and any additional areas designated by the commission.

"Simulcast horse racing" means the simultaneous transmission of the audio or video portion, or both, of horse races from a licensed horse racetrack or satellite facility to another licensed horse racetrack or satellite facility, regardless of state of licensure, whether such races originate within the Commonwealth or any other jurisdiction, by satellite communication devices, television cables, telephone lines, or any other means for the purposes of conducting pari-mutuel wagering.

11VAC10-40-60. Majority ownership.

The commission shall require that the majority ownership of satellite facilities be restricted to an entity licensed by the commission which owns a horse racetrack in the Commonwealth that is (i) a significant infrastructure limited licensee or (ii) the nonprofit industry stakeholder organization recognized by the commission if by August 1, 2015, there is no significant infrastructure limited licensee or a pending application for such license. After the issuance of a license to own or operate a satellite facility to the nonprofit industry stakeholder organization, if the commission grants a license to a significant infrastructure limited licensee pursuant to § 59.1-376 of the Code of Virginia, then such limited licensee may own or operate the remaining available satellite facilities authorized in accordance with this section. In no event shall the commission authorize any such entities to own or operate more than a combined total of 10 satellite facilities. Nothing in these regulations this chapter shall be deemed to preclude private local ownership or participation in any satellite facility.