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