AB144-ASA3,8,1714 2. In calculating the percentage of credits awarded to credits played for an
15amusement device under subd. 1., the department shall reduce the percentage by a
16percentage that produces an amount equal to the amount of any sales or use taxes
17generated from the play of the amusement device.
AB144-ASA3,8,2118 (g) The adjusted gross receipts, less any amount paid as sales or use taxes from
19the play of an amusement device, shall be equally divided between the state, for
20deposit in the lottery fund, and the holder of the license under par. (a) for the
21premises or racetrack at which the amusement device is located.
AB144-ASA3,9,2 22(2) If the department attempts to verify the percentage of credits awarded to
23credits played of an amusement device under sub. (1) (f) and the owner of the
24premises or racetrack at which the amusement device is located fails, or is unable,
25to assist the department, with the result that the department cannot verify the

1percentage of credits awarded to credits played, the department shall do the
2following:
AB144-ASA3,9,53 (a) For the first offense, issue a warning to the owner, and the owner shall
4immediately assist the department in verifying the percentage of credits awarded to
5credits played of the amusement device.
AB144-ASA3,9,76 (b) For the 2nd offense, suspend for 30 days the license issued under sub. (1)
7(a) for that premises or racetrack.
AB144-ASA3,9,98 (c) For the 3rd offense, permanently revoke the license issued under sub. (1)
9(a) for that premises or racetrack.
AB144-ASA3, s. 26 10Section 26. 565.27 (1) (intro.) of the statutes is amended to read:
AB144-ASA3,9,1611 565.27 (1) Game features and procedures. (intro.) Subject to this section, the
12rules promulgated under s. 565.02 (3) (d) and (4) (a) and approval by the secretary
13of revenue, the administrator shall determine the particular features of and
14procedures for each lottery game offered other than games played on amusement
15devices licensed under s. 565.08
. The features and procedures shall be in writing,
16shall be accessible to the public and shall include all of the following:
AB144-ASA3, s. 27 17Section 27. 565.30 (title) of the statutes is amended to read:
AB144-ASA3,9,18 18565.30 (title) Lottery ticket and share prizes.
AB144-ASA3, s. 28 19Section 28. 565.30 (8) of the statutes is created to read:
AB144-ASA3,9,2220 565.30 (8) Applicability. This section applies only to prizes paid to the holder
21of a winning lottery ticket or share and not to prizes paid from an amusement device
22licensed under s. 565.08.
AB144-ASA3, s. 29 23Section 29. 945.01 (1) (dm) of the statutes is created to read:
AB144-ASA3,9,2524 945.01 (1) (dm) Playing an amusement device, as defined in s. 565.01 (1g), that
25is licensed as described in s. 565.08.
AB144-ASA3, s. 30
1Section 30. 945.01 (3) (a) of the statutes is amended to read:
AB144-ASA3,10,52 945.01 (3) (a) A Subject to par. (b), a gambling machine is a contrivance which
3for a consideration affords the player an opportunity to obtain something of value,
4the award of which is determined by chance, even though accompanied by some skill
5and whether or not the prize is automatically paid by the machine.
AB144-ASA3, s. 31 6Section 31. 945.01 (3) (b) 1m. of the statutes is created to read:
AB144-ASA3,10,87 945.01 (3) (b) 1m. An amusement device, as defined in s. 565.01 (1g), that is
8licensed as described in s. 565.08.
AB144-ASA3, s. 32 9Section 32. 945.01 (4) (am) of the statutes is renumbered 945.01 (4) (am)
10(intro.) and amended to read:
AB144-ASA3,10,1211 945.01 (4) (am) (intro.) "Gambling place" does not include a any of the
12following:
AB144-ASA3,10,13 131. A place where bingo or a raffle is conducted under ch. 563,.
AB144-ASA3,10,14 142. A place where a lottery is conducted under ch. 565 or.
AB144-ASA3,10,15 153. A place where a race is conducted under ch. 562 and does not include a.
AB144-ASA3,10,17 164. A gambling vessel that is in the process of construction, delivery, conversion
17or repair by a shipbuilding business that complies with s. 945.095.
AB144-ASA3, s. 33 18Section 33. 945.01 (4) (am) 5. of the statutes is created to read:
AB144-ASA3,10,2019 945.01 (4) (am) 5. A premises on which is located an amusement device, as
20defined in s. 565.01 (1g), that is licensed as described in s. 565.08.
AB144-ASA3, s. 34 21Section 34. 945.01 (5) (am) of the statutes is amended to read:
AB144-ASA3,10,2522 945.01 (5) (am) "Lottery" does not include bingo or a raffle conducted under ch.
23563,; the playing of an amusement device, as defined in s. 565.01 (1g), that is licensed
24as described in s. 565.08;
pari-mutuel wagering conducted under ch. 562; or the state
25lottery or any multijurisdictional lottery conducted under ch. 565.
AB144-ASA3, s. 35
1Section 35. 945.041 (1) of the statutes is amended to read:
AB144-ASA3,11,142 945.041 (1) A license or permit issued under ch. 125 to any person who
3knowingly permits any slot machine, roulette wheel, other similar mechanical
4gambling device, or number jar or other device designed for like form of gambling,
5or any amusement device, as defined in s. 565.01 (1g), that is not licensed as
6described under s. 565.08,
or any horse race betting or other bookmaking as defined
7in s. 945.01, or solicitation of drinks from customers under s. 944.36 to be set up, kept,
8managed, used or conducted upon the licensed premises or in connection therewith
9upon premises controlled directly or indirectly by the person, shall be revoked by the
10circuit courts by a special proceeding as provided in this section. If a license or permit
11has been revoked, no other license or permit of any character provided for by ch. 125
12may be issued to the person who held the license or permit, prior to the expiration
13of one year from the effective date of the revocation. If any appeal is taken from the
14revocation, any period during which the order is stayed shall be added to the one year.
AB144-ASA3, s. 36 15Section 36. 945.041 (2) of the statutes is amended to read:
AB144-ASA3,12,816 945.041 (2) Any sheriff, undersheriff, deputy sheriff, constable or other
17municipal police officer or any person authorized to enforce the gambling laws under
18s. 165.60 shall within 10 days after acquiring such information report to the district
19attorney of the county the name and address of any licensee or permittee under ch.
20125 who to his or her knowledge has knowingly suffered or permitted any gambling
21device in sub. (1), any amusement device, as defined in s. 565.01 (1g), that is not
22licensed as described under s. 565.08,
or any horse race betting to be set up, kept,
23managed, used or conducted upon the licensed premises or in connection therewith
24upon premises controlled directly or indirectly by such licensee or permittee. Such
25officer or person shall also report to the district attorney knowledge of the

