Missouri 2025 2025 Regular Session

Missouri Senate Bill SB16 Introduced / Bill

Filed 12/04/2024

                     
FIRST REGULAR SESSION 
SENATE BILL NO. 16 
103RD GENERAL ASSEMBLY  
INTRODUCED BY SENATOR MAY. 
0107S.02I 	KRISTINA MARTIN, Secretary  
AN ACT 
To amend chapter 313, RSMo, by adding thereto six 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 t hereto 1 
six new sections, to be known as sections 313.425, 313.427, 2 
313.429, 313.431, 313.433, and 313.435, to read as follows:3 
     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 terminal from a remo te  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 16 	2 
     (3)  "Fraternal organization", any organization within 13 
this state operating under the lodge system which exists for 14 
the common benefit, brotherhood, or other interest of its 15 
members, except college fraternities and sororities, of 16 
which no part of the net earnin gs inures to the benefit of 17 
any private shareholder or any individual member of such 18 
organization, which has been exempted from the payment of 19 
federal income tax, and which derives its charter from a 20 
national fraternal organization which regularly meet s; 21 
     (4)  "Truck stop", a location that provides parking and 22 
is equipped for fueling commercial vehicles, that has sold 23 
on average ten thousand gallons of diesel or biodiesel fuel 24 
each month for the previous twelve months or is projected to 25 
sell an average of ten thousand gallons of diesel or 26 
biodiesel fuel each month for the next twelve months, and 27 
that obtains and maintains a lottery game retailer license 28 
issued by the commission; 29 
     (5)  "Veterans' organization", a post or organization 30 
of veterans, or an auxiliary unit or society of, or a trust 31 
or foundation for, any such post or organization organized 32 
in the United States or any of its possessions in which at 33 
least seventy-five percent of the members are veterans of 34 
the United States arm ed forces and substantially all of the 35 
other members are individuals who are veterans or are 36 
cadets, or are spouses, widows, or widowers of war veterans 37 
of such individuals, in which no part of the net earnings 38 
inures to the benefit of any private shar eholder or  39 
individual, and which has been exempted from payment of 40 
federal income taxes; 41 
     (6)  "Video lottery game", any lottery game approved by 42 
the commission for play on a video lottery game terminal 43 
using video lottery game terminal credits tha t have been  44   SB 16 	3 
purchased with cash, cash equivalents, or by a winning video 45 
lottery game terminal ticket; 46 
     (7)  "Video lottery game adjusted gross receipts", the 47 
total of cash or cash equivalents used for the play of a 48 
video lottery game on a video lo ttery game terminal minus 49 
cash or cash equivalent paid to players as a result of 50 
playing video lottery games on a video lottery game terminal; 51 
     (8)  "Video lottery game distributor", a person 52 
licensed by the commission to buy, sell, lease, rent, 53 
finance or otherwise provide, distribute or service video 54 
lottery game terminals or major parts and components of 55 
video lottery game terminals, including used or refurbished 56 
video lottery game terminals to and from licensed video 57 
lottery game manufacture rs and licensed video lottery game 58 
operators; 59 
     (9)  "Video lottery game handler", a person employed by 60 
a licensed video lottery game operator to handle, place, 61 
operate, and service video lottery game terminals and 62 
associated equipment; 63 
     (10)  "Video lottery game manufacturer", any person 64 
that manufactures video lottery game terminals or major 65 
parts and components for video lottery game terminals as 66 
approved by the lottery commission; 67 
     (11)  "Video lottery game operator", a person licensed  68 
by the commission that owns, rents, or leases and services 69 
or maintains video lottery game terminals for placement in 70 
licensed video lottery game retailer establishments; 71 
     (12)  "Video lottery game retailer", a person meeting 72 
the requirements of a lottery game retailer under section 73 
313.260, that secures and maintains a license issued by the 74 
commission to conduct video lottery games played on a video 75 
lottery game terminal or terminals and that is a fraternal 76   SB 16 	4 
organization, veterans organization, truck stop, or business 77 
entity licensed under chapter 311 to sell liquor by the 78 
drink and that only allows patrons over the age of twenty - 79 
one to enter; 80 
     (13)  "Video lottery game terminal", player -activated  81 
terminal that exchanges coins, currency, tickets, ticket  82 
vouchers, or other electronic payment methods approved by 83 
the commission for video lottery game terminal credits used 84 
to play video lottery games approved by the commission.   85 
Such video lottery game terminals shall use a video display 86 
and microprocessor capable of randomly generating the 87 
