"Veterans' Assistance Lottery"; establish under Mississippi Lottery Corporation.

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To: Gaming; Appropriations
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Tate

SENATE BILL NO. 2670

AN ACT TO CODIFY SECTION 27-115-8, MISSISSIPPI CODE OF 1972, 1
TO CREATE A "VETERANS' ASSISTANCE LOTTERY" TO BE ADMINISTERED BY 2
THE MISSISSIPPI LOTTERY CORPORATION; TO PRESCRIBE THE DUTIES AND 3
RESPONSIBILITIES OF THE CORPORATION TO MARKET AND ADVERTISE THE 4
VETERANS' LOTTERY TO ENSURE THAT THE GAME REMAINS COMPETITIVE; TO 5
PROVIDE FOR SALES AGENTS; TO CREATE THE FUND FOR VETERANS' 6
ASSISTANCE AS A SPECIAL FUND IN THE STATE TREASURY WHICH SHALL 7
RECEIVE PROCEEDS FROM THE VETERANS' LOTTERY WHICH SHALL BE 8
APPROPRIATED TO THE MISSISSIPPI VETERANS' AFFAIRS BOARD FOR THE 9
SUPPORT OF VETERANS' PROGRAMS IN MISSISSIPPI; TO AMEND SECTION 10
27-115-51, MISSISSIPPI CODE OF 1972, TO PROVIDE FOR THE DEPOSIT OF 11
MONIES RECEIVED FROM THE SALE OF VETERANS' LOTTERY TICKETS INTO 12
THE FUND FOR VETERANS' ASSISTANCE; TO AMEND SECTIONS 27-115-5, 13
27-115-17 AND 27-115-21, MISSISSIPPI CODE OF 1972, IN CONFORMITY; 14
AND FOR RELATED PURPOSES. 15
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 16
SECTION 1. The following shall be codified as Section 17
27-115-8, Mississippi Code of 1972: 18
27-115-8. (1) The Mississippi Lottery Corporation created 19
under Section 27-115-7 shall have the following additional powers 20
and duties: The corporation shall operate an instant-ticket 21
lottery game called the "Veterans' Assistance Lottery" to benefit 22
the Fund for Veterans' Assistance established by Section 23
27-115-51. 24
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under Mississippi Lottery Corporation.
(2) The corporation shall: 25
(a) Determine the ticket price, payout amounts, and 26
manner in which the game is conducted; 27
(b) Make tickets to the game available for sale 28
continuously to the extent practicable; and 29
(c) Change the design or theme of the game regularly to 30
ensure that the game remains competitive with other instant-ticket 31
lottery games offered by the commission. 32
(3) The corporation shall market and advertise the lottery 33
game operated under this section in a manner intended to inform 34
the public that the game tickets are available for purchase and 35
that the game proceeds are used to fund veterans programs in this 36
state. The game tickets must clearly state that the game proceeds 37
are used to benefit the veterans in this state. The Mississippi 38
Veterans' Affairs Board may make recommendations to the 39
Mississippi Lottery Corporation relating to the marketing and 40
advertising of the game. 41
(4) The corporation shall encourage each sales agent that 42
sells tickets to instant-ticket games or similar types of lottery 43
games to sell tickets to the game operated under this section. 44
(5) No organization that would otherwise be eligible to 45
receive funds from the state lottery account attributable to any 46
lottery game authorized by this section may receive any such funds 47
if it conducts illegal gambling or the illegal operation of 48
gambling devices as defined by Mississippi law or allows illegal 49
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gambling or the illegal operation of gambling devices to be 50
conducted on its property or in its facilities. 51
SECTION 2. Section 27-115-5, Mississippi Code of 1972, is 52
amended as follows: 53
27-115-5. As used in this chapter, the following words and 54
phrases shall have the following meanings unless the context 55
clearly requires otherwise: 56
(a) "Corporation" means the Mississippi Lottery 57
Corporation. 58
(b) "Lottery" means any game of chance approved by the 59
corporation and operated pursuant to this chapter, which utilizes 60
the sale of paper tickets for various intrastate and multistate or 61
multisovereign lottery games (such as Pick-3, Pick-4, Mega 62
Millions, Powerball), and "instant tickets" as defined, but 63
specifically excluding any form of "video lottery" or use of 64
"video lottery terminal" as defined. 65
(c) "Major procurement" means any item, product or 66
service in the amount of One Million Dollars ($1,000,000.00) or 67
more, including, but not limited to, major advertising contracts, 68
annuity contracts, prizes, products, and services unique to the 69
Mississippi lottery. 70
(d) "Net proceeds" means gross lottery revenues minus 71
amounts paid as prizes and expenses of operation of the lottery. 72
(e) "Person" means any individual, corporation, 73
partnership, unincorporated association or other legal entity. 74
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(f) "President" means the President of the Mississippi 75
Lottery Corporation, who shall also serve as chief executive 76
officer of the corporation. 77
(g) "Retailer" means any person with whom the 78
corporation has contracted to sell lottery tickets to the public. 79
(h) "Security" means the protection of information that 80
would provide an unfair advantage to any individual involved in 81
the operation of the lottery, protection and preservation of the 82
integrity of lottery games and operations, as well as measures 83
taken to prevent crimes against the corporation and its retailers. 84
(i) "Vendor" means any person who has entered into a 85
