SB 187 - This act modifies several provisions relating to gaming.VIDEO LOTTERY
This act allows video lottery gaming to be conducted at certain locations throughout the state and provides the Missouri Lottery Commission with the authority to oversee and regulate such gaming.
Video lottery shall only be conducted on the premises of a truck stop establishment, which is defined as a premises that is equipped with diesel islands used for fueling commercial motor vehicles, has sold on average 50,000 gallons of diesel or biodiesel fuel each month for the previous 12 months, or is projected to sell an average of 50,000 gallons of diesel or biodiesel fuel each month for the next 12 months, has parking spaces dedicated for commercial motor vehicles, has a convenience store, and is situated on a parcel of land of not less than three acres that the truck stop establishment owns or leases. (Sections 313.450 and 313.453)
All video gaming terminals shall be linked to a central control computer, which shall be accessible by the Commission to provide auditing program capacity and individual terminal information, and shall include real-time information retrieval and terminal activation and disabling programs. (Section 313.456)
No person shall act as a manufacturer, supplier, terminal operator, truck stop establishment, or key employee without applying for and receiving a license from the Commission, which shall be on an application form prescribed by the Commission. The Commission shall conduct a background investigation of all applicants prior to issuing a license, as described in the act. No license shall be issued to any person who has been convicted of a felony offense.
Applicants for a manufacturer, supplier, terminal operator, truck stop establishment, or key employee license shall pay an initial nonrefundable application fee, and shall renew such license every three years and pay a license renewal fee, as described in the act. Terminal operators shall pay the Commission an annual fee of $200 for each video gaming terminal placed in service. (Section 313.459)
All video gaming terminals, redemption terminals, and associated equipment shall be tested and certified by the Commission prior to being placed in service. Video gaming terminals and redemption terminals shall meet certain specifications, as described in the act. The cost of a credit shall be one cent, five cents, ten cents, or twenty-five cents. The maximum wager per individual game shall not exceed five dollars, and the maximum prize per individual game shall not exceed one thousand dollars. (Section 313.462)
There shall not be more than fifteen video gaming terminals placed on a truck stop establishment. Redemption tickets shall only be exchanged for cash at a redemption terminal located in the same video gaming area as the video gaming machine. Video gaming terminals shall be located in an area properly segregated from minors, and the entrance to the video gaming area shall be secure and easily seen and observed by at least one employee of the truck stop establishment. (Section 313.465)
Truck stop establishments and terminal operators shall enter into a terminal placement agreement prior to the placement of any video gaming terminal. (Section 313.468)
All persons granted a license under this act shall cooperate with investigations as required by the Commission, as described in the act. (Sections 313.471 and 313.474)
Terminal operators shall remit to the Commission thirty-six percent of gross terminal revenue, which shall be deposited in the State Lottery Fund and transferred to the Lottery Proceeds Fund after administrative expenses equal to four percent of gross terminal revenue are deducted. Net proceeds transferred to the Lottery Proceeds Fund shall be distributed to elementary, secondary, and higher education institutions as required by law.
All revenues received by the Commission from license fees and any reimbursements associated with the administration of this act shall be considered administrative expenses and shall be deposited in the State Lottery Fund. (Section 313.477)
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. (Section 313.480)
These provisions are similar to HB 423 (2019), SB 452 (2017), and HB 990 (2017), and to provisions contained in SCS/SBs 327 & 43 (2019), SS#3/SCS/SB 44 (2019), and SS/SCS/SB 767 (2018).
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. Such licensed facilities shall apply to the 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 the security and integrity of sports wagers accepted under a limited mobile gaming system, 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. (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.
The Commission and certificate holders shall cooperate with investigations conducted by sports governing bodies or law enforcement agencies. (Section 313.1014)
A certificate holder shall maintain records of all bets and wagers placed, 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 in the case of in-person wagers, for at least three years after the sporting event occurs. (Section 313.1016)
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 313.1020)
These provisions are identical to SB 1009 (2018), are substantially similar to SB 222 (2019), HB 859 (2019), HCS/HB 119 (2019), HB 2406 (2018), and to provisions contained in SB 187 (2019), SS#3/SCS/SB 44 (2019), and SCS/SBs 327 & 43 (2019), and are similar to HB 2320 (2018), and to a provision contained in SB 195 (2019).
INCOME TAXES
Current law provides for a reduction in the top rate of income tax over a period of years from 6% to 5.5%, with each cut becoming effective if net general revenue collections meet a certain trigger, with an additional reduction in the top rate of tax of 0.4% to take effect in the 2019 calendar year. For all tax years beginning on or after January 1, 2020, this act further reduces the top rate of tax by 0.2%. (Section 143.011)
JOSHUA NORBERG