An Act To Permit Video Gaming for Money Conducted by Nonprofit Organizations
Maine Legislature, Session 124, LD 1437
Committee: Legal and Veterans Affairs
Sponsors: CRAVEN, DIAMOND, MARRACHE, SIMPSON, SULLIVAN, BEAULIEU, TRINWARD
Amends: 8 MRSA §372, 8 MRSA §374, 17 MRSA §348, 28-A MRSA §807

FIRST REGULAR SESSIOr-~-2009 
Legislative Document 
No. 1437 
S.P.521 
In Senate, April 7, 2009' 
An Act To Permit Video Gaming for Money Conducted by 
Nonprofit Organizations 
Reference to the Committee on Legal and Veterans Affairs suggested and ordered printed . 
Presented by Senator CRAVEN of Androscoggin. 
. 9tf)(J~ 
JOY 1. O'BRIEN 
, Secretary of the Senate 
Cosponsored by Representative CORNELL du HOUX of Brunswick and 
Senators: DIAMOND of Cumberland, MARRACHE of Kennebec, SIMPSON of 
Androscoggin, SULLIVAN of York, Representatives: BEAULIEU of Auburn, TRINWARD of 
Waterville. 
Printed on recycled pllpcr 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 8 MRSA §372, sub-§2, ~I, as amended by PL 2003, c. 673, Pt: MM, § 1, 
is further amended to read: 
I. 
Carry on a continuous study and investigation of the lotteries throughout the State 
and the operation and administration of similar laws that may be in effect in other 
jurisdictions. The director, subject to the prior approval of the commission, may 
enter into a written agreement with a multijurisdictional lottery association for the 
operation, marketing and promotion of a j oint lottery or j oint lottery games with other 
jurisdictions. 
Any final agreement entered into with a multijurisdictional lottery association must 
provide that the director has the authority to terminate the agreement upon the 
prQvision of reasonable notice, not to exceed 6 months. The final agreement must 
further provide that the director may terminate the agreement at any time, without 
prior notice, in the event that the director's authority is withdrawn or limited by law; 
iffiEl 
Sec. 2. 8 MRSA §372, sub-§2, r;TJ, as enacted by PL 1991, c. 780, Pt. Y, § 112, is 
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amended to read: 
J. 
Assign duties as necessary to a designee7; and 
Sec. 3. 8 MRSA §372, sub-§2, ~K is enacted to read: 
K. Carry out the duties assigned to the director under Title i 7, chapter 16, including 
developing and maintaining a. central computer system to monitor licensed video 
gaming terminals and coordinating and cooperating with the Chief of the State Police 
in implementing and enforcing that chapter. 
. 
Sec. 4. 8 MRSA §374, sub-§1,~, as amended by PL 1997, c. 301, §1, is further 
amended to read: 
. 
L. 
The apportionment of the total annual revenue accruing from the sale of lottery 
tickets or shares and from all other sources for the payment of prizes to the holders of 
winning tickets .or shares; for the payment of costs incurred in the operation and 
administration of the lotteries, including the expenses of the commission and the 
costs resulting from any contract or contracts· entered into for promotional, 
advertising, consulting or operational services or for the purchase or lease of lottery 
equipment and materials; for the repayment of the money appropriated to the State 
Lottery Fund; and for transfer to the General Fund for distribution pursuant to section 
387; iffiEl 
Sec. 5. 8 MRS A §374, sub-§l, ~, as enacted by PL 1997, c. 301, §2, is 
amended to read: 
M. 
The imprinting on all lottery tickets sold in the State of the overall odds of 
winning a prize for each game7; and 
Sec. 6. 8 MRSA §374, sub-§1, €fIN is enacted to read: 
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N. Rules to administer and enforce Title 17; chapter 16, which may be adopted 
jointly with the Chief of the State Police. These rules are routine technical rules 
IlUrsuant to Title 5, chapter 375, subchapter 2-A.. 
Sec. 7. 17 MRSA §348 is enacted toread: 
§348. Applicability 
Except as expressly provided· in chapter 16, this chapter does not apply to video 
gaming terminals. 
Sec. 8. 17 MRSA c. 16 is enacted to read:. 
CHAPTER 16 
VIDEO GAMING TEP.M!N.A..-LS 
SUBCHAPTER 1 
GENERAL PROVISIONS 
§361. Definitions 
As used in this chapter, unless the coritext otherwise indicates, the following terms 
have the following meanings. 
1. Associated equipment. "Associated equipment" means any proprietary device, 
machine or part used in the manufacture or maintenance of a video gaming terminal, 
including, but not limited to, integrated circuit chips, printed wired assemblies, printed . 
wired boards; printing mechanisms, video display monitors and metering devices. 
2. Director. "Director" means the Director of the Bureau of Alcoholic Beverages 
and Lottery Operations in the Department of Administrative and Financial Services. 
3. Drug abuser. "Drug abuser" has the same meaning as set forth in Title 5, section 
20003, subsection 10. 
. 
4. Drug addict. "Drug addict" has the same meaning as set forth in Title 5, section 
. 20003, subsection 11. 
5. Drug-dependent person. "Drug-dependent person" has the same meaning as set 
forth in Title 5, section 20003, subsection 12. 
. 
6. Engaged in recldess or negligent conduct. "Engaged in reckless or negligent 
conduct" means that the applicant, either consciously disregarding or failing to be aware 
of a risk that the applicant's conduct would cause such a result, engaged in conduct that in 
fact created a substantial risk of death, serious bodily injury or bodily injury to another 
human being and the applicant's disregard or failure to be aware of that risk, when viewed 
in light of the nature and purpose of the applicant's conduct and the circumstances known 
to the applicant, involved a gross deviation from the standard of conduct that a reasonable 
and prudent person would observe in the same situation. 
. Page 2 -124LRIS89(OI)-1 
7. Formal charging instrument. "Formal charging instrument" means a complaint, 
an indictment, information, a juvenile petition or other fomlal written accusation against a 
person for some criminal or juvenile offense. 
. 
8. Fugitive from justice . . "Fugitive from justice" means a: person described in Title 
15, section 201, subsection 4 or 18 United States Code, Section 921(a)(l5) or a person 
subject to an outstanding warrant of arrest in this State or any other jUrisdiction for a 
crime punishable by imprisonment for one year or longer. 
9. Illegal gaming machine. "Illegal gaming machine" or "illegal machine" means a 
machine as defined in section 330 that: 
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A. Is required to be licensed under tIns chapter, but is not so licensed; 
B. Is required to be licensed under chapter 14, but is not so licensed; or 
C. Is licensed under either chapter 14 or this chapter, but is being operated in a 
maimer that violates the license. 
