Bill Summary

• Authorizes the director of the State Lottery to adopt rules governing the sale of lottery tickets through electronic scratch ticket devices under chapter 14.

• Defines "electronic scratch ticket device" as a device displaying an electronic facsimile of a lottery scratch ticket with a finite number of predetermined winning and losing tickets, operable by cash or currency.

• Restricts electronic scratch ticket device retailers to those holding an on-sale intoxicating liquor license and having an organization licensed to conduct lawful gambling on the premises, with a limit of five devices per retailer.

• Requires lottery retailers to transmit 29 percent of their commission from electronic scratch ticket sales to the lawful gambling organization on the premises, with pro rata allocation if multiple organizations are present.

• Modifies the sales tax treatment for electronic scratch ticket sales to a 2 percent gross receipts tax in lieu of regular sales tax and clarifies that electronic scratch ticket device revenue may only be expended for lawful purposes or allowable expenses.