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SB 98 - This act modifies several provisions relating to gaming. MISSOURI 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 after December 31, 2026. (313.429.1 and .2) Video lottery game terminals may be placed in fraternal organizations, veterans' organizations, truck stops, as defined in the act, and retail establishments licensed to sell liquor, beer, or wine for on-premise consumption. (Section 313.427) Video lottery game terminals shall be connected to a centralized computer system developed or procured by the Commission. No video lottery game terminal shall be placed in operation without first connecting to such centralized computer system. The Commission may impose a non-refundable application fee, as described in the act. The initial license shall be for a period of one year. Thereafter, the license renewal period shall be four years with the applicable license renewal fee paid for each year such license is renewed, as described in the act. In addition to such license fees, video lottery game operators shall pay the Commission an annual license fee of $200 for each video lottery game terminal placed in service. No license shall be issued to any person who has been convicted of a felony or crime involving illegal gambling. Sales agents shall register with the Commission and may not solicit or enter into any agreement with a retailer or retail establishment prior to such registration with the Commission. (Section 313.429.3 and .4) Video lottery game operators shall pay winning tickets using a video lottery game ticket redemption terminal, which shall be located within the video lottery game retailer's establishment in direct proximity of where such video lottery games are offered. 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 180 days of issue. Video lottery game operators and video lottery game retailers shall enter into a written agreement for the placement of video lottery game terminals. The agreement shall specify an equal division of adjusted gross receipts between the operator and retailer after adjustments for taxes and administrative fees are made. 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 forfeit the right to operate video lottery game terminals for a one-year period. (Section 313.429.7) The cost of video lottery game terminal credits shall be $0.01, $0.05, $0.10, or $0.25, and the maximum wager played per video lottery game shall not exceed $5.00. No cash award for the maximum wager played on any individual lottery game shall exceed $1,000. Operators shall not operate more than ten terminals at any one fraternal organization, veterans organization, or truck-stop, and not more than five terminals in any one establishment licensed to sell liquor by the drink for on-premise consumption. (Section 313.429.8) A person under the age of twenty-one shall not play video lottery games, and such video lottery game terminals shall be under the supervision of a person that is at least twenty-one years of age. Video lottery game terminals shall be placed in a fully enclosed room that is continually monitored by video surveillance and where access to persons under the age of twenty-one is prohibited. Recorded video surveillance shall be made available as reasonably and specifically requested by the Commission. An operator that fails to review such video and report any known violation of law may be subject to an administrative fine not to exceed $5,000. Any operator or retailer found to have knowingly committed a violation of provisions governing the conduct of video lottery games may be subject to a fine of $5,000, the suspension of such operator's retailer's license for up to thirty days, or, in the case of repeated violations, the revocation of such operator's or retailer's license for up to one year. (Section 313.429.9) 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 equally to public elementary and secondary education and public institutions of higher education, with an emphasis on funding elementary and secondary education student transportation costs and public institutions of higher education 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. The remainder of video lottery game adjusted gross receipts, after the cost of the centralized computer system and administrative costs are paid and apportioned, 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. (Section 313.429.10) 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. (Section 313.429.11) The Commission shall contract with a state law enforcement entity to assist in conducting investigations into applicants for licenses and to investigate violations of the provisions of the act. (Section 313.429.12) The use or possession of any video gaming terminal, gambling machine, or device capable of simulating lottery games, games of chance, or gambling games, and that is not licensed by the Lottery Commission or Gaming Commission shall be punishable under the provisions of Chapter 572 relating to illegal gambling. Any lottery vendor or licensee violating such provisions shall be guilty of a Class D felony and fined up to $10,000 per occurrence. The Commission shall suspend or revoke the license of any vendor or licensee that allows the use of any prohibited video gaming terminal. (Section 313.429.13) 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. (Section 313.433) This act allows a municipality or county to adopt an ordinance within one hundred eighty days of the effective date of this act prohibiting video lottery game terminals within the municipality or county. (Section 313.435) These provisions are substantially similar to SB 566 (2020), SB 43 (2019), and SB 452 (2017), and to provisions contained in SS#3/SCS/SB 44 (2019) and SS/SCS/SB 767 (2018), and are similar to HB 990 (2017). SPORTS WAGERING This act allows the Missouri Lottery Commission to offer games based on the outcomes of sporting events. (Section 313.230) This act also authorizes sports wagering, and modifies the definition of "gambling game" to include sports wagering. Sports wagering shall only be authorized to be conducted on an excursion gambling boat or over the internet to persons physically located in this state. Such licensed facilities shall apply to the Missouri Gaming Commission for authorization to conduct sports wagering, and shall pay an application fee of $25,000. If granted a certificate of authority, a certificate holder shall be authorized to conduct sports wagering in a licensed facility 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. (Section 313.1008) Certificate holders shall 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 $25,000. Each year after licensure, an interactive sports wagering platform shall submit an annual license renewal fee of $50,000. (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. A sports governing body may notify the Commission that it desires to restrict, limit, or exclude sports wagers, as defined in the act, on its sporting events, including restrictions on sources of data and associated video upon which an operator may rely in offering and paying wagers. The Commission may deny such request if it determines that it is arbitrary and capricious. Except in certain emergency situations, such restrictions shall not apply to tier one sports wagers on non-exhibition games or events of professional sports organizations, as defined in the act. Certificate holders may use any data source to determine the results of sports wagers, provided the data is not obtained directly or indirectly from live event attendees or through automated computer programs. However, within thirty days of a sports governing body notifying the Commission of its desire to supply official league data to certificate holders for determining the results of tier two wagers, as defined in the act, certificate holders shall only use official league data to determine the results of such wagers. Certificate holders shall not purchase or utilize any personal biometric data of an athlete, as defined in the act, without written permission from the athlete's exclusive bargaining representative. The Commission and certificate holders shall cooperate with investigations conducted by law enforcement agencies. (Section 313.1014) A certificate holder shall maintain records of all bets and wagers placed through an interactive sports wagering platform, and all bets and wagers placed in person that exceed $10,000 in a 24-hour period, 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, and records of abnormal betting activity for at least three years after the sporting event occurs. (Section 313.1016) Any person who knowingly violates any procedure implemented under this act shall be liable for a civil penalty of not more than $5,000 for each violation, not to exceed $50,000 for violations arising out of the same transaction or occurrence. Such person shall also be subject to actions and penalties provided under current law, provided that any such financial penalties shall not exceed those provided for in the act. Any person who places, or causes to be placed, a bet or wager on the basis of material nonpublic information relating to that bet or wager, or who knowingly engages in, facilitates, or conceals conduct that intends to improperly influence a betting outcome of a sporting event for purposes of financial gain in connection with betting or wagering on a sporting event shall be guilty of a Class E felony. The term "material nonpublic information" shall include personal biometric data. (Section 313.1018) Within thirty days of the end of each calendar quarter, a certificate holder shall remit to the Commission a royalty fee of 0.25% of the amount wagered on sporting events conducted during the previous calendar quarter by sports governing bodies that have registered with the Commission, as described in the act. No later than April 30 of each year, a registered sports governing body may submit a request for disbursement of funds remitted by certificate holders in the previous calendar year. The Commission shall disburse the funds to the registered sports governing body in pro rata proportion of the total amount wagered on its sporting events. Any unclaimed royalty fees shall be distributed to certificate holders that timely remitted such fees. (Section 313.1019) Within thirty days of the end of each calendar quarter, a certificate holder shall remit to the Commission a royalty fee of 0.25% of the amount wagered on sporting events involving at least one NCAA Football Bowl Subdivision football team or at least one NCAA Division I basketball team. No later than April 30 of each year, the Commission shall disburse such royalty fees evenly among the public universities in this state that sponsor an NCAA Football Bowl Subdivision football team or NCAA Division I basketball team. The royalty fees received by public universities under this act shall be used solely for athletics compliance. (Section 313.1020) A tax is imposed at a rate of 9.0% on the adjusted gross receipts received from sports wagering conducted by a certificate holder. Such tax shall be remitted by the last business day of each month. Revenues received from the tax shall be deposited in the Gaming Proceeds for Education Fund. A certificate holder shall also pay to the Commission an annual administrative fee of $50,000. In addition to such administrative fee, a certificate holder shall pay to the Commission a fee of $10,000 every five years for a reinvestigation of the certificate holder. Such fees shall be deposited in the Gaming Commission Fund. (Section 313.1021) All sports wagers placed under this act shall be deemed to be initiated, received, and otherwise made on the property of an excursion gambling boat in this state. The intermediate routing of electronic data shall not determine the location or locations in which such wager is initiated, received, or otherwise made. (Section 313.1022) The Commission shall establish a hotline or other method of communication that allows any person to confidentially report information about any conduct that the person believes is a violation of the provisions of this act. The Commission shall investigate all reasonable allegations and shall refer allegations that it deems credible to the appropriate law enforcement agency. Sports wagering operators, sports governing bodies, professional sports franchises, and higher education institutions shall not discharge, demote, suspend, threaten, harass, or in any other manner discriminate against an employee because of any lawful act performed by the employee to provide information, cause information to be provided, or otherwise assist in an investigation regarding any conduct which the employee reasonably believes constitutes a violation of the provisions of this act. An employee may bring an action at law or equity for relief from a violation of this provision, as described in the act. Such action shall be commenced not later than one hundred eighty days from the later of the date on which the violation occurs or the date on which the employee became aware of the violation. (Section 313.1024) These provisions are substantially similar to SB 567 (2020), SB 754 (2020), HB 2318 (2020), HB 2691 (2020), HB 119 (2019), SB 1009 (2018), HB 2406 (2018), and to provisions contained in SB 643 (2020), HCS/HB 2088 (2020), HCS/HB 2284 (2020), SS#3/SCS/SB 44 (2019), and SB 187 (2019), and are similar to HB 2320 (2018) and to a provision contained in SB 195 (2019). JOSH NORBERG
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