10. Licensee. "Licensee" means a person licensed by the Clnef of the State Police to 
operate a video gaming terminal. 
11. Net terminal income. "Net terminal income" means money inserted into a video 
gamirig terininal nnnus credits paid out in cash. 
12. Operate. "Operate" means to offer for use. 
13. Payback value. "Payback value" means the value of credits granted to players 
by a video gaming terminal compared to the value of money inserted into the terminal by 
players, calculated as a percentage on an annual basis. ' 
. 
14. Person. "Person" means an individual, corporation, association or partnershig. 
15. Uniform location application. "Uniform location application" means a written 
application submitted by a licensee to the Chief of the State Police. 
16. Video gaming terminal. "Video gamingterminal" means a maclnne that, upon 
insertion of coin or currency, is available to play or simulate the play of a video game 
authorized by the Chief of the State Police, including, but not limited to, poker, keno, 
blackjack and line games using a video display and microprocessor, in which by chance 
the player may receive free games or credits that may be redeemed for cash. 
17. Video gaming terminal manufacturer. "Video gaming terminal manufacturer" 
means a person who assembles or produces video gaming terminals or associated 
equipment for sale or use in this State. 
. 
18. 
Video gaming terminal wholesaler. 
"Video gaming terminal wholesaler" 
means a person who sells video gaming terminals or assoCiated equipment for distribution 
in this State. 
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§362. License required 
A person may not manufacture, sell, operate or place a video gaming terminal for use 
in this State unless the person is licensed to do so by the Chief of the State Police. A 
person may not place for use or operate a video gaming terminal in this State unless the 
. machine is licensed by the Chief of the State Police. 
. 
§363. Administration and enforcement 
The Chief of the State Police and the director shall administer and enforce the 
provisions of this chapter as specified in this chapter. 
§364. Powers and duties of Chief of State Police 
1. Powers. In addition to powers conferred by any other provision of law, the Chief 
of the State Police may: 
A. 
Regulate, supervise and exercise general control over the operation of video 
gaming terminals; 
B. Investigate the direct or indirect ownership or 'control of a video gaming terminal 
or associated equipment by any licensee; 
C .. Adopt rules necessary to administer and enforce this chapter, including the power 
to jointly adopt rules with the Maine State Lottery Commission. These rules· are 
routine technical rules pursuant to Title 5, chapter 375, subchapter 2-A; 
D. In any investigation conducted under this chapter, issue subpoenas to compel the 
attendance of witnesses and the production of evidence relevant to any fact at issue; 
and 
E. Approve or disapprove terms and conditions of uniform location agreements. 
2. Duties.· The Chief of the State Police shall: 
A. Investigate or cause to be investigated all complaints made to the State Polfceand 
all violations of tills chapter or the rules adopted under this chapter. A complaint 
made pursuant to this paragraph must be in writing, signed by the complainant and 
dated; 
B. Adopt rules, which are routine technical rules pursuant to Title 5, chapter 375, 
subchapter 2-A, to prevent undesirable conduct relating to the operation of video 
gaming terminals, including the following: 
(I) The practice of any fraud or deception upon a player of a video ga~ng 
terminal; 
(2) The presence ora video gaming terminal on premises that may be unsafe due 
to fire hazard or other such conditions; 
(3) The use of obscene advertising; 
(4) The solicitation on a public way of persons to play video gaming tenninals; 
(5) 
The infiltration of organized 'clime into the operation of video gaming 
terminals; 
. 
(6) 
The presence of disorderly persons in a location where video gaming 
terminals' are in use;' and 
(7) The use of the word "c~sino" to describe any video gaming terminallicerised 
under this chapter or as the name or any part of the name of the licei1sed premises 
or of a portion of the premises where the video gaming tenninal is located; 
C. Direct the director to disable any video gaming terminal if the Chief of the State 
Police has reason to believe that: 
. (1) A person has illegally tampered with the tenninal as described in section 394, 
subsection 2; 
(2) The funds from the terminal have not been distributed, deposited or allocated 
13. 
in accordance with section 383; 
(3) The terminal does 'not meet the licensure requirements of this chapter; or 
(4) The licensee is guilty of criminal conduCt; and 
D. Approve unifonn location applications submitted by licensees pursuant to section 
, 372, subsection 2. 
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§36S. Powers and duties of director 
1. Powers. In addition to powers conferred by any other 'provision of law, the' 
director may: 
A. Propose to the State Liquor and Lottery Commission for adoption rules necessary 
to administer and enforce this chapter, including rules to be adopted jointly with the 
Chief of the State Police. These rules are routine technical rules pursuant to Title 5, 
chapter 375., subchapter 2-A; and 
B. 
Subject to approval of the State Liquor and Lottery Commission and to any 
applicable laws relating to public contracts, enter into a contract for perfonnance of 
the director's duties under this chapter. All contracts must be awarded in accordance 
with rules adopted by the Department of Administrative and Financial Services 
pursuant to Title 5, chapters 141 to 145 and Title 5, sections 1812 and 1813. A 
contract awarded or entered into by the director may not be assigned by the holder of 
the contract, except by specific approval of the commission. 
2. Duties. The director shall: 
A. Develop, install and test a central computer system with continuous online polling; 
to all licensed video gaming terminals to provide auditing program infonnation. The 
system may not limit participation to only one manufacturer of video gaming 
terminals by either the cost of implementing the necessary program modifications to 
communicate or an inability to communicate with the central computer system. In 
deVeloping the system, the director· shall allow for a 5-year phase-in period in 
accordance with section 373, subsection 3 for licensees to acquire equipment capable 
, of interfacing with a central computer system; 
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B. Maintain and monitor the central computer system to ensure compliance with this 
chapter; 
C. 
Attempt to determine the cause of any video gaming temiinal malfunction 
detected by the 'central computer system and notify the Chief of the State Police of 
any suspected tampering with a video gaming terminal or any other violation of this 
chapter or the rules adopted under this chapter; 
. 
D. Cause the central computer system to disable a video gaming terminal as directed 
by the Chief of the State Police in accordance with section 364; 
. 
