An Act To Permit Video Gaming for Money Conducted by Nonprofit Organizations LR 0540(02)
Maine Legislature, Session 121, LD 1354
Committee Amendment CA_A_H546 (House)

COMMITTEE AMENDMENT "H" 
Act To 
Permit Video Gaming 
Organizations" 
to H.P. 996, L.D. 1354, Bill, "An 
for Money Conducted by Nonprofit 
Amend the bill in section 3 in paragraph K in the last line 
(page 1, line 22 
in L.D.) by inserting after the following: 
"Police" the following: 'or the chief's designee' 
Further amend the bill in section 6 in paragraph N in the 
4th line (page 2, line 1 in L.D.) by striking out the following: 
"routine technical" and inserting in its place the following: 
'major substantive' 
Further amend the bill in section 8 in that part designated 
"~" in subsection 9 by inserting at the end a new blocked 
paragraph to read: 
, "Illegal gaming machine" does not include those machines owned 
or leased by the Department of Administrative and Financial 
Services < 
Bureau of Alcoholic Beverages and Lottery Operations 
and operated in accordance with this chapter.' 
Further amend the bill in section 8 in that part designated 
"§361." by striking out all of subsection 15 (page 4, lines 1 to 
in L.D.) 
Further amend the bill in section 8 in that part designated 
"§361." by renumbering the subsections to read consecutively. 
Page l-LR0540(2) 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT tIff: to H.P. 996, L.D. 1354 
Further amend the bill in section 8 in that part designated 
"§364." in subsection 1 in paragraph C in the 3rd and 4th lines 
(page 5, lines 1 and 2 in L.D.) by striking out the following: 
"routine technical" and inserting in its place the following: 
'major substantive' 
Further amend ·the bill in section 8 in that part designated 
"§364." in subsection 2 in paragraph B in the first line (page 5, 
line 
in L.D.) 
by striking out 
the 
following: 
"routine 
technical" and inserting in its place the following: 
'major 
substantive' 
Further amend the bill in section 8 in that part designated 
"§364." in subsection 2 in paragraph B in subparagraph (7) in the 
last line 
(page 
5" 
line 45 in L.D.) by inserting after the 
following: 
"locateclL" the following: 
'~' 
Further amend the bill in section 8 in that part designated 
"§364." in subsection 2 in paragraph C in subparagraph (4) in the 
last line 
(page 
6, 
line 
in L.D.) 
by 
striking out 
the 
following: 
"~" and inserting in its place the following: 
'-,-' 
Further amend the bill in section 8 in that part designated 
"§364." in subsection 2 by striking out all of paragraph 0 (page 
6, lines 13 and 14 in L.D.) 
Further amend the bill in section 8 in that part designated 
"§365." in subsection 1 in paragraph A in the 4th and 5th lines 
(page 6, lines 24 a,nd 25 in L.D.) by striking out the following: 
"routine technical" and inserting in its place the following: 
'major substantive' 
Further amend the bill in section 8 in that part designated 
"§365." in subsect.ion 
by inserting before paragraph A the 
following: 
'A. 
Contract to purchase or lease video lottery terminals 
and place or Gause to be placed video lottery terminals on 
premises licen:;ed under this chapter;' 
Further amend the bill in section 8 in that part designated 
"§365." in subsection 2 by relettering the paragraphs to read 
consecutively. 
Further amend the bill in section 8 in that part designated 
"§371." in subsection 1 in paragraph B in the 2nd line (page 8, 
line 15 in L.D.) by striking out the following: 
"501(c) (3), 
501<c)(4)," 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "..fI" to H.P. 996, L.D. 1354 
Further amend the bill in section 8 in that part designated 
"§371." in subsection 1 by striking out all of the last blocked 
paragraph (page 8 lines 24 to 38 in L.D.) 
