Missouri Senate

Introduced

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 five dollars or offer a pay-out for a single game-winning play in excess of one thousand dollars. To combat problem gambling, video lottery game operators shall allow players to self-exclude themselves from play. Operators shall not operate more than five terminals at one retail establishment, except fraternal organizations, veterans organizations, and truck stops may operate up to ten terminals.

Video lottery game operators and video lottery game retailers are prohibited from offering anything of value other than the percentage of adjusted gross receipts 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 net proceeds of the sale of video lottery game tickets shall be appropriated to public elementary and secondary education and public institutions of higher education, with an emphasis on science, technology, engineering, and mathematics (STEM) and workforce development programs. 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 four 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 appropriated for administrative expenses associated with supervising and enforcing the provisions of 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.

The use or possession of a video lottery game terminal that is not licensed by the Commission shall be punishable under the provisions of Chapter 572 relating to illegal gambling.

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

These provisions are substantially similar to SB 452 (2017) and to provisions contained in SS/SCS/SB 767 (2018), and are similar to HB 990 (2017).

JOSHUA NORBERG