Missouri 2025 Regular Session

Missouri Senate Bill SB16 Compare Versions

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22 FIRST REGULAR SESSION
33 SENATE BILL NO. 16
44 103RD GENERAL ASSEMBLY
55 INTRODUCED BY SENATOR MAY.
66 0107S.02I KRISTINA MARTIN, Secretary
77 AN ACT
88 To amend chapter 313, RSMo, by adding thereto six new sections relating to video lottery, with
99 penalty provisions.
1010
1111 Be it enacted by the General Assembly of the State of Missouri, as follows:
1212 Section A. Chapter 313, RSMo, is amended by adding t hereto 1
1313 six new sections, to be known as sections 313.425, 313.427, 2
1414 313.429, 313.431, 313.433, and 313.435, to read as follows:3
1515 313.425. Sections 313.425 to 313.435 shall be known 1
1616 and may be cited as the "Missouri Video Lottery Control Act" 2
1717 and shall establish the regulatory framework for the use of 3
1818 player-activated video terminals for the conduct of lottery 4
1919 games. 5
2020 313.427. As used in sections 313.425 to 313.435, the 1
2121 following words and phrases shall mean: 2
2222 (1) "Centralized computer system", a computerized 3
2323 system developed or procured by the commission that video 4
2424 lottery game terminals are connected to using standard 5
2525 industry protocols that can activate or deactivate a 6
2626 particular video lottery game terminal from a remo te 7
2727 location, and that is capable of monitoring and auditing 8
2828 video lottery game plays; 9
2929 (2) "Commission" or "lottery commission", the five - 10
3030 member body appointed by the governor to manage and oversee 11
3131 the lottery under section 313.215; 12 SB 16 2
3232 (3) "Fraternal organization", any organization within 13
3333 this state operating under the lodge system which exists for 14
3434 the common benefit, brotherhood, or other interest of its 15
3535 members, except college fraternities and sororities, of 16
3636 which no part of the net earnin gs inures to the benefit of 17
3737 any private shareholder or any individual member of such 18
3838 organization, which has been exempted from the payment of 19
3939 federal income tax, and which derives its charter from a 20
4040 national fraternal organization which regularly meet s; 21
4141 (4) "Truck stop", a location that provides parking and 22
4242 is equipped for fueling commercial vehicles, that has sold 23
4343 on average ten thousand gallons of diesel or biodiesel fuel 24
4444 each month for the previous twelve months or is projected to 25
4545 sell an average of ten thousand gallons of diesel or 26
4646 biodiesel fuel each month for the next twelve months, and 27
4747 that obtains and maintains a lottery game retailer license 28
4848 issued by the commission; 29
4949 (5) "Veterans' organization", a post or organization 30
5050 of veterans, or an auxiliary unit or society of, or a trust 31
5151 or foundation for, any such post or organization organized 32
5252 in the United States or any of its possessions in which at 33
5353 least seventy-five percent of the members are veterans of 34
5454 the United States arm ed forces and substantially all of the 35
5555 other members are individuals who are veterans or are 36
5656 cadets, or are spouses, widows, or widowers of war veterans 37
5757 of such individuals, in which no part of the net earnings 38
5858 inures to the benefit of any private shar eholder or 39
5959 individual, and which has been exempted from payment of 40
6060 federal income taxes; 41
6161 (6) "Video lottery game", any lottery game approved by 42
6262 the commission for play on a video lottery game terminal 43
6363 using video lottery game terminal credits tha t have been 44 SB 16 3
6464 purchased with cash, cash equivalents, or by a winning video 45
6565 lottery game terminal ticket; 46
6666 (7) "Video lottery game adjusted gross receipts", the 47
6767 total of cash or cash equivalents used for the play of a 48
6868 video lottery game on a video lo ttery game terminal minus 49
6969 cash or cash equivalent paid to players as a result of 50
7070 playing video lottery games on a video lottery game terminal; 51
7171 (8) "Video lottery game distributor", a person 52
7272 licensed by the commission to buy, sell, lease, rent, 53
7373 finance or otherwise provide, distribute or service video 54
7474 lottery game terminals or major parts and components of 55
7575 video lottery game terminals, including used or refurbished 56
7676 video lottery game terminals to and from licensed video 57
7777 lottery game manufacture rs and licensed video lottery game 58
7878 operators; 59
7979 (9) "Video lottery game handler", a person employed by 60
8080 a licensed video lottery game operator to handle, place, 61
8181 operate, and service video lottery game terminals and 62
8282 associated equipment; 63
8383 (10) "Video lottery game manufacturer", any person 64
8484 that manufactures video lottery game terminals or major 65
8585 parts and components for video lottery game terminals as 66
8686 approved by the lottery commission; 67