Further amend the bill in section 8 in that part designated 
"§371." in subsection 3 in the 2nd line (page 10, line 2 in L. D. ) 
by inserting after the following: 
"issue" the following: 
'or 
renew' 
Further amend the bill in section 8 in that part designated 
"§31.L." in subsection 3 in the 3rd line (page 10, line 3 in L.D.) 
by inserting after the following: 
"license" the following: 
'QL 
renewal' 
Further amend the bill in section 8 in that part designated 
"~" in subsection 4 in paragraph C in the last line (page 10, 
line 35 in L.D.) by inserting after the fOllowing: 
"applicant." 
the following: 
'Denial of an initial application and refusal to 
renew a license by the municipal officers is subject to appeal to 
the Chief of the State Police.' 
Further amend the bill in section 8 in that part designated 
"~" by striking out all of subsections 2 and 3 (page 10, 
lines 48 to 50 and page 11, lines 1 to 12 in L.D.) 
Further amend the bill in section 8 in that part designated 
"§373." in subsection 1 in the 3rd line (page 11, line 18 in 
L.D.) by inserting after the following: 
"Police" the following: 
'and owned or leased and placed in a licensed facility by the 
Bureau of Alcoholic Beverages and Lottery Operations' 
Further amend the bill in section 8 in that part designated 
"~" in subsection 2 in paragraph F in the first and 2nd lines 
(page 
11, 
lines 
and 
in L.D.) 
by 
striking out 
the 
following: 
"After 
completion of 
the 
5-year 
phase-in period 
described in subsection 3, must" and inserting in its place the 
following: 
'~' 
Further amend the bill in section 8 in that part designated 
"§373." in subsection 2 in paragraph G in the first and 2nd lines 
(page 12, lines 1 and 2 in L.D.) by striking out the following: 
"After completion of the 5-year phase-in period described in 
subsection 3, must" and inserting in its place the following: 
'Must' 
Further amend the bill in section 8 
"~"in 
(page 
12, 
following: 
subsection 2 in paragraph H in 
lines 
and 
in 
L.D.) 
"After 
completion of 
the 
in that part designated 
the first and 2nd lines 
by 
striking out 
the 
5-year 
phase-in period 
COMMITTEE AMENDMENT 
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COMMITTEE J\MENIJMENT .. f}., to H,P, 996, L.D. 1354 
descr ibed in subsection 3, must" and inserting in its place the 
following: 
'Must' 
Further amend t:he bill in section 8 in that part designated 
"§373." in subsectie,n 2 in paragraph I in the first and 2nd lines 
(page 
12, 
lines 
and 
in 
L.D. ) 
by 
striking 
out 
the 
following: 
"After 
completion of 
the 
5-year 
phase-in period 
described in subsection 3, must" and inserting in its place the 
following: 
'Must' 
Further amend 1:he bill in section 8 in that part designated 
"§373." by striking out all of subsection 3 (page 12, lines 24 to 
in L.D.) 
Further amend 1:he bill in section 8 in that part designated 
"§373." by renumbering the subsections to read consecutively. 
Further amend 1:he bill in section 8 in that part designated 
"§375." in subsection 2 in the first line (page 14, line 39 in 
L.D.) by striking out the following: 
"The" and inserting in its 
place the following: 
'Each' 
Further amend Ithe bill in section 8 in that part designated 
"§375." in subsection 3 in the 2nd line (page 15, line 7 in L.D.) 
by inserting after the following: 
"Police" the following: 
'QL 
the chief's designe.' 
Further amend 'the bill in section 8 in that part designated 
"S376." in subsection 1 in paragraph A in the last line (page 16, 
line 13 in L.D.) by striking out the following: 
"$5,000" and 
inserting in its place the following: 
'$3,500' 
Further amend the bill in section 8 in that part designated 
"§376." in subsection 1 in paragraph B in the last line (page 16, 
line 17 in L.D.) by striking out the following: 
"$5,000" and 
inserting in its place the following: 
'$3,500' 
Further amend the bill in section 8 in that part designated 
"S376." in subsecthm 1 in paragraph C in the last line (page 16, 
line 21 in L.D.) 