outcome of video lottery games and be capable of printing a 88 
ticket at the conclusion of any video lottery game play that 89 
is redeemable at a video lottery game ticket redemption 90 
terminal or reinsert ed into a video lottery game terminal 91 
for video lottery game credit.  All video lottery games 92 
approved by the commission for play on a video lottery game 93 
terminal shall have a minimum theoretical payout of eighty - 94 
five percent; 95 
     (14)  "Video lottery game terminal credit", one cent, 96 
five cents, ten cents, or twenty -five cents either won or 97 
purchased by a player on a video lottery game terminal that 98 
is used to play video lottery games and that may be 99 
converted into a video lottery game ticket; 100 
     (15)  "Video lottery game ticket" or "ticket", a 101 
document printed at the conclusion of any lottery game play 102 
or group of plays on a video lottery game terminal that is 103 
redeemable for cash utilizing a video lottery game ticket 104 
redemption terminal or th at may be reinserted into a video 105 
lottery game terminal in the establishment for which it was 106 
issued for video lottery terminal game play credit; 107   SB 16 	5 
     (16)  "Video lottery game ticket redemption terminal", 108 
the collective hardware, software, communicatio ns  109 
technology, and other ancillary equipment used to facilitate 110 
the payment of tickets cashed out by players as a result of 111 
playing a video lottery game terminal. 112 
     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 manufacturer 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 shal l 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 obtaining a video lottery game 20 
manufacturer's license and a video lotter y 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 
a video lottery game operator from obtaining a video lottery 25 
game retailer's license or a video lottery game retailer 26   SB 16 	6 
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; 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 ter minals in the state; or 36 
     (3)  Allow a single licensed video lottery game 37 
manufacturer or distributor to manufacture or distribute 38 
more than twenty-five percent of video lottery game 39 
terminals in the state. 40 
     3.  (1)  The video lottery game system authorized by  41 
this section shall allow for multiple video lottery game 42 
manufacturers, video lottery game distributors, and video 43 
lottery game operators to encourage private sector 44 
investment and job opportunities for Missouri citizens.   45 
Video lottery game terminals shall be connected to a 46 
centralized computer system developed or procured by the 47 
commission.  The commission shall provide licensed video 48 
lottery game operators with the necessary protocols to 49 
connect the operators' video lottery game t erminal or  50 
terminals to the centralized computer system after such 51 
terminal or terminals have been approved by the commission.   52 
No video lottery game terminal shall be placed in operation 53 
without first connecting to the centralized computer system 54 
after such terminal or terminals have been approved by the 55 
commission.  A vendor that provides the centralized computer 56 
system authorized under this subsection shall not be 57 
eligible to be licensed as a video lottery game operator or 58   SB 16 	7 
video lottery game ret ailer.  The commission may impose an 59 
initial nonrefundable license application fee as follows: 60 
     (a)  For video lottery game manufacturers, video 61 
lottery game distributors, and video lottery game operators, 62 
no more than fifty thousand dollars; 63 
     (b)  For video lottery game retailer establishments, no 64 
more than five hundred dollars; or 65 
     (c)  For video lottery game handlers, no more than one 66 
hundred dollars. 67 
     (2)  The initial license and first subsequent license 68 
renewal shall be for a peri od of one year.  Thereafter,  69 
license renewal periods shall be four years with the 70 
applicable annual renewal fee paid for each year such 71 
license is renewed.  Annual license renewal fees for anyone 72 
licensed pursuant to this subsection shall be as follows : 73 
     (a)  Five thousand dollars for video lottery game 74 
manufacturers and video lottery game distributors; 75 
     (b)  Five thousand dollars for video lottery game 76 
operators; 77 
     (c)  Fifty dollars for video lottery game handlers; and 78 
     (d)  Five hundred dollars for each video lottery game 79 
retailer's establishment. 80 
     (3)  In addition to the license fees required in 81 
subdivisions (1) and (2) of this subsection, video lottery 82 
game operators shall pay the commission an annual license 83 
fee of two hundred dollars for each video lottery game 84 
terminal placed in service.  Such video lottery game 85 
terminal license shall be renewed each year and cost two 86 
hundred dollars.  A license issued under this subsection is 87 
nontransferable. 88 
     (4)  Nothing in this subsection shall be construed to 89 
