Missouri 2025 Regular Session

Missouri Senate Bill SB112 Latest Draft

Bill / Introduced Version Filed 12/05/2024

                             
FIRST REGULAR SESSION 
SENATE BILL NO. 112 
103RD GENERAL ASSEMBLY  
INTRODUCED BY SENATOR MAY. 
0108S.01I 	KRISTINA MARTIN, Secretary  
AN ACT 
To amend chapter 313, RSMo, by adding thereto seven new sections relating to video lottery, with 
penalty provisions. 
 
Be it enacted by the General Assembly of the State of Missouri, as follows: 
     Section A.  Chapter 313, RSMo, is amended by adding thereto 1 
seven new sections, to be known as sections 313.425, 313.427, 2 
313.429, 313.431, 313.433, 313.435, and 313.440, to read as 3 
follows:4 
     313.425.  Sections 313.425 to 313.435 shall be known 1 
and may be cited as the "Missouri Video Lottery Control Act"  2 
and shall establish the regulatory framework for the use of 3 
player-activated video terminals for the conduct of lottery 4 
games. 5 
     313.427.  As used in sections 313.425 to 313.435, the 1 
following words and phrases shall mean: 2 
     (1)  "Centralized computer system", a computerized 3 
system developed or procured by the commission that video 4 
lottery game terminals are connected to using standard 5 
industry protocols that can activate or deactivate a 6 
particular video lottery game termina l from a remote  7 
location, and that is capable of monitoring and auditing 8 
video lottery game plays; 9 
     (2)  "Commission" or "lottery commission", the five - 10 
member body appointed by the governor to manage and oversee 11 
the lottery under section 313.215; 12   SB 112 	2 
    (3)  "Establishment", any establishment registered to 13 
do business in this state by a person licensed as a video 14 
lottery game retailer that is or becomes licensed under 15 
chapter 311 to sell liquor at retail, and that is one or 16 
more of the following: 17 
     (a)  A fraternal organization or veterans' organization 18 
that maintains a license issued under chapter 311 to sell 19 
intoxicating liquor, and that obtains and maintains a 20 
license issued by the commission to offer lottery games 21 
played on video lottery game terminals; 22 
     (b)  A truck stop equipped for fueling commercial 23 
vehicles, that has sold on average ten thousand gallons of 24 
diesel or biodiesel fuel each month for the previous twelve 25 
months or is projected to sell an average of ten thousand 26 
gallons of diesel or biodiesel fuel each month for the next 27 
twelve months, that is situated on more than two acres of 28 
land adjacent to a major state or federal highway, that 29 
maintains a license issued under chapter 311 to sell 30 
intoxicating liquor, and tha t obtains and maintains a 31 
license issued by the commission to offer lottery games 32 
played on video lottery game terminals; 33 
     (c)  A convenience store that has sold on average ten 34 
thousand gallons of fuel each month for the previous twelve 35 
months or is projected to sell an average of ten thousand 36 
gallons of fuel each month for the next twelve months, that 37 
maintains a license issued under chapter 311 to sell 38 
intoxicating liquor, and that obtains and maintains a 39 
license issued by the commission to of fer lottery games  40 
played on video lottery game terminals; 41 
     (d)  A bar, tavern, or restaurant that maintains a 42 
license issued under chapter 311 to sell intoxicating 43 
liquor, and that obtains and maintains a license issued by 44   SB 112 	3 
the commission to offer l ottery games played on video 45 
lottery game terminals; 46 
     (e)  A liquor store that maintains a license issued 47 
under chapter 311 to sell intoxicating liquor, and that 48 
obtains and maintains a license issued by the commission to 49 
offer lottery games played on video lottery game terminals; 50 
     (f)  A grocery store that maintains a license issued 51 
under chapter 311 to sell intoxicating liquor, and that 52 
obtains and maintains a license issued by the commission to 53 
offer lottery games played on video lottery g ame terminals; 54 
     (4)  "Fraternal organization", any organization within 55 
this state operating under the lodge system which exists for 56 
the common benefit, brotherhood, or other interest of its 57 
members, except college fraternities and sororities, of 58 
which no part of the net earnings inures to the benefit of 59 
any private shareholder or any individual member of such 60 
organization, which has been exempted from the payment of 61 
federal income tax, and which derives its charter from a 62 
national fraternal orga nization which regularly meets; 63 
     (5)  "Veterans' organization", a post or organization 64 
of veterans, or an auxiliary unit or society of, or a trust 65 