by striking out the following: 
".i..6QQ" 
and 
inserting in its place the following: 
'£2QQ' 
Further amend the bill in section 8 in that part designated 
"S381." in subsection 1 in the last line (page 18, line 2 in 
L. D.) 
by inserting after the following: 
"subsection 1. " 
the 
following: 
'If an operator licensed under this chapter does not 
have a license to sell liquor, the hours of play are limited to 
the hours when 
thE~ sale of liquor is permissible under Title 
28-A, section 4, sWJsection 1.' 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "fJ.. to H. P. 996, L . D. 13 54 
Further amend the bill in section 8 in that part designated 
"§3Ju..,.." by inserting after subsection 4 the following: 
'5. 
Suspension of liquor license. 
If at any time the 
liquor license of 
an operator 
licensed by 
this 
chapter is 
suspended or 
revoked, 
the 
license 
to operate video 
lottery 
terminals is suspended until the liquor license is reinstated. 
6. 
Qperation of video 
lotte~ terminals separate from 
conduct of beano. 
If an operator licensed under this chapter is 
also licensed to conduct beano, the operation of beano must be 
kept physically separate from the operation of video lottery 
terminals. ' 
Further amend the bill in section 8 in that part designated 
"§383." by striking out all of subsection 1 and inserting in its 
place the following: 
'I. Allocation of net terminal income. 
Net terminal income 
must be allocated as follows. 
A. 
Twenty-three percent must be sent to the Treasurer of 
State for deposit in the Video Gaming Fund established in 
section 384. 
B. 
Two percent must be sent to the Treasurer of State for 
deposit 
in 
the 
Compulsive 
Gambling 
Rehabilitation 
Fund 
established in Title 22, section l700-A. 
C. 
Seventy-five percent must be paid to the licensee. 
If a 
licensee has obtained use of a video gaming terminal from a 
state-certified distributor, the distributor must be paid, 
pursuant 
to 
an 
agreement 
between 
the 
licensee 
and 
the 
distributor, out of the funds received by the licensee under 
this paragraph.' 
Further amend the bill in section 8 in that part designated 
".§.ll.h" by striking out all of subsection 3 and inserting in its 
place the following: 
'3. 
Use of state share. 
At the end of each fiscal year 
beginning after June 30, 
2005, 
the Treasurer of State shall 
transfer to the Local Government Fund created in Title 30-A, 
section 5681 an amount equal to 50% of the state share of net 
terminal income derived from video gaming terminals during that 
fiscal year, net of state administrative costs. 
Not later than 
days after the end of each fiscal year, the Treasurer of State 
shall issue to municipalities that host an organization licensed 
to operate video lottery terminals all unexpended amounts of the 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "H' to H.P. 996, L.D. 1354 
state share, 
in proportion to the amount generated by video 
lottery terminals operated in that municipality. ' 
Further amend t.he bill in section 8 in that part designated 
"§384." in subsection 2 by striking out all of paragraphs A to D 
(page 19, lines 43 to 50 and page 20, lines 2 and 3 in L.D.) and 
inserting in their place the following: 
'A. 
For expenses incurred in implementing or enforcing this 
chapter that do not exceed 2% of the fund; and 
B. 
For payment to the Local Government Fund pursuant to 
section 383.' 
Further amend t:he bill in section 8 in that part designated 
"~" in subsection 1 in the first line (page 21, line 17 in 
L.D.) by inserting after the following: 
"who" the following: 
, negligently' 
Further amend t:he bill in section 8 in that part designated 
"~" in subsection 2 in the first line (page 21, line 37 in 
L.D.) by inserting after the following: 
"who" the following: 
, negligently' 
Further amend 1:he bill in section 8 in that part designated 
"§395." by striking out all of subsection 1 (page 22, lines 14 
and 15 in L.D.) and inserting in its place the following: 
'1. 
Forfeiture. 
An illegal gaming machine, including any 
monetary contents and any funds that have passed through the 
machine since the commission of the i1legal act. is subject to 
forfeiture to the St.~' 
Further amend 1the bill in section 8 in that part designated 
"~" in subsection 1 by striking out all of the last sentence 
(page 24, lines 46 to 49 in L.D.) 
