SS/SCS/SB 98 - This act modifies several provisions relating to gaming.

ILLEGAL GAMING

Current law allows the Missouri Gaming Commission to enter into agreements with various federal, state, and local agencies to carry out the duties of the Commission. This act also allows the Commission to enter into agreements with such agencies and the Missouri State Highway Patrol for investigations relating to and the enforcement of criminal provisions relating to illegal gambling.

This act requires the Gaming Commission to establish a telephone contact number, which shall be prominently displayed on the Commission's website, to receive reports of suspected illegal gambling activity. The Commission shall refer such reports to the Missouri Highway Patrol, which shall initiate investigations into such reports. Upon the request of the prosecuting attorney, the Attorney General may aid such prosecuting attorney in prosecuting violations referred by the Commission.

Any person or establishment licensed under current law relating to gaming that is convicted of or pleads guilty to illegal gambling, or of a violation of the Missouri Video Lottery Control Act, and any affiliated company of such person or establishment, shall be permanently prohibited from being licensed to participate in any way in the Missouri Video Lottery Control Act. (Section 313.004)

This act also allows the Supervisor of Liquor Control to refer to the Gaming Commission and Lottery Commission any suspected illegal gambling activity or violations of the Missouri Video Lottery Control Act, established by this act, being conducted on the premises of a location licensed under the Liquor Control Law. (Section 311.660)

Upon notification by the Gaming Commission, Lottery Commission, or a law enforcement agency of possession of an illegal gambling device or of a violation of the Missouri Video Lottery Control Act, the Supervisor of Liquor Control shall suspend or revoke such person's license on such terms and conditions as the Supervisor deems appropriate, provided such person shall be given ten days to remove the illegal gambling device from the premises prior to the suspension or revocation of a license. The Supervisor of Liquor Control shall not be required to give a person such ten days period upon a second or subsequent notification of a violation. (Section 311.680)

Current law allows a sheriff, peace officer, or eight or more citizens of a county or city to bring an action in circuit court to initiate proceedings to suspend or revoke a license issued under the Liquor Control Law as a result of certain offenses committed by a licensee. This act adds permitting illegal gambling devices on the licensed premises of a licensee and violations of the Missouri Video Lottery Control Act to such list of offenses. (Section 311.710)

This act provides that any conviction in this state for illegal gambling activity involving an illegal gambling device and any violation of the Missouri Video Lottery Control Act shall result in the automatic and permanent revocation of a lottery game retailer license. (Section 313.255)

This act modifies the definitions of "gambling device" and "slot machine" for the purposes of provisions of law relating to the prosecution of illegal gambling. (Section 572.010)

This act provides that the provisions of Article III, Section 39(f) of the Missouri Constitution authorizing charitable and religious organizations to sponsor raffles or sweepstakes shall include raffles using tickets, a device, or a machine where a person buys one or more chances from a finite number of draws for a prize. Any machine or device used to conduct a raffle shall be certified as described in the act. (Section 572.015)

These provisions are substantially similar to SB 87 (2021), SCS/SB 530 (2020), SB 557 (2020), and SCS/SB 431 (2019), and to provisions contained in SS#3/SCS/SB 44 (2019).

MISSOURI VIDEO LOTTERY CONTROL ACT

This act establishes the Missouri Video Lottery Control Act.

This act allows 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, provided that the commencement of video lottery gaming shall not occur prior to January 1, 2023. 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 twenty-five percent of video lottery game terminals in the state after December 31, 2029. The Commission shall not allow more than 12,500 video lottery terminals to be placed in the state. (313.429.1 and .2)

Video lottery game terminals may be placed in fraternal organizations, veterans' organizations, bars, and truck stops, as defined in the act. The Commission may also authorize the placement of pull-tab machines in video lottery game retailer establishments. Beginning January 1, 2023, the Commission may allow the placement of pull-tab machines that utilize electronically generated ticket facsimiles where game plays are pre-determined from a finite pool of ticket results. (Sections 313.427 and 313.255)

Video lottery game terminals and video lottery game ticket redemption terminals shall be connected to a centralized computer system developed or procured by the Commission. No video lottery game terminal or video lottery game ticket redemption terminal shall be in operation without being connected to such centralized computer system.

