SB 327
Modifies several provisions relating to gaming
Sponsor:
LR Number:
1616S.03I
Last Action:
3/12/2019 - SCS Voted Do Pass (w/SCS SBs 327 & 43) Progress and Development Committee (1616S.06C)
Journal Page:
Title:
Calendar Position:
Effective Date:
August 28, 2019

Current Bill Summary

SCS/SBs 327 & 43 - This act modifies several provisions relating to gaming.

VIDEO LOTTERY CONTROL ACT

This act establishes the Missouri Video Lottery Control Act.

This act requires the State Lottery Commission to implement a system of video lottery game terminals and to issue licenses to video lottery game manufacturers, distributors, operators, handlers, and retailers, as defined in the act. The Commission shall not allow a single vendor or licensee to be responsible for implementing the program, nor shall it allow a single vendor or licensee to control or operate more than thirty-three percent of video lottery game terminals in the state.

The Commission may impose a non-refundable application fee, as described in the act. Manufacturers, operators, distributors, handlers, and retailers shall be required to remit a license renewal fee. The first such fee shall be remitted after the first year. All subsequent license renewal fees shall be remitted every four years. In addition to the application and license renewal fees, video lottery game operators shall pay the Commission an annual license fee of $200 for each video lottery game terminal placed in service.

Video lottery game terminals shall be independently tested, capable of randomly generating the outcome of games, and be able to print tickets redeemable for winning video lottery game plays.

The cost of video lottery game credits shall be one cent, five cents, ten cents, or twenty-five cents. No licensed video lottery operator shall offer a maximum wager on a single game play exceeding five dollars or offer a pay-out for a single game-winning play in excess of one thousand dollars. Operators shall not operate more than five terminals at one retail establishment, except fraternal organizations, veterans organizations, and truck stops may operate up to ten terminals.

Video lottery game operators shall pay to the Commission thirty-two percent of any unclaimed cash prizes associated with winning tickets that have not been redeemed within one year of issue.

Video lottery game operators and video lottery game retailers are prohibited from offering anything of value other than the percentage of adjusted gross receipts for the placement of video lottery terminals.

Video lottery gaming shall not be played by persons under 21 years of age, and video lottery gaming terminals shall be located within the unobstructed line of sight of the bar or sales counter, monitored by video surveillance and be under the supervision of a person that is at least 21 years of age, or, if in a truck stop establishment, located within an enclosed room or area where entry is restricted to persons 21 years or older.

Video lottery game operators shall pay to the Commission thirty-six percent of the video lottery game adjusted gross receipts. The net proceeds of the sale of video lottery game tickets shall be appropriated for educational institutions in this state, with the first $100 million appropriated to public institutions of higher education, and the remainder appropriated to public elementary and secondary education. The Commission shall compensate the administrative costs of the city or county in which a video lottery retailer maintains an establishment in an amount equal to four percent of the video lottery game adjusted gross receipts.

Sixty-four percent of video lottery game adjusted gross receipts shall be retained by video lottery game operators and shall be split evenly between video lottery game operators and video lottery game retailers as provided under an agreement.

All revenues collected by the Commission from license renewal fees and any reimbursements associated with the enforcement of the act shall be considered administrative expenses and shall be deposited in the State Lottery Fund. Until December 31, 2019, one hundred percent of such administrative fees shall be appropriated for administrative expenses associated with supervising and enforcing the provisions of the act. Beginning January 1, 2020, twenty percent of such administrative fees shall be appropriated for administrative expenses associated with supervising and enforcing the provisions of the act, and the remaining amount shall be transferred to the Veterans' Commission Capital Improvement Trust Fund.

The Commission shall issue provisional licenses to applicants as described in the act.

Participation in the state lottery under this act shall not be construed to be a lottery or gift enterprise in violation of Article III, Section 39 of the Constitution of Missouri, and shall not constitute a valid reason for the denial or revocation of a permit to sell liquor.

This act allows a municipality or county to adopt an ordinance prohibiting video lottery game terminals within the municipality or county. The City of Kansas City shall not conduct video lottery games unless such city has adopted an ordinance allowing such games.

These provisions are substantially similar to HB 423 (2019), SB 452 (2017), and to provisions contained in SS#3/SCS/SB 44 (2019) and SS/SCS/SB 767 (2018), and are similar to HB 990 (2017) and to provisions contained in SB 187 (2019).

SPORTS WAGERING

This act authorizes sports wagering, and modifies the definition of "gambling game" to include sports wagering.

