SB 642
Establishes the Missouri Video Lottery Control Act
Sponsor:
LR Number:
3531S.02I
Committee:
Last Action:
1/10/2022 - Second Read and Referred S Appropriations Committee
Journal Page:
S88
Title:
Calendar Position:
Effective Date:
August 28, 2022

Current Bill Summary

SB 642 - 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, provided that the commencement of video lottery gaming shall not occur prior to January 1, 2024. 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, 2030. The Commission shall not allow more than 15,000 video lottery terminals to be placed in the state. (313.429.1 and .2)

Video lottery game terminals may be placed in fraternal organizations, veterans' organizations, bars, and truck stops, as defined in the act. The Commission may also authorize the placement of pull-tab machines in video lottery game retailer establishments. Beginning January 1, 2024, the Commission may allow the placement of pull-tab machines that utilize electronically generated ticket facsimiles where game plays are pre-determined from a finite pool of ticket results. (Sections 313.427 and 313.255)

Video lottery game terminals and video lottery game ticket redemption terminals shall be connected to a centralized computer system developed or procured by the Commission. No video lottery game terminal or video lottery game ticket redemption terminal shall be in operation without being connected 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 two years. 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. The license of any sales agent violating such provision shall be revoked. (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, or, upon approval of the Commission, a negotiated 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, except that video lottery game operators may provide up to $7,500 to video lottery game retailers for structural changes required by the act. (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. Any state or federal tax reporting and withholding requirements shall be satisfied by the video lottery game operator.

Operators shall not operate more than five terminals at any one fraternal organization, veterans organization, bar, or truck-stop. The operating location for any video lottery game terminal shall be approved by the Commission prior to such video lottery game terminals being placed. The Commission may, at its sole discretion, deny such location pursuant to the provisions of the act. (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 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 and .12)

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. 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 conduct background checks of applicants for licenses and to investigate violations of the provisions of the act and may contract with a state law enforcement entity or the Missouri Gaming Commission to assist in conducting such investigations. (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 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)

This act is substantially similar to SB 19 (2021), SB 319 (2021), HB 1014 (2021), SB 566 (2020), SB 43 (2019), and SB 452 (2017), and to provisions contained in SCS/SB 98 (2021), HB 915 (2021), SS#3/SCS/SB 44 (2019), and SS/SCS/SB 767 (2018), and is similar to HB 990 (2017).

JOSH NORBERG

Amendments

No Amendments Found.