The Commission may impose a non-refundable application fee, as described in the act. The initial license shall be for a period of two years. Thereafter, the license renewal period shall be four years with the applicable license renewal fee paid for each year such license is renewed, as described in the act. In addition to such license fees, video lottery game operators shall pay the Commission an annual license fee of $200 for each video lottery game terminal placed in service. No license shall be issued to any person who has been convicted of a felony or crime involving illegal gambling. Sales agents shall register with the Commission and may not solicit or enter into any agreement with a retailer or retail establishment prior to such registration with the Commission. The license of any sales agent violating such provision shall be revoked. (Section 313.429.3 and .4)

Video lottery game operators shall pay winning tickets using a video lottery game ticket redemption terminal, which shall be located within the video lottery game retailer's establishment in direct proximity of where such video lottery games are offered. 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 180 days of issue.

Video lottery game operators and video lottery game retailers shall enter into a written agreement for the placement of video lottery game terminals. The agreement shall specify an equal division of adjusted gross receipts, or, upon approval of the Commission, a negotiated division of adjusted gross receipts between the operator and retailer after adjustments for taxes and administrative fees are made. 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, except that video lottery game operators may provide up to $7,500 to video lottery game retailers for structural changes required by the act. (Section 313.429.7)

The cost of video lottery game terminal credits shall be $0.01, $0.05, $0.10, or $0.25, and the maximum wager played per video lottery game shall not exceed $5.00. No cash award for the maximum wager played on any individual lottery game shall exceed $1,000. Any state or federal tax reporting and withholding requirements shall be satisfied by the video lottery game operator.

Operators shall not operate more than five terminals at any one fraternal organization, veterans organization, bar, or truck-stop. The operating location for any video lottery game terminal shall be approved by the Commission prior to such video lottery game terminals being placed. The Commission may, at its sole discretion, deny such location pursuant to the provisions of the act. (Section 313.429.8)

A person under the age of twenty-one shall not play video lottery games, and such video lottery game terminals shall be under the supervision of a person that is at least twenty-one years of age. Video lottery game terminals shall be placed in a fully enclosed room that is continually monitored by video surveillance and where access to persons under the age of twenty-one is prohibited. Recorded video surveillance shall be made available as reasonably and specifically requested by the Commission. An operator that fails to report any known violation of law may be subject to an administrative fine not to exceed $5,000. Any operator or retailer found to have knowingly committed a violation of provisions governing the conduct of video lottery games may be subject to a fine of $5,000, the suspension of such operator's retailer's license for up to thirty days, or, in the case of repeated violations, the revocation of such operator's or retailer's license for up to one year. (Section 313.429.9 and .12)

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 equally to public elementary and secondary education and public institutions of higher education, with an emphasis on funding elementary and secondary education student transportation costs and public institutions of higher education workforce development programs. 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.

The remainder of video lottery game adjusted gross receipts, after the cost of the centralized computer system and administrative costs are paid and apportioned, 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. (Section 313.429.10)

All revenues collected by the Commission from license renewal fees and any reimbursements associated with the enforcement of the act shall be appropriated for administrative expenses associated with supervising and enforcing the provisions of the act. (Section 313.429.11)

The Commission shall conduct background checks of applicants for licenses and to investigate violations of the provisions of the act and may contract with a state law enforcement entity or the Missouri Gaming Commission to assist in conducting such investigations. (Section 313.429.12)

The use or possession of any video gaming terminal, gambling machine, or device capable of simulating lottery games, games of chance, or gambling games, and that is not licensed by the Lottery Commission or Gaming Commission shall be guilty of a Class D felony and fined up to $10,000 per occurrence. The Commission shall suspend or revoke the license of any vendor or licensee that allows the use of any prohibited video gaming terminal. (Section 313.429.13)

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. (Section 313.433)

This act allows a municipality or county to adopt an ordinance within one hundred eighty days of the effective date of this act prohibiting video lottery game terminals within the municipality or county. (Section 313.435)

These provisions are substantially similar to SB 566 (2020), SB 43 (2019), and 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).