relieve the licensee of the affirmative duty to notify the 90   SB 16 	8 
commission of any change relating to the status of the 91 
license or to any other information contained in the 92 
application materials on file with the commission. 93 
     4.  No license shall be issued to any person, and no 94 
person shall be allowed to serve as a sales agent, who has 95 
been convicted of a felony or a crime involving illegal 96 
gambling. 97 
     5.  No license requirement, sticker fee, or tax shall 98 
be imposed by any local jurisdiction upon a video lottery 99 
game manufacturer, video lottery game distributor, video 100 
lottery game operator, video lottery game retailer, video 101 
lottery game handler, or video lottery game terminal or an 102 
establishment relating to the operation of video lottery 103 
games, video lottery game terminals, or associated equipment. 104 
     6.  (1)  Video lottery game terminals shall meet 105 
independent testing standards approved by the commission, as 106 
tested by one or more approved independent test l abs, and be  107 
capable of randomly generating the outcome of video lottery 108 
games approved by the commission.  Video lottery game 109 
terminals shall be capable of printing a ticket redeemable 110 
for winning video lottery game plays.  Such video lottery 111 
game terminals shall be inspected and approved by the 112 
commission prior to being sold, leased, or transferred. 113 
     (2)  Licensed video lottery game manufacturers may buy, 114 
sell, or lease new or refurbished video lottery game 115 
terminals to and from licensed video lottery game  116 
distributors. 117 
     (3)  Licensed video lottery game distributors may buy, 118 
sell, or lease new or refurbished video lottery game 119 
terminals to or from licensed video lottery game 120 
manufacturers or licensed video lottery game operators. 121 
     7.  (1)  Licensed video lottery game operators: 122   SB 16 	9 
     (a)  May buy, lease, or rent video lottery game 123 
terminals from licensed video lottery game manufacturers, 124 
operators, or distributors; 125 
     (b)  May handle, place, and service video lottery game 126 
terminals; 127 
     (c)  Shall connect such video lottery game terminals to 128 
the centralized computer system approved by the commission; 129 
and 130 
     (d)  Shall pay winning tickets using a video lottery 131 
game ticket redemption terminal.  Such video lottery ticket 132 
redemption terminal shall be located within the video 133 
lottery game retailer's establishment in direct proximity of 134 
where such video lottery games are offered.  Video lottery  135 
game operators shall pay the commission thirty -two percent  136 
of any unclaimed cash pri ze associated with a winning ticket 137 
that has not been redeemed within one year of issue. 138 
Rents or leases for video lottery game terminals shall be  139 
written at a flat rate and shall not include revenue  140 
splitting as a method used in the calculation of the lease  141 
or rent. 142 
     (2)  Licensed video lottery game operators and licensed 143 
video lottery game retailers may enter into a written 144 
agreement for the placement of video lottery game 145 
terminals.  The agreement shall be on a form approved by the 146 
commission and shall specify a freely negotiated and agreed 147 
upon division of adjusted gross receipts between the video 148 
lottery game operator and the video lottery game retailer 149 
after adjustments for taxes and administrative fees are 150 
made.  A video lottery game o perator shall be responsible 151 
for remitting to the commission and the video lottery game 152 
retailer its share of adjusted gross receipts.  Video  153   SB 16 	10 
lottery game retailers that are also video lottery game 154 
operators and licensed video lottery game operators th at are  155 
also video lottery game retailers shall only be required to 156 
submit an agreement pursuant to this subdivision if the 157 
ownership is not identical in both entities.  Nothing in  158 
this subdivision shall prohibit a licensed video lottery 159 
game operator from entering into an agreement with a sales 160 
agent for retailer agreements provided such agreement is in 161 
writing and approved by the commission.  No video lottery  162 
game operator or its sales agents, employees, or affiliates 163 
may offer, promise, or tender any property or personal 164 
advantage to any employee or agent of any video lottery game 165 
retailer with the intent to influence such video lottery 166 
game retailer with respect to locating any video lottery 167 
game terminal in the video lottery game retailer's 168 
establishment.  Video lottery game operators and video 169 
lottery game retailers may allocate costs related to the 170 
operation, promotion, and maintenance of video lottery game 171 
terminals in any manner that has been mutually agreed to.   172 
An agreement for the placement of video lottery game 173 
terminals, or any similar agreement, entered into prior to 174 
