AB144-AA4,5,2424 (a) An amusement device license may be issued only to the following:
AB144-AA4,6,3
11. A person who has a Class "B" license under ch. 125 on the effective date of
2this subdivision .... [revisor inserts date], or a person to whom such a Class "B" license
3has been transferred under s. 125.04 (12) (b).
AB144-AA4,6,44 2. A person who has a "Class B" license under ch. 125.
AB144-AA4,6,65 3. A person who held a license on January 1, 2003, that was issued under s.
6562.05 (1).
AB144-AA4,6,97 (b) An amusement device that is set up for the purpose of play may be played
8only at a racetrack at which pari-mutuel wagering was conducted on January 1,
92003, or at a premises issued a Class "B" or "Class B" license under ch. 125.
AB144-AA4,6,1110 (c) The owner of the amusement device shall be charged an annual license fee
11of $100 for each amusement device that is set up for the purpose of play.
AB144-AA4,6,1412 (d) 1. No more than 5 amusement devices may be set up for the purpose of play
13at any one premises operated under a Class "B" license or a "Class B" license issued
14under ch. 125.
AB144-AA4,6,1715 2. No more than 5 amusement devices per 1,000 square feet of space may be
16set up for the purpose of play at any racetrack at which pari-mutuel wagering was
17conducted on January 1, 2003, as such space existed on January 1, 2003.
AB144-AA4,6,1918 (e) No one person may manufacture or distribute all of the amusement devices
19that are set up for the purpose of play.
AB144-AA4,6,2420 (f) 1. Except as provided in subd. 2., any amusement device set up for the
21purpose of play shall have a percentage of credits awarded to credits played that is
22not less than the average percentage required under all unexpired Indian gaming
23compacts entered into under s. 14.035. In this subdivision, "average" means the
24arithmetic mean.
AB144-AA4,7,4
12. In calculating the percentage of credits awarded to credits played for an
2amusement device under subd. 1., the department shall reduce the percentage by a
3percentage that produces an amount equal to the amount of any sales or use taxes
4generated from the play of the amusement device.
AB144-AA4,7,85 (g) The adjusted gross receipts, less any amount paid as sales or use taxes from
6the play of an amusement device, shall be equally divided between the state, for
7deposit in the lottery fund, and the holder of the license under par. (a) for the
8premises or racetrack at which the amusement device is located.
AB144-AA4,7,14 9(2) If the department attempts to verify the percentage of credits awarded to
10credits played of an amusement device under sub. (1) (f) and the owner of the
11premises or racetrack at which the amusement device is located fails, or is unable,
12to assist the department, with the result that the department cannot verify the
13percentage of credits awarded to credits played, the department shall do the
14following:
AB144-AA4,7,1715 (a) For the first offense, issue a warning to the owner, and the owner shall
16immediately assist the department in verifying the percentage of credits awarded to
17credits played of the amusement device.
AB144-AA4,7,1918 (b) For the 2nd offense, suspend for 30 days the license issued under sub. (1)
19(a) for that premises or racetrack.
AB144-AA4,7,2120 (c) For the 3rd offense, permanently revoke the license issued under sub. (1)
21(a) for that premises or racetrack.
AB144-AA4, s. 25m 22Section 25m. 565.27 (1) (intro.) of the statutes is amended to read:
AB144-AA4,8,323 565.27 (1) Game features and procedures. (intro.) Subject to this section, the
24rules promulgated under s. 565.02 (3) (d) and (4) (a) and approval by the secretary
25of revenue, the administrator shall determine the particular features of and

1procedures for each lottery game offered other than games played on amusement
2devices licensed under s. 565.08
. The features and procedures shall be in writing,
3shall be accessible to the public and shall include all of the following:
AB144-AA4, s. 26m 4Section 26m. 565.30 (title) of the statutes is amended to read:
AB144-AA4,8,5 5565.30 (title) Lottery ticket and share prizes.
