HF873 Summary

• Authorizes the director of the State Lottery to establish gaming machines at licensed racetracks (class A facilities) through location contracts with compensation ranging from 45-60% of adjusted gross gaming machine revenue depending on revenue levels.

• Requires location contract holders to pay 12% of compensation received to an equine industry improvement fund, with 75% allocated for purse supplements to horse racing and 20% to breeder's funds.

• Imposes a tiered fee on adjusted gross gaming machine revenue (25-40% depending on annual revenue level) to be transmitted monthly to the state for education funding purposes.

• Restricts alcohol sales and consumption in gaming machine areas (within 10 feet) except at facilities within 10 miles of tribal gaming operations, and prohibits detached facilities at racetrack locations.

• Dedicates racino revenue to increase school district aid payments toward 90% of the aid payment schedule and to reduce education payment shifts and property tax recognition shifts.