contract with the corporation. 86
(j) "Fiscal year" means the fiscal year used by the 87
State of Mississippi government. 88
(k) "Board" means the Mississippi Lottery Corporation 89
Board of Directors. 90
(l) "Instant ticket" means a lottery game in which a 91
player scratches a coating from one or more play areas on a ticket 92
to determine if he or she has won, as indicated by the symbols and 93
words that are revealed. 94
(m) "Video lottery" and "video lottery terminal" means 95
any electronic interactive computerized game machine or device 96
equipped with a video screen and buttons, keys, a keyboard, 97
touchscreen or other input device allowing input by an individual 98
player and into which the player inserts coins, tokens, currency 99
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or other representation of value (including, but not limited to, 100
an electronic card, ticket or other thing on which value is 101
recorded electronically) as consideration in order for play of a 102
game to be available, and through which, as a result of the play 103
of a game, the player may receive free games, credits redeemable 104
for cash or a noncash prize, or some other thing of value, whether 105
or not received directly from the device, or nothing, determined 106
wholly or predominantly by chance. 107
(n) "Mississippi Veterans' Assistance Lottery" means 108
any game of chance operated by the corporation under the 109
provisions of Section 27-115-8, Mississippi Code of 1972, which 110
utilizes the sale of paper tickets for various intrastate or 111
multistate lottery games (such as Pick-3, Pick-4, Mega Millions, 112
Powerball), and "instant tickets" as defined, but specifically 113
excluding any form of "video lottery" or use of "video lottery 114
terminal" as defined, for the benefit of the Fund for Veterans 115
Assistance established under Section 27-115-51. 116
SECTION 3. Section 27-115-17, Mississippi Code of 1972, is 117
amended as follows: 118
27-115-17. (1) The board shall not authorize, conduct or 119
administer lottery games involving the use of a "video lottery 120
terminal" as defined or any mobile or internet-based or 121
monitor-based interactive game, or any simulated casino-style 122
game, including video poker, video roulette, slot machines or 123
video blackjack, or any variant of these prohibited games. 124
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ST: "Veterans' Assistance Lottery"; establish
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(2) The board may adopt administrative rules and regulations 125
for the conduct of specific lottery games and operations, 126
including, but not limited to, administrative rules and 127
regulations specifying: 128
(a) The types of lottery games to be conducted which 129
utilize the sale of paper tickets for various intrastate and 130
multistate or multisovereign lottery games (such as Pick-3, 131
Pick-4, Mega Millions, Powerball) and "instant tickets" as 132
defined. 133
(b) The sale price of tickets. 134
(c) The number and amount of prizes. 135
(d) The methods to be used in selling tickets for 136
lottery games; provided, however, the corporation shall not permit 137
any lottery game to be played or ticket to be purchased, sold or 138
played by any method involving (i) a video lottery terminal or 139
(ii) by any personal computer, tablet, smartphone, mobile device 140
or other similar equipment or type of device. 141
(e) The methods and location of selecting or validating 142
winning tickets. 143
(f) The frequency and the means of conducting drawings 144
which shall be open to the public. 145
(g) The manner of payment of prizes. 146
(h) The frequency of games and drawings. 147
(i) The manner and amount of compensation to lottery 148
retailers, except all compensation shall be uniform. 149
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(j) Any other matters necessary to carry out this 150
chapter and necessary for the efficient and effective operation of 151
the lottery or for the convenience of the public. 152
(k) Rules and regulations for the conduct of the 153
Mississippi Veterans' Lottery created in Section 27-115-8. 154
(3) In all other matters, the board shall advise and make 155
recommendations. In addition, the board shall: 156
(a) Conduct hearings upon complaints charging 157
violations of this chapter or of administrative rules and 158
regulations adopted by the corporation and shall conduct such 159
other hearings as may be provided by administrative rules and 160
regulations. 161
(b) Periodically, review the performance of the 162
corporation and: 163
(i) Advise the president and make recommendations 164
to him or her regarding operations of the corporation; and 165
(ii) Identify potential improvements in this 166
chapter, the administrative rules and regulations of the 167
corporation, and the management of the corporation. 168
(c) Request from the corporation any information the 169
board determines to be relevant to its duties. 170
(4) Nothing in this chapter shall be construed to govern, 171
affect or limit gaming operations at a licensed gaming facility 172
nor shall this chapter be construed to supersede or preempt the 173
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authority of the Mississippi Gaming Commission as it relates to 174