E. Collect funds due the State under section 383 and deposit them in the Video 
Gaming Fund established in section 384; 
F .. Immediately notify the Chief of the State Police of the failure of any licensee to 
comply with section 383; 
G. Certify monthly to the Treasurer of State, the Maine State Lottery Commission 
and the Commissioner of Administrative and Financial Services a full and complete 
statement of all video gaming terminal' revenue, credits disbursed by licensees, 
administrative expenses and the allocation of net terminal income for the preceding 
month; 
H. Submit by January 15th an arumal report to the Governor and the joint standing 
committee of the Legislature having jurisdiction 'over gaming matters. The report 
must include information on video gaming terminal revenue, credits disbursed by 
licensees, administrative expenses and the allocation of net terminal income for the 
preceding year; 
1. Prepare and submit to the Commissioner of Administrative and Financial Services 
a budget; and 
J. Cooperate with the Chief of the State Police in implementing and enforcing the 
provisions of this chapter. 
§366. Applicability of chapter 14 
Except as expressly provided in this chapter, chapter 14 does not apply to video 
gaming terminals. Section 335 relating to use of proceeds applies to the' use of net 
terminal income by licensees under this chapter. 
. 
§371. License to operate 
SUBCHAPTER 2 
LICENSING 
1. Eligible entities. The Chief of the State Police may issue a license to operate 
video gaming terminals to a person who: 
A. Is eligible for a license to conduct games of chance pursuant to section 332; 
B. 
Is exempt from federal taxation under the Internal Revenue Code, Section 
501(c)(3), 501(c)(4), 501(c)(8), 50 1(c)(1 0) or 501(c)(I9);·and 
Page ~ - 124LRIS89(OI)-1 
C 
Owns or lieases the premises upon which the video gaming terminals will be 
located and uses those premises to fulfill the primary charitable or nonprofit purpose 
of the organization. If the premises are leased, the lease must run for a term longer 
than the license term. 
Notwithstanding paragraph B, an organization that holds a license under section 332 to 
operate an· electronic video machine on the effective date of this chapter is eligible to 
apply fora license under this section to operate video gaming terminals for up to 18 
. 
rrionths, as long as the organIzation applies for federal tax status as specified in paragraph 
B. If the Chief of the State Police determines that the organization is making a good faith 
effort to secure the required tax status and is likely to be given such status, the Chief of 
the State Police may extend the term of the license for an additional 6 months to allow the 
United States Internal Revenue Service time to complete processing the application for 
tax status. If the organization applied for such status and was rejected within 3 years of 
the effective date of this section, that organization is not eligible under this subsection. 
.. Qualifications for license. A person may be issued a license to operate a video 
gaming tenrunal if the person is eligible· for a license under subsection 1 and has 
sufficient financial assets to meet the [mancial obligations imposed by this chapter and a 
method acceptable to the Chief of the State Police for meeting those obligations, and the 
individual and each officer, director or partner of the corporation, association or 
partnership: 
A. Has not been convicted in Maine or any either jurisdiction of a misdemeanor 
crime of domestic violence, within the meaning of 18 United States Code, Section 
I(a)(33); 
B. 
Does not have a formal charging instrument pending in Maine or any other 
jurisdiction for a misdemeanor crime of domestic violence, within the meaning of 18 
United States Code, Section 921(a)(33); 
C. Has not been convicted in Maine or any other jurisdiction within the past 3 years 
of 3 or more crimes punishable by imprisonment for less than one year, if those 
convictions arose from different criminal episodes; . 
D. Has not engaged within the past 3 years in reckless or negligent conduct that is 
substantiated by information of record by a governmental entity; 
. 
E. Is current in' payment of all taxes, interest and penalties owed to the State or to a 
municipality, excluding items under formal dispute or appeal pursuant to applicable 
statutes or ordinances; 
F. Has not been involved in any criminal activity and has not been convicted of a 
crime punishable by one year or more of imprisonment in any jurisdiction unless at 
least 10 years have passed since satisfactory completion of the sentence or probation 
imposed by the court for the crime; 
G. 
Has not been convicted of a violation of this chapter or chapter 14 or of 
equivalent laws in any other state; 
H. Has not been adjudicated within the past 3 years of having committed a juvenile 
offense involving conduct that, 'if committed by an adult, would cause the Chief of 
the State Police to refuse to approve a license application under this section; 
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1. 
Is not a fugitive .from justice, a drug abuser, a drug addict, a drug-dependent 
person, an illegal alien or a person who was discharged from the United States Anned 
Forces under dishonorable conditions within 3 years prior to the date of application; 
J. H~s completed the application form and complied with the requirements of section 
375; and 
K. Has not knowingly made a false statement of material fact to the Chief of the 
State Police in applying for a license under this chapteror chapter 14. 
3. Local approval of application for license. The Chief of the State Police may not 
issue a license to operate a video gaming terminal until the initial application for the 
license is fIrst approved by the municipal offIcers of the municipality in which the 
applicant's premises are located or, if the premises are located in an unincorporated place, 
until the application is approved by the county commissioners of the countv in which the 
unincorporated place is located. 
4. Hearing process. The municipal offIcers or, in the case of an unincorporated 
place, the county commissioners of the county in which the unincorporated place is 
located may hold a public hearing for the consideration of the applications for new video 
gaming terminal licenses. The municipal offIcers or county commissioners may hold a 
public hearing for the consideration of requests for renewal of licenses. 
A. The Chief of the State Police shall prepare arid sup'ply license application forms. 
B. 
The municipal officers or the county cornrrusslOners shall provide, at the 
applicant's prepaid expense, public notice of a hearing held under this section by 
causing' a notice stating the time and place of hearing to appear at least 6 consecutive 
days before the date of the hearing in a daily newspaper having general circulation in 
the municipality or unincorporated place where the premises are located or 2 
consecutive weeks before the date of the hearing in a: weekly newspaper having 
general circulation in the municipality or unincorporated place where the premises 
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' are located.' 
C. 
In granting or denying an application, the municipal officers or the county 
cornrriissioners shall indicate the reasons for their decision and provide a written 
statement of their reasons to the applicant. 
§372. Placement and ownership of terminals 
1. Number of terminals; location. No more than 5 video gaming terminals may be 
placed on the premises of a licensee. A terminal may not be placed in any location other 
than the premises of the licensee. A licensee must own or control the premises on which 
a video gaming tenninal is located. The terminal area must be designed to permit' the 
licensee or an agent of the licensee to see and control the area at all times to ensure 
coi:npliance with the provisions of this chapter. 
2. Uniform location application. Each location must be subject to an approved 
unifom1 location application. A copy of the applicatioi1 must be submitted to the Chief of 
the State Police. The Chief of the State Police inay approve or disapprove any unifonTI 
location application. if the uniforin location application is disapproved, the Chief of the 
State Police shall provide written reasons for the denial. 