Further amend the bill in section 8 in that part designated 
"~" in the first line (page 27, line 15 in L.D.) by striking 
out the following: 
"routine technical" and inserting in its 
place the following: 
'major substantive' 
Further amend the bill in section 9 in that part designated 
"§1700-A." by striking out a1l of subsection 2 (page 27, lines 33 
to 37 in L.D.) and inserting in its place the following: 
'2. 
Administration. 
The 
Department 
of 
Behavioral 
and 
Developmental 
Services 
sha1l administer the 
fund 
through the 
Office of Substance Abuse and sha1l adopt rules as necessary to 
administer the fund and to determine the criteria for eligible 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "j}. to H.P. 996, L.D. 1354 
recipients. 
Rules 
adopted 
pursuant 
to 
this 
subsection 
are 
routine technical rules as defined in Title 5, 
chapter 375, 
subchapter 2-A.' 
Further amend the bill by striking out all of section 13 and 
inserting in its place the following: 
, Sec. 
13. 
Appropriations 
and 
allocations. 
appropriations and allocations are made. 
The 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Nonprofit Gaming 
following 
Initiative: 
Appropriates funds for one Clerk III position, one 
Clerk IV position, the costs of leasing video gaming terminals, 
the costs of providing a computerized monitoring system and other 
operational costs. 
General Fund 
Positions - Legislative Count 
Personal Services 
All Other 
General Fund Total 
ADMINISTRATIVE AND FINANCIAL 
SERVICES, DEPARTMENT OF 
DEPAIrl'MERT 'l'O'1'ALS 
GENERAL Fm1D 
DEPARTMENT 'l'O'1'AL -
ALL Fm1DS 
AGRICULTURE, FOOD AND RURAL 
RESOURCES, DEPAR7MERT OF 
Harness Racinq Commission 
0320 
2003-04 
(2.000) 
$27,145 
729,565 
$756,710 
2003-04 
$756,710 
$756,710 
2004-05 
(2.000) 
$81, 518 
2,589,750 
$2;671,268 
2004-05 
$2,671,268 
$2,671,268 
Initiative: 
revenues. 
Deallocates funds to reflect a 
loss of dedicated 
Other Special Revenue Funds 
All Other 
Other Special Revenue Funds Total 
AGRICULTURE, FOOD AND RURAL 
RESOURCES, DEPARTMENT OF 
DEPAIrl'MERT 'l'O'1'ALS 
2003-04 
($9,072) 
($9,072) 
2003-04 
2004-05 
($37,014) 
($37,014) 
2004-05 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT IIff. to H.P. 996, L.D. 1354 
OTHER SPECIAL REVENUE FUNDS 
($9,072) 
($37,014) 
DEPARTMENT 'l'O'rAL -
ALL FUNDS 
($9,072) 
($37,014) 
ATl'ORREY GENERAL, DEPARTMENT OF THE 
Administration - Att.orney Genera1 
0310 
Initiative: 
Provides funds for an Assistant Attorney General 
position 
to 
assist 
in 
rulemaking, 
forfeitures, 
license 
application denial a.ppeals and other required legal services. 
Genera1 Fund 
Positions - Legislative Count 
Personal Services 
All Other 
General Fund TCltal 
ATl'ORREY GENERAL, DKPAR'.IMENT OF THE 
DEPAR"l'MERT 'l'O'rALS 
GENERAL FUND 
DEPARTMENT 'l'O'rAL -
ALL FUNDS 
BEHAVIORAL AIm DEVET..QPMENTAL 
SERVICES, DEPARTMENT OF 
Office of Substance Abuse 
0679 
2003-04 
2004-05 
(1. 000) 
(1. 000) 
$46,676 
$62,234 
6,498 
8,664 
$53,174 
$70,898 
2003-04 
2004-05 
$53,174 
$70,898 
$53,174 
$70,898 
Initiative: 
Allocates funds for the newly established Compulsive 
Gambler Rehabilitation Fund. 