gaming operations occurring at a licensed gaming facility. 175
(5) Nothing in this chapter shall prohibit a licensed gaming 176
facility under the Mississippi Gaming Commission from applying and 177
operating as a lottery retailer under this chapter. 178
SECTION 4. Section 27-115-21, Mississippi Code of 1972, is 179
amended as follows: 180
27-115-21. (1) The president, as chief executive officer of 181
the corporation, shall direct and supervise all administrative and 182
technical activities in accordance with the provisions of this 183
chapter and within the administrative rules and regulations 184
adopted by the board. The president shall: 185
(a) Supervise and administer the operation of the 186
corporation, the lottery and its games. 187
(b) Employ and direct such personnel as may be 188
necessary to carry out the purposes of this chapter and utilize 189
such services, personnel or facilities of the corporation as he or 190
she may deem necessary. 191
(c) Contract in accordance with the administrative 192
rules and regulations adopted by the corporation with lottery 193
retailers, and contract in accordance with the administrative 194
rules and regulations adopted by the corporation relative to the 195
Mississippi Veterans' Lottery with lottery retailers in accordance 196
with Section 27-115-8. 197
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(d) Make available for inspection by the board or any 198
member of the board, upon request, all books, records, files, and 199
other information and documents of his or her office and to advise 200
the board and recommend such administrative rules and regulations 201
and other matters he or she deems necessary and advisable to 202
improve the operation and administration of the lottery. 203
(e) Subject to the limitations under Section 27-115-69, 204
enter into any contract pursuant to this chapter with any person 205
for the promotion and operation of the lottery or for the 206
performance of any of the functions as provided in this chapter or 207
administrative rules and regulations adopted by the board. 208
(f) Attend meetings of the board or appoint a designee 209
to attend on his or her behalf. 210
(g) Not later than thirty (30) days before the 211
beginning of the corporation's fiscal year, submit the proposed 212
annual budget of the corporation and projected net proceeds to the 213
board for review and approval. In addition, the proposed annual 214
budget of the corporation shall include a personnel table 215
reporting information for each full-time and part-time permanent 216
position, as follows: 217
(i) The position title and the salary for each 218
position in the existing operating budget for the current fiscal 219
year, indicating whether each position is filled or vacant as of 220
the reporting date. 221
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(ii) The position title and the salary recommended 222
for each position for the next fiscal year. 223
(2) The president, with the approval of the board, may amend 224
or modify the budget at any time in any manner deemed necessary 225
for the proper operation of the corporation. 226
(3) Following his or her approval by the Governor and during 227
his or her entire employment by the board, the president shall 228
reside in Mississippi. 229
(4) The president and the board shall conduct an ongoing 230
examination of the operation and administration of lotteries in 231
other states and/or countries, including reviewing available 232
literature on the subject * * * of federal laws and regulations 233
which may affect the operation of the lottery, and of the reaction 234
of citizens of this state to existing or proposed features of 235
lottery games with a view toward implementing improvements that 236
will tend to serve the purposes of this chapter. The president 237
may also establish one or more market or equipment research 238
centers for lottery products and may establish lottery player 239
information centers. 240
(5) The president shall require bond from corporate 241
employees with access to corporate funds or lottery funds in such 242
an amount as provided in the administrative rules and regulations 243
of the board. 244
(6) The president may: 245
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(a) Require bond from other employees as he or she 246
deems necessary. 247
(b) For good cause, suspend, revoke or refuse to renew 248
any contract entered into in accordance with this chapter or the 249
administrative rules and regulations of the board. 250
(c) Upon specific or general approval of the board, 251
conduct hearings and administer oaths to persons for the purpose 252
of assuring the security or integrity of lottery operations, or to 253
determine the qualifications or compliance by vendors and 254
retailers. 255
(d) Upon specific or general approval of the board, 256
enter into personal service contracts pursuant to administrative 257
rules and regulations adopted by the board and compensate such 258
consultants and technical assistants as may be required to carry 259
out the provisions of this chapter. 260
(e) By agreement, secure information and services as he 261
or she may deem necessary from any department, agency or unit of 262
the federal, state or local government, and to the extent allowed 263
by federal or state law, may compensate such department, agency or 264
