Missouri Senate

Senate Committee Substitute

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, 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, handlers, and retailers shall be required to annually remit a license fee, and licensees shall be required to renew licenses every two years. 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 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.

This act is substantially similar to SB 452 (2017) and is similar to HB 990 (2017).

This act also authorizes wagering on the outcome of sporting events in the event federal law is enacted or repealed or a federal court decision is filed that affirms the authority of a state to regulate wagering on sporting events.

Gross receipts received from wagers on sporting events shall be taxed at a rate of twelve percent, and shall be collected and distributed as established in current law for excursion gambling boats.

An additional administrative fee of two percent of gross receipts shall be remitted and deposited in the Gaming Commission Fund. One hundred percent of such administrative fee shall be transferred to the Veterans' Commission Capital Improvement Trust Fund. (Section 313.852)

JOSHUA NORBERG