Other Specia1 Reven·u.e Funds 
All Other 
Other Special Revenue Funds Total 
BEHAVIORAL AIm DEVELOPMENTAL 
SERVICES, DEPAR7MENT OF 
DEPARTMENT'l'O'rALS 
OTHER SPECIAL REVENUE FUNDS 
DEPARTMENT "l'O'1:AL -
ALL FUNDS 
PUBLIC SAFETY, DEPARTMENT OF 
2003-04 
$47,250 
$47,250 
2003-04 
$47,250 
$47,250 
2004-05 
$192,780 
$192,780 
2004-05 
$192,780 
$192,780 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "H" to H.P. 996, L.D. 1354 
State Police - Nonprofit Gaming Enforcement 
Initiative: 
Appropriates funds for one Sergeant position, one 
Detective position, 3 Public Safety Inspector I positions, one 
Clerk Typist III position, one Clerk Typist II position and a 
portion of the operating costs necessary to enforce the legal 
requirements of nonprofit video gaming. 
General Fund 
Positions - Legislative Count 
Personal Services 
All Other 
General Fund Total 
State Police - Nonprofit Gaming Enforcement 
2003-04 
(7.000) 
$357,034 
78,516 
$435,550 
2004-05 
(7.000) 
$482,940 
55,699 
$538,639 
Initiative: 
Allocates funds for a portion of the operating costs 
necessary to enforce the legal requirements of nonprofit video 
gaming. 
Other Special Revenue Funds 
All Other 
Other Special Revenue Funds Total 
PUBLIC SAFETY, DEPARTMENT OF 
DEPARTMENT 'l'OTALS 
GERERAL FUND 
O'I'HER SPECIAL REVENUE FUNDS 
DEPARTMENT 'l'OTAL -
ALL FUNDS 
TREASURER OF STATE, OFFICE OF 
Nonprofit Gaming - Municipal Distribution 
2003-04 
$31,116 
$31, 116 
2003-04 
$435,550 
31,116 
$466,666 
2004-05 
$57,979 
$57,979 
2004-05 
$538,639 
57,979 
$596,618 
Initiative: 
Allocates funds for the distribution of funds to 
those municipalities who are hosts to licensed nonprofit video 
gaming operators. 
Other Special Revenue Funds 
All Other 
Other Special Revenue Funds Total 
State - Municipal Revenue Sharing 
0020 
2003-04 
$1,372,197 
$1,372,197 
2004-05 
$2,556,892 
$2,556,892 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "if: to H.P. 996, L.D. 1354 
Initiative: 
Allocates funds to reflect the distribution of funds 
from the Video Gaming Fund. 
Other Special Revenue Funds 
2003-04 
2004-05 
All Other 
$152,466 
$284,099 
Other Special Hevenue Funds Total 
$152,466 
$284,099 
TREASURER OF STATE, OFFICE OF 
DEPARTMENT 'l'OTALS 
2003-04 
2004-05 
OTHER SPECIAL llEVEHUE FUNDS 
$1,524,663 
$2,840,991 
DEPAJnMENT 'l'OTAL -
ALL FUNDS 
$1,524,663 
$2,840,991 
SECTION 'l'OTALS 
GENERAL FUND 
OTHER SPECIAL REVENUE FUNDS 
SECTION 'l'OTAL .- ALL FUNDS 
Further amend the 
nonconsecutive 
consecutively. 
Part 
bill by 
letter 
2003-04 
2004-05 
$1,245,434 
$3,280,805 
1,593,957 
3,054,736 
$2,839,391 
$6,335,541' 
relettering or renumbering any 
or 
section 
number 
to 
read 
SUMMARY 
This 
amendme,nt 
restricts 
the 
types 
of 
nonprofit 
organizations eligible for 
a 
license to operate video gaming 
terminals. 
It removes from eligibility organizations that are 
exempt from federell tax under Internal Revenue Code, 
Sections 
501(c)(3) 
and 501(c)(4). 
