Virginia Texas Hold’em Poker Tournament Operator Bond: A Comprehensive Guide
This guide provides information for insurance agents to help tournament operators on Virginia Texas Hold’em Poker Tournament Operator bonds
At a Glance:
- Average Cost: 2% – 7.5% of the bond amount based on the business owner’s credit *Monthly subscription options available
- Bond Amount: Determined on a case-by-case basis. Must be sufficient to cover any liability resulting from the administration of the qualified organization’s poker tournament
- Who Needs It: All Texas Hold’em Poker Tournament Operators in the State of Virginia
- Purpose: To ensure the public will receive compensation for any damages should the operator fail to honor all contractual agreements with the qualified organization
- Who Regulates Texas Hold’em Poker Tournament Operators in Virginia: The Virginia Department of Agriculture and Consumer Services, Office of Charitable and Regulatory Programs
Background
11VAC-15-50 requires all Texas Hold’em Poker Tournament Operators in the State of Virginia to register with the Virginia Office of Charitable and Regulatory Programs. The Virginia legislature enacted the registration laws and regulations to ensure that operators honor all contractual obligations with a qualified organization. In order to provide financial security for the enforcement of the registration law, operators must purchase and maintain a Texas Hold’em Tournament Operator surety bond to be eligible for registration.
What is the Purpose of the Virginia Texas Hold’em Poker Tournament Operator Bond?
Virginia requires operators to purchase the Texas Hold’em Poker Tournament Operator Bond as part of the application process to register with the Charitable Gaming Board. The bond ensures that the qualified party, also known as the entity hosting the tournament, will receive compensation for financial harm if the operator fails to honor any contractual obligations. In short, the bond is a type of insurance that protects the qualified party if the operator fails to honor the terms of the tournament contract.
How Can an Insurance Agent Obtain a Virginia Texas Hold’em Poker Tournament Operator Surety Bond?
BondExchange makes obtaining a Virginia Texas Hold’em Poker Tournament Operator Bond easy. Simply login to your account and use our keyword search to find the “poker” bond in our database. Don’t have a login? Gain access now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone (800) 438-1162, email or chat from 7:30 AM to 7:00 PM EST to assist you.
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How is the Bond Amount Determined?
11VAC-15-50 dictates that the bond limit be mutually agreed upon by both the tournament operator and the qualified organization hosting the poker tournament. The bond must cover all liabilities resulting from the administration of the qualified organization’s poker tournament. Simply put, tournament operators and qualified organizations are able to set their own bond amount as long as the limit is sufficient to cover all tournament liabilities.
Is a Credit Check Required for the Virginia Texas Hold’em Poker Tournament Operator Bond?
Surety companies will run a credit check on the tournament operator to determine eligibility and pricing for the Virginia Texas Hold’em Poker Tournament Operator bond. Operators with excellent credit and work experience can expect to receive the best rates. Operators with poor credit may be declined by some surety companies or pay higher rates. The credit check is a “soft hit”, meaning that the credit check will not affect the operator’s credit.
How Much Does the Virginia Texas Hold’em Poker Tournament Operator Bond Cost?
The Virginia Texas Hold’em Poker Tournament Operator surety bond can cost between 2% to 7.5% of the bond amount per year. Monthly subscription options are also available. Insurance companies determine the rate based on a number of factors including your customer’s credit score and experience. The chart below offers a quick reference for the approximate bond cost on a $20,000 bond requirement.
$20,000 Bond Limit
| Credit Score | Bond Cost (1 year) | Bond Cost (1 month) |
|---|---|---|
| 650+ | $400 | $40 |
| 600 – 649 | $800 | $80 |
| 550 – 599 | $1,500 | $150 |
*The credit score ranges do not include other factors that may result in a change to the annual premium offered to your customers, including but not limited to, years of experience and underlying credit factors contained within the business owner’s credit report.
How Does Virginia Define “Texas Hold’em Poker Tournament Operator”
To paraphrase 11VAC-15-50, a Texas Hold’em Poker Tournament Operator is any individual or business entity that enters into a contract with a qualified organization to administer a poker tournament on the organization’s behalf.
How Does Virginia Define “Qualified Organization”?