8787 (11) "Video lottery game operator", a person licensed 68
8888 by the commission that owns, rents, or leases and services 69
8989 or maintains video lottery game terminals for placement in 70
9090 licensed video lottery game retailer establishments; 71
9191 (12) "Video lottery game retailer", a person meeting 72
9292 the requirements of a lottery game retailer under section 73
9393 313.260, that secures and maintains a license issued by the 74
9494 commission to conduct video lottery games played on a video 75
9595 lottery game terminal or terminals and that is a fraternal 76 SB 16 4
9696 organization, veterans organization, truck stop, or business 77
9797 entity licensed under chapter 311 to sell liquor by the 78
9898 drink and that only allows patrons over the age of twenty - 79
9999 one to enter; 80
100100 (13) "Video lottery game terminal", player -activated 81
101101 terminal that exchanges coins, currency, tickets, ticket 82
102102 vouchers, or other electronic payment methods approved by 83
103103 the commission for video lottery game terminal credits used 84
104104 to play video lottery games approved by the commission. 85
105105 Such video lottery game terminals shall use a video display 86
106106 and microprocessor capable of randomly generating the 87
107107 outcome of video lottery games and be capable of printing a 88
108108 ticket at the conclusion of any video lottery game play that 89
109109 is redeemable at a video lottery game ticket redemption 90
110110 terminal or reinsert ed into a video lottery game terminal 91
111111 for video lottery game credit. All video lottery games 92
112112 approved by the commission for play on a video lottery game 93
113113 terminal shall have a minimum theoretical payout of eighty - 94
114114 five percent; 95
115115 (14) "Video lottery game terminal credit", one cent, 96
116116 five cents, ten cents, or twenty -five cents either won or 97
117117 purchased by a player on a video lottery game terminal that 98
118118 is used to play video lottery games and that may be 99
119119 converted into a video lottery game ticket; 100
120120 (15) "Video lottery game ticket" or "ticket", a 101
121121 document printed at the conclusion of any lottery game play 102
122122 or group of plays on a video lottery game terminal that is 103
123123 redeemable for cash utilizing a video lottery game ticket 104
124124 redemption terminal or th at may be reinserted into a video 105
125125 lottery game terminal in the establishment for which it was 106
126126 issued for video lottery terminal game play credit; 107 SB 16 5
127127 (16) "Video lottery game ticket redemption terminal", 108
128128 the collective hardware, software, communicatio ns 109
129129 technology, and other ancillary equipment used to facilitate 110
130130 the payment of tickets cashed out by players as a result of 111
131131 playing a video lottery game terminal. 112
132132 313.429. 1. The commission shall implement a system 1
133133 of video lottery game terminals utilizing a licensing 2
134134 structure for processing license applications and issuing 3
135135 licenses to video lottery game manufacturers, video lottery 4
136136 game distributors, video lottery game operators, video 5
137137 lottery game handlers, and video lottery game retailers for 6
138138 the conduct of lottery games utilizing video lottery game 7
139139 terminals within the state; except that, a person licensed 8
140140 as a: 9
141141 (1) Video lottery game manufacturer or a video lottery 10
142142 game distributor shall not be issued a license as a video 11
143143 lottery game operator or a video lottery game retailer; 12
144144 (2) Video lottery game operator shall not be issued a 13
145145 license as a video lottery game manufacturer or a video 14
146146 lottery game distributor; and 15
147147 (3) Video lottery game retailer shal l not be issued a 16
148148 license as a video lottery game manufacturer or a video 17
149149 lottery game distributor. 18
150150 Nothing in this subsection shall prevent a video lottery 19
151151 game manufacturer from obtaining a video lottery game 20
152152 manufacturer's license and a video lotter y game 21
153153 distributor's license and providing and operating the 22
154154 centralized computer system for monitoring video lottery 23
155155 game terminals, and nothing in this subsection shall prevent 24
156156 a video lottery game operator from obtaining a video lottery 25
157157 game retailer's license or a video lottery game retailer 26 SB 16 6
158158 from obtaining a video lottery game operator's license, 27
159159 provided the applicant meets the requirements for all such 28
160160 licenses. 29
161161 2. Under no circumstances shall the commission: 30
162162 (1) Authorize or allow a single vendor or licensee to 31
163163 implement the system of video lottery game terminals created 32
164164 under this section; 33
165165 (2) Allow a single licensed video lottery game 34
166166 operator to control or operate more than twenty -five percent 35
167167 of video lottery game ter minals in the state; or 36