3. Appeal to commissioner. Any licensee denied approval of a unifonn location 
application may appeal the decision of the Chief of the State Police to the COlmnissioner 
of Public Safety .. The ·commissioner shall hold a hearing to include the licensee and the 
Chief of thc State Police or the chiefs designee before rendering a decision on the appeal. 
The commissioner shall render a decision within 30 days of the hearing. 
. 
§373. Licensing of terminals 
1. License required. A video gaming terrriinal may not be placed for public use or 
operated in this State uruess the tenninal is licensed by the Chief of the State Police. The 
tenninallicense must be prominently displayed on the tenninal. Language describing the 
odds of winning the game and waming of the danger of compulsive gambling must also 
be prominently displayed on the tenninal. 
2. Requirements for license. To be licensed, a video gaming tenninal: 
A. May offer only games pennitted by the Chief of the State Police; 
B. May not have any means of manipulation that affect the random probabilities of 
winning a game; 
C. May not directly dispense coins, cash or tokens; 
D. Must have one or more mechanisms that accept coin or cash in the form of bills 
and that are designed to prevent aperson from obtaining credits without paying; 
E. . Must be designed to suspend operation until reset if a person attempts, by physical 
or other tampering, to obtain credits without paying; 
F. After completion of the 5-year phase-in period described in subsection 3, must 
have nonresettable meters housed in a readily accessible . locked tenninal area that 
keep a permanent record of all cash inserted into the video gaming tenninal, credits 
awarded by the tenninal, credits played for video games and credits distributed by 
tickets made by the tenninal's printer; 
G. After completion of the 5-year phase-in period described in subsection 3, must be 
capable of printing a ticket voucher stating the value of the credits for the player at 
the end of play, the time of day in 24-hour format showing hours and minutes, the 
date, the tenninal's serial number, the seguential number of the ticket voucher and an 
.. encrypted validation number from which the validity of the. credits may be 
detennined; 
H. After completion of the 5-year phase-in period described in subsection 3, must 
have accounting software that keeps an electronic record of information that includes, 
but is not limited to, total cash inserted into the video gaming tenninal, total credits 
awarded by the terminal, total credits played for video games, total credits distributed 
by tickets made by the tenninal's printer and the payback percentage of each video 
game; and 
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1. After completion of the 5-year phase-in period described in subsection 3, mustrbe 
linked to the central computer system developed under section 365 to provide 
auditing program information. 
3. Phase-in period; rules. . Requirements governing the technical capabilities of 
video gaming terminals must be phased in over a period of 5 years from the effective date 
of this Act. The Chief of the State Police shall adopt rules to implement this subsection. 
Rules adopted pursuant to this subsection are routine technical rules as defined in Title 5, 
chapter 375, subchapter 2:'A. 
4. Amount of play; payback value. A video gaming terminal may be played for a 
maximum of $5 in a single game. A video gaming terminal may not accept more than 
$20 at a time. The maximum prize awarded may not exceed the value of $1,250. The 
payback value of each: type of video game offered by each terminal must be at least 80%. 
5. Examination of prototypes. The Chief of the State Police and the Attorney 
General shall examine all prototypes of video gaming terminals and associated equipment 
for which a video gaming terminal manufacturer' seeks a license as required in this 
chapter. 
The Chief of the State Police shall require the manufacturer seeking the 
examination and approval of the video gaming terminal or associated equipment to pay 
the anticipated actual cost of the examination before the examination occurs. After the 
examination occurs, the Chief of the State Police shall refund' overpayments or charge 
and collect' amounts sufficient to reimburse the Chief of the State Police for 
underpayments of actual cost. 
The Chief of the State Police may contract for the 
examinations of video gaming terminals and associated equipment as required by this 
section. 
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6. Illegal gaming machine. An illegal gaming machine is subject to seizure and 
forfeiture to the State pursuant to sections 395 and 396. 
§374. Licensing of manufacturer or wholesaler 
1. 
Qualifications. To be licensed as a video gaming terminal manufacturer or 
wholesaler, a person must meet the qualifications set forth in section 371, subsection 2. 
2. Limitation on ownership. A partnership, corporation, person, individual partner 
or shareholder of more than 5% of a corporation or an immediate family member of a 
person, individual partner or shareholder of more than 5% of a corporation may not have 
ownership interests in more than one distributor. For the purposes of this subsection, 
"immediate family" means a spouse, child, parent, stepchild or stepparent. 
3. Preparation of list. The Chief of the State Police shall prepare a list of state-
certified distributors of video gaming terminals. 
§375. Applications; investigation 
1. Form. An application for a license required under this chapter must be on a form 
provided by the Chief of the State Police. 
The application must be signed by the 
individual applicant or by a duly authorized· officer of the partnership, corporation or 
association applying for the license. The application must contain, but is not limited to, , 
the following information regarding the individual applicant and each officer, director, 
partner or owner of any interest in a partnership, corporation or association applying for a 
license:· 
. 
A. Full name; 
B. Full current address and addresses for the prior 5 years; 
C. A record of previous issuances of, refusals to issue and revocations of a license 
under this chapter; and 
. 
. 
D. Answers to the following questions posed in substantially the following form: 
(1) "Is there a formal charging instrument now pending against you in this or any 
other jurisdiction for a crime that is punishable by imprisonment for one year or 
more or for a misdemeanor crime of domestic violence?" 
(2) "Is there a formal charging instrument now pending against. you in this or any 
other jurisdiction for a juvenile offense that involves conduct that, if committed 
by an adult, would be punishable by imprisonment for one year or more or would 
constitute a misdemeanor crime of domestic violence?" 
. 
(3) "Have you ever been convicted of a crime described in subparagraph (1) or 
adjudicated as having committed a juvenile offense as described in subparagraph 
(2)?" 
(4) "Are you a fugitive from justice?" 
(5) "Are you a drug abuser, drug addict or drug-dependent person?" 
(6) "Have you been discharged from the United States Armed Forces under 
dishonorable circumstances within the past 5 years?" 
(7) "Are you an illegal alien?" 
(8) 
"Have you been convicted within the past 3 years of 3 or more cnmes 
punishable by imprisonment of less than one year?" 
(9) "Have you been adjudged within the past 3 years to .have committed 3 or 
more juvenile offenses involving conduct that, if committed by an adult, would 
be punishable by imprisonment of less than one year?" 
(0) "To your lmowledge, have you engaged within the past 3 years in reckless 
or negligent conduct that is substantiated by the records of a governmental 
entity?" 
