11 Va. Admin. Code § 5-70-100

Current through Register Vol. 41, No. 8, December 2, 2024

Section 11VAC5-70-100 - Bonds

A. The director may require an applicant, permit holder, licensee, or registrant to obtain a bond before the director issues or reissues a permit, license, or registration.

B. A sports betting employee may be exempted from obtaining a bond if the employee is involved in activities that the director has determined do not require a bond to protect the public interest.

C. A bond shall be for the benefit of the Commonwealth for the faithful performance of the requirements imposed by the laws of Virginia and this chapter, shall be renewable annually, and may not be canceled without at least 30 days written notice submitted to the director. The original bond shall be submitted to the director.

D. A bond shall be issued only by a company that is financially rated A or better by a nationally recognized rating agency and that is permitted to transact business in the Commonwealth of Virginia.

E. For a permit holder, the amount of the bond may not exceed $5 million.

F. As approved by the director, the bond for a principal may be included in the bond submitted by the permit holder or sports betting supplier.

G. For a principal or sports betting employee not covered by a bond under subsection E of this chapter, the amount of the bond:

1. Shall be determined by the director based on the employee's level of responsibility and the Commonwealth's risk of exposure to liability for the employee's performance; and

2. May not exceed $150,000.

H. For a sports betting supplier licensee or vendor registrant, the amount of the bond:

1. Shall be determined by the director based on the licensee's or vendor's level of responsibility and the Commonwealth's risk of exposure to liability for the licensee's or vendor's performance; and

2. May not exceed $150,000.

I. The director will not issue or reissue a permit, license, or registration until the director has received satisfactory proof of a bond.

J. The director may apply a bond to the payment of an unpaid liability associated with this chapter of the applicant, permit holder, licensee, or registrant.

K. On an annual basis, the director shall review the need for and the amount of bonds required of a permit holder, licensee, or registrant.

11 Va. Admin. Code § 5-70-100

Derived from Virginia Register Volume 37, Issue 04, eff. 10/12/2020.

Statutory Authority: §§ 58.1-4007, 58.1-4015.1, and 58.1-4030 through 58.1-4047 of the Code of Virginia.