the enactment of sections 313.425 to 313.435 shall be 175 
invalid and unenforceable.  Persons violating this 176 
subdivision are subject to the loss or prohibition of t heir  177 
video lottery game operator's license. 178 
     (3)  Nothing in this section shall be construed to 179 
prevent a video lottery game operator or a video lottery 180 
game retailer from using a player rewards system as approved 181 
by the commission.  No player shall be required to enroll in 182 
a rewards program offered by a video lottery game operator 183 
or video lottery game retailer as a condition to play video 184 
lottery games. 185   SB 16 	11 
     8.  No licensed video lottery game operator shall: 186 
     (1)  Offer video lottery gaming terminals that directly 187 
dispense anything of value except for tickets for winning 188 
plays.  Tickets shall be dispensed by pressing the ticket 189 
dispensing button on the video lottery gaming terminal at 190 
the end of any video lottery game play.  The ticket shall  191 
indicate the total amount of video lottery game terminal 192 
credits and the cash award, the time of day in a twenty -four- 193 
hour format showing hours and minutes, the date, the 194 
terminal serial number, the sequential number of the ticket, 195 
and an encrypted validation number from which the validity 196 
of the prize may be determined.  The cost of the video 197 
lottery game terminal credits shall be one cent, five cents, 198 
ten cents, or twenty -five cents, and the maximum wager 199 
played per video lottery game shall not exceed five  200 
dollars.  No cash award for the maximum wager played on any 201 
individual video lottery game shall exceed one thousand 202 
dollars; 203 
     (2)  Operate in a retail establishment that is not also 204 
licensed to sell liquor, except if the business of the  205 
establishment is a truck stop where any state or local 206 
ordinance prohibits the sale of intoxicating liquor; 207 
     (3)  Operate more than five video lottery game 208 
terminals at one video lottery game retailer establishment; 209 
except if the establishment is a veterans' organization, 210 
fraternal organization, or truck stop, such establishment 211 
may operate up to ten video lottery game terminals as 212 
approved by the commission; 213 
     (4)  Allow video lottery games to be played at any time 214 
when the video lotter y game retailer's establishment is 215 
closed for business. 216   SB 16 	12 
     9.  (1)  A person under twenty -one years of age shall 217 
not play video lottery games, and such video lottery game 218 
terminals shall be under the supervision of a person that is 219 
at least twenty-one years of age to prevent persons under 220 
twenty-one years of age from playing video lottery games.   221 
Video lottery game terminals shall not be visible from areas 222 
normally occupied by minors and shall be placed within the 223 
unobstructed line of sight of the sales counter unless 224 
placed in an enclosed or partially enclosed area that is 225 
continually monitored by video surveillance.  A warning sign  226 
shall be posted in a conspicuous location where such video 227 
lottery game terminals are located, containing in red  228 
lettering at least one -half inch high on a white background 229 
the following: 230 
"YOU MUST BE AT LEAST 21 YEARS OF AGE TO PLAY VIDEO LOTTERY 231 
GAMES" 232 
In addition to the placement and supervision requirements of 233 
this subsection, a video lottery game operator s hall provide  234 
video surveillance in the immediate area of the video 235 
lottery game retailer's establishment where video lottery 236 
game terminals are located.  Recorded video from such 237 
surveillance system shall be made available to the 238 
commission upon reque st and shall be reviewed by video 239 
lottery game operators as reasonably and specifically 240 
requested by the commission for any violation of law, rules, 241 
or regulations governing the conduct of video lottery 242 
games.  A video lottery game operator that fails to review  243 
such surveillance video and report any known violation of 244 
law, rules, or regulations governing the conduct of video 245 
lottery games in conformance with established commission 246 
procedures may be subject to an administrative fine not to 247   SB 16 	13 
exceed five thousand dollars.  Any video lottery game 248 
retailer that fails to report any known violation of law, 249 
rules, or regulations governing the conduct of video lottery 250 
games in conformance with established commission procedures 251 
may be subject to an adminis trative fine not to exceed five 252 
thousand dollars.  In the event a video lottery game 253 
operator or retailer is found to have knowingly committed a 254 
violation governing the conduct of video lottery games, the 255 
commission may impose an administrative fine no t to exceed  256 
five thousand dollars, suspend such operator's or retailer's 257 
license for up to thirty days, or in the case of repeated 258 
violations revoke such operator's or retailer's license for 259 