Sports wagering shall only be authorized to be conducted on an excursion gambling boat or over the internet to persons physically located in this state. Such licensed facilities shall apply to the Missouri Gaming Commission for authorization to conduct sports wagering, and shall pay an application fee of $10,000. If granted a certificate of authority, a certificate holder shall be authorized to conduct sports wagering in a licensed facility, through a limited mobile gaming system, or through an interactive sports wagering platform, as defined in the act. (Section 313.1006)

Certificate holders shall designate an area within the licensed facility for conducting sports wagering. In addition to such designated area, sports wagering may be conducted in a gaming or other betting area of the licensed facility through the use of a limited mobile gaming system, or in a hotel, restaurant or other amenity operated by the certificate holder and subject to the authority of the Commission. (Section 313.1008)

Certificate holders shall ensure that the certificate holder's surveillance system covers all areas in which sports wagering is conducted, allow the Commission to be present through gaming agents during the hours sports wagering is conducted, ensure that individuals under the age of 21 are not making sports wagers, provide certain information to sports wagering patrons, and post a sign indicating the minimum and maximum amounts that may be wagered. (Section 313.1004)

Subject to the approval of the Commission, a certificate holder may contract with a third party to conduct sports wagering at the certificate holder's licensed facility. (Section 313.1008)

An interactive sports wagering platform, as defined in the act, may apply to the Commission for authority to offer sports wagering on behalf of a certificate holder. Such interactive sports wagering platform shall submit an application fee of $10,000. Each year after licensure, an interactive sports wagering platform shall submit an annual license renewal fee of $5,000. (Section 313.1010)

The Commission shall promulgate rules for a sports wagering self-exclusion program, as described in the act. The Commission shall also promulgate rules to ensure that advertisements for sports wagering do not target minors or other persons who are ineligible to place wagers, problem gamblers, or other vulnerable persons.

Certificate holders shall not offer proposition wagers on any collegiate athletic or sporting event, or on the individual performance statistics of an athlete in a collegiate athletic or sporting event. (Section 313.1012)

The Commission shall conduct background checks on individuals seeking licenses under the act. Such background checks shall include a search for criminal history and any charges or convictions involving corruption or manipulation of sporting events. Certificate holders shall prohibit certain individuals from placing sports wagers, as described in the act.

A sports governing body may notify the Commission that it desires to restrict, limit, or exclude tier two sports wagers, as defined in the act, on its sporting events, including restrictions on sources of data and associated video upon which an operator may rely in offering and paying wagers. The Commission may deny such request if it determines that it is arbitrary and capricious. Within thirty days of a sports governing body notifying the Commission of its desire to supply official league data to certificate holders for determining the results of tier two wagers, as defined in the act, certificate holders shall only use official league data to determine the results of such wagers.

The Commission and certificate holders shall cooperate with investigations conducted by sports governing bodies, law enforcement agencies, and universities located in this state. (Section 313.1014)

A certificate holder shall maintain records of all bets and wagers placed for at least three years after the sporting event occurs, including personally identifiable information of the bettor, the amount and type of bet, the time the bet was placed, the location of the bet, the outcome of the bet, records of abnormal betting activity, and video camera recordings of in-person wagers. (Section 313.1016)

Within thirty days of the end of each calendar quarter, a certificate holder shall remit to the Commission a royalty fee of 0.75% of the amount wagered on sporting events conducted during the previous calendar quarter by sports governing bodies that have registered with the Commission, as described in the act. No later than April 30 of each year, a registered sports governing body may submit a request for disbursement of funds remitted by certificate holders in the previous calendar year. The Commission shall disburse the funds to the registered sports governing body in pro rata proportion of the total amount wagered on its sporting events. Any unclaimed royalty fees shall be distributed to certificate holders that timely remitted such fees. (Section 313.1019)

Within thirty days of the end of each calendar quarter, a certificate holder shall remit to the Commission a royalty fee of 0.75% of the amount wagered on sporting events involving at least one NCAA Football Bowl Subdivision football team or at least one NCAA Division I basketball team. No later than April 30 of each year, the Commission shall disburse such royalty fees evenly among the public universities in this state that sponsor an NCAA Football Bowl Subdivision football team or NCAA Division I basketball team. The royalty fees received by public universities under this act shall be used solely for athletics compliance. (Section 313.1020)

A tax is imposed at a rate of 6.25% on the adjusted gross receipts received from sports wagering conducted by a certificate holder. Such tax shall be remitted by the last business day of each month. Revenues received from the tax shall be deposited in the Gaming Proceeds for Education Fund.

A certificate holder shall also pay to the Commission an annual administrative fee of $5,000. In addition to such administrative fee, a certificate holder shall pay to the Commission a fee of $10,000 every five years for a reinvestigation of the certificate holder. Such fees shall be deposited in the Sports Wagering Fund, which is created by the act, and shall be used to pay the costs incurred by the Commission to administer the provisions of the act. (Section 313.1022)

These provisions are substantially similar to SB 222 (2019), HB 859 (2019), HCS/HB 119 (2019), SB 1009 (2018), HB 2406 (2018), and to provisions contained in SB 187 (2019) and SS#3/SCS/SB 44 (2019), and are similar to HB 2320 (2018) and to a provision contained in SB 195 (2019).

JOSHUA NORBERG

Amendments

No Amendments Found.