AB144-AA4, s. 27m 6Section 27m. 565.30 (8) of the statutes is created to read:
AB144-AA4,8,97 565.30 (8) Applicability. This section applies only to prizes paid to the holder
8of a winning lottery ticket or share and not to prizes paid from an amusement device
9licensed under s. 565.08.
AB144-AA4, s. 28m 10Section 28m. 945.01 (1) (dm) of the statutes is created to read:
AB144-AA4,8,1211 945.01 (1) (dm) Playing an amusement device, as defined in s. 565.01 (1g), that
12is licensed as described in s. 565.08.
AB144-AA4, s. 29m 13Section 29m. 945.01 (3) (a) of the statutes is amended to read:
AB144-AA4,8,1714 945.01 (3) (a) A Subject to par. (b), a gambling machine is a contrivance which
15for a consideration affords the player an opportunity to obtain something of value,
16the award of which is determined by chance, even though accompanied by some skill
17and whether or not the prize is automatically paid by the machine.
AB144-AA4, s. 30m 18Section 30m. 945.01 (3) (b) 1m. of the statutes is created to read:
AB144-AA4,8,2019 945.01 (3) (b) 1m. An amusement device, as defined in s. 565.01 (1g), that is
20licensed as described in s. 565.08.
AB144-AA4, s. 31m 21Section 31m. 945.01 (4) (am) of the statutes is renumbered 945.01 (4) (am)
22(intro.) and amended to read:
AB144-AA4,8,2423 945.01 (4) (am) (intro.) "Gambling place" does not include a any of the
24following:
AB144-AA4,8,25 251. A place where bingo or a raffle is conducted under ch. 563,.
AB144-AA4,9,1
12. A place where a lottery is conducted under ch. 565 or.
AB144-AA4,9,2 23. A place where a race is conducted under ch. 562 and does not include a.
AB144-AA4,9,4 34. A gambling vessel that is in the process of construction, delivery, conversion
4or repair by a shipbuilding business that complies with s. 945.095.
AB144-AA4, s. 32m 5Section 32m. 945.01 (4) (am) 5. of the statutes is created to read:
AB144-AA4,9,76 945.01 (4) (am) 5. A premises on which is located an amusement device, as
7defined in s. 565.01 (1g), that is licensed as described in s. 565.08.
AB144-AA4, s. 33m 8Section 33m. 945.01 (5) (am) of the statutes is amended to read:
AB144-AA4,9,129 945.01 (5) (am) "Lottery" does not include bingo or a raffle conducted under ch.
10563,; the playing of an amusement device, as defined in s. 565.01 (1g), that is licensed
11as described in s. 565.08;
pari-mutuel wagering conducted under ch. 562; or the state
12lottery or any multijurisdictional lottery conducted under ch. 565.
AB144-AA4, s. 34m 13Section 34m. 945.041 (1) of the statutes is amended to read:
AB144-AA4,9,2414 945.041 (1) A license or permit issued under ch. 125 to any person who
15knowingly permits any slot machine, roulette wheel, other similar mechanical
16gambling device, or number jar or other device designed for like form of gambling,
17or any amusement device, as defined in s. 565.01 (1g), that is not licensed as
18described under s. 565.08,
or any horse race betting or other bookmaking as defined
19in s. 945.01, or solicitation of drinks from customers under s. 944.36 to be set up, kept,
20managed, used or conducted upon the licensed premises or in connection therewith
21upon premises controlled directly or indirectly by the person, shall be revoked by the
22circuit courts by a special proceeding as provided in this section. If a license or permit
23has been revoked, no other license or permit of any character provided for by ch. 125
24may be issued to the person who held the license or permit, prior to the expiration

1of one year from the effective date of the revocation. If any appeal is taken from the
2revocation, any period during which the order is stayed shall be added to the one year.