a period of one year.  Any video lottery game operator or 260 
retailer aggrieved by the commission's decision in any 261 
disciplinary action that results in the suspension or 262 
revocation of such operator's or retailer's video lottery 263 
game license may appeal such decision by filing an action in 264 
circuit court.  The commission shall refer a violation of 265 
the criminal code, with any evidence thereof, to the 266 
appropriate law enforcement officials.  Video lottery game 267 
retailers shall provide an intrusion detection system 268 
capable of detecting unauthorized entrance of the vide o  269 
lottery game retailer's establishment during nonbusiness 270 
hours and shall report to the commission any unauthorized 271 
entrance of the video lottery game retailer's 272 
establishment.  Such surveillance and intrusion detection 273 
system shall meet specificatio ns as defined by the 274 
commission. 275 
     (2)  A video lottery game operator shall post a sign in 276 
a conspicuous location where such video lottery game 277 
terminals are located, containing in red lettering at least 278   SB 16 	14 
one-half inch high on a white background a te lephone contact  279 
number (1-888-BETSOFF) for the problem gambling helpline. 280 
     10.  (1)  Video lottery game operators shall pay the 281 
commission thirty-six percent of the video lottery game 282 
adjusted gross receipts, which shall be deposited in the 283 
state lottery fund.  The commission shall transfer the 284 
amount received from the operator from the lottery fund to 285 
the lottery proceeds fund after administrative expenses 286 
equal to four percent of the video lottery game adjusted 287 
gross receipts are paid to the m unicipality where a licensed 288 
video lottery game retailer maintains an establishment 289 
licensed for the operation of video lottery game terminals, 290 
or if such licensed establishment is not located within the 291 
corporate boundaries of a municipality, then the county  292 
where such licensed establishment is located to reimburse 293 
such municipality or county for administrative expenses, and 294 
any administrative expenses for the commission that are not 295 
covered by reimbursements from operators are deducted.  Net  296 
proceeds transferred to the lottery proceeds fund shall be 297 
appropriated to public elementary and secondary education 298 
and public institutions of higher education with an emphasis 299 
on programs to promote science, technology, engineering, and 300 
mathematics (STEM) and programs to promote workforce 301 
development. 302 
     (2)  Video lottery game operators shall retain sixty - 303 
four percent of the video lottery game adjusted gross 304 
receipts, a portion of which shall be utilized to pay for 305 
administrative expenses which sha ll include the cost of the 306 
centralized computer system, which cost shall be paid by 307 
video lottery game operators in proportion to the number of 308 
video lottery game terminals operated and shall not be 309 
apportioned by the video lottery game operator among video  310   SB 16 	15 
lottery game retailers to which it provides operations.  The  311 
remainder, after the costs of the centralized computer 312 
system are paid, shall be divided between the video lottery 313 
game operator and video lottery game retailer as agreed to 314 
by the video lottery game operator and video lottery game 315 
retailer under the freely negotiated agreement made under 316 
subdivision (2) of subsection 7 of this section, unless the 317 
video lottery game operator and video lottery game retailer 318 
share the same ownership. 319 
     11.  All revenues received by the commission from 320 
license fees and any reimbursements associated with the 321 
administration of the provisions of sections 313.425 to 322 
313.435, and all interest earned thereon, shall be 323 
considered administrative expenses and shall be deposited in 324 
the state lottery fund.  Moneys deposited into the state 325 
lottery fund from license fees and any reimbursements of 326 
commission administrative expenses to administer sections 327 
313.425 to 313.435 shall be considered administrative  328 
expenses and shall not be considered net proceeds pursuant 329 
to article III, section 39(b) of the Missouri Constitution.   330 
Subject to appropriation, up to one percent of such license 331 
fees and reimbursements deposited to the credit of the state 332 
lottery fund may be deposited to the credit of the 333 
compulsive gamblers fund created under section 313.842.  The  334 
remainder of the money deposited in the state lottery fund 335 
from video lottery game license fees and any reimbursements 336 
of commission administrative e xpenses to enforce sections 337 
313.425 to 313.435 shall, subject to appropriation, be used 338 
for administrative expenses associated with supervising and 339 
enforcing the provisions of sections 313.425 to 313.435.   340 
Any amount of revenues from video lottery game license fees  341 
