Authorizing and providing for the director of the state lottery to enter into contracts with certain on-sale alcoholic beverage retailers for the placement and maintenance of video lottery terminals on the premises, specifying certain procedures, restrictions and authorizing inspections without notice; defining or redefining certain terms; providing for the payment of investigation and background check costs relating to owning and operating the terminals and for retention of a certain percentage of net terminal income by lottery retailers as commission, requiring transmission of a portion to the licensed organizations conducting lawful gambling on the premises, restricting the expenditure of money received by licensed organizations from net video lottery terminal income to lawful purposes or authorized allowable expenses; prohibiting local regulation; specifying certain lottery terminal specification requirements, limiting the amount allowed to be played and specifying a maximum prize amount; providing for testing and examination of the terminals; authorizing the director to deactivate the terminals without notice for certain retailer violations; providing for the payment of video lottery credit receipts, requiring retailer payment of unclaimed prizes to the lottery; excluding winnings from tax or debt withholding requirements; requiring display on the terminals of the approximate odds of winning; specifying the win percentage for lottery prize fund deposit purposes; limiting the amount of net terminal income allowed to be spent for operation of the terminals, requiring the director to remit a certain percentage of net terminal income from the lottery operations account to be held in trust by the commissioner of human services in a compulsive gambling trust account to be used after a certain date; prohibiting play by minors; expanding the crime of state lottery fraud to certain credit receipt violations and to tampering with the terminals; exempting the terminals from the definition of gambling device for gambling crimes purposes; exempting gross receipts from operation of the terminals from the lieu sales tax; requiring the lottery director to submit a budget for the operation of video lottery terminals to the commissioner of finance; repealing the pull-tab (pulltab) and tipboard tax, the definition of gambling product, the combined receipts tax, and untaxed gambling product assessments
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