2. Signature as certification. The applicant, by affixing the applicant's signature to 
the application, certifies the following: 
A. That the statements made in the application and any documents made a part of the 
application are true and correct; 
B. That the applicant understands that an affirmative answer to one or more of the 
questions in subsection 1, paragraph D is cause for refusal; and 
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C. That the applicant understands that knowingly making any false statement in the 
application or any document made a part of the application is grounds for a refusal to 
issue a license or for revocation or suspension of a license. 
3. Consent to review records. At the request of the Chief of the State Police, the 
applicant shan take whatever action is necessary to permit the Chief of the State Police to 
examine all account.s and records in the applicant's possession, under the applicant's 
control or under the control of 3rd parties but .accessible by consent of the applicant and 
shall authorize all 3rd parties in possession or in control of those accounts or records to 
allow the Chief of the State Police or a designee to examine the accounts and records as 
the Chief of the State Police determines necessary to ascertain: 
A. Whether the information supplied on the application or on any documents made a 
part of the application is true and correct; 
B. Whether each of the requIrements of this section has been met; and 
C. Whether the applicant meets the requirements for licensure under this chapter. 
This requirement includes taking whatever action is necessary to permit the Chief of the 
State Police or a designee to have access to confidential records held by banks, the courts, 
law enforcement agencies and the military for the purposes stated in this subsection. 
4. 
Investigations; national criminal history record check. Any' individual 
applying for· a license, any partner of a partnership or any officer, director or holder of 
any ownership interest of a corporation or association applying for a license as a licensee, 
i 
manufacturer or wholesaler must submit to a background investigation by the Chief of the 
State Police to verify the applicant's compliance with the requirements of section 37l, 
subsection 2. In order to determine the eligibility of an applicant for a license under this 
chapter, the Chief of the State Police shall' require the applicant to furnish a full set of 
fingerprints to enable a criminal background investigation to be conducted. The Chief of 
the State Police shall submit the fingerprints to the Federal Bureau of Investigation for a 
national criminal history record check. 
5. Notification of municipal officers. An applicant for a license to operate a video 
gaming terminal must send a copy of the application to the officers of the municipality or 
unincorporated place in which the terminal will be operated. The applicant must certify 
in the application that the copy has been sent and must list the names and addresses of the 
persons to whom the copy was sent. 
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§376. Fees; term of license; nontransferable 
1. License levels; fees. The annual fee for a license issued under this chapter is as 
follows: 
A. A license for a video gaming terminal manufacturer is a Level 1 license and the 
fee for a video gaming terminal manufacturer license is $5,000; 
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B. A license for a video gaming terminal wholesaler is a Levell license and the fee 
for a video gaming terminal wholesaler license is $5,000; and 
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C. A license to operate a video gaming terminal is a Level 2 license and the fee for a 
video gaming terminal operator license is $600 per terminal. 
In addition to the annual license fee, the Chief of the State Police may charge a one-time 
application fee for a license issued under this chapter in a.n amount· ~qual to the actual 
cost of processing the application and performing any background investigations. All 
fees collected pursuant to this section must be deposited directly into the Video Gaming 
Fund: established in section 384. 
2. Term of license. All licenses issued by the Chief of the State Police under this 
chapter are effective for one year and are renewable annually, unless sooner revoked 
pursuant to section 377. 
3. 
Nontransferable. A license issued under this chapter is not transferable or 
assignable. 
4. Levels of license; prohibition against multiple licenses. A person licensed as a 
video gaming terminal manufacturer or wholesaler under section 374 has a Levell 
license. A licensee under section 371 has a Level 2 license. A person may not hold more 
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than one level of license. 
§377. Actions relating to licenses 
1. Refusal to renew license. The Chief-of the State Police may refuse to renew a 
license issued under this chapter for just cause after a hearing in accordance with the 
Maine Administrative Procedure Act. 
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2. Suspension of license by Chief of State Police. The Chief of the State Police 
may suspend a license issued under this chapter for just cause for a period of up to 180 
days. The license may be suspended under this subsection only if the Chief of the State 
Police receives a written statement made under oath from a law enforcement officer 
establishing probable· cause for the suspension. The Chief of the State Police shall 
immediately notify the licensee in writing of the suspension and the date the suspension is 
to take effect. If the licensee wishes to have a hearing, the licensee must notify the 
District Court in writing within 20 days of the date of the suspension. If a hearing is 
requested, the . license remains suspended pending the outcome of the hearing. If the 
Chief of the State Police suspends a license under this subsection, the licensee is entitled 
to a refund, on a pro rata basis, of the license fee for the remainder of the license period. 
3. Suspension or revocation of license by District Court. The District Court may 
suspend or revoke a license issued under this chapter for just cause. 
4. Just cause. As used in this section, "just cause" means: 
A. Making or causing to be made a false statement of material fact inobtainiIi.g a 
license under this chapter or in connection with service rendered within the scope .of 
the license issued; 
B. Violating or having an agent who violated any provision of this chapter or any 
rule adopted under this chapter; or 
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C. Becoming ineligible to hold that license. 
5. Ineligibility period following refusal to issue or renew license or revocation of 
license. A person may not apply to the Chief of the State Police for. any license under 
this chapter less than 2 years after the Chief of the State Police refused to issue or renew a 
license under this chapter or less than 2 years after the District Court revoked a license 
issued to the person under this chapter. 
SUBCHAPTER 3 
VIDEO GAMING TERMINAL OPERATION; ALLOCATION OF FUNDS 
§381. Limits on video gaming terminal use 
1. Hours of play. A licensee may not permit a person to playa video gaming 
tenrunal at any time other than a time when the sale of liquor is permissible under Title 
28-A, section 4, subsection 1. 
.. Age of player. A licensee may not penllit a person under 21 years of age to play 
a video gaming terminal. 
3. Time and money limits imposed by licensee. A licensee may impose a daily 
limit on the amount of time' or money spent by a person playing the video gaming 
terminals on the licensee's prelruses. 
4. Play by members and guests. Only persons who are members of the licensee 
organization or guests of those members may play a video' gaming terminal on' the 
premises of the licensee. . 
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§382. Payment of credits by licensee 
A licensee shall redeem credits for players who earn credits on terminals located on 
the premises of that licensee in accordance with rules adopted jointly by the Chief of the 
State Police and the director. If a person receives a credit redeemable for more than the' 
lrunimum amount required by federal law to be reported to the United States Internal 
Revenue Service, the licensee shall require the person to complete a form listing the 
person's riame, address and social security number. The licensee shall promptly send the 
form to' the Department of Administrative and Financial Services, Bureau of Revenue 
Services. 