168168 (3) Allow a single licensed video lottery game 37
169169 manufacturer or distributor to manufacture or distribute 38
170170 more than twenty-five percent of video lottery game 39
171171 terminals in the state. 40
172172 3. (1) The video lottery game system authorized by 41
173173 this section shall allow for multiple video lottery game 42
174174 manufacturers, video lottery game distributors, and video 43
175175 lottery game operators to encourage private sector 44
176176 investment and job opportunities for Missouri citizens. 45
177177 Video lottery game terminals shall be connected to a 46
178178 centralized computer system developed or procured by the 47
179179 commission. The commission shall provide licensed video 48
180180 lottery game operators with the necessary protocols to 49
181181 connect the operators' video lottery game t erminal or 50
182182 terminals to the centralized computer system after such 51
183183 terminal or terminals have been approved by the commission. 52
184184 No video lottery game terminal shall be placed in operation 53
185185 without first connecting to the centralized computer system 54
186186 after such terminal or terminals have been approved by the 55
187187 commission. A vendor that provides the centralized computer 56
188188 system authorized under this subsection shall not be 57
189189 eligible to be licensed as a video lottery game operator or 58 SB 16 7
190190 video lottery game ret ailer. The commission may impose an 59
191191 initial nonrefundable license application fee as follows: 60
192192 (a) For video lottery game manufacturers, video 61
193193 lottery game distributors, and video lottery game operators, 62
194194 no more than fifty thousand dollars; 63
195195 (b) For video lottery game retailer establishments, no 64
196196 more than five hundred dollars; or 65
197197 (c) For video lottery game handlers, no more than one 66
198198 hundred dollars. 67
199199 (2) The initial license and first subsequent license 68
200200 renewal shall be for a peri od of one year. Thereafter, 69
201201 license renewal periods shall be four years with the 70
202202 applicable annual renewal fee paid for each year such 71
203203 license is renewed. Annual license renewal fees for anyone 72
204204 licensed pursuant to this subsection shall be as follows : 73
205205 (a) Five thousand dollars for video lottery game 74
206206 manufacturers and video lottery game distributors; 75
207207 (b) Five thousand dollars for video lottery game 76
208208 operators; 77
209209 (c) Fifty dollars for video lottery game handlers; and 78
210210 (d) Five hundred dollars for each video lottery game 79
211211 retailer's establishment. 80
212212 (3) In addition to the license fees required in 81
213213 subdivisions (1) and (2) of this subsection, video lottery 82
214214 game operators shall pay the commission an annual license 83
215215 fee of two hundred dollars for each video lottery game 84
216216 terminal placed in service. Such video lottery game 85
217217 terminal license shall be renewed each year and cost two 86
218218 hundred dollars. A license issued under this subsection is 87
219219 nontransferable. 88
220220 (4) Nothing in this subsection shall be construed to 89
221221 relieve the licensee of the affirmative duty to notify the 90 SB 16 8
222222 commission of any change relating to the status of the 91
223223 license or to any other information contained in the 92
224224 application materials on file with the commission. 93
225225 4. No license shall be issued to any person, and no 94
226226 person shall be allowed to serve as a sales agent, who has 95
227227 been convicted of a felony or a crime involving illegal 96
228228 gambling. 97
229229 5. No license requirement, sticker fee, or tax shall 98
230230 be imposed by any local jurisdiction upon a video lottery 99
231231 game manufacturer, video lottery game distributor, video 100
232232 lottery game operator, video lottery game retailer, video 101
233233 lottery game handler, or video lottery game terminal or an 102
234234 establishment relating to the operation of video lottery 103
235235 games, video lottery game terminals, or associated equipment. 104
236236 6. (1) Video lottery game terminals shall meet 105
237237 independent testing standards approved by the commission, as 106
238238 tested by one or more approved independent test l abs, and be 107
239239 capable of randomly generating the outcome of video lottery 108
240240 games approved by the commission. Video lottery game 109
241241 terminals shall be capable of printing a ticket redeemable 110
242242 for winning video lottery game plays. Such video lottery 111
243243 game terminals shall be inspected and approved by the 112
244244 commission prior to being sold, leased, or transferred. 113
245245 (2) Licensed video lottery game manufacturers may buy, 114
246246 sell, or lease new or refurbished video lottery game 115
247247 terminals to and from licensed video lottery game 116
248248 distributors. 117