or foundation for, any such post or organization organized 66 
in the United States or any of its possessi ons in which at  67 
least seventy-five percent of the members are veterans of 68 
the United States armed forces and substantially all of the 69 
other members are individuals who are veterans or are 70 
cadets, or are spouses, widows, or widowers of war veterans 71 
of such individuals, in which no part of the net earnings 72 
inures to the benefit of any private shareholder or 73 
individual, and which has been exempted from payment of 74 
federal income taxes; 75   SB 112 	4 
     (6)  "Video lottery game", any lottery game approved by 76 
the commission for play on a video lottery game terminal 77 
using video lottery game terminal credits that have been 78 
purchased with cash, cash equivalents, or by a winning video 79 
lottery game terminal ticket; 80 
     (7)  "Video lottery game adjusted gross receipts" , the  81 
total of cash or cash equivalents used for the play of a 82 
video lottery game on a video lottery game terminal minus 83 
cash or cash equivalent paid to players as a result of 84 
playing video lottery games on a video lottery game terminal; 85 
     (8)  "Video lottery game distributor", a person 86 
licensed by the commission to buy, sell, lease, rent, 87 
finance or otherwise provide, distribute, or service video 88 
lottery game terminals or major parts and components of 89 
video lottery game terminals, including used or refurbished  90 
video lottery game terminals to and from licensed video 91 
lottery game manufacturers and licensed video lottery game 92 
operators; 93 
     (9)  "Video lottery game handler", a person employed by 94 
a licensed video lottery game operator to handle, place,  95 
operate, and service video lottery game terminals and 96 
associated equipment; 97 
     (10)  "Video lottery game manufacturer", any person 98 
that manufactures video lottery game terminals or major 99 
parts and components for video lottery game terminals a s  100 
approved by the lottery commission; 101 
     (11)  "Video lottery game operator", a person licensed 102 
by the commission that owns, rents, or leases and services 103 
or maintains video lottery game terminals for placement in 104 
licensed video lottery game retailer establishments; 105 
     (12)  "Video lottery game retailer", a person meeting 106 
the requirements of a lottery game retailer under section 107   SB 112 	5 
313.260, possessing a video lottery game retailer's license, 108 
and possessing a license to sell liquor, and with whom a 109 
licensed video lottery game operator has contracted for the 110 
placement of a video lottery game terminal or terminals, 111 
provided the video lottery game retailer and video lottery 112 
game operator do not have identical ownership; 113 
     (13)  "Video lottery game terminal", a player-activated  114 
terminal that exchanges coins, currency, tickets, ticket 115 
vouchers, or other electronic payment methods approved by 116 
the commission for video lottery game terminal credits used 117 
to play video lottery games approved by the co mmission.   118 
Such video lottery game terminals shall use a video display 119 
and microprocessor capable of randomly generating the 120 
outcome of video lottery games and be capable of printing a 121 
ticket at the conclusion of any video lottery game play that 122 
is redeemable at a video lottery game ticket redemption 123 
terminal or reinserted into a video lottery game terminal 124 
for video lottery game credit.  All video lottery games 125 
approved by the commission for play on a video lottery game 126 
terminal shall have a minim um theoretical payout of eighty - 127 
five percent; 128 
     (14)  "Video lottery game terminal credit", one cent, 129 
five cents, ten cents, or twenty -five cents either won or 130 
purchased by a player on a video lottery game terminal that 131 
is used to play video lottery games and that may be 132 
converted into a video lottery game ticket; 133 
     (15)  "Video lottery game ticket" or "ticket", a 134 
document printed at the conclusion of any lottery game play 135 
or group of plays on a video lottery game terminal that is 136 
redeemable for cash utilizing a video lottery game ticket 137 
redemption terminal or that may be reinserted into a video 138   SB 112 	6 
lottery game terminal in the establishment for which it was 139 
issued for video lottery terminal game play credit; 140 
     (16)  "Video lottery game ticke t redemption terminal", 141 
the collective hardware, software, communications 142 
technology, and other ancillary equipment used to facilitate 143 
the payment of tickets cashed out by players as a result of 144 
playing a video lottery game terminal. 145 
     313.429.  1.  The commission shall implement a system 1 
