Missouri lawmakers and regulators have long been grappling with the question of how to oversee the 14,000-plus slot-style games in operation throughout the state. They may be closer to a consensus following the September 22 ruling by a circuit court judge in Platte County that Kansas-based Integrity Vending LLC promoted illegal gambling in the first degree, a class E felony. The ruling was declared “not final at this time” since Integrity could appeal after sentencing on November 23. The company could be fined $10,000 fine.
The games can be found at gas stations and bars. Because they’re not regulated, consumers are not protected from low payouts; additionally, no revenue goes toward public education or problem gambling services.
Senate Budget Chairman Dan Hegeman included $150,000 in this year’s budget to investigate the games. The money was earmarked for the attorney general’s office, which enforces consumer protection laws. Governor Mike Parson withheld the money this summer due to downward budget projections. However, revenue forecasts were raised and Parson’s administration released the funds in October.
Still, Attorney General Eric Schmitt is not in any hurry to spend the money. His spokesman Chris Nuelle said, “We’re currently reviewing the decision in Platte County and, as there are likely to be appeals, we’re watching the case as it moves through the court system to determine the best path forward and potential next steps.”
Hegeman said, given the Platte County decision, he believes the state Department of Public Safety, which includes the Highway Patrol and Division of Alcohol and Tobacco Control, should start