249249 (3) Licensed video lottery game distributors may buy, 118
250250 sell, or lease new or refurbished video lottery game 119
251251 terminals to or from licensed video lottery game 120
252252 manufacturers or licensed video lottery game operators. 121
253253 7. (1) Licensed video lottery game operators: 122 SB 16 9
254254 (a) May buy, lease, or rent video lottery game 123
255255 terminals from licensed video lottery game manufacturers, 124
256256 operators, or distributors; 125
257257 (b) May handle, place, and service video lottery game 126
258258 terminals; 127
259259 (c) Shall connect such video lottery game terminals to 128
260260 the centralized computer system approved by the commission; 129
261261 and 130
262262 (d) Shall pay winning tickets using a video lottery 131
263263 game ticket redemption terminal. Such video lottery ticket 132
264264 redemption terminal shall be located within the video 133
265265 lottery game retailer's establishment in direct proximity of 134
266266 where such video lottery games are offered. Video lottery 135
267267 game operators shall pay the commission thirty -two percent 136
268268 of any unclaimed cash pri ze associated with a winning ticket 137
269269 that has not been redeemed within one year of issue. 138
270270 Rents or leases for video lottery game terminals shall be 139
271271 written at a flat rate and shall not include revenue 140
272272 splitting as a method used in the calculation of the lease 141
273273 or rent. 142
274274 (2) Licensed video lottery game operators and licensed 143
275275 video lottery game retailers may enter into a written 144
276276 agreement for the placement of video lottery game 145
277277 terminals. The agreement shall be on a form approved by the 146
278278 commission and shall specify a freely negotiated and agreed 147
279279 upon division of adjusted gross receipts between the video 148
280280 lottery game operator and the video lottery game retailer 149
281281 after adjustments for taxes and administrative fees are 150
282282 made. A video lottery game o perator shall be responsible 151
283283 for remitting to the commission and the video lottery game 152
284284 retailer its share of adjusted gross receipts. Video 153 SB 16 10
285285 lottery game retailers that are also video lottery game 154
286286 operators and licensed video lottery game operators th at are 155
287287 also video lottery game retailers shall only be required to 156
288288 submit an agreement pursuant to this subdivision if the 157
289289 ownership is not identical in both entities. Nothing in 158
290290 this subdivision shall prohibit a licensed video lottery 159
291291 game operator from entering into an agreement with a sales 160
292292 agent for retailer agreements provided such agreement is in 161
293293 writing and approved by the commission. No video lottery 162
294294 game operator or its sales agents, employees, or affiliates 163
295295 may offer, promise, or tender any property or personal 164
296296 advantage to any employee or agent of any video lottery game 165
297297 retailer with the intent to influence such video lottery 166
298298 game retailer with respect to locating any video lottery 167
299299 game terminal in the video lottery game retailer's 168
300300 establishment. Video lottery game operators and video 169
301301 lottery game retailers may allocate costs related to the 170
302302 operation, promotion, and maintenance of video lottery game 171
303303 terminals in any manner that has been mutually agreed to. 172
304304 An agreement for the placement of video lottery game 173
305305 terminals, or any similar agreement, entered into prior to 174
306306 the enactment of sections 313.425 to 313.435 shall be 175
307307 invalid and unenforceable. Persons violating this 176
308308 subdivision are subject to the loss or prohibition of t heir 177
309309 video lottery game operator's license. 178
310310 (3) Nothing in this section shall be construed to 179
311311 prevent a video lottery game operator or a video lottery 180
312312 game retailer from using a player rewards system as approved 181
313313 by the commission. No player shall be required to enroll in 182
314314 a rewards program offered by a video lottery game operator 183
315315 or video lottery game retailer as a condition to play video 184
316316 lottery games. 185 SB 16 11
317317 8. No licensed video lottery game operator shall: 186
318318 (1) Offer video lottery gaming terminals that directly 187
319319 dispense anything of value except for tickets for winning 188
320320 plays. Tickets shall be dispensed by pressing the ticket 189
321321 dispensing button on the video lottery gaming terminal at 190
322322 the end of any video lottery game play. The ticket shall 191
323323 indicate the total amount of video lottery game terminal 192
324324 credits and the cash award, the time of day in a twenty -four- 193
325325 hour format showing hours and minutes, the date, the 194
326326 terminal serial number, the sequential number of the ticket, 195