and reimbursements of commission administrative expenses not 342   SB 16 	16 
currently needed for the supervising and enforcement of 343 
sections 313.425 to 313.435 shall be appropriated to the 344 
veterans' commission capital improvement trust fund created 345 
in section 42.300. 346 
     12.  The commission may contract with a state law 347 
enforcement entity to assist in conducting investigations 348 
into applicants for any video lottery game license and to 349 
investigate violations by any video lottery game licensee of 350 
any of the provisions of sections 313.425 to 313.435 or 351 
state law regulating illegal gambling activities.  A video  352 
lottery game licensee suspected of a violation shall be 353 
afforded an administrative hearing on the record and any 354 
action taken to impose a fin e on such licensee, or to 355 
suspend or revoke the ability of a licensee to offer lottery 356 
game products for sale, shall be appealed to the 357 
commission.  Any such administrative suspension or 358 
revocation upheld by the commission may be appealed by the 359 
video lottery game licensee in a state court of competent 360 
jurisdiction. 361 
     13.  (1)  Any person manufacturing, operating, 362 
distributing, or in possession of a video lottery game 363 
terminal not authorized by the commission under the 364 
provisions of sections 313 .425 to 313.435 as of August 28, 365 
2025, shall become compliant with the provisions of sections 366 
313.425 to 313.435 within one hundred twenty days of August 367 
28, 2025.  Any person failing to become compliant within the 368 
following number of days shall be sub ject to the following 369 
fines issued by the commission: 370 
     (a)  Within one hundred twenty days, two hundred fifty 371 
thousand dollars; 372 
     (b)  Within two hundred forty days, five hundred 373 
thousand dollars; 374   SB 16 	17 
     (c)  Within three hundred sixty days, seven hundred  375 
fifty thousand dollars; and 376 
     (d)  Within four hundred eighty days, one million 377 
dollars. 378 
     (2)  In addition to the fines provided in subdivision 379 
(1) of this subsection, any person failing to become 380 
compliant after four hundred eighty days may be prosecuted  381 
under the provisions of chapter 572.  The commission shall 382 
have the power to investigate suspected violations by any 383 
video lottery game license holder and to refer any 384 
violations or suspected violations to the appropriate law 385 
enforcement authority. 386 
     14.  The commission shall adopt rules for the 387 
implementation of the video lottery game system authorized 388 
under sections 313.425 to 313.435, including, but not 389 
limited to, the placement of video lottery game terminals 390 
within a retail establishment and for the active oversight 391 
of the conduct of video lottery games.  Any rule or portion 392 
of a rule, as that term is defined in section 536.010 that 393 
is created under the authority delegated in this section 394 
shall become effective only if it complies with and is 395 
subject to all of the provisions of chapter 536 and, if 396 
applicable, section 536.028.  This section and chapter 536 397 
are nonseverable and if any of the powers vested with the 398 
general assembly pursuant to chapter 536 to review, to delay  399 
the effective date, or to disapprove and annul a rule are 400 
subsequently held unconstitutional, then the grant of 401 
rulemaking authority and any rule proposed or adopted after 402 
August 28, 2025, shall be invalid and void. 403 
     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   SB 16 	18 
     (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 r etailers, 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 lot tery 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 complete 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 
which shall be submitted concurrently with the applicant's 27 
request for a provision al 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 valid license to sell 32 
liquor under chapter 311. 33   SB 16 	19 
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 i s 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 similar 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 provisional 56 
license was issued. 57 
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 r enewal of the provisional license 62 
issued under this section so long as the commission has not 63   SB 16 	20 
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 th e 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 require d 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 video 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 b y 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 
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   SB 16 	21 
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 the 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 lottery 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 
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