unit of government for its information and services. 265
(7) Agencies, departments or units of state government shall 266
cooperate with the corporation to assure the integrity of the 267
lottery and the effective operation of the lottery games. 268
SECTION 5. Section 27-115-51, Mississippi Code of 1972, is 269
amended as follows: 270
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27-115-51. (1) (a) All monies received by the corporation 271
from the sale of lottery tickets and all other sources shall be 272
deposited into a corporate operating account. Such account shall 273
be established in a custodian financial institution domiciled in 274
the State of Mississippi and insured by the Federal Deposit 275
Insurance Corporation and collateralized as prescribed by Section 276
27-105-5. The corporation may use all monies in the corporate 277
operating account for the purposes of paying prizes and the 278
necessary expenses of the corporation and dividends to the state. 279
The corporation shall estimate and allocate the amount to be paid 280
by the corporation to prizewinners. 281
(b) (i) The investment of monies in the corporate 282
operating account, other than the amount specifically required for 283
the purchase of securities for payment of deferred prizes, shall 284
be invested in a manner prescribed by the board, consistent with 285
law. Such securities purchased as investments by the corporation 286
shall be issued in the name of the corporation and shall be kept 287
at a custodian financial institution domiciled in the State of 288
Mississippi insured by the Federal Deposit Insurance Corporation. 289
(ii) The investment of monies in the corporate 290
operating account, other than the amount specifically required for 291
the purchase of securities for deferred prize payments to winners, 292
shall be invested only in securities in a manner prescribed by the 293
board, consistent with law. Such securities purchased as 294
investments by the corporation shall be issued in the name of the 295
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corporation and shall be safe kept at a custodian financial 296
institution domiciled in the State of Mississippi insured by the 297
Federal Deposit Insurance Corporation. 298
(iii) These instruments may be in varying 299
maturities and may be in book-entry form. 300
(iv) For the purpose of deferred prize payments to 301
winners, the corporation shall purchase or invest in only those 302
securities prescribed by the board, consistent with law. 303
(c) Within twenty (20) days following the close of each 304
calendar month, the corporation shall transfer to the Lottery 305
Proceeds Fund in the State Treasury the amount of net proceeds. 306
(d) The apportionment of the total gross revenues 307
accruing from the sale of lottery tickets or shares and from all 308
other sources shall be as follows: 309
(i) The payment of prizes to the holders of 310
winning lottery tickets or shares which in any case shall be no 311
less than fifty percent (50%) of the total gross revenues accruing 312
from the sale of lottery tickets. 313
(ii) The payment of costs incurred in the 314
operation and administration of the lottery, including the 315
expenses of the corporation and the costs resulting from any 316
contract or contracts entered into for promotional, advertising or 317
operational services or for the purchase or lease of lottery 318
equipment and materials, which in no case shall exceed fifteen 319
percent (15%) of the total gross revenues accruing from the sale 320
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of lottery tickets. However, this restriction shall not apply 321
until after the first twelve (12) months of revenue generation. 322
(2) A Lottery Proceeds Fund is hereby established in the 323
State Treasury. Net proceeds shall be deposited into this fund as 324
provided in subsection (1) of this section. Monies deposited into 325
the Lottery Proceeds Fund shall be invested by the state in 326
accordance with state investment practices, and all earnings from 327
such investments shall accrue to this account. No monies shall be 328
allotted or expended from this account unless pursuant to a 329
warrant issued as provided under Section 27-115-85. 330
(3) Money transferred to the Fund for Veterans' Assistance 331
created herein from proceeds of the Veterans' Assistance Lottery 332
Game created in Section 27-115-8 shall be used for the payment of 333
prizes under the Veterans' Assistance Lottery and the payment of 334
the costs incurred in the operation and administration of the 335
lottery, and the balance after creation of a reserve sufficient to 336
pay the amounts needed or estimated to be needed under the lottery 337
shall be transferred on or before the fifteenth day of each month 338
to the Veterans' Assistance Fund created herein. The Fund for 339
Veterans' Assistance is a special fund hereby created in the State 340
Treasury, composed of money transferred to the fund from the 341
proceeds of the lottery game operated by the Mississippi Lottery 342
Corporation under the Veterans' Assistance Lottery Game provided 343
for in Section 27-115-8, Mississippi Code of 1972. 344
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SECTION 6. This act shall take effect and be in force from 345
and after July 1, 2026. 346