SB 557 - This act establishes provisions relating to gaming. HONORING MISSOURI VETERANS AND SUPPORTING MISSOURI EDUCATION ACT This act establishes the Honoring Missouri Veterans and Supporting Missouri Education 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. 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, 2027. (313.429.1 and .2) Video lottery game terminals may be placed in fraternal organizations, veterans' organizations, and truck stops, as such terms are defined in the act, and in business entities licensed to sell liquor by the drink. (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 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 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 administrative fee of $300 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 be registered with the Commission by a video lottery game operator and may not solicit or enter into any contract with a retailer prior to such retailer being licensed to conduct video lottery games. (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 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 pay for construction of a video lottery terminal area inside the premises of a video lottery game retailer. (Section 313.429.7) The price of video lottery game terminal credits shall be determined by the Commission, 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 $1,100 or the maximum amount allowable by federal law before tax withholding is required. Operators shall not operate more than fifty terminals at any one fraternal organization, veterans organization, or truck-stop, and not more than thirty-five video lottery game terminals at any one lottery game retailer that is not a fraternal organization, veterans organization, or truck-stop. (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 an area that is continually monitored by video surveillance and where access to persons under the age of twenty-one is prohibited. Recorded video surveillance footage shall be reviewed by video lottery game operators as required by the Commission and shall be made available to the Commission upon request. An operator or retailer 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) Video lottery game operators shall pay to the Commission twenty-eight 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 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 background investigations of applicants for licenses and for the enforcement of the provisions of the act. (Section 313.429.12) A video lottery game licensee suspected of a violation of the act shall be afforded an administrative hearing by the Director of the State Lottery on the record, and an appeal of any action taken to impose a fine on such licensee shall be to the Commission. Any such administrative suspension or revocation upheld by the Commission may be appealed by the video lottery game licensee in a state court of competent jurisdiction. (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 a 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 the unincorporated area of the county. (Section 313.435) These provisions are substantially similar to SB 192 (2023), SB 642 (2022), SB 686 (2022), SB 19 (2021), SB 319 (2021), HB 1014 (2021), SB 566 (2020), SB 43 (2019), and SB 452 (2017), and to provisions in SB 1 (2023), SB 906 (2022), SS/HCS/HBs 2502 & 2556 (2022), HB 2080 (2022), SCS/SB 98 (2021), HB 915 (2021), SS#3/SCS/SB 44 (2019), and SS/SCS/SB 767 (2018), and are similar to HB 990 (2017). COMPULSIVE GAMBLING The Commission shall promulgate rules for a sports wagering self-exclusion program, as described in the act. Any person who has been self-excluded and is found to have entered an excursion gambling boat or placed a sports wager shall forfeit his or her winnings. (Section 313.813) Current law allows the Commission to establish programs to provide treatment, prevention and education services for compulsive gambling. This act requires such programs and includes recovery services. This act also requires the Commission to conduct an annual socioeconomic study on the impact of gaming, as described in the act. (Section 313.842) This act requires the General Assembly to appropriate at least $5 million annually from the Gaming Commission Fund to the Compulsive Gamblers Fund. (Section 313.1021) SPORTS WAGERING This act authorizes wagering on sporting events, including esports, and modifies the definition of "gambling game" to include sports wagering. (Sections 313.800 and 313.1003) 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. Licensed applicants shall apply to the Missouri Gaming Commission for authorization to conduct sports wagering and shall pay an application fee not to exceed $100,000. 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) The act establishes designated sports districts, as defined in the act, in areas surrounding stadiums in which professional sports teams play their home games. Professional sports teams may designate a designated sports district mobile licensee, as defined in the act, to conduct sports wagering via an interactive sports wagering platform within the designated sports district. Sports wagering commercial activity, defined as any operation, promotion, signage, advertising, or other business activity relating to sports wagering, shall be prohibited within designated sports districts, as defined in the act, without approval of the professional sports team. (Section 313.1003.3) An excursion gambling boat may conduct sports wagering through an individually branded interactive sports wagering platform, as defined in the act, and may operate such platform or contract with a platform operator to administer sports wagering on behalf of the excursion gambling boat. An excursion gambling boat may conduct sports wagering through an additional two individually branded interactive sports wagering platforms and may operate such platform or contract with a platform operator to administer sports wagering on behalf of the excursion gambling boat, provided the excursion gambling boat pays to the Commission an annual administrative fee of $250,000 for the first additional interactive sports wagering platform and an annual administrative fee of $500,000 for the second additional interactive sports wagering platform. Each designated sports district mobile licensee may offer sports wagering through one interactive sports wagering platform. (Section 313.1008) An interactive sports wagering platform may apply to the Commission to conduct sports wagering on behalf of a certificate holder. Such interactive sports wagering platform shall submit an application fee not to exceed $150,000. Every year after licensure, an interactive sports wagering platform shall submit an annual license renewal fee not to exceed $125,000. (Section 313.1010) A sports governing body may notify the Commission that official league data for determining tier two sports wagers is available. The Commission shall notify sports wagering operators of such availability within seven days, and within sixty days of receiving such notification, sports wagering operators shall use only official league data to determine the outcome of tier two sports wagers, with exceptions as provided in the act. 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) 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 act prohibits the direct or indirect legal or beneficial owner of five percent or more of a sports governing body or its member teams from placing or accepting a wager on an event in which a member team participates. A violation of this provision is a Class C misdemeanor. (Section 313.1014.3(2)) A sports governing body may submit a request to the Commission to restrict, limit, or exclude a certain type, form, or category of sports wagering on sporting events sponsored by such sports governing body. The Commission shall request comments on such requests from sports wagering operators. Upon demonstration of good cause, the Commission shall grant such request, as described in the act. 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, 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) A tax is imposed at a rate of 10% 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 license renewal fee not to exceed $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) These provisions are identical to provisions in SB 1 (2023), are substantially similar to SS/SB 30 (2023), HCS/HBs 556 & 581 (2023), HB 953 (2023), SB 643 (2022), SB 764 (2022), SB 1046 (2022), SB 1061 (2022), HB 1666 (2022), HB 2752 (2022), SB 18 (2021), SB 217 (2021), SB 256 (2021), 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 SS/HCS/HBs 2502 & 2556 (2022), SB 906 (2022), HB 2080 (2022), HB 2144 (2022), SCS/SB 98 (2021), 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