HB 999 — Regulation of Video Gaming Terminals.

(17) To establish dispute resolution policies for all licensees under Articles 9, 10, and 11 of this Chapter, which shall be exhausted prior to anyanyclaim claim being filed in the courts.

(a) A prohibited giver shall not pay, give, or make any economic opportunity, gift, loan, gratuity, special discount, favor, hospitality, or service, including food and beverages, having an aggregatevaluenot exceedingexceedingonehundreddollars onehundreddollars($100.00)in($100.00)in anycalendar year to theDirector, to any member or employee of the Commission or any member of the immediate family residing in the same household as one of these individuals.

Page 12 DRH40330-BAxfa-10House Bill 999-First Edition General Assembly Of North Carolina Session 2025 (b) The Director, any member or employee of the Commission, or any member of the immediate family residing in the same household as one of these individuals shall not accept the offer of any economic opportunity, gift, loan, gratuity, special discount, favor, hospitality, or service, including food and beverages having an aggregate value not exceeding one hundred dollars ($100.00) in any calendar year from a prohibited giver.

AvideogamingAvideogamingterminal terminalwithoutwithout avalidvideogamingavalidvideogamingterminal terminal permit under Article 11 of Chapter 18C of the General Statutes.

Upon payment ofthetax,theoperatorshallofthetax, theoperatorshall permanentlyaffix thetheappropriatestamps appropriatestamps to theunauthorized gaming machine.

DRH40330-BAxfa-10House Bill 999-First Edition Page 13 General Assembly Of North Carolina Session 2025 (a) Revenue Stamps.

The Secretary shall assess a tax, applicable penalties, andinterestbasedonpersonalknowledgeorinformationavailabletotheSecretary.TheSecretary shall notifynotifythe the operator in writing of the amount of the tax, penalty, and interest due and demand its immediate payment.

105-242, including causing execution to be issued immediately against the personal property of the operator, unless the operator files with the SecretarySecretarya a bond in the amount of the asserted liability for the tax, penalty, and interest.

The Secretary shall use all means available to collect the tax, penalty, and interest from anyanypropertyin property in which the operator has a legal, equitable, or beneficial interest.

(a) Information obtained by the Department in the course of administering the tax imposed by this Article, including information on whether the Department has issued a revenue stamp to aperson,isconfidential taxinformation andis subjectto theprovisions ofofG.S. G.S.

(b) Information obtained by the Department from the taxpayer in the course of administering the tax imposed by this Article, including information on whether the Department has issued a revenue stamp to a person, maymaynot not be used as evidence, as defined in G.S.

An officer, Page 14 DRH40330-BAxfa-10House Bill 999-First Edition General Assembly Of North Carolina Session 2025 employee, or agent of the Department who provides evidence or testifies in violation of this subsection is guilty of a Class 1 misdemeanor.

The SecretarySecretaryshall shall credit the proceeds of the tax levied bybythis this Article to the Account.

– The Secretary shall distribute unencumbered tax proceeds in the Unauthorized GamingGamingMachine Machine Tax Account on a quarterlyormore frequent basis.Tax proceeds in the Account are unencumbered when they are collectible under G.S.

If more than one State or local law enforcement agency conducted the investigation, the Secretary shall determine the equitable share for each agencyagencybased based on the contribution each agency made to the investigation.

– Funds provided to State and local law enforcement agencies pursuant to this section shall be used for expenses incurred by the agency for enforcing the laws of this State and carrying out other duties set bybylaw. law.

14-306.3(b), or anyanyelectronic electronic machine or device using an entertaining display in violation of G.S.

AnyAnylaw law enforcement agency in possession of that item shall retain theitem pending adisposition orderfroma district or superiorcourtjudge.Upon application by the law enforcement agency, district attorney, or owner, and after notice and opportunityopportunityto to be heard by all parties, if the court determines that the item is unlawful to possess, it shall enter an order releasing the item to the law enforcement agency for destruction or for DRH40330-BAxfa-10House Bill 999-First Edition Page 15 General Assembly Of North Carolina Session 2025 training purposes.

14-291.1 or (ii) used to transport any video gamemachine prohibited bybyG.S. G.S.

14-306.1A,orany14-306.1A,oranyelectronicmachineor electronicmachineor device prohibited by G.S.

14-296 through 14-309, if it is one that is adapted, or may be readily converted into one that is adapted, for use in such a way that, as a result of the payment of any piece of money or coin or token or any credit card, debit card, prepaid card, or any other method that requires payment to activate play, whether directly into the slot machine or device or resulting in remote activation, such machine or device is caused to operate or may be operated in such manner that the user maymayreceive receive or become entitled to receive anyanypiece piece of money, credit, allowance or thing of value, or anyanycheck, check, slug, token or memorandum, whether of value or otherwise, or which may be exchanged for any money, credit, allowance or any thing of value, or which may be given in trade, or the user may secure additional chances or rights to use such machine, apparatus or device;

This definition is intended to embrace all slot machines and similar devices except slot machines in which is kept any article to be purchased by depositing any coin or thing of value, and for which may be had any article of merchandise which makes the same return or returns of equal value each and every time it is operated, or any machine wherein may be seen any pictures orheardanyorheardanymusic musicbydepositingtherein by depositing therein anycoin orthingofvalue, or anyanyslot slotweighingmachine weighing machine or any machine for making stencils by the use of contrivances operated by depositing in the machine any coin or thing of value, or anyanylock lock operated by slot wherein money or thing of value is to be deposited, where such slot machines make the same return or returns of equal value each and every time the same is operated and does not at any time it is operated offer the user or Page 16 DRH40330-BAxfa-10House Bill 999-First Edition General Assembly Of North Carolina Session 2025 operator any additional money, credit, allowance, or thing of value, or check, slug, token or memorandum, whether of value or otherwise, which may be exchanged for money, credit, allowance or thing of value or which may be given in trade or by which the user may secure additional chances or rights to use such machine, apparatus, or device, or in the playing of which the operator does not have a chance to make varying scores or tallies.

The portion of net machine revenues allocated to the Commission in subdivisions (1) and (2) of this section shall be transferred before any other allocations are made from the net machine revenues and deposited into an account as directed bybythe the Commission.

One million dollars ($1,000,000) annuallyannuallyto to the Department of Public Safety for grants to counties for sheriffs and municipal police departments to combat illegal gaming, to be awarded upon recommendation by the Governor's Crime Commission.

DRH40330-BAxfa-10House Bill 999-First Edition Page 17 General Assembly Of North Carolina Session 2025 e1.

SECTION 11.(a) The North Carolina State LotteryLotteryCommission Commission shall identifyidentifya a date uponwhichvideogamingterminalplayisauthorizedinthisStateandshalluponwhichvideo gamingterminalplayis authorizedinthisStateandshall doallofthefollowing at least 90 days in advance of that date:

The Commission may accept and issue applications for licensure in accordance with Article 11 of Chapter 18C of the General Statutes, as enacted by this act, prior to the date published in the North Carolina Registry of the date identified by the North Carolina Lottery Commission under this section, in order that licensees maymaybegin begin operations on that date;

The Lottery Commission may initiate requests for proposals for the central monitoring system, as required bybyG.S. G.S.

18C-1132, as enacted bybythis this act, prior to December 1, 2025, but may not award any contract prior to that date.

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