327327 and an encrypted validation number from which the validity 196
328328 of the prize may be determined. The cost of the video 197
329329 lottery game terminal credits shall be one cent, five cents, 198
330330 ten cents, or twenty -five cents, and the maximum wager 199
331331 played per video lottery game shall not exceed five 200
332332 dollars. No cash award for the maximum wager played on any 201
333333 individual video lottery game shall exceed one thousand 202
334334 dollars; 203
335335 (2) Operate in a retail establishment that is not also 204
336336 licensed to sell liquor, except if the business of the 205
337337 establishment is a truck stop where any state or local 206
338338 ordinance prohibits the sale of intoxicating liquor; 207
339339 (3) Operate more than five video lottery game 208
340340 terminals at one video lottery game retailer establishment; 209
341341 except if the establishment is a veterans' organization, 210
342342 fraternal organization, or truck stop, such establishment 211
343343 may operate up to ten video lottery game terminals as 212
344344 approved by the commission; 213
345345 (4) Allow video lottery games to be played at any time 214
346346 when the video lotter y game retailer's establishment is 215
347347 closed for business. 216 SB 16 12
348348 9. (1) A person under twenty -one years of age shall 217
349349 not play video lottery games, and such video lottery game 218
350350 terminals shall be under the supervision of a person that is 219
351351 at least twenty-one years of age to prevent persons under 220
352352 twenty-one years of age from playing video lottery games. 221
353353 Video lottery game terminals shall not be visible from areas 222
354354 normally occupied by minors and shall be placed within the 223
355355 unobstructed line of sight of the sales counter unless 224
356356 placed in an enclosed or partially enclosed area that is 225
357357 continually monitored by video surveillance. A warning sign 226
358358 shall be posted in a conspicuous location where such video 227
359359 lottery game terminals are located, containing in red 228
360360 lettering at least one -half inch high on a white background 229
361361 the following: 230
362362 "YOU MUST BE AT LEAST 21 YEARS OF AGE TO PLAY VIDEO LOTTERY 231
363363 GAMES" 232
364364 In addition to the placement and supervision requirements of 233
365365 this subsection, a video lottery game operator s hall provide 234
366366 video surveillance in the immediate area of the video 235
367367 lottery game retailer's establishment where video lottery 236
368368 game terminals are located. Recorded video from such 237
369369 surveillance system shall be made available to the 238
370370 commission upon reque st and shall be reviewed by video 239
371371 lottery game operators as reasonably and specifically 240
372372 requested by the commission for any violation of law, rules, 241
373373 or regulations governing the conduct of video lottery 242
374374 games. A video lottery game operator that fails to review 243
375375 such surveillance video and report any known violation of 244
376376 law, rules, or regulations governing the conduct of video 245
377377 lottery games in conformance with established commission 246
378378 procedures may be subject to an administrative fine not to 247 SB 16 13
379379 exceed five thousand dollars. Any video lottery game 248
380380 retailer that fails to report any known violation of law, 249
381381 rules, or regulations governing the conduct of video lottery 250
382382 games in conformance with established commission procedures 251
383383 may be subject to an adminis trative fine not to exceed five 252
384384 thousand dollars. In the event a video lottery game 253
385385 operator or retailer is found to have knowingly committed a 254
386386 violation governing the conduct of video lottery games, the 255
387387 commission may impose an administrative fine no t to exceed 256
388388 five thousand dollars, suspend such operator's or retailer's 257
389389 license for up to thirty days, or in the case of repeated 258
390390 violations revoke such operator's or retailer's license for 259
391391 a period of one year. Any video lottery game operator or 260
392392 retailer aggrieved by the commission's decision in any 261
393393 disciplinary action that results in the suspension or 262
394394 revocation of such operator's or retailer's video lottery 263
395395 game license may appeal such decision by filing an action in 264
396396 circuit court. The commission shall refer a violation of 265
397397 the criminal code, with any evidence thereof, to the 266
398398 appropriate law enforcement officials. Video lottery game 267
399399 retailers shall provide an intrusion detection system 268
400400 capable of detecting unauthorized entrance of the vide o 269
401401 lottery game retailer's establishment during nonbusiness 270
402402 hours and shall report to the commission any unauthorized 271
403403 entrance of the video lottery game retailer's 272
