MN SF1684

Authorizes the State Lottery director to establish gaming machines at licensed class A racetracks through location contracts with revenue sharing based on adjusted gross gaming machine revenue (25-40% tiered rates).

Establishes an equine industry improvement fund receiving 8.4-6.3% of adjusted gross gaming machine revenue to supplement purses (75%), support breeder funds (20%), and enhance the non-racing equine industry (5%).

Imposes an in-lieu fee on adjusted gross gaming machine revenue transmitted monthly to the state treasury at graduated rates: 25% up to $125 million, 30% between $125-200 million, and 40% above $200 million annually per location holder.

Dedicates racino revenue to education funding: 1% to compulsive gambling treatment and education programs, with remaining funds dedicated to increasing school district aid payments and restoring net aid reductions.

Requires gaming machines to be owned and operated by the lottery with central monitoring systems, establishes age restrictions (18+), prohibits employees and lottery officials from playing, and requires racetrack holders to remit 1% of revenue to local city and county governments.