Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Gaming topic
No spam. Unsubscribe anytime.
Committee debates video lottery terminals, keno and revenue split as new gaming revenues tied to education dollars
Summary
Division 2 included proposals to change how gaming revenues are collected and shared: conversion of historic horse‑racing machines to video lottery terminals (VLTs), a higher tax on VLT revenue earmarked for education and charities, and a proposal to make keno statewide; members debated tax splits, local costs and problem‑gambling funding.
Division 2 discussed changes to state gaming policy as part of the revenue package accompanying education funding changes. The committee covered three related items: shifting historic horse‑racing (HHR) machines to video lottery terminals (VLTs), setting the revenue split between operators and the state, and removing municipal opt‑in for keno so the state could advertise and expand keno statewide.
What division members described: Representative Sweeney and others presented estimates for machine counts and expected gross gaming revenue per‑machine, projecting that VLT machines earn significantly more per day than HHR devices. The package taxes VLT revenue at a higher effective rate and allocates 65% of net VLT tax receipts to education and 35% to partnering charities, while a separate proposal would allow Keno without a municipal opt‑in (intended to grow the game’s statewide revenue and therefore benefit the lottery fund).
Debate and concerns: Lawmakers questioned the proposed operator/state revenue splits. The division discussed models that estimated the combined state and charity proceeds from machine games across the biennium; supporters argued a higher operator share would speed conversion and yield more gross revenue quickly, while opponents argued the state should capture a larger share for educational purposes and pointed to neighboring states’ tax rates. Members also raised concerns about local costs for policing and emergency services if venues operated longer hours, and they asked how much problem‑gambling treatment funding would be included (the package directs a portion of state lottery proceeds to problem‑gambling services).
Local control and municipal impacts: Several committee members objected to removing municipal opt‑in authority for Keno, saying the localities previously agreed to opt‑in as a condition for accepting the game and that removing the opt‑in would take away municipal discretion. Division leaders said the change aimed to increase statewide lottery receipts that feed education funding; opponents urged preserving local choice.
Next steps: The gaming items remained part of the Division 2 package and were forwarded to the full committee. Several members asked for additional fiscal modeling and for clear agreements on local cost offsets and problem‑gambling mitigation before final adoption.
