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HB 999

Regulation of Video Gaming Terminals.

2025-2026 Session Introduced by Alan Branson and 4 co-sponsors

HB 999 creates a regulated framework for video gaming terminals, licensing operators, testing, placement, central monitoring, and allocating 32% of net revenue to the Commission.

Passed 1st Reading
0
WeVote Research Nonpartisan
Bill Summary · HB 999

Summary — HB 999: Regulation of Video Gaming Terminals

Status: Passed first reading; referred to Rules, Calendar, and Operations of the House. Primary sponsors: Representatives Warren and Loftis. (Companion: SB 1318)

Purpose

HB 999 creates a regulatory framework authorizing and governing the regulated operation of video gaming terminals (VGTs) for public play. The bill treats VGT play as a type of lottery "share" and establishes licensing, technical, placement, monitoring, revenue allocation, and enforcement requirements to permit controlled deployment in private businesses.

Key provisions

  • Definitions: Establishes terms (e.g., video gaming terminal, operator, video gaming merchant, manufacturer, central monitoring system, net machine revenue, wager).
  • Legal characterization: Declares video gaming games a type of lottery share for purposes of Chapter 18C and exempts them from G.S. 18C-131(c).
  • Licensing
    • Operators, manufacturers, and video gaming merchants must be licensed by the Commission.
    • Video gaming terminals require an affixed video gaming terminal permit.
    • Independent testing laboratories must be nationally recognized and approved by the Commission for machine/game compliance testing.
  • Machine limits and placement
    • Default allowance: up to 3 VGTs per location; Commission may permit up to 3 additional terminals per location subject to a net machine revenue benchmark and may reduce the number based on performance.
    • VGTs may not be placed on government-owned or controlled property.
    • Each machine must be sited: more than 1,000 feet from churches and schools (with a grandfathering exception if a church/school later locates within 1,000 feet), within the ABC-licensed premises, in plain view of patrons and continuous surveillance.
  • Technical & security requirements
    • VGTs and associated equipment must be connected to a central monitoring system that maintains real‑time financial, integrity, and security controls.
    • Operators may only obtain machines and equipment from Commission‑licensed manufacturers.
  • Operations & payments
    • Wagers are made by cash or redeemable shares; prizes are paid by redeemable shares and redeemed under the operator/merchant contract.
    • Operators must contract with licensed video gaming merchants using Commission‑approved contract forms.
  • Revenue allocation
    • The Commission is charged with establishing monitoring/collection procedures. The bill specifies that 32% of net machine revenue shall be transferred to the Commission (text truncated after this item in the available excerpt).
  • Public safety/oversight
    • Local law enforcement is defined and expected to be involved in enforcement; Commission retains broad administrative authority over licensing, monitoring, and standards.

Who is affected

  • Licensed operators, manufacturers, and merchants (typically businesses holding ABC on‑ or off‑premises permits).
  • The State Commission (responsible for licensing, permitting, monitoring, revenue collection and rulemaking).
  • Independent testing labs and vendors supplying terminals and associated equipment.
  • Patrons and local communities (placement and distance rules, surveillance).
  • Local law enforcement and regulatory agencies tasked with oversight and enforcement.

Fiscal and procedural notes

  • The bill tasks the Commission with establishing procedures for monitoring, collection, and remitting of net machine revenues; at least 32% of net machine revenues are earmarked for the Commission (full allocation schedule beyond that item is not included in the provided excerpt).
  • Next steps: subject to committee review, additional readings, and Commission rulemaking once enacted.

This summary is based on the provided House bill text (first edition). Some sections (notably full revenue distribution details) were truncated in the available materials.

Compiled from official sources — confirm details with the bill’s official record.

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