North Carolina HB 999: Regulation of Video Gaming Terminals.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 999

Short Title: Regulation of Video Gaming Terminals. (Public)
Sponsors: Representatives Warren and Loftis (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Rules, Calendar, and Operations of the House
April 14, 2025
*H999-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO AUTHORIZE REGULATED PLAY OF VIDEO GAMING TERMINALS IN 2
THIS STATE. 3
The General Assembly of North Carolina enacts: 4
SECTION 1. Chapter 18C of the General Statutes is amended by adding a new 5
Article to read: 6
"Article 11. 7
"Video Gaming Terminals. 8
"Part 1. General Provisions. 9
"§ 18C-1100. Definitions. 10
In addition to the definitions in Article 1 of this Chapter, the following definitions apply in 11
this Article: 12
(1) Associated equipment. – Any hardware that is connected to the video gaming 13
terminal or to the central monitoring system for the purpose of 14
communication, validation, play, or other functions of the video gaming 15
terminal. 16
(2) Central monitoring system. – The system that maintains on a real-time basis 17
the financial, integrity, and security controls on video gaming terminals and 18
associated equipment and provides administrative services for its operation. 19
(3) Independent testing laboratory. – A nationally recognized testing laboratory 20
that is not otherwise subject to control by others and is approved by the 21
Commission for use in testing whether a video gaming game or video gaming 22
terminal complies with the standards set forth in this Article. 23
(4) Local law enforcement. – A municipal police department, a county police 24
department, or a sheriff's office. 25
(5) Manufacturer. – A person licensed by the Commission who manufactures, 26
assembles, services, or produces video gaming terminals or associated 27
equipment. 28
(6) Net machine revenue. – Gross revenue minus prizes actually paid per 29
machine. For purposes of this subdivision, prizes do not include a player 30
reward system, player tracking system, marketing, or promotional prizes or 31
credits. Unclaimed prizes shall not be included in the calculation of net 32
machine revenue unless redeemed by the player. 33

General Assembly Of North Carolina Session 2025
Page 2 House Bill 999-First Edition
(7) Off-premises ABC permit. – An off-premises malt beverage permit, or 1
off-premises unfortified or fortified wine permit issued pursuant to Chapter 2
18B of the General Statutes. 3
(8) On-premises ABC permit. – An on-premises malt beverage permit, 4
on-premises unfortified or fortified wine permit, or mixed beverages permit 5
issued pursuant to Chapter 18B of the General Statutes. 6
(9) Operator. – A person licensed by the Commission who owns, leases, or 7
otherwise controls a video gaming terminal for which a video gaming terminal 8
permit has been issued by the Commission. 9
(10) Video gaming games. – Electronically simulated games of chance approved 10
by the Commission that are displayed and played on permitted video gaming 11
terminals. 12
(11) Video gaming merchant. – A person that meets all of the following criteria: 13
a. Is not primarily engaged in the business of offering video gaming 14
terminals. 15
b. Holds a valid on-premises or an off-premises ABC permit issued by 16
the Alcohol Beverage Commission, or a certificate of authority issued 17
by the Commission under Article 5 of this Chapter for areas that have 18
not approved the issuance of permits under Chapter 18B of the General 19
Statutes. 20
c. Is licensed by the Commission under this Article. 21
d. With whom an operator has contracted to do the following: 22
1. Provide video gaming terminals for the placing of wagers and 23
payment of winnings in accordance with this Article. 24
2. Pay cash prizes for video gaming games in accordance with 25
this Article. 26
(12) Video gaming terminal. – A device operated under the authority of the 27
Commission that shall be exempt under G.S. 14-306.1A and is any electronic 28
computerized video game machine that, upon the insertion of cash or a lottery 29
share, is available to play a video gaming game authorized by the Commission 30
and which uses a video display and microprocessors in which, by chance, the 31
player may receive free games or credits that can be redeemed for cash. The 32
term does not include a device that directly dispenses coins, cash, or tokens. 33
(13) Video gaming terminal permit. – A permanently affixed tag or other device 34
issued to a licensed operator for each video gaming terminal approved by and 35
registered with the Commission. 36
(14) Wager. – A sum of cash, or a redeemable share, risked on an uncertain 37
occurrence on any video gaming game. 38
"§ 18C-1101. Reserved for future codification purposes. 39
"§ 18C-1102. Video gaming. 40
(a) The Commission shall determine that video gaming games are a type of lottery game 41
in this State and shall license operators and video gam