Virginia Statute 18.2-340.16 defines a qualified organization as “any organization to which a valid permit has been issued by the Department to conduct charitable gaming.” The following organizations are eligible to apply for a permit:
- Volunteer fire departments or volunteer emergency medical services agencies
- Organizations operated exclusively for religious, charitable, community or educational purposes
- Athletic associations, booster clubs, and band booster clubs seeking to raise funds for school sponsored athletic or band activities
- Associations of war veterans
- Fraternal organizations or corporations operating under the lodge system
- Any local chamber of commerce
- Non Profit organizations that raise funds by conducting raffles that generate gross annual receipts of $40,000 or less
How Do Texas Hold’em Poker Tournament Operators Apply for Registration in Virginia?
Texas Hold’em Poker Tournament Operators in Virginia must navigate several steps to secure their registration. Below are the general guidelines, but operators should refer to the Registration Statutes for details on the process.
Registration Period – All Virginia operator registrations are valid for one year from the date of issuance
Step 1 – Complete the Application
All operator registration applications should be mailed to:
VDACS
Office of Charitable & Regulatory Programs
Post Office Box 526
Richmond, VA 23218
Operators must complete the application, including the following steps:
1.a Organizing Documents – Applicants must submit either their business entity’s articles of incorporation, bylaws, charter, constitution or any other organizing documents with their application
1.b Internal Control Policies – Operators will need to submit written internal control policies and procedures that outlines segregation of duties, cash security and cash controls with their application
1.c List of Qualified Organizations – The application requires operators to include a list of all qualified organizations who the operator will administer poker tournaments on the behalf of
1.d Written Contracts – Operators will need to submit written copies of all contracts that in place with qualified organizations
1.e Identification – All operators must disclose the identity and provide a copy of a government-issued identification for all tournament managers, dealers, and other game workers
1.f Sample Badge – Operators are required to submit a copy of the badge worn by all tournament managers, dealers, and other game workers
1.g Personal Information Form – Operators will need to submit a completed Personal Information Form with their application
Step 2 – Pay Fees
Operators must submit a $1,000 application fee with their registration application
Step 3 – Pass the Background Check
The Charitable Gaming Board will conduct a background check on the operator to determine the following items:
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- Verification the operator is authorized to conduct business in the State of Virginia
- Verification the operator is currently in compliance with all Virginia tax laws
- A criminal history report on the owners of the operator company
Step 4 – Purchase a Surety Bond
Operators will need to purchase and maintain a Texas Hold’em Poker Tournament Operator surety bond. The bond limit must be sufficient to cover any liability resulting from the administration of the qualified organization’s poker tournament.
How Does a Virginia Texas Hold’em Poker Tournament Operator Renew Their Registration?
Operators should mail all registration renewal applications to the following address:
VDACS
Office of Charitable & Regulatory Programs
Post Office Box 526
Richmond, VA 23218
All Virginia operator registrations are valid for one year from the date of issuance and must be renewed before the expiration date.
What Are the Insurance Requirements for Texas Hold’em Poker Tournament Operators in Virginia?
The State of Virginia does not require operators to obtain any form of liability insurance. Operators must purchase and maintain a Texas Hold’em Poker Tournament Operator surety bond.
How Do Virginia Texas Hold’em Poker Tournament Operators File Their Bond?
Operators should mail the completed bond form, including the power of attorney, to the following address:
VDACS
Office of Charitable & Regulatory Programs
Post Office Box 526
Richmond, VA 23218
The Texas Hold’em Poker Tournament Operator surety bond requires signatures from both the surety company that issues the bond and the operator. The surety company should include the following information on the bond form:
- Legal name and address of the entity/individual(s) buying the bond
- Surety company’s name and address
- The bond amount
- Date the bond goes into effect
- Date the bond is signed
- Signature from a commissioned notary
What Can Operators Do to Avoid Claims Against the Virginia Texas Hold’em Poker Tournament Operator Bond?
To avoid claims on the Texas Hold’em Poker Tournament Operator Bond, operators must honor all contractual agreements made with any qualified organization.
What Other Insurance Products Can Agents Offer Operators in Virginia?
Virginia does not require Texas Hold’em Poker Tournament Operators to obtain any form of liability insurance. However, most reputable operators will seek to purchase this insurance anyway. Bonds are our only business at BondExchange, so we do not issue liability insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.
How Can Insurance Agents Prospect for Virginia Texas Hold’em Poker Tournament Operator Customers?
Virginia conveniently provides a public database to search for registered operators in the state. The database can be accessed here. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.