It maintains organizations that are 
eligible for games of chance licenses and that are exempt from 
federal 
tax 
under 
Internal 
Revenue 
Code, 
Section 
501(c)(8), 
501(c)(10) or 501(,::)(19). 
These sections of the tax code refer 
to fraternal benefit societies, domestic fraternal societies and 
associations 
and 
veterans' 
organizations. 
The 
organization 
applying for the license must own or lease the premises on which 
the terminals will be placed and must use the premises for its 
charitable or nonprofit purpose. 
Under this amendment, video lottery terminals operated by 
organizations licensed under this amendment must be owned or 
leased 
by 
the 
Department 
of 
Administrative 
and 
Financial 
Services, Bureau of Alcoholic Beverages and Lottery Operations. 
Video gaming terminal manufacturers, wholesalers and operators 
must be licensed by the Chief of the State Police, following 
background 
investigations 
of 
the 
applicants 
and their major 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT .~ to H.P. 996, L.D. 1354 
business partners. 
Local approval is required for a license to 
operate video gaming terminals. 
The amendment specifies that 
local approval is also required for renewal of a license to 
operate video gaming terminals and that municipal decisions are 
subject to appeal to the Chief of the State Police in accordance 
with the Maine Administrative Procedure Act. 
The license specifies the number of terminals allowed on the 
premises; 
the maximum 
number of 
terminals 
allowed is 
per 
licensee. 
Terminals must be licensed by the Chief of the State 
Police and must be connected to a computer system operated by the 
Director 
of 
the 
Bureau 
of 
Alcoholic 
Beverages 
and 
Lottery 
Operations. 
Persons under 21 years of age are not allowed to use 
the machines. The amendment specifies that if an organization' s 
liquor license is suspended, the license to operate video gaming 
terminals 
is 
also 
suspended 
until 
the 
liquor 
license 
is 
reinstated. Only members of the organization and their guests are 
allowed to play. 
The maximum dollar amount for each play is $5 
and the maximum payout is $1,250. 
Each game on each machine must 
return at least 80% of wagers to players, calculated on an annual 
basis. 
Net 
terminal 
income, 
which is 
income 
after 
payback 
to 
players, 
is 
divided 
among 
the state, 
the municipalities, 
a 
compulsive 
gambling 
fund 
for 
prevention 
and 
treatment 
of 
compulsive gambling and the charitable organization. 
Two percent 
of 
the 
net 
terminal 
income 
goes 
to 
the 
Compulsive 
Gambler 
Rehabilitation 
Fund 
and 
75% 
to 
the 
licensee. 
Twenty-three 
percent of the income goes to the State for payment into the 
Video Gaming Fund for administrative expenses not to exceed 2%; 
the rest of the Video Gaming Fund is divided between munici1?al 
revenue 
sharing 
and 
the 
municipalities 
that 
host 
the 
organizations 
that 
operate 
video 
lottery 
terminals. 
Host 
municipalities receive their share in proportion to the amount of 
revenue that is generated by video gaming terminals in their 
municipality. 
Licenses are issued for one year. The amendment reduces the 
fees proposed by the bill. The license fee per terminal is $500, 
and for wholesalers, manufacturers and operators, the fee is 
$3,500. 
Applicants for an initial license must pay the actual 
costs of processing the application and performing the background 
investigation. 
The amendment also specifies that any rules put forth by the 
Bureau of Alcoholic Beverages 
and Lottery Operations and the 
Page ll-LR0540(2) 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT .. (1:. to H. P. 996, L. D • 13 54 
Chief of the State Police to administer and enforce the laws 
related to video gaming by nonprofits are major substantive rules. 
The amendment also adds an appropriations and allocations 
section. 
FISCAL NOTE REQUIRED 
(See attached) 
Page l2-LR0540(2) 
COMMITTEE AMENDMENT 
Net Cost (Savings) 
General Fund 
<\ppropriations/ Allocations 
General Fund 
Other Special Revenue Funds 
Revenue 
General Fund 
Other Special Revenue Funds 
Approved: 06/01/03 ;t?ac::.. 