AB144-AA4, s. 35m 3Section 35m. 945.041 (2) of the statutes is amended to read:
AB144-AA4,10,214 945.041 (2) Any sheriff, undersheriff, deputy sheriff, constable or other
5municipal police officer or any person authorized to enforce the gambling laws under
6s. 165.60 shall within 10 days after acquiring such information report to the district
7attorney of the county the name and address of any licensee or permittee under ch.
8125 who to his or her knowledge has knowingly suffered or permitted any gambling
9device in sub. (1), any amusement device, as defined in s. 565.01 (1g), that is not
10licensed as described under s. 565.08,
or any horse race betting to be set up, kept,
11managed, used or conducted upon the licensed premises or in connection therewith
12upon premises controlled directly or indirectly by such licensee or permittee. Such
13officer or person shall also report to the district attorney knowledge of the
14circumstances and the name of the municipality or officer by whom the license or
15permit has been issued. Any other person may in writing and signed by that person
16report any such name, address and other information to the district attorney. Within
1710 days after any report the district attorney shall institute a proceeding as
18hereinafter provided before the circuit court of the county or shall within such time
19report to the attorney general the reasons why such a proceeding has not been
20instituted. The attorney general may direct the department of justice or the district
21attorney to institute such proceeding within a reasonable time.
AB144-AA4, s. 36m 22Section 36m. 945.041 (3) of the statutes is amended to read:
AB144-AA4,12,323 945.041 (3) Such proceeding shall be in the name of the state and the issues
24may be determined by a jury. It shall be instituted by the filing of a petition and
25service of a notice as herein provided. The petition shall be directed to the circuit

1court and shall set forth a clear and concise statement of the grounds that are alleged
2to exist justifying a revocation of the license or permit under sub. (1), and shall
3request an order revoking such license or permit. It shall also request an injunction
4restraining the defendant from thereafter knowingly suffering or permitting any
5such gambling devices, any amusement device, as defined in s. 565.01 (1g), that is
6not licensed as described under s. 565.08,
or any horse race betting to be set up, kept,
7managed, used or conducted upon premises directly or indirectly controlled by the
8defendant. Upon the filing of such petition the court shall fix a time for hearing not
9to exceed 30 days from the date of filing at a place within the judicial circuit, and a
10copy of the petition and a notice of the time and place of hearing shall be served upon
11the defendant not less than 20 days prior to the date of hearing. Such service shall
12be made in the same manner as a summons is served in a civil action, except that it
13may also be made by leaving a copy of said petition and notice with any person
14charged with the operation of the licensed premises under s. 125.68 (2). The
15allegations of the petition shall be deemed controverted and shall be at issue without
16further pleading by the defendant. No hearing shall be adjourned except for cause.
17If upon such hearing the court finds that the allegations of the petition are true, it
18shall issue a written order revoking the license or permit and shall likewise enjoin
19the defendant from thereafter knowingly suffering or permitting any gambling
20devices referred to in sub. (1), any amusement device, as defined in s. 565.01 (1g),
21that is not licensed as described under s. 565.08,
or any horse race betting to be set
22up, kept, managed, used or conducted upon premises directly or indirectly controlled
23by the defendant. The district attorney shall forthwith cause a copy of the order to
24be filed with the issuing authority of the license or permit and shall cause a copy to
25be served upon the defendant as above provided or the defendant's attorney. The

1revocation and injunction shall become effective upon such service. In cases where
2a license is issued by a town, city or village, a copy of the order shall also be filed with
3the department of revenue as provided under s. 125.13.
AB144-AA4, s. 37m 4Section 37m. Nonstatutory provisions.
AB144-AA4,12,65 (1) Advisory referendum. Section 565.015, 2001 stats., does not apply to the
6action of the legislature in enacting this act.
AB144-AA4, s. 38m 7Section 38m. Effective dates. This act takes effect on July 1, 2003, or on the
8day after publication, whichever is later, except as follows:
AB144-AA4,12,11 9(1) The treatment of section 14.035 (2), (3), and (4) of the statutes and the
10renumbering and amendment of section 14.035 of the statutes take effect on the day
11after publication.".
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