MI SB0397

Expands the definition of "lottery" under Michigan law to explicitly include video lottery games operated by the state lottery bureau, along with traditional lottery games like lotto, instant tickets, and keno.

Authorizes video lottery terminals to be operated at licensed horse racing tracks in Michigan, with machines owned and controlled exclusively by the state lottery bureau and operated by licensed race meeting operators.

Establishes licensing requirements for race track operators to conduct video lottery, including a $50,000 initial application fee and $100,000 initial license fee, plus $50,000 annual renewals; requires local government ordinance approval before terminals can be placed.

Sets revenue distribution from video lottery operations: 81% to license holders (with minimum 8.5% to horsemen's organizations), and remaining 19% after administrative costs split as 50% to school aid fund, 25% to Michigan strategic fund, 12.5% to reconnect grants, 10% to housing fund, and 2.5% to local governments.

Creates criminal penalties for unauthorized video lottery operations, cheating, bribery, and related offenses, including up to 10 years imprisonment and lifetime bans from video lottery operations for serious violations.