of video lottery game terminals utilizing a licensing 2 
structure for processing license applications and issuing 3 
licenses to video lottery game manufacturers, video lottery 4 
game distributors, video lottery game operators, video 5 
lottery game handlers, and video lottery game retailers for 6 
the conduct of lottery games utilizing video lottery game 7 
terminals within the state; except that, a person licensed 8 
as a: 9 
     (1)  Video lottery game manufactur er or a video lottery 10 
game distributor shall not be issued a license as a video 11 
lottery game operator or a video lottery game retailer; 12 
     (2)  Video lottery game operator shall not be issued a 13 
license as a video lottery game manufacturer or a video 14 
lottery game distributor; and 15 
     (3)  Video lottery game retailer shall not be issued a 16 
license as a video lottery game manufacturer or a video 17 
lottery game distributor. 18 
Nothing in this subsection shall prevent a video lottery 19 
game manufacturer from o btaining a video lottery game 20 
manufacturer's license and a video lottery game 21 
distributor's license and providing and operating the 22 
centralized computer system for monitoring video lottery 23 
game terminals, and nothing in this subsection shall prevent 24   SB 112 	7 
a video lottery game operator from obtaining a video lottery 25 
game retailer's license or a video lottery game retailer 26 
from obtaining a video lottery game operator's license, 27 
provided the applicant meets the requirements for all such 28 
licenses. 29 
     2.  Under no circumstances shall the commission: 30 
     (1)  Authorize or allow a single vendor or licensee to 31 
implement the system of video lottery game terminals created 32 
under this section; or 33 
     (2)  Allow a single licensed video lottery game 34 
operator to control or operate more than twenty -five percent  35 
of video lottery game terminals in the state. 36 
     3.  (1)  The video lottery game system authorized by 37 
this section shall allow for multiple video lottery game 38 
manufacturers, video lottery game distribut ors, and video  39 
lottery game operators to encourage private sector 40 
investment and job opportunities for Missouri citizens.   41 
Video lottery game terminals shall be connected to a 42 
centralized computer system developed or procured by the 43 
commission.  The commission shall provide licensed video 44 
lottery game operators with the necessary protocols to 45 
connect the operators' video lottery game terminal or 46 
terminals to the centralized computer system after such 47 
terminal or terminals have been approved by the commission.   48 
No video lottery game terminal shall be placed in operation 49 
without first connecting to the centralized computer system 50 
after such terminal or terminals have been approved by the 51 
commission.  A vendor that provides the centralized computer  52 
system authorized under this subsection shall not be 53 
eligible to be licensed as a video lottery game operator or 54 
video lottery game retailer.  The commission may impose an 55 
initial nonrefundable license application fee as follows: 56   SB 112 	8 
     (a)  For video lottery game manufacturers, video 57 
lottery game distributors, and video lottery game operators, 58 
no more than fifty thousand dollars; 59 
     (b)  For video lottery game retailer establishments, no 60 
more than five hundred dollars; or 61 
     (c)  For video lottery game handlers, no more than one 62 
hundred dollars. 63 
     (2)  The initial license and first subsequent license 64 
renewal shall be for a period of one year.  Thereafter,  65 
license renewal periods shall be four years with the 66 
applicable annual renewal fee pai d for each year such 67 
license is renewed.  Annual license renewal fees for anyone 68 
licensed pursuant to this subsection shall be as follows: 69 
     (a)  Five thousand dollars for video lottery game 70 
manufacturers and video lottery game distributors; 71 
     (b)  Five thousand dollars for video lottery game 72 
operators; 73 
     (c)  Fifty dollars for video lottery game handlers; and 74 
     (d)  Five hundred dollars for each video lottery game 75 
retailer's establishment. 76 
     (3)  In addition to the license fees required in  77 
subdivisions (1) and (2) of this subsection, video lottery 78 
game operators shall pay the commission an annual license 79 
fee of two hundred dollars for each video lottery game 80 
terminal placed in service.  Such video lottery game 81 
terminal license shall be renewed each year and cost two 82 
hundred dollars.  A license issued under this subsection is 83 
nontransferable. 84 
     (4)  Nothing in this subsection shall be construed to 85 