§383. Allocation of funds 
1. Allocation of net terminal income. Net terminal income must be allocated as 
follows: 
A. Eight 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 
Gambler Rehabilitation Fund established in Title 22, section 1700-B; and 
C. Ninety 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. 
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2. Deposit of state funds. Each licensee shall maintain a bank account accessible by 
the State for the deposit of funds owed to the State under this chapter. The licensee shall 
deposit in that account the State's share of the net terminal income attributable to video 
gaming terminals owned or leased. The licensee shall deposit in that account the State's 
share of net terminal income attributable to terminals. If the day on which funds must be 
deposited is not a business day, the funds must be deposited on the next business day 
after that date.· 
3. Use of state share. At the end of each fiscal year beginning after June 30, 2009, 
the Treasurer of State shall transfer to the Local Government Fund created in Title 30-A, 
section 5681 an amounr equal to 10% of the state share of net terminal income derived 
from video gaming terminals during that· fiscal year, net of state administrative costs. 
Thirty days after the end of each fiscal year, the Treasurer of State shall transfer to the 
Public Education Fund, established in Title 30-A, section 5686, all unexpended amounts 
of the previous fiscal year's revenues to the Local Government Fund, except those needed 
to fund 2 months of expenses for administering this chapter. 
4. Failure to deposit funds. A licensee who willfully fails to comply with this 
section commits a Class C crime. The license of that person may be . revoked by the 
District Court, and the video gaming terminals to which the undeposited funds are 
attributable may be disabled by the director at the direction of the Chief of the State 
Police .. 
5. Late payments. All payments not remitted when due must be paid together with 
a penalty assessment onthe unpaid balance at a rate of 1.5% per month. 
§384. Video Gaming Fund 
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1. Fund created. There is established the Video Gaming Fund. The fund consists 
of all revenue payable to the State pursuantto sections 376 and 383 and all other money 
credited or transferred to the fund from any other fund or source pursuant to law. 
2. Use of money. The money in the Video Gaming Fund may be used only: 
A. For expenses incurred in implementing or enforcing this chapter; 
B. For payment to the Local Government Fund pursuant to section 383; 
C. 
For payment to the Public Education Fund, established in Title 30-A, section 
5686; and 
D. For payment to the Compulsive Gambler Rehabilitation Fund, established in Title 
22, section 1700-B. 
SUBCHAPTER 4 
ENFORCEMENT AND PENALTIES 
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§391. Reports; records 
1. Reports; records. The Chief of the State Police or the director shall require from 
any licensed video gaming terminal, manufacturer, wholesaler or licensee whatever 
records and reports the chief or the director considers necessary for the administration 
and enforcement" of this chapter. " 
2. Location. A license holder shall maintain all records required by this chapter or 
by rules adopted under this chapter at the primary business office within this State of the 
license holder or on the premises where the video gaming terminal is operated. In the 
case of a video gaming terminal manufacturer or wholesaler, the records must be 
" maintained at the primary business office of the manufacturer or wholesaler. The primary 
business office must be designated by the license holder in the license application. All 
records must be open to insp.ection by the Chief of the State Police, the director or the 
designee of either of them, and a license holder may not refuse the Chief of the State 
Police, the director or the designee of either of them the right to inspect or audit the 
records. Refusal to permit inspection or audit of the records is not a crime under tIns 
chapter but does constitute grounds for revocation of the license. 
§392. Access to premises, equipment, records 
A person holding a license under this chapter shall permit the Chief of the State 
Police or the chiefs designee to inspect any equipment, prizes, records or items and " 
materials used or to be used in the operation of any video gaming terminal manufactured, 
owned or operated by that person. A person holding a license under this chapter shall 
consent in writing to the examination of all accounts, bank accounts and records in the 
license holder's possession or under the license holder's control and shall authorize all 3rd 
parties in possession or in control of those accounts or records to allow the Chief of the 
State Police or the chiefs designee to examine the accounts and records as the chief 
determines necessary. 
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§393. Contempt 
If a witness in a case involving a violation of this chapter refuses to obey a subpoena 
issued by the Chiefof the State Police or to give any evidence relevant to proper inquiry 
by the chief, the Attorney General may petition the Superior Court in the county where 
the refusal occurred to find the witness in contempt. The Attorney General shall cause to 
be served on the witness an order requiring that witness to appear before the Superior 
Court to show cause why that witness should not be adjudged" in contempt. The court 
shall, in a summary manner, hear the evidence and, if it is such as to warrant the court to 
do so, punish the witness in the sarrie manner and to the same extent as for contempt 
committed before the Superior Court or with reference to the process of the Superior 
Court. 
§394. Violations 
1. Crimes by licensee. A licensee who performs any of the following acts commits 
a Class D crime: 
4. 
A. Permitting a person under 21 years of age to playa video gaming terminal 
licensed pursuant to this chapter; 
B. Permitting a person to playa video gaming terminal licensed pursuant to this 
chapter at a time other than a time when the sale of liquor is permissible under Title 
28-A, section 4, subsection 1; 
C. . Extending credit to a person U; order for the person to play a video gaming 
terminal; 
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D. Permitting a person to use a credit card as a method of payment for playing a 
video gaming terminal; and 
10E. Permitting a visibly intoxicated person to playa video gaming terminal. 
2. Class C crimes by any person. A person who performs any of the. following acts 
commits a Class C crime: 
A. Tampering with a video gaming terminal with intent to interfere with the proper 
operation of that terminal; 
B. Manipulating or attempting to manipulate the outcome, payoff or operation of a 
video gaming terminal by physical tampering or any other means; 
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. C. Manufacturing, distributing, selling, operating or placing a video gaming terminal 
for· use in this State without a license or manufacturing, distributing, selling, 
operating or placing an illegal terminal for use in this State; and 
D .. Placing for public use or operatirig an unlicensed video gaming terminal in this 
State. 
3. Class D crimes by any person. A person who violates any provision of this 
. chapter or any rule adopted under this chapter for which a specific penalty is not provided 
commits a Class D crime. 
§395~ Seizure and forfeiture of illegal gaming machines 
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1. Forfeiture. An illegal gaming machine, including any monetary. contents, is 
subject to forfeiture to the State. 
2. Court jurisdiction. An illegal gaming machine and any monetary contents may. 
be declared· forfeited by any court that has jurisdiction over the illegal machine or final 
jurisdiction over any related criminal proceeding brought under this chapter or by the 
Superior Court for Kermebec County. Property subj ect to· forfeiture may be kept or 
stored at any location within the territorial boundaries of the State and is subject to the 
authority of any court in whic~ a petition seeking the forfeiture of that property is filed. 
