House Bill 1011 Summary

• Clarifies that operating more than 4 electronic sweepstakes machines on premises is a Class 2 misdemeanor, with all machines subject to forfeiture.

• Allows grandfathered operation of up to 25 electronic sweepstakes machines for entities operating before January 1, 2020, with escalating penalties for violations: Class 1 misdemeanor for first offense, Class H felony for second offense, and Class G felony for third or subsequent offense.

• Establishes a $250 annual excise tax per electronic sweepstakes device, payable by January 1 each year, with tax stamps required to be displayed on devices.

• Prohibits operation of electronic machines using entertaining displays (video poker, bingo, keno, slot machines, etc.) to conduct or promote sweepstakes, with Class 1 misdemeanor for first violation and Class H felony for second violation.

• Exempts certified valid sweepstakes systems that involve player skill or dexterity and are certified by an ISO-certified laboratory by January 1, 2020.