HB 263 Summary

• Authorizes video lottery terminals at class D liquor permit establishments and creates a licensing system administered by the State Lottery Commission for manufacturers, distributors, operators, and establishments.

• Establishes regulatory framework including terminal specifications (maximum $2 per game, 89-92% payback rate), background investigations for licensees, inspection requirements, and a central communications system for auditing.

• Limits terminal placement to a maximum of 2 terminals per establishment for the first 3 years, then 4 terminals thereafter; prohibits advertising through outdoor signage, flyers, radio, or television.

• Imposes licensing fees and revenue sharing: manufacturers pay $100,000 annually, distributors pay $50,000 initially then $25,000 annually, operators pay $10,000 annually, and net terminal income is split with 35-40% to the state (half to education fund, half to local municipalities).

• Exempts video lottery terminals from personal property taxes and sales taxes, and establishes criminal penalties for violations including manufacturing, distributing, or operating unlicensed terminals.