1circumstances and the name of the municipality or officer by whom the license or
2permit has been issued. Any other person may in writing and signed by that person
3report any such name, address and other information to the district attorney. Within
410 days after any report the district attorney shall institute a proceeding as
5hereinafter provided before the circuit court of the county or shall within such time
6report to the attorney general the reasons why such a proceeding has not been
7instituted. The attorney general may direct the department of justice or the district
8attorney to institute such proceeding within a reasonable time.
AB144-ASA3, s. 37 9Section 37. 945.041 (3) of the statutes is amended to read:
AB144-ASA3,13,1510 945.041 (3) Such proceeding shall be in the name of the state and the issues
11may be determined by a jury. It shall be instituted by the filing of a petition and
12service of a notice as herein provided. The petition shall be directed to the circuit
13court and shall set forth a clear and concise statement of the grounds that are alleged
14to exist justifying a revocation of the license or permit under sub. (1), and shall
15request an order revoking such license or permit. It shall also request an injunction
16restraining the defendant from thereafter knowingly suffering or permitting any
17such gambling devices, any amusement device, as defined in s. 565.01 (1g), that is
18not licensed as described under s. 565.08,
or any horse race betting to be set up, kept,
19managed, used or conducted upon premises directly or indirectly controlled by the
20defendant. Upon the filing of such petition the court shall fix a time for hearing not
21to exceed 30 days from the date of filing at a place within the judicial circuit, and a
22copy of the petition and a notice of the time and place of hearing shall be served upon
23the defendant not less than 20 days prior to the date of hearing. Such service shall
24be made in the same manner as a summons is served in a civil action, except that it
25may also be made by leaving a copy of said petition and notice with any person

1charged with the operation of the licensed premises under s. 125.68 (2). The
2allegations of the petition shall be deemed controverted and shall be at issue without
3further pleading by the defendant. No hearing shall be adjourned except for cause.
4If upon such hearing the court finds that the allegations of the petition are true, it
5shall issue a written order revoking the license or permit and shall likewise enjoin
6the defendant from thereafter knowingly suffering or permitting any gambling
7devices referred to in sub. (1), any amusement device, as defined in s. 565.01 (1g),
8that is not licensed as described under s. 565.08,
or any horse race betting to be set
9up, kept, managed, used or conducted upon premises directly or indirectly controlled
10by the defendant. The district attorney shall forthwith cause a copy of the order to
11be filed with the issuing authority of the license or permit and shall cause a copy to
12be served upon the defendant as above provided or the defendant's attorney. The
13revocation and injunction shall become effective upon such service. In cases where
14a license is issued by a town, city or village, a copy of the order shall also be filed with
15the department of revenue as provided under s. 125.13.
AB144-ASA3, s. 38 16Section 38. Nonstatutory provisions.
AB144-ASA3,13,1817 (1) Advisory referendum. Section 565.015, 2001 stats., does not apply to the
18action of the legislature in enacting this act.
AB144-ASA3, s. 39 19Section 39. Effective dates. This act takes effect on July 1, 2003, or on the
20day after publication, whichever is later, except as follows:
AB144-ASA3,13,23 21(1) The treatment of section 14.035 (2), (3), (4), and (5) of the statutes and the
22renumbering and amendment of section 14.035 of the statutes take effect on the day
23after publication.
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