PEER-TO-PEER SPORTS WAGERING

This act allows a player registered to participate in fantasy sports contests to make a wager with one or more such players based on the outcome of a fantasy sports contest, which may include winning outcomes based on the score, point spread, the performance of teams or athletes, or on in-game outcomes, as defined in the act. Fantasy sports licensed operators shall ensure that such wagers comply with any limits placed on such wagers by the licensed operator. Wagers shall be remitted with the entry fee in advance of the contest or in-game outcome, as applicable, and wagers shall be kept segregated from player funds and operational funds. A licensed operator shall deposit winning wagers into a registered player's account in the same manner as other prizes are deposited under current law. (Sections 313.905 and 313.915)

This provision is identical to SB 467 (2021).

SPORTS WAGERING

This act allows the Missouri Lottery Commission to offer games based on the outcomes of sporting events. (Section 313.230)

This act also authorizes sports wagering, including esports, 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, through a limited mobile gaming system, 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 $25,000. If granted a certificate of authority, a certificate holder shall be authorized to conduct sports wagering in a licensed facility 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 through the use of a limited mobile gaming system in a gaming or other betting area of the licensed facility, or in a hotel, restaurant or other amenity operated by the certificate holder and subject to the authority of the Commission. A certificate holder or interactive sports wagering platform provider may allow patrons to establish and fund a sports wagering account electronically through an interactive sports wagering platform without having to visit a physical location. (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 $25,000. Each year after licensure, an interactive sports wagering platform shall submit an annual license renewal fee of $50,000. (Section 313.1010)

Sports wagering commercial activity, defined as any operation, promotion, signage, advertising, or other business activity relating to sports wagering, shall be prohibited within designated sports and entertainment districts, as defined in the act, without a written waiver from each designated sports and entertainment district entity located within such district. (Section 313.1003.3)

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.

A sports governing body may submit a request to the Commission to restrict, limit, or exclude a certain type, form or category of sports wagering on sporting events sponsored by such sports governing body. The Commission shall request comments on such requests from sports wagering operators. Upon demonstration of good cause, the Commission shall grant such request, as described in the act.

A certificate holder shall not offer sports wagers on the performance or nonperformance of any individual athlete participating in a single game or match of a collegiate sporting event in which a collegiate team from this state is a participant, and shall not offer any sports wagers on high school athletic or sporting events involving in-state teams.

Certificate holders may use any data source to determine the results of tier one sports wagers. Certificate holders shall use official league data to determine the results of tier two wagers, unless the certificate holder can demonstrate to the Commission that the sports governing body or its designee cannot provide a feed of official league data to the certificate holder on commercially reasonable terms. Certificate holders shall not purchase or utilize any personal biometric data of an athlete, as defined in the act, without written permission from the athlete's exclusive bargaining representative.

The Commission and certificate holders shall cooperate with investigations conducted by law enforcement agencies. (Section 313.1014)

A certificate holder shall maintain records of all bets and wagers placed through an interactive sports wagering platform, and all bets and wagers placed in person that exceed $10,000 in a 24-hour period, 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, and records of abnormal betting activity for at least three years after the sporting event occurs. (Section 313.1016)

Any person who knowingly violates any procedure implemented under this act shall be liable for a civil penalty of not more than $5,000 for each violation, not to exceed $50,000 for violations arising out of the same transaction or occurrence. Such person shall also be subject to actions and penalties provided under current law, provided that any such financial penalties shall not exceed those provided for in the act.

Any person who places, or causes to be placed, a bet or wager on the basis of material nonpublic information relating