404404 establishment. Such surveillance and intrusion detection 273
405405 system shall meet specificatio ns as defined by the 274
406406 commission. 275
407407 (2) A video lottery game operator shall post a sign in 276
408408 a conspicuous location where such video lottery game 277
409409 terminals are located, containing in red lettering at least 278 SB 16 14
410410 one-half inch high on a white background a te lephone contact 279
411411 number (1-888-BETSOFF) for the problem gambling helpline. 280
412412 10. (1) Video lottery game operators shall pay the 281
413413 commission thirty-six percent of the video lottery game 282
414414 adjusted gross receipts, which shall be deposited in the 283
415415 state lottery fund. The commission shall transfer the 284
416416 amount received from the operator from the lottery fund to 285
417417 the lottery proceeds fund after administrative expenses 286
418418 equal to four percent of the video lottery game adjusted 287
419419 gross receipts are paid to the m unicipality where a licensed 288
420420 video lottery game retailer maintains an establishment 289
421421 licensed for the operation of video lottery game terminals, 290
422422 or if such licensed establishment is not located within the 291
423423 corporate boundaries of a municipality, then the county 292
424424 where such licensed establishment is located to reimburse 293
425425 such municipality or county for administrative expenses, and 294
426426 any administrative expenses for the commission that are not 295
427427 covered by reimbursements from operators are deducted. Net 296
428428 proceeds transferred to the lottery proceeds fund shall be 297
429429 appropriated to public elementary and secondary education 298
430430 and public institutions of higher education with an emphasis 299
431431 on programs to promote science, technology, engineering, and 300
432432 mathematics (STEM) and programs to promote workforce 301
433433 development. 302
434434 (2) Video lottery game operators shall retain sixty - 303
435435 four percent of the video lottery game adjusted gross 304
436436 receipts, a portion of which shall be utilized to pay for 305
437437 administrative expenses which sha ll include the cost of the 306
438438 centralized computer system, which cost shall be paid by 307
439439 video lottery game operators in proportion to the number of 308
440440 video lottery game terminals operated and shall not be 309
441441 apportioned by the video lottery game operator among video 310 SB 16 15
442442 lottery game retailers to which it provides operations. The 311
443443 remainder, after the costs of the centralized computer 312
444444 system are paid, shall be divided between the video lottery 313
445445 game operator and video lottery game retailer as agreed to 314
446446 by the video lottery game operator and video lottery game 315
447447 retailer under the freely negotiated agreement made under 316
448448 subdivision (2) of subsection 7 of this section, unless the 317
449449 video lottery game operator and video lottery game retailer 318
450450 share the same ownership. 319
451451 11. All revenues received by the commission from 320
452452 license fees and any reimbursements associated with the 321
453453 administration of the provisions of sections 313.425 to 322
454454 313.435, and all interest earned thereon, shall be 323
455455 considered administrative expenses and shall be deposited in 324
456456 the state lottery fund. Moneys deposited into the state 325
457457 lottery fund from license fees and any reimbursements of 326
458458 commission administrative expenses to administer sections 327
459459 313.425 to 313.435 shall be considered administrative 328
460460 expenses and shall not be considered net proceeds pursuant 329
461461 to article III, section 39(b) of the Missouri Constitution. 330
462462 Subject to appropriation, up to one percent of such license 331
463463 fees and reimbursements deposited to the credit of the state 332
464464 lottery fund may be deposited to the credit of the 333
465465 compulsive gamblers fund created under section 313.842. The 334
466466 remainder of the money deposited in the state lottery fund 335
467467 from video lottery game license fees and any reimbursements 336
468468 of commission administrative e xpenses to enforce sections 337
469469 313.425 to 313.435 shall, subject to appropriation, be used 338
470470 for administrative expenses associated with supervising and 339
471471 enforcing the provisions of sections 313.425 to 313.435. 340
472472 Any amount of revenues from video lottery game license fees 341
473473 and reimbursements of commission administrative expenses not 342 SB 16 16
474474 currently needed for the supervising and enforcement of 343
475475 sections 313.425 to 313.435 shall be appropriated to the 344
476476 veterans' commission capital improvement trust fund created 345
477477 in section 42.300. 346
478478 12. The commission may contract with a state law 347
479479 enforcement entity to assist in conducting investigations 348