Office of Fiscal and Program Review 
LD 1354 
An Act To Permit Video Gaming for Money Conducted by Nonprofit 
Organizations 
LR 0540(02) 
Fiscal Note for Bill as Amended by Committee Amendment" " 
Committee: Legal and Veterans Services 
Fiscal Note Required: Yes 
Fiscal Note 
Projections 
Projections 
2003-04 
2004-05 
2005-06 
2006-07 
$1,321,034 
$3,589,253 
$3,644,502 
$3,700,865 
$1,245,434 
$3,280,805 
$3,329,885 
$3,379,956 
$1,593,957 
$3,054,736 
$3,102,191 
$3,150,595 
($75,600) 
($308,448) 
($314,617) 
($320,909) 
$1,593,957 
$3,054,736 
$3,102,191 
$3,150,595 
Correctional and Judicial Impact Statements 
Establishes new Class C and D crimes; increases correctional and judicial costs 
Fiscal Detail and Notes 
This bill specifies that at least 80% of the gross terminal revenue must be paid back to users of the video gaming 
terminals. The remaining 20% of revenue collected by eligible nonprofit organizations that elect to become licensed 
as video gaming terminal operators will be distributed as follows: 75% is kept by the licensee; 23% goes to the Video 
Gaming Fund; and 2% goes to the Compulsive Gambler Rehabilitation Fund which will be administered by the 
Department of Behavioral and Developmental Services. The 23% that is distributed to the Video Gaming Fund is 
further distributed in the following manner: 2% is reserved for the costs incurred by State Government in 
administering the provisions of this bill; 10% (net of the administrative costs) goes to the Local Government Fund; 
and at the end of each fiscal year, the remaining unspent funds are distributed to those municipalities that host the 
nonprofit organizations that chose to become licensed by the provisions of this bill. 
LR0540(2) - Fiscal Note - Page 1 of 4 
As stated previously, the bill specifies that 2% of the revenue collected for the Video Gaming Fund will be reserved , 
for the administrative costs of state agencies.. The estimated revenues that will be generated for this purpose are 
$31,116 and $57,979 in fiscal years 2003-04 and 2004-05, respectively. The total administrative and enforcement 
costs that will be incurred by state agencies are $1,276,550 and $3,388,784 in fiscal years 2003-04 and 2004-05, 
respectively. The difference between the amounts reserved for administrative costs and the actual costs of the state 
agencies is $1,245,435 and $3,280,805 in fiscal years 2003-04 and 2004-05, respectively, and will require 
appropriations from the General Fund. 
In addition, the shift of expenditures from Lottery ticket sales and Pari-mutuel wagering to video gaming terminals at 
licensed non-profit organizations will reduce both General Fund and dedicated revenue. 
Presented below is an estimate of the revenue and distribution that may be generated by licensed nonprofit 
organizations assuming that 270 nonprofit organizations will become licensed video terminal operators and each of 
the licensees will have the maximum 5 video terminals authorized by the provisions of this bill. This table also 
includes a breakdown of the General Fund and Other Special Revenue Funds impacts. 
