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. (Sections 313.429.1 and .2)

Video lottery game terminals may be placed in fraternal organizations, veterans' organizations, truck stops, convenience stores, bars and restaurants, liquor stores, and grocery stores, as defined in the act. (Section 313.427(3))

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. 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. (Sections 313.429.3 and 313.431)

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 one year 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 a freely negotiated and agreed upon division of adjusted gross receipts between the operator and retailer after adjustments for taxes and administrative fees are made. Video lottery game operators are prohibited from offering, promising, or tendering any property or advantage to influence a video lottery game retailer for the placement of video lottery terminals. Persons violating such prohibition are subject to the suspension or revocation of his or her video lottery game operator's license. (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 five terminals at one retail establishment, except fraternal organizations, veterans organizations, and truck stops may operate up to ten terminals. (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. 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 of 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 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, a portion of which shall be utilized to pay for the cost of the centralized computer system. The remainder shall be divided 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 may 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 lottery game terminal that is not licensed by the Lottery Commission shall be punishable under the provisions of Chapter 572 relating to illegal gambling. (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 twenty days of the effective date of this act prohibiting video lottery game terminals within the municipality or county. (Section 313.435)

These provisions are identical to SB 686 (2022) and SB 319 (2021), are substantially similar to SB 1021 (2024), SB 192 (2023), SB 557 (2023), HB 699 (2023), SB 642 (2022), SB 19 (2021), SB 936 (2020), SB 566 (2020), HB 423 (2019), and SB 452 (2017), and to provisions in SB 824 (2024), HB 2921 (2024), SB 1 (2023), SB 906 (2022), SS/HCS/HBs 2502 & 2556 (2022), HB 2080 (2022), SCS/SB 98 (2021), HB 915 (2021), HB 1014 (2021), SB 643 (2020), HCS/HB 2030 (2020), HCS/HB 2088 (2020), SCS/SBs 327 & 43 (2019), SS#3/SCS/SB 44 (2019), and SS/SCS/SB 767 (2018), and are similar to HB 2835 (2024) and HB 990 (2017), and to provisions contained in SB 187 (2019).

ELECTRONIC PAYMENT FEES

This act authorizes the Commission to incur fees when accepting debit cards or other electronic payment methods, except credit cards, for the sale of lottery game plays. (Section 313.440)

This act is identical to SB 574 (2023).

JOSH NORBERG