SB 767
Modifies provisions relating to wagering on certain games
Sponsor:
LR Number:
4671S.05C
Last Action:
5/18/2018 - Informal Calendar S Bills for Perfection--SB 767-Hoskins, with SCS, SS for SCS & SA 2 (pending)
Journal Page:
Title:
SCS SB 767
Calendar Position:
Effective Date:
August 28, 2018

Current Bill Summary

SS/SCS/SB 767 - This act modifies several provisions relating to wagering on certain games.

VIDEO LOTTERY CONTROL ACT

This act establishes the Missouri Video Lottery Control Act.

This act allows the State Lottery Commission to implement a system of video lottery game terminals and to issue licenses to video lottery game manufacturers, distributors, operators, handlers, and retailers, as defined in the act. The Commission shall not allow a single vendor or licensee to be responsible for implementing the program, nor shall it allow a single vendor or licensee to control or operate more than twenty-five percent of video lottery game terminals in the state.

The Commission may impose a non-refundable application fee, as described in the act. Manufacturers, operators, distributors, handlers, and retailers shall be required to annually remit a license fee. The Commission shall issue provisional licenses as described in the act.

Video lottery game terminals shall be independently tested, capable of randomly generating the outcome of games, and be able to print tickets.

No licensed video lottery operator shall offer a single game play exceeding two dollars or offer a pay-out for a single game-winning play in excess of five hundred dollars. To combat problem gambling, video lottery game operators shall provide a pre-commitment system that allows players to set daily and aggregate bet limits and to self-exclude themselves from play. Operators shall not operate more than five terminals at one retail establishment, except fraternal or veterans organizations may operate up to ten terminals.

Video lottery game operators are prohibited from offering anything of value other than the percentage of adjusted gross receipts to a video lottery game retailer for the placement of video lottery terminals. Persons violating such prohibition are subject to the loss or prohibition of his or her video lottery game operator's license.

Video lottery game operators shall pay to the Commission thirty-two percent of any unclaimed cash prizes associated with winning tickets that have not been redeemed within one year of issue.

Video lottery game operators shall pay to the Commission thirty-six percent of the video lottery game adjusted gross receipts. The first $100 million of such adjusted gross receipts shall be appropriated for public institutions of higher education. The remaining adjusted gross receipts shall be appropriated evenly between public elementary and secondary education and public institutions of higher education. The Commission shall compensate the administrative costs of the city or county in which a video lottery retailer maintains an establishment in an amount equal to five percent of the video lottery game adjusted gross receipts. Sixty-four percent of video lottery game adjusted gross receipts shall be retained by video lottery game operators and shall be split evenly between video lottery game operators and video lottery game retailers as provided under an agreement.

All revenues collected by the Commission from license renewal fees and any reimbursements associated with the enforcement of the act shall be distributed as described in the act.

Participation in the state lottery under this act shall not be construed to be a lottery or gift enterprise in violation of Article III, Section 39 of the Constitution of Missouri, and shall not constitute a valid reason for the denial or revocation of a permit to sell liquor.

This act allows a municipality or county to adopt an ordinance within ninety days of the effective date of this act prohibiting video lottery game terminals within the municipality or county.

These provisions are substantially similar to HB 2176 (2018) and SB 452 (2017), and are similar to HB 990 (2017).

SPORTS WAGERING

This act authorizes sports wagering, and modifies the definition of "gambling game" to include sports wagering.

Sports wagering shall only be authorized under this act when the Missouri Gaming Commission determines that federal statutes prohibiting sports wagering have been repealed or amended to allow such wagering, or if the U.S. Supreme Court rules that such federal statute is unconstitutional.

Sports wagering shall only be authorized to be conducted on an excursion gambling boat. Such licensed facilities shall apply to the Commission for authorization to conduct sports wagering, and shall pay an application fee of $10,000. If granted a certificate of authority, a certificate holder shall be authorized to conduct sports wagering in a licensed facility, through a limited mobile gaming system, or through an interactive sports wagering platform, as defined in the act. (Section 313.1006)

Certificate holders shall designate an area within the licensed facility for conducting sports wagering. In addition to such designated area, sports wagering may be conducted in a gaming or other betting area of the licensed facility through the use of a limited mobile gaming system, or in a hotel, restaurant or other amenity operated by the certificate holder and subject to the authority of the Commission. (Section 313.1008)

Certificate holders shall ensure the security and integrity of sports wagers accepted under a limited mobile gaming system, ensure that the certificate holder's surveillance system covers all areas in which sports wagering is conducted, allow the Commission to be present through gaming agents during the hours sports wagering is conducted, ensure that individuals under the age of 21 are not making sports wagers, provide certain information to sports wagering patrons, and post a sign indicating the minimum and maximum amounts that may be wagered. (Section 313.1004)

Subject to the approval of the Commission a certificate holder may contract with a third party to conduct sports wagering at the certificate holder's licensed facility. (Section 313.1008)

An interactive sports wagering platform, as defined in the act, may apply to the Commission for authority to offer sports wagering on behalf of a certificate holder. Such interactive sports wagering platform shall submit an application fee of $10,000. Each year after licensure, an interactive sports wagering platform shall submit an annual license renewal fee of $5,000. (Section 313.1010)

The Commission shall promulgate rules for a sports wagering self-exclusion program, as described in the act. The Commission shall also promulgate rules to ensure that advertisements for sports wagering do not target minors or other persons who are ineligible to place wagers, problem gamblers, or other vulnerable persons. (Section 313.1012)

The Commission shall conduct background checks on individuals seeking licenses under the act. Such background checks shall include a search for criminal history and any charges or convictions involving corruption or manipulation of sporting events.

The Commission and certificate holders shall cooperate with investigations conducted by sports governing bodies or law enforcement agencies. (Section 313.1014)

A certificate holder shall maintain records of all bets and wagers placed, including personally identifiable information of the bettor, the amount and type of bet, the time the bet was placed, the location of the bet, the outcome of the bet, records of abnormal betting activity, and video camera recordings in the case of in-person wagers, for at least three years after the sporting event occurs. (Section 313.1016)

This act imposes a 12% tax on the adjusted gross receipts received from wagers on sporting events, and such tax shall be remitted and distributed as provided in current law, with 10% of the adjusted gross receipts tax collected remitted to the home dock city or county. This act also imposes an administrative fee at a rate of 2% of adjusted gross receipts from wagers on sporting events. Such administrative fee shall be deposited in the Gaming Commission Fund to be equally distributed to the Access Missouri Financial Assistance Fund, the Veterans' Commission Capital Improvement Trust Fund, the Missouri National Guard Trust Fund, and to certain cities and counties demonstrating a need for funding community neighborhood organization programs for the homeless and for gang-related violence and crime deterrence, as described in the act. (Section 313.1020)

These provisions are substantially similar to SB 1009 (2018) and HB 2406 (2018), and are similar to SB 1013 (2018), HB 2535 (2018), and HB 2320 (2018).

JOSHUA NORBERG

Amendments