480480 into applicants for any video lottery game license and to 349
481481 investigate violations by any video lottery game licensee of 350
482482 any of the provisions of sections 313.425 to 313.435 or 351
483483 state law regulating illegal gambling activities. A video 352
484484 lottery game licensee suspected of a violation shall be 353
485485 afforded an administrative hearing on the record and any 354
486486 action taken to impose a fin e on such licensee, or to 355
487487 suspend or revoke the ability of a licensee to offer lottery 356
488488 game products for sale, shall be appealed to the 357
489489 commission. Any such administrative suspension or 358
490490 revocation upheld by the commission may be appealed by the 359
491491 video lottery game licensee in a state court of competent 360
492492 jurisdiction. 361
493493 13. (1) Any person manufacturing, operating, 362
494494 distributing, or in possession of a video lottery game 363
495495 terminal not authorized by the commission under the 364
496496 provisions of sections 313 .425 to 313.435 as of August 28, 365
497497 2025, shall become compliant with the provisions of sections 366
498498 313.425 to 313.435 within one hundred twenty days of August 367
499499 28, 2025. Any person failing to become compliant within the 368
500500 following number of days shall be sub ject to the following 369
501501 fines issued by the commission: 370
502502 (a) Within one hundred twenty days, two hundred fifty 371
503503 thousand dollars; 372
504504 (b) Within two hundred forty days, five hundred 373
505505 thousand dollars; 374 SB 16 17
506506 (c) Within three hundred sixty days, seven hundred 375
507507 fifty thousand dollars; and 376
508508 (d) Within four hundred eighty days, one million 377
509509 dollars. 378
510510 (2) In addition to the fines provided in subdivision 379
511511 (1) of this subsection, any person failing to become 380
512512 compliant after four hundred eighty days may be prosecuted 381
513513 under the provisions of chapter 572. The commission shall 382
514514 have the power to investigate suspected violations by any 383
515515 video lottery game license holder and to refer any 384
516516 violations or suspected violations to the appropriate law 385
517517 enforcement authority. 386
518518 14. The commission shall adopt rules for the 387
519519 implementation of the video lottery game system authorized 388
520520 under sections 313.425 to 313.435, including, but not 389
521521 limited to, the placement of video lottery game terminals 390
522522 within a retail establishment and for the active oversight 391
523523 of the conduct of video lottery games. Any rule or portion 392
524524 of a rule, as that term is defined in section 536.010 that 393
525525 is created under the authority delegated in this section 394
526526 shall become effective only if it complies with and is 395
527527 subject to all of the provisions of chapter 536 and, if 396
528528 applicable, section 536.028. This section and chapter 536 397
529529 are nonseverable and if any of the powers vested with the 398
530530 general assembly pursuant to chapter 536 to review, to delay 399
531531 the effective date, or to disapprove and annul a rule are 400
532532 subsequently held unconstitutional, then the grant of 401
533533 rulemaking authority and any rule proposed or adopted after 402
534534 August 28, 2025, shall be invalid and void. 403
535535 313.431. 1. In order to expedite the orderly 1
536536 implementation of the video lottery game system authorized 2
537537 under sections 313.425 to 313.435, the commission shall: 3 SB 16 18
538538 (1) Issue a request for proposal for the supply and 4
539539 operation of a centralized computer system for video lottery 5
540540 games within one hundred twenty days of the effective date 6
541541 of this section; 7
542542 (2) Make license applications for video lottery game 8
543543 manufacturers, video lottery game distributors, video 9
544544 lottery game operators, video lottery game r etailers, and 10
545545 video lottery game handlers available to applicants and 11
546546 promulgate any emergency or regular rules and regulations 12
547547 needed for the implementation of the video lottery system 13
548548 authorized under sections 313.425 to 313.435 within one 14
549549 hundred twenty days of the effective date of this section; 15
550550 (3) Issue a provisional license to an applicant for a 16
551551 video lottery game manufacturer's, video lottery game 17
552552 distributor's, video lottery game operator's, video lottery 18
553553 game retailer's, or video lot tery game handler's license if 19
554554 such applicant satisfies all of the following criteria to 20
555555 the satisfaction of the commission: 21
556556 (a) The applicant is current on all state taxes; 22
557557 (b) The applicant has submitted a complete application 23
558558 for licensure as a licensed video lottery game manufacturer, 24
559559 video lottery game distributor, video lottery game operator, 25