relieve the licensee of the affirmative duty to notify the 86 
commission of any chan ge relating to the status of the 87   SB 112 	9 
license or to any other information contained in the 88 
application materials on file with the commission. 89 
     4.  No license shall be issued to any person, and no 90 
person shall be allowed to serve as a sales agent, who has  91 
been convicted of a felony or a crime involving illegal 92 
gambling. 93 
     5.  No license requirement, sticker fee, or tax shall 94 
be imposed by any local jurisdiction upon a video lottery 95 
game manufacturer, video lottery game distributor, video 96 
lottery game operator, video lottery game retailer, video 97 
lottery game handler, or video lottery game terminal or an 98 
establishment relating to the operation of video lottery 99 
games, video lottery game terminals, or associated equipment. 100 
     6.  (1)  Video lottery game terminals shall meet 101 
independent testing standards approved by the commission, as 102 
tested by one or more approved independent test labs, and be 103 
capable of randomly generating the outcome of video lottery 104 
games approved by the commission.  Video lottery game  105 
terminals shall be capable of printing a ticket redeemable 106 
for winning video lottery game plays.  Such video lottery 107 
game terminals shall be inspected and approved by the 108 
commission prior to being sold, leased, or transferred. 109 
     (2)  Licensed video lottery game manufacturers may buy, 110 
sell, or lease new or refurbished video lottery game 111 
terminals to and from licensed video lottery game 112 
distributors. 113 
     (3)  Licensed video lottery game distributors may buy, 114 
sell, or lease new or refurb ished video lottery game 115 
terminals to or from licensed video lottery game 116 
manufacturers or licensed video lottery game operators. 117 
     7.  (1)  Licensed video lottery game operators: 118   SB 112 	10 
     (a)  May buy, lease, or rent video lottery game 119 
terminals from licensed video lottery game manufacturers, 120 
operators, or distributors; 121 
     (b)  May handle, place, and service video lottery game 122 
terminals; 123 
     (c)  Shall connect such video lottery game terminals to 124 
the centralized computer system approved by the comm ission;  125 
and 126 
     (d)  Shall pay winning tickets using a video lottery 127 
game ticket redemption terminal.  Such video lottery ticket 128 
redemption terminal shall be located within the video 129 
lottery game retailer's establishment in direct proximity of 130 
where such video lottery games are offered.  Video lottery  131 
game operators shall pay the commission thirty -two percent  132 
of any unclaimed cash prize associated with a winning ticket 133 
that has not been redeemed within one year of issue. 134 
Rents or leases for video lottery game terminals shall be  135 
written at a flat rate and shall not include revenue  136 
splitting as a method used in the calculation of the lease  137 
or rent. 138 
     (2)  Licensed video lottery game operators and licensed 139 
video lottery game retailers shall ente r into a written  140 
agreement for the placement of video lottery game 141 
terminals.  The agreement shall be on a form approved by the 142 
commission and shall specify a freely negotiated and agreed 143 
upon division of adjusted gross receipts between the video 144 
lottery game operator and the video lottery game retailer 145 
after adjustments for taxes and administrative fees are 146 
made.  A video lottery game operator shall be responsible 147 
for remitting to the commission and the video lottery game 148 
retailer its share of adj usted gross receipts.  Video  149   SB 112 	11 
lottery game retailers that are also video lottery game 150 
operators and licensed video lottery game operators that are 151 
also video lottery game retailers shall only be required to 152 
submit an agreement pursuant to this subdivisi on if the  153 
ownership is not identical in both entities.  Nothing in  154 
this subdivision shall prohibit a licensed video lottery 155 
game operator from entering into an agreement with a sales 156 
agent for retailer agreements, provided such agreement is in 157 
writing and approved by the commission.  No video lottery  158 
game operator or its sales agents, employees, or affiliates 159 
may offer, promise, or tender any property or personal 160 
advantage to any employee or agent of any video lottery game 161 
retailer with the intent to influence such video lottery 162 
game retailer with respect to locating any video gaming 163 
terminal in the video lottery game retailer's 164 
establishment.  Video lottery game operators and video 165 
lottery game retailers may allocate costs related to the 166 
