(a) The Lottery Commission may not authorize the placement of more than nine thousand video lottery terminals in restricted access adult-only facilities in this state.

(b) No person may directly or indirectly operate more than seven and one-half percent of the number of video lottery terminals authorized in this section, which may be located only in restricted access adult-only facilities.

(c) No licensed limited video lottery retailer may be authorized to have on the premises for which the license was issued more than seven video lottery terminals except that a fraternal society or veterans’ organization that is: (A) A fraternal beneficiary society that is exempt from federal income tax under section 501(c)(8) of the Internal Revenue Code of 1986, as amended; (B) a domestic fraternal society that is exempt from federal income tax under section 501(c)(10); or (C) a veterans’ organization that is exempt from federal income tax under section 501(c)(19) of the Internal Revenue Code may be authorized to have on the premises for which the license was issued not more than ten video lottery terminals.

(d) Pursuant to the increase of the number of video lottery terminals authorized in subsection c of this section, effective 2017, the commission shall conduct a bidding process no later than September 1, 2017, for permits for additional terminals. Any permits for which a successful bid is made shall expire June 30, 2021. The bidding process is open to current permit holders only and which shall be conducted in accordance with sections one thousand one hundred six, one thousand one hundred seven and one thousand one hundred nine of this article.