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prohibit automatic issuance of video lottery machines to a restaurant operating with a full-service restaurant on-sale license.

Starting July 1, 2024, restaurants with full-service liquor licenses can only get new video lottery machines if their city has unused licenses available—ending the previous automatic right to have them. Restaurants that already operated video lottery machines before that date can keep renewing or transferring their existing licenses, but municipalities cannot exceed their maximum number of total video lottery licenses.

allow a city or county to impose local restrictions and regulations on video lottery.

HB 1217 allows cities and counties to set their own local rules and restrictions on video lottery machines, rather than having only state-level regulations apply. The bill loosens some state requirements by changing language from "shall" (mandatory) to "may" (optional) for certain technical specifications of video lottery machines, giving local governments more flexibility to impose stricter standards if they choose. This shift gives local communities more control over video lottery operations within their jurisdictions.