operation, promotion, and maintenance of video lottery game 167 
terminals in any manner that has been mutually agreed to.   168 
An agreement for the placement of video lottery game 169 
terminals, or any similar agreement, entered into prior to 170 
the enactment of sections 313.425 to 313.435 shall be 171 
invalid and unenforceable.  Persons violating this 172 
subdivision are subject to the loss or prohibition of their 173 
video lottery game operator's license. 174 
     (3)  Nothing in this section shall be construed to 175 
prevent a video lottery game operator or a video lottery 176 
retailer from using a player rewards system as approved by 177 
the commission.  No player shall be required to enroll in a 178 
rewards program offered by a video lottery game operator or 179 
video lottery game retailer as a c ondition to play video 180 
lottery games. 181   SB 112 	12 
     8.  No licensed video lottery game operator shall: 182 
     (1)  Offer video lottery gaming terminals that directly 183 
dispense anything of value except for tickets for winning 184 
plays.  Tickets shall be dispensed by pr essing the ticket  185 
dispensing button on the video lottery gaming terminal at 186 
the end of any video lottery game play.  The ticket shall  187 
indicate the total amount of video lottery game terminal 188 
credits and the cash award, the time of day in a twenty -four- 189 
hour format showing hours and minutes, the date, the 190 
terminal serial number, the sequential number of the ticket, 191 
and an encrypted validation number from which the validity 192 
of the prize may be determined.  The cost of the video 193 
lottery game terminal c redits shall be one cent, five cents, 194 
ten cents, or twenty -five cents, and the maximum wager 195 
played per video lottery game shall not exceed five 196 
dollars.  No cash award for the maximum wager played on any 197 
individual video lottery game shall exceed one thousand  198 
dollars; 199 
     (2)  Operate in a retail establishment that is not also 200 
licensed to sell liquor, except if the business of the 201 
establishment is a truck stop where any state or local 202 
ordinance prohibits the sale of intoxicating liquor; 203 
     (3)  Operate more than five video lottery game 204 
terminals at one video lottery game retailer establishment; 205 
except if the establishment is a veterans' organization, 206 
fraternal organization, or truck stop, such establishment 207 
may operate up to ten video lottery game terminals as  208 
approved by the commission; 209 
     (4)  Allow video lottery games to be played at any time 210 
when the video lottery game retailer's establishment is 211 
closed for business. 212   SB 112 	13 
     9.  (1)  A person under twenty -one years of age shall 213 
not play video lottery games, and such video lottery game 214 
terminals shall be under the supervision of a person that is 215 
at least twenty-one years of age to prevent persons under 216 
twenty-one years of age from playing video lottery games.   217 
Video lottery game termi nals shall not be visible from areas 218 
normally occupied by minors and shall be placed within the 219 
unobstructed line of sight of the sales counter unless 220 
placed in an enclosed or partially enclosed area that is 221 
continually monitored by video surveillance.  A warning sign  222 
shall be posted in a conspicuous location where such video 223 
lottery game terminals are located, containing in red 224 
lettering at least one -half inch high on a white background 225 
the following: 226 
"YOU MUST BE AT LEAST 21 YEARS OF AGE TO PLAY V IDEO LOTTERY  227 
GAMES" 228 
In addition to the placement and supervision requirements of 229 
this subsection, a video lottery game operator shall provide 230 
video surveillance in the immediate area of the video 231 
lottery game retailer's establishment where video lotter y  232 
game terminals are located.  Recorded video from such 233 
surveillance system shall be made available to the 234 
commission upon request and shall be reviewed by video 235 
lottery game operators as reasonably and specifically 236 
requested by the commission for any violation of law, rules, 237 
or regulations governing the conduct of video lottery 238 
games.  A video lottery game operator that fails to review 239 
such surveillance video and report any known violation of 240 
law, rules, or regulations governing the conduct of vid eo  241 
lottery games in conformance with established commission 242 
procedures may be subject to an administrative fine not to 243   SB 112 	14 
exceed five thousand dollars.  Any video lottery game 244 
retailer that fails to report any known violation of law, 245 
rules, or regulation s governing the conduct of video lottery 246 
