HF 3204 Summary

• Establishes video lottery terminals operated and controlled by the State Lottery director, with terminals owned or leased by the director and maintained by the lottery or an approved vendor.

• Imposes an 8.5 percent tax on gross receipts from lawful gambling, replacing the tax under section 297A.62 and all local taxes and license fees, effective July 1, 2010.

• Authorizes the State Lottery to transmit monthly to the commissioner an amount equal to 28 percent of net terminal income from video lottery terminals, deposited in the state treasury general fund.

• Restricts video lottery terminal placement to licensed alcoholic beverage retailers with organizations conducting lawful gambling on premises, with retailers retaining 31 percent of net terminal income and transmitting 29 percent to gambling organizations.

• Defines video lottery operations including game procedures, terminal testing, age restrictions (minimum age 21 for video lottery games), and prize claim procedures, with a 60-day window to claim video lottery credit receipts.