This bill introduces Chapter 287-J, which authorizes and regulates video lottery terminals (VLTs) at charity gaming facilities while repealing the existing authorization for historic horse racing (HHR). It defines VLTs and establishes licensing requirements for game operators, mandating that they obtain a license from the lottery commission and submit an annual responsible gaming plan. The bill prohibits any operation of VLTs without a license and sets forth a tax structure requiring licensed operators to allocate 30% of VLT revenues to charitable organizations, problem gaming services, and the lottery commission. Additionally, it limits the eligibility of charitable organizations to receive revenue to 10 dates within a 12-month period and includes provisions for unclaimed ticket money and penalties for unlicensed operation.

The bill also modifies the revenue distribution from VLTs, increasing the daily terminal revenue from $230 to $300, which is expected to significantly boost gross revenue. The new allocation structure will distribute 70% to game operators, 18% to the Lottery Commission, 10.5% to charities, 0.075% to problem gaming services, and 1.425% to the Group II retirement system. This represents a shift from previous allocations and is projected to increase Lottery Fund revenue substantially in the coming fiscal years. The bill anticipates the need for additional staff at the Lottery Commission to manage these changes, resulting in increased expenditures, and it modifies existing criminal penalties, which may affect judicial and correctional costs.

Statutes affected:
Introduced: 284:6-a, 284:31, 284:39