games in conformance with established commission procedures 247 
may be subject to an administrative fine not to exceed five 248 
thousand dollars.  In the event a video lottery game 249 
operator or retailer is found to have knowingly committed a 250 
violation governing the conduct of video lottery games, the 251 
commission may impose an administrative fine not to exceed 252 
five thousand dollars, suspend such operator's or retailer's 253 
license for up to thirty days, or in the case of r epeated  254 
violations revoke such operator's or retailer's license for 255 
a period of one year.  Any video lottery game operator or 256 
retailer aggrieved by the commission's decision in any 257 
disciplinary action that results in the suspension or 258 
revocation of such operator's or retailer's video lottery 259 
game license may appeal such decision by filing an action in 260 
circuit court.  The commission shall refer a violation of 261 
the criminal code, with any evidence thereof, to the 262 
appropriate law enforcement officials.  Video lottery game 263 
retailers shall provide an intrusion detection system 264 
capable of detecting unauthorized entrance of the video 265 
lottery game retailer's establishment during nonbusiness 266 
hours and shall report to the commission any unauthorized 267 
entrance of the video lottery game retailer's 268 
establishment.  Such surveillance and intrusion detection 269 
system shall meet specifications as defined by the 270 
commission. 271 
     (2)  A video lottery game operator shall post a sign in 272 
a conspicuous location where such video lottery game 273 
terminals are located, containing in red lettering at least 274   SB 112 	15 
one-half inch high on a white background a telephone contact 275 
number (1-888-BETSOFF) for the problem gambling helpline. 276 
     10.  (1)  Video lottery game operators shall pay the  277 
commission thirty-six percent of the video lottery game 278 
adjusted gross receipts, which shall be deposited in the 279 
state lottery fund.  The commission shall transfer the 280 
amount received from the operator from the lottery fund to 281 
the lottery proceeds fund after administrative expenses 282 
equal to four percent of the video lottery game adjusted 283 
gross receipts are paid to the municipality where a licensed 284 
video lottery game retailer maintains an establishment 285 
licensed for the operation of video lot tery game terminals, 286 
or if such licensed establishment is not located within the 287 
corporate boundaries of a municipality, then the county 288 
where such licensed establishment is located to reimburse 289 
such municipality or county for administrative expenses, and  290 
any administrative expenses for the commission that are not 291 
covered by reimbursements from operators are deducted.  Net  292 
proceeds transferred to the lottery proceeds fund shall be 293 
appropriated to public elementary and secondary education 294 
and public institutions of higher education with an emphasis 295 
on programs to promote science, technology, engineering, and 296 
mathematics (STEM) and programs to promote workforce 297 
development. 298 
     (2)  Video lottery game operators shall retain sixty - 299 
four percent of the video lottery game adjusted gross 300 
receipts, a portion of which shall be utilized to pay for 301 
administrative expenses which shall include the cost of the 302 
centralized computer system, which cost shall be paid by 303 
video lottery game operators in proport ion to the number of 304 
video lottery game terminals operated and shall not be 305 
apportioned by the video lottery game operator among video 306   SB 112 	16 
lottery game retailers to which it provides operations.  The  307 
remainder, after the costs of the centralized computer 308 
system are paid, shall be divided between the video lottery 309 
game operator and video lottery game retailer as agreed to 310 
by the video lottery game operator and video lottery game 311 
retailer under the freely negotiated agreement made under 312 
subdivision (2) of subsection 7 of this section, unless the 313 
video lottery game operator and video lottery game retailer 314 
share the same ownership. 315 
     11.  All revenues received by the commission from 316 
license fees and any reimbursements associated with the 317 
administration of the provisions of sections 313.425 to 318 
313.435, and all interest earned thereon, shall be 319 
considered administrative expenses and shall be deposited in 320 
the state lottery fund.  Moneys deposited into the state 321 
lottery fund from license fees and any reimbursements of  322 
commission administrative expenses to administer sections 323 
313.425 to 313.435 shall be considered administrative 324 
