Bill Summary: HF2785

• Director of the State Lottery authorized to establish gaming machines at licensed racetracks (Class A facilities) through location contracts requiring 75 days of live racing annually (50 days for single-breed racetracks).

• Gaming machine revenue subject to tiered in-lieu fee: 25% on first $150 million in annual adjusted gross revenue, 30% on revenue between $150-200 million, and 40% on revenue exceeding $200 million, deposited to state treasury.

• Racetracks receiving location contracts must allocate gaming machine revenue as follows: 52.8-60.4% to licensee, 5.4-7.2% to equine industry improvement fund for purse supplements and breeder funds, and 1% each to local city and county.

• Minnesota Racing Commission given expanded duties to license employees and vendors involved in gaming machine operations and oversee security and surveillance of gaming activities at racetracks.

• Racino revenue dedicated to education funding: 1% to compulsive gambling treatment and education, remaining funds allocated to increase school district aid payments to 90% and restore net aid reductions.