3. Procedure. Forfeitures under this section must be accomplished by the following· 
procedure. 
A. A district attorney or the Attorney General may petition the Superior Court in the 
name of'the State in the nature of a proceeding in rem to order forfeiture of an illegal 
gaming machine and any monetary contents. The petition must be filed in the court 
having jurisdiction over the property. 
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B. The proceeding is an in rem civil action, in which the State has the burden of 
proving all material facts by a preponderance of the evidence. 
C. The court shall order the State to give notice of the pendency of the action and the 
right to be heard by certified or registered mail or hand delivery by a deputy sheriff to 
any person who appears to have an interest in the illegal machine and any monetary 
·contents.' Receipt by a person then licensed to operate a.motor vehicle in the State is -
presumed when notice is mailed to the last known address of that person on file with 
the Department of the Secretary of State, Bureau of Motor Vehicles: 
D. The court shall promptly, but not less than 2 weeks after notice, hold a ilearing on 
the petition under paragraph A after an answer is filed by a person served with notice 
under paragraph C. At the hearing, the court shall hear evidence and make findings 
of fact and enter conclusions of law. 
E. Based on the findings and conclusions, the court shall issue a final order from 
- which the parties have a right of appeal. The final order must provide for disposition 
of the illegal gaming machine and any monetary contents by the State. Any revenue 
generated by the disposition of the illegal machine and any monetary contents of the 
machine must be used to pay the reasonable expenses of the forfeiture proceedings, 
seizure, storage, maintenance of custody, advertising and notice. The balance, if any, 
must be deposited in the General Fund. 
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4. Records. Any law enforcement officer, department or agency having custody of 
an illegal gaming machine or any monetary contents of an illegal gaming machine, or 
havingdisp6sed of the illegal gaming machine or any monetary contents, shall keep and 
maintain during the pendency of the action full and complete records in accordance with 
this subsection. Upon issuance by the court of a final- order ordering the disposition, 
destruction or return of the illegal -machine or the monetary contents, the officer, 
department or agency shall transmit a copy of those records to the Department of Public 
Safety for inclusion into a centralized record. 
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A. The records must show: 
(1) From whom the illegal machine and any monetary contents were received; 
(2) Under what authority the illegal machine and any monetary contents are held, 
received or disposed of; 
(3) To whom the illegal machine and any monetary contents are delivered; 
(4) The date and manner of destruction or disposition of the illegal machine; and 
(5) The exact kinds, quantities. and forms of illegal gaming machines and the 
exact amount of any monetary contents of any machine held in custody or 
disposed of. 
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The records must be open to inspections by all federal -and state officers 
authorized by the laws of the United States, a state or territory of the United States or 
a foreign nation to investigate or prosecute gambling laws. 
C. The Department of Public Safety shall maintain a centralized record of illegi:1l 
machines seized. At least quarterly, the department shall provide a report of the 
disposition of property previously held by the department to the CQrnmissioner of 
Administrative and Financial Services and the legislative Office of Fiscal and 
Program Review. These records must include anestimate·ofthe fair rriarket value of 
items seized. 
5. Report to court .. Persons making final disposition or destruction of an illegal 
gaming machine or its monetary contents under court order shall report, under oath, to the 
court the exact circumstances of the destruction or disposition. 
.. Seizure.· An illegal "gaming machine together with any monetary contents is 
contraband and may be seized by any law enforcement officer pursuant to subsection 7 or 
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7. Process for seizure. At the request of the State ex parte, the court may issue any 
preliminary order or process necessary to seize or secure the property for which forfeiture 
is sought and provide for its custody. 
A. . Process for seizure of the property may issue only upon a showing of probable 
cause. The application for process for seizure of the property and the issuance, 
execution and return of the process are subj ect to the provisions of applicable state 
law. 
B. Any property subject to forfeiture under this section may be seized upon process. 
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8. Seizure without process. Seizure without process may be made when seizure is 
incident to a legal search or inspection if the law enforcement officer has probable cause 
to believe the property seized is an illegal gaming machine. 
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§396. Criminal forfeiture 
1. ·Forfeiture upon conviction of violation. A person convicted of a violation of 
this chapter forfeits to the State all rights, privileges, interests and claims to property that 
is subject to forfeiture pursuant to section 395. All rights, privileges, interest and title in 
property subject to forfeiture under this section vest in the State upon the commission of 
the act giving rise to forfeiture pursuant to section 395. 
2. Proceeding by indictment. Property subject to forfeiture that is not yet the· 
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subject of a final order pursuant to section 395 may be proceeded against by indictment 
or superseding indictment of a grand jury in any related criminal proceeding in which one 
or more persons with an interest in the property have been simultaneously indicted for 
one or more violations of this chapter. At any. tirne prior to trial, the State; with the 
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consent of the court and any defendant with an interest in the property, may file an 
ancillary charging instrument or information alleging that that property is subject to 
criminal forfeiture. 
Upon commencement of a criminal forfeiture by indictment or 
information of any property that may be the subject of any pending civil action 
commenced pursuant to section 395, the civil action must be ilmnediately stayed and 
subrogated to the criminal forfeiture action. Discovery in the criminal action must be as 
provided by the Maine Rules of Criminal Procedure. 
3. Seizure upon finding of probable cause. Property subject to forfeiture that has 
not already been seized but has been indicted by a grand jury pursuant to this section may 
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also be ordered seized based upon the grand jury's finding of probable cause pursuant to 
section 395. 
4. 
Trial. against property. Trial against property charged by indictment or 
information may be by jury and must be held in a single proceeding together with the trial 
of the related criminal violation. Forfeiture of the property must be proved by the State 
. by a preponderance of the evidence. The court, in its discretion, may allow any defendant 
with an interest in property indicted pursuant to this section to waive the right to trial by 
jury as against the property whik preserving the right to trial by jury of any crime 
- alleged. At trial by jury, the court, upon motion of a defendant or the State, may separate 
the trial of the matter against the defendant from the trial of the matter against the 
property subject to criminal forfeiture. If the court bifurcates the jury trial, the court shall 
first instruct and submit to the jury-the issue of the guilt or innocence of defendants to be 
deterniined by proof beyond a reasonable doubt and shall restrict argument of counsel to 
those issues. After a verdict upon the guilt or innocence of all defendants, the court shall 
instruct and submit to the jury the issue of the forfeiture of the property to be detemiined 
by proof by a preponderance of the evidence and the court shall restrict argument to those 
.issues. A special verdict must be returned as to the extent of the interest in prop~rty 
subject" to forfeiture, if any. 
