Electronic gaming devices; regulation, penalties, sunset.

Added new Title 59.1, Chapter 60, Section 59.1-614 relating to gaming commerce and development in the Commonwealth, expanding the bill beyond just regulatory provisions to include economic development aspects.

Changed effective date for certain provisions from July 1, 2026 to January 1, 2027, providing a longer implementation timeline for the new electronic gaming device regulations.

Removed House Appropriations Substitute header and replaced with Senate Substitute designation, reflecting the bill's passage through the Senate committee rather than the House Appropriations committee.

Modified the fiscal impact statement to reference Chapter 725 of the Acts of Assembly of 2025 requiring the Virginia Criminal Sentencing Commission to assign a minimum fiscal impact of $50,000 for periods of imprisonment, with the same language maintained in both versions.

Added a specific date (February 13, 2026) for when the Appropriations Committee proposed the substitute amendment, which was not present in the original Transportation & Public Safety version.

Changed the effective date for the closed meetings section (§ 2.2-3711) from 'Effective until July 1, 2026' to 'Effective July 1, 2026', clarifying when the new closed meeting provisions take effect.

Added a sunset provision stating the act's provisions will expire on January 1, 2030, with a requirement for the Virginia Lottery Board to report compliance and seizure statistics to the Governor and General Assembly.

Added provisions exempting the Virginia Lottery Board's initial adoption of regulations and procurement of the central monitoring system from the Administrative Process Act and departmental procurement regulations, allowing faster implementation.

Added language regarding estimated appropriations for periods of imprisonment and commitment, requiring the Virginia Criminal Sentencing Commission to assign a minimum fiscal impact of $50,000 for state adult correctional facilities.

Added formatting elements including line numbers, page breaks, and document identifiers (26107957D, HB1272H2) that are standard for legislative markup but do not affect substantive policy.

Added § 11-16.3 to exempt lawful electronic gaming device play and related activities from chapter applicability

Modified § 18.2-325 definitions to clarify that electronic gaming devices authorized under Chapter 42 are not gambling devices and to update the definition of 'illegal gambling' to exclude authorized electronic gaming devices

Added § 18.2-334.7 to exempt electronic gaming devices authorized under Chapter 42 from article prohibitions

Changed § 2.2-3711 effective date from 'until July 1, 2026' to 'July 1, 2026' for closed meeting provisions

Changed § 19.2-389 effective date from 'until July 1, 2026' to 'July 1, 2026' for criminal history record information dissemination

Added effective date of January 1, 2027 for initial provisions and January 1, 2030 expiration date with compliance reporting requirements

Added § 58.1-4200 definitions establishing terms like 'distributor,' 'host location,' 'electronic gaming device,' 'procurement agent,' and 'use agreement' for the new regulatory framework

Added § 58.1-4207 requiring electronic identification terminals at host locations to verify player age and voluntary exclusion status before allowing device play

Added § 58.1-4213 requiring use agreements between host locations and distributors to be exclusive, valid for 3-5 years, and to distribute at least half of gross profits to host locations

Added § 58.1-4214 establishing Director approval requirements for electronic gaming devices with a 15,000 device limit and restrictions on placement near casino gaming establishments

Added § 58.1-4215 establishing minimum technical requirements for electronic gaming devices including security features, payout limits of $500 per play, and connection to central monitoring system

Added § 58.1-4048 creating the Gaming Regulatory Fund to offset Department costs for investigations and enforcement

Added § 58.1-4218 establishing gaming tax distribution with 10% to Gaming Regulatory Fund, 25% to localities, 5% to problem gambling fund, and other allocations to state agencies and general fund

Added § 58.1-4219 establishing Class 6 felony penalties for illegal manufacture, distribution, or hosting of electronic gaming devices

Added § 58.1-4220 prohibiting underage play (under 21) with Class 1 misdemeanor penalties

Added § 58.1-4221 prohibiting host location licensees from accepting inducements from distributors with Class 1 misdemeanor penalties

Added § 58.1-4222 prohibiting illegal tampering with electronic gaming devices with Class 6 felony penalties

Added § 58.1-4216 requiring central monitoring system connection for all electronic gaming devices with automatic disablement upon disconnection

Added Title 58.1 Chapter 42 containing articles 1-5 for regulation of electronic gaming devices, expanding the bill beyond just skill game machines to cover a broader category of gaming devices.

Modified § 18.2-325 to explicitly exclude skill game machines from the definition of 'gambling device' and 'illegal gambling', clarifying the legal distinction between these gaming types.

Added § 2.2-511 provisions that define when the Attorney General may institute criminal prosecutions, including new authority over violations of Chapter 42 of Title 58.1 (electronic gaming devices).

Added victim notification requirements in § 2.2-511, ensuring crime victims receive notice of appeals and habeas corpus proceedings involving their cases.

Changed the effective date from January 14, 2026 to February 10, 2026, and added provisions for provisional licensing between July 1, 2026 and final regulation adoption.

Added provisions for provisional license fees and a six percent gross receipts tax during the interim period before final regulations are adopted.

Modified § 18.2-334 to clarify exemptions for skill game machines, ensuring they are not considered illegal gambling activities when properly licensed.

Added numerous formatting and structural changes including page numbers, draft markings, and committee attribution that reflect the bill's progression through the legislative process.