560560 video lottery game retailer, or video lottery game handler, 26
561561 which shall be submitted concurrently with the applicant's 27
562562 request for a provision al license; 28
563563 (c) The applicant has never been convicted of any 29
564564 felony or gambling law violation in any jurisdiction; and 30
565565 (d) The applicant for a video lottery game retailer's 31
566566 license has been issued and holds a valid license to sell 32
567567 liquor under chapter 311. 33 SB 16 19
568568 A provisional license shall be issued by the commission 34
569569 within sixty days from the date on which the application was 35
570570 first received unless the commission shows cause that the 36
571571 license application is deficient or such applicant does not 37
572572 meet the criteria for licensure. 38
573573 2. The commission may issue provisional licenses prior 39
574574 to the completion of a background check to an applicant that 40
575575 is currently licensed under sections 313.200 to 313.435 or 41
576576 sections 313.800 to 313.850; holds or i s an affiliate of any 42
577577 entity that holds a license in good standing from a 43
578578 regulatory body of another state to operate, handle, or 44
579579 maintain video gaming terminals or video lottery game 45
580580 terminals that are substantially similar to video lottery 46
581581 game terminals authorized under sections 313.425 to 313.435; 47
582582 or if such person has been in the business of locating and 48
583583 operating amusement games within this state continuously for 49
584584 a period of five years. 50
585585 3. A provisional license shall be valid until: 51
586586 (1) The commission either approves or denies the 52
587587 applicant's application for licensure; 53
588588 (2) The provisional license is terminated for a 54
589589 violation of this section; or 55
590590 (3) One calendar year has passed since the provisional 56
591591 license was issued. 57
592592 Nothing in this section shall prohibit an applicant for a 58
593593 video lottery game manufacturer's, video lottery game 59
594594 distributor's, video lottery game operator's, video lottery 60
595595 game retailer's, or video lottery game handler's license 61
596596 from applying for a r enewal of the provisional license 62
597597 issued under this section so long as the commission has not 63 SB 16 20
598598 made a final determination to award or deny the applicant a 64
599599 license. 65
600600 4. Each applicant shall attest by way of affidavit 66
601601 under penalty of perjury that th e applicant is not otherwise 67
602602 prohibited from licensure according to the requirements of 68
603603 this section. 69
604604 5. All requests for provisional licensure under this 70
605605 section shall include the following fee, which is in 71
606606 addition to the applicable fee require d for an application 72
607607 for licensure and shall be retained by the commission: 73
608608 (1) Five thousand dollars for a video lottery game 74
609609 manufacturer and video lottery game distributor; 75
610610 (2) Five thousand dollars for a video lottery game 76
611611 operator; 77
612612 (3) Five hundred dollars for a video lottery game 78
613613 retailer's establishment; or 79
614614 (4) One hundred dollars for a video lottery game 80
615615 handler. 81
616616 313.433. 1. Notwithstanding any other provision of 1
617617 law to the contrary, participation b y a person, firm, 2
618618 corporation, or organization in any aspect of the state 3
619619 lottery under sections 313.425 to 313.435 shall not be 4
620620 construed to be a lottery or gift enterprise in violation of 5
621621 section 39 of article III of the Constitution of Missouri. 6
622622 2. The sale of lottery tickets, shares, or lottery 7
623623 game plays using a video lottery game terminal under 8
624624 sections 313.425 to 313.435 shall not constitute a valid 9
625625 reason to refuse to issue or renew or to revoke or suspend 10
626626 any license or permit issued under the provisions of chapter 11
627627 311. 12
628628 313.435. A municipality may adopt an ordinance 1
629629 prohibiting video lottery game terminals within the 2 SB 16 21
630630 corporate limits of such municipality within one hundred 3
631631 twenty days from the effective date of this act. A county 4
632632 commission may, for the unincorporated area of the county, 5
633633 adopt an ordinance prohibiting video lottery game terminals 6
634634 within the unincorporated area of the county within one 7
635635 hundred twenty days from the effective date of this act. 8
636636 The commission shall not license video lottery game 9
637637 retailers within such area covered by such ordinance. Any 10
638638 such municipality or county that has opted to prohibit the 11
639639 use of video lottery game terminals to play video lottery 12
640640 games may repeal such ordinance and upon such repeal the 13
641641 commission may license video lottery game retailers within 14
642642 such municipality or county to conduct video lottery games. 15
643643