5. Person interested in forfeited property. A person not charged in the indictment 
may not intervene in the criminal action. Following the entry of a verdict of forfeiture of 
property pursuant to this section or the entry of a guilty plea in open court on the record, 
the State shall provide written notice of its intent to dispose of the property to any person 
known to have alleged an interest in the property. The notice may be by certified, return . 
receipt mail or as otherwise ordered by the court. Receipt by a person then licensed to 
operate a motor vehicle in the State is presumed when notice is mailed to the last known 
address of that person on file with the Department of the Secretary of State, Bureau of 
Motor Vehicles. A person other than the defendant asserting a legal interest in the 
property within 30 days of the date of receipt of the notice may petition the court for a 
hearing to adjudicate the validity of any alleged interest in the property. The hearing 
must be held before theeourt without jury. The request for the hearing must be signed by 
the petitioner under penalty of perjury and must state the nature and extent of the 
petitioner's right, title or interest in the property, the time and circumstances of the 
petitioner's acquisition of the right, title or. interest in the property, any additional facts 
supporting the petitioner's claim and the relief sought. Upon the filing of any petition for 
hearing, the court shall schedule the hearing as soon· as practicable, but in no event later 
than 6 months after the petition is filed or after the sentencing of any defendant convicted 
upon the same indictment. The court shall issue or amend a final order of forfeiture in 
accordance with its determination if, after the hearing, the court determines that the 
petitioner has established by a preponderance of the evidence that: 
A. The petitioner has a legal right, title or interest in the property and the right, title 
or interest renders the order of forfeiture invalid in whole or in part because the right, 
title or interest was vested in the petitioner rather than any defendant or was superior 
to any right, title or interest to the exclusion of any defendant at the time of the 
commission of the acts that gave rise to the forfeiture of the property under this 
section; and 
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B. The petitioner is a bona fide purchaser for value of the right, title or interest in the 
property and was 'at the time of purchase reasonably without cause to believe that the 
property was subject to forfeiture under this section. 
6. Title to property following forfeiture. Following the entry of a verdict of 
forfeiture of property pursuant to this section or the entry of a guilty plea in open court on 
the record, the State has clear title to property that is the subject of the indictment or 
information and order of forfeiture and may order all or a portion of the property forfeited 
to the State to be disposed of pursuant to 'section 395. 
§397. Payment to Attorney General 
As provided in Title 5,' section 203, the Bureau of the State Police shall pay the 
Attorney General from the Video Gaming Fund for legal services provided pursuant to 
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this chapter. 
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§398. Implementation 
A video gaming terminal may not be operated under this chapter before April 1, 
2010. 
§399. Rules 
Rules adopted pursuant to this chapter are routine technical rules pursuant to Title 5, 
chapter 375, subchapter 2-A. 
Sec. 9. 22 MRSA c. 276 is enacted to read: 
CHAPTER 276 
-COMPULSIVE GAMBLER REHABILITATION 
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§1700-B. Compulsive Gambler Rehabilitation Fund 
1. ,Creation of fund. The Compulsive Gambler Rehabilitation Fund, referred to in 
this section as "the fund," is established as a nonlapsing fund to provide rehabilitation 
services to persons who are compulsive gamblers arid are determined to be eligible 
according to rules adopted by the department under subsection 2. 
2; Administration. The department shall administer the fund and shall adopt rules 
as necessary to administer the fund and to determine the criteria for eligible recipients. 
Rules adopted pursuant to this' subsection are routine technical rules as defined in Title 5, 
chapter 375, subchapter 2-A. 
313. Funds. In addition to funds deposited pursuant to Title 17, section 383, the fund 
may receive money from any source, including grants, gifts, bequests and donations. 
Sec. 10. 28-A MRSA §807 is enacted to read: 
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§807. Notice to Chief of State Police 
The commission shall notify the Chief of the State Police of the suspension or 
revocation of any license under this chapter. The commission shall also notify the Chief 
of the State Police of any investigation of a violation of any provision of this Title. 
Sec. 11. 28-A ~RSA §1054, sub-§11, 'ire is enacted to read: 
C. A municipality may not combine a permit to operate a video gaming terminal, as 
defined in Title 17, section 36l, with any other pel111it. The fee for a permit to 
operate a video gaming tel111inal may not be higher than the fee for any other special 
entertairunent pennit issued by the municipality. 
Sec. 12. 30-A MRS A §5686 is enacted to read: 
§5686. Public Education Fund 
ill order to aid in financing education services, the Public Education Fund is 
established. 
Money in the' Public Education, Fund must be distributed to each 
municipality in proportion to the product of the population of the municipality multiplied 
by the property tax burden of the municipality as defined in section 5681. 
SUMMARY 
This bill allows operation of video gaming terminals by nonprofit organizations that 
are eligible for games of chance licenses and that are exempt from federal tax under 
Intel11al Revenue Code, Section 501(c)(3), 501(c)(4), 501(c)(8), 501(c)(lO) or 501(c)(l9). 
These sections of the tax code refer to charitable organizations, civic leagues, fratel11al , 
benefit societies, domestic fratel11al societies and associations and veterans' organizations. 
Organizations that currently have licenses for electronic video machines but do not 
qualify under one of those code sections may apply for an initial license while they seek 
the required federal tax status. The organization applying for the license must own or . 
lease the premises on which the tenninals will be placed and must use the premises for its 
charitable or nonprofit purpose. 
Video gaming terminal manufacturers, wholesalers and operators must be licensed by 
the Chief of the State J>olice, following background investigations of the applicants and 
their major business partners. Local approval is required for a lic,ense to operate video 
gaming terminals. 
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The license specifies the nuinber of terminals allowed on the premises, and the 
maximum number of terminals allowed is 5 per licensee. Terminals must be licensed by 
the Chief of the State Police and mustbe connected to a computer system operated by the 
Director of the Bureau of Alcoholic' Beverages and Lottery Operations within the 
Department of Administrative and Financial Services. By the end of a 5-year phase-in 
period, this computer system.must provide continuous online monitoring of video gaming 
, terminal activity. Persons under 21 years of age are not allowed to use the machines. 
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. 
Netterminal income, which is income after payback to players, is divided as follows: 
8% to the State for payment into the Video Gaming Fund for administrative expenses, 
municipal revenue sharmg and Pubiic Education Fund revenue; 2% to the Compulsive 
Gambler Rehabilitation Fund; and 90% to the licensee. 
Licenses are issued for one year. Applicants for an initial license must pay the actual 
costs of processing the application and performing the background investigation. 
PageZ3 - 124LRIS89(OI)-1 
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