Summaa of Gaming Revenue 
2003-04 
2004-05 
2005-06 
Total Gaming Revenue 
$11,812,500 
$48,195,000 
$49,158,900 
80% Payback 
$9,450,000 
$38,556,000 
$39,327,120 
Net Terminal Income 
$2,362,500 
$9,639,000 
$9,831,780 
75% of Net Terminal Income to Licensee 
$1,771,875 
$7,229,250 
$7,373,835 
Required Distribution of net terminal income (25% State Share) 
Video Gaming Fund Revenues 
-23% of Net Terminal Income 
$543,375 
$2,216,970 
$2,261,309 
-License Fees to Video Gaming Fund 
$682,000 
$682,000 
$682,000 
-Reimbursement to Video Gaming Fund 
$330,404 
$0 
$0 
Video Gaming Fund Revenues For Distribution 
$1,555,779 
$2,898,970 
$2,943,309 
- 2% for Administrative Costs 
$31,116 
$57,979 
$58,866 
- 10% (net) to Local Government Fund 
$152,466 
$284,099 
$288,444 
- Unspent Funds to Host Municipalities 
$1,372,197 
$2,556,892 
$2,595,999 
2% to Compulsive Gambling Program 
$47,250 
$192,780 
$196,636 
Other Revenue Impacts: 
Impact on Lottery - Diverted "Gaming/Gambling" Revenue to Non-profit Video Tenninals 
2.5% of Gross Revenue 
$295,313 
$1,204,875 
$1,228,973 
25% General Fund Transfer 
($73,828) 
($301,219) 
($307,243) 
Impact on Harness Racing - Diverted "Gaming/Gambling" Revenue to Non-profit Video Terminals 
1% of Gross Revenue 
$118,125 
$481,950 
$491,589 
Loss of Revenue from diverted revenue by Fund! Account: 
General Fund 
Subtotal General Fund Revenue 
Other Special Revenue Funds 
- Purse Supplements 
($1,772) 
($75,600) 
($2,126) 
LROS40(2) - Fiscal Note - Page 2 of 4 
($7,229) 
($308,448) 
($8,675) 
($7,374) 
($314,617) 
($8,849) 
2006-07 
$50,142,078 
$40,113,662 
$10,028,416 
$7,521,312 
$2,306,536 
$682,000 
$0 
$2,988,536 
$59,771 
$292,877 
$2,635,888 
$200,568 
$1,253,552 
($313,388) 
$501,421 
($7,521) 
($320,90' 
($9,026) 
I 
- Sire Stakes Fund 
($1,169) 
($4,771) 
($4,867) 
($4,964) 
- Agricultural Support Fund 
($1,358) 
($5,542) 
($5,653) 
($5,766) 
- Racetracks 
($1,465) 
($5,976) 
($6,096) 
($6,218) 
- Promotional Board 
($2,953) 
($12,049) 
($12,290) 
($12,536) 
Subtotal Dedicated Revenue 
($9,072) 
($37,014) 
($37,754) 
($38,509) 
Summary of Expenditure Im12acts 
General Fund: 
- Administrative and Financial Services 
$756,710 
$2,671,268 
$2,719,463 
$2,768,622 
- Attorney General 
$53,174 
$70,898 
$72,670 
$74,487 
- Public Safety 
$435,550 
$538,639 
$537,752 
$536,847 
Subtotal General Fund Costs 
$1,245,434 
$3,280,805 
$3,329,885 
$3,379,956 
Other Special Revenue Funds: 
- Agriculture, Food and Rural Resources 
($9,072) 
($37,014) 
($37,754) 
($38,509) 
- Behavioral and Developmental Services 
$47,250 
$192,780 
$196,636 
$200,568 
- Public Safety 
$31,116 
$57,979 
$58,866 
$59,771 
- Treasurer 
$1,524,663 
$2,840,991 
$2,884,443 
$2,928,765 
Subtotal Other Special Revenue Costs 
$1,593,957 
$3,054,736 
$3,102,191 
$3,150,595 
Summary of Revenue Impacts 
General Fund: 
- Diverted Lottery Revenue 
($73,828) 
($301,219) 
($307,243) 
($313,388) 
- Diverted Pari-mutuel Revenue 
($1,772) 
($7,229) 
($7,374) 
($7,521) 
General Fund Total 
($75,600) 
($308,448) 
($314,617) 
($320,909) 
Other Special Revenue Funds: 
- Video· Gaming Fund Revenues 
$1,555,779 
$2,898,970 
$2,943,309 
$2,988,536 
- Diverted Pari-mutuel Revenue 
($9,072) 
($37,014) 
($37,754) 
($38,509) 
- Compulsive Gambling Program 
$47,250 
$192,780 
$196,636 
$200,568 
Other Special Revenue Total 
$1,593,957 
$3,054,736 
$3,102,191 
$3,150,595 
LR0540(2) - Fiscal Note - Page 3 of 4