Authority: Title 58.1, Chapter 40 and Chapter 41, Code of Virginia.

A. Out of the amounts for State Lottery Operations shall be paid:

1. Reimbursement for compensation and reasonable expenses of the members of the Virginia Lottery Board in the performance of their duties, as provided in § 2.2-2813, Code of Virginia.

2. The total costs for the operation and administration of the state lottery, pursuant to § 58.1-4022, Code of Virginia.

3. The costs of informing the public of the purposes of the Lottery Proceeds Fund, established pursuant to Article X, Section 7-A, Constitution of Virginia.

B. Expenses related to the regulation and oversight of Casino Gaming shall be paid from the combination of licensing and related fees collected under Title 58.1, Chapter 41, Code of Virginia.

C. Expenses related to the regulation and oversight of Sports Betting shall be paid from a combination of ongoing licensing and fees related to the activities described in Title 58.1, Chapter 40, Code of Virginia.

D. Notwithstanding the provisions of § 58.1-4030 and § 58.1-4037, Code of Virginia, a permit holder, through the first 12 months of sports betting activity, may exclude from adjusted gross revenue the value of allowable bonuses or promotions provided to bettors as an incentive to place or as a result of their having placed Internet sports betting wagers. After the first 12 months of sports betting activity, a permit holder is prohibited from excluding from adjusted gross revenue any bonuses or promotions provided to bettors as an incentive to place or as a result of their having placed Internet sports betting wagers. The provisions of this paragraph begin the first month a permit holder collects wagers related to sports betting, as defined in § 58.1-4030, Code of Virginia.

E. The appropriation for the Distribution of Casino Taxes is sum sufficient and amounts shown are estimates of amounts to be distributed pursuant to subsection B.1. of §58.1-4125 from taxes on adjusted gross receipts deposited in the Gaming Proceeds Fund.

F. Notwithstanding any provision of law to the contrary, including § 3-2.03, § 4-3.02, and § 4-13.00 of the Appropriations Act, the State Comptroller shall authorize an interest-free treasury loan for the Virginia Lottery to fund costs associated with the implementation of electronic gaming device oversight pursuant to the provisions of Senate Bill 212 of the 2024 General Assembly. The amount of the Treasury loan may include costs as estimated to be incurred by Virginia Lottery for the administration, regulation, enforcement, and oversight of electronic gaming devices in accordance with § 58.1-4200, Code of Virginia. The Secretary of Finance may extend the repayment plan for any such interest-free treasury loan for a period of longer than twelve months as needed to support state costs associated with the administration and regulation of electronic gaming devices. Intended repayment of the treasury loan is from revenues anticipated from taxes, fees, and fines collected pursuant to the authorizing legislation. The Director, Department of Planning and Budget, is authorized to provide nongeneral fund appropriation to Virginia Lottery in the amounts necessary to reflect expenditures in accordance with this paragraph.

G. Notwithstanding the provisions of § 4-3.02 of this act, the Secretary of Finance may authorize an interest-free treasury loan in an amount not to exceed $10,000,000 for the Virginia Lottery to fund start-up costs and other costs associated with the implementation of a potential gaming commission or other such combined gaming agency. The Secretary of Finance may extend the repayment plan for any such interest-free treasury loan for a period longer than twelve months.