expenses and shall not be considered net proceeds pursuant 325 
to article III, section 39(b) of the Missouri Constitution.   326 
Subject to appropriation, up to one percent of such license 327 
fees and reimbursements deposited to the credit of the state 328 
lottery fund may be deposited to the credit of the 329 
compulsive gamblers fund created under section 313.842.  The  330 
remainder of the mon ey deposited in the state lottery fund 331 
from video lottery game license fees and any reimbursements 332 
of commission administrative expenses to enforce sections 333 
313.425 to 313.435 shall, subject to appropriation, be used 334 
for administrative expenses associa ted with supervising and 335 
enforcing the provisions of sections 313.425 to 313.435. 336 
     12.  The commission may contract with a state law 337 
enforcement entity to assist in conducting investigations 338   SB 112 	17 
into applicants for any video lottery game license and to 339 
investigate violations by any video lottery game licensee of 340 
any of the provisions of sections 313.425 to 313.435 or 341 
state law regulating illegal gambling activities.  A video  342 
lottery game licensee suspected of a violation shall be 343 
afforded an administrative hearing on the record, and any 344 
action taken to impose a fine on such licensee, or to 345 
suspend or revoke the ability of a licensee to offer lottery 346 
game products for sale, shall be appealed to the 347 
commission.  Any such administrative suspension o r  348 
revocation upheld by the commission may be appealed by the 349 
video lottery game licensee in a state court of competent 350 
jurisdiction. 351 
     13.  The possession or use of any video lottery game 352 
terminal not authorized by the commission under the 353 
provisions of sections 313.425 to 313.435 may be prosecuted 354 
under the provisions of chapter 572.  The commission shall 355 
have the power to investigate suspected violations by any 356 
video lottery license holder and to refer any violations or 357 
suspected violations to the appropriate law enforcement 358 
authority. 359 
     14.  The commission shall adopt rules for the 360 
implementation of the video lottery game system authorized 361 
under sections 313.425 to 313.435, including, but not 362 
limited to, the placement of video lottery t erminals within  363 
a retail establishment and for the active oversight of the 364 
conduct of video lottery games.  Any rule or portion of a 365 
rule, as that term is defined in section 536.010 that is 366 
created under the authority delegated in this section shall 367 
become effective only if it complies with and is subject to 368 
all of the provisions of chapter 536 and, if applicable, 369 
section 536.028.  This section and chapter 536 are 370   SB 112 	18 
nonseverable and if any of the powers vested with the 371 
general assembly pursuant to ch apter 536 to review, to delay 372 
the effective date, or to disapprove and annul a rule are 373 
subsequently held unconstitutional, then the grant of 374 
rulemaking authority and any rule proposed or adopted after 375 
August 28, 2025, shall be invalid and void. 376 
     313.431.  1.  In order to expedite the orderly 1 
implementation of the video lottery game system authorized 2 
under sections 313.425 to 313.435, the commission shall: 3 
     (1)  Issue a request for proposal for the supply and 4 
operation of a centralized computer system for video lottery 5 
games within one hundred twenty days of the effective date 6 
of this section; 7 
     (2)  Make license applications for video lottery game 8 
manufacturers, video lottery game distributors, video 9 
lottery game operators, video lottery game retailers, and 10 
video lottery game handlers available to applicants and 11 
promulgate any emergency or regular rules and regulations 12 
needed for the implementation of the video lottery system 13 
authorized under sections 313.425 to 313.435 within one 14 
hundred twenty days of the effective date of this section; 15 
     (3)  Issue a provisional license to an applicant for a 16 
video lottery game manufacturer's, video lottery game 17 
distributor's, video lottery game operator's, video lottery 18 
game retailer's, or video lottery game handler's license if 19 
such applicant satisfies all of the following criteria to 20 
the satisfaction of the commission: 21 
     (a)  The applicant is current on all state taxes; 22 
     (b)  The applicant has submitted a comp lete application  23 
for licensure as a licensed video lottery game manufacturer, 24 
video lottery game distributor, video lottery game operator, 25 
video lottery game retailer, or video lottery game handler, 26   SB 112 	19 
which shall be submitted concurrently with the applic ant's  27 
request for a provisional license; 28 
     (c)  The applicant has never been convicted of any 29 
felony or gambling law violation in any jurisdiction; and 30 
     (d)  The applicant for a video lottery game retailer's 31 
license has been issued and holds a va lid license to sell 32 
liquor under chapter 311. 33 
A provisional license shall be issued by the commission  34 
within sixty days from the date on which the application was  35 
first received unless the commission shows cause that the  36 
license application is deficient or such applicant does not  37 
meet the criteria for licensure. 38 
     2.  The commission may issue provisional licenses prior 39 
to the completion of a background check to an applicant that 40 
is currently licensed under sections 313.200 to 313.435 or 41 
sections 313.800 to 313.850; holds or is an affiliate of any 42 
entity that holds a license in good standing from a 43 
regulatory body of another state to operate, handle, or 44 
maintain video gaming terminals or video lottery game 45 
terminals that are substantially simil ar to video lottery 46 
game terminals authorized under sections 313.425 to 313.435; 47 
or if such person has been in the business of locating and 48 
operating amusement games within this state continuously for 49 
a period of five years. 50 
     3.  A provisional license shall be valid until: 51 
     (1)  The commission either approves or denies the 52 
applicant's application for licensure; 53 
     (2)  The provisional license is terminated for a 54 
violation of this section; or 55 
     (3)  One calendar year has passed since the p rovisional  56 
license was issued. 57   SB 112 	20 
Nothing in this section shall prohibit an applicant for a 58 
video lottery game manufacturer's, video lottery game 59 
distributor's, video lottery game operator's, video lottery 60 
game retailer's, or video lottery game handler's license  61 
from applying for a renewal of the provisional license 62 
issued under this section so long as the commission has not 63 
made a final determination to award or deny the applicant a 64 
license. 65 
     4.  Each applicant shall attest by way of affidavit 66 
under penalty of perjury that the applicant is not otherwise 67 
prohibited from licensure according to the requirements of 68 
this section. 69 
     5.  All requests for provisional licensure under this 70 
section shall include the following fee, which is in 71 
addition to the applicable fee required for an application 72 
for licensure and shall be retained by the commission: 73 
     (1)  Five thousand dollars for a video lottery game 74 
manufacturer and video lottery game distributor; 75 
     (2)  Five thousand dollars for a vide o lottery game  76 
operator; 77 
     (3)  Five hundred dollars for a video lottery game 78 
retailer's establishment; or 79 
     (4)  One hundred dollars for a video lottery game 80 
handler. 81 
     313.433.  1.  Notwithstanding any other provision of 1 
law to the contrary, participation by a person, firm, 2 
corporation, or organization in any aspect of the state 3 
lottery under sections 313.425 to 313.435 shall not be 4 
construed to be a lottery or gift enterprise in violation of 5 
section 39 of article III of the Constitution of Missouri. 6 
     2.  The sale of lottery tickets, shares, or lottery 7 
game plays using a video lottery game terminal under 8   SB 112 	21 
sections 313.425 to 313.435 shall not constitute a valid 9 
reason to refuse to issue or renew or to revoke or suspend 10 
any license or permit issued under the provisions of chapter 11 
311. 12 
     313.435.  A municipality may adopt an ordinance 1 
prohibiting video lottery game terminals within the 2 
corporate limits of such municipality within one hundred 3 
twenty days from the effective date of this act.  A county  4 
commission may, for the unincorporated area of the county, 5 
adopt an ordinance prohibiting video lottery game terminals 6 
within the unincorporated area of the county within one 7 
hundred twenty days from th e effective date of this act.   8 
The commission shall not license video lottery game 9 
retailers within such area covered by such ordinance.  Any  10 
such municipality or county that has opted to prohibit the 11 
use of video lottery game terminals to play video l ottery  12 
games may repeal such ordinance and upon such repeal the 13 
commission may license video lottery game retailers within 14 
such municipality or county to conduct video lottery games. 15 
     313.440.  Notwithstanding any other provision of la w to  1 
the contrary, the commission may incur fees when accepting 2 
debit cards or other electronic payment methods, except 3 
credit cards, for the sale of lottery game plays. 4 
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