Section 1 [Lottery tickets; in lieu tax] applies an in lieu tax of two percent of gross receipts to lottery tickets sold through video lottery ticket dispensing machines.
Section 2 [Expenditure restrictions, requirements, and civil penalties] specifies that money received from video lottery ticket dispensing machines may only be expended for “lawful purposes.”
Section 3 [Video lottery ticket dispensing machines]
Subdivision 1 [Rules] authorizes the State Lottery to adopt rules governing the sale of lottery tickets through video lottery ticket dispensing machines.
Subdivision 2 [Definition] defines “video lottery ticket dispensing machine” as "a device that dispenses a tangible, preprinted lottery ticket, . . . may read the ticket, display the result of the ticket on a video monitor . . . , and accumulate winning prize amounts to the player’s account balance.” The machine may be operated by cash or currency. The machine must offer a finite number of tickets for sale and have a predetermined number of winning tickets.
Subdivision 3 [Retailers] allows the lottery director to contract with certain retailers to operate video lottery terminal dispensing machines on their premises. Requires that retailers must have a liquor license and must have an organization licensed to conduct lawful gambling. Prevents retailers from canceling the lease of an organization for three years following this act, unless the organization fails to comply with its lease. Limits the number of dispensing machines a premises may have. Precludes the use of “casino” in the advertising of a retailer. Authorizes inspection of dispensing machines without notice.
Subdivision 4 [Commission] requires a retailer to pay 29 percent of its commission to the organization to fund lawful gambling purposes.
Subdivision 5 [Gambling device] excludes video lottery ticket dispensing machines from the definition of “gambling device” for purposes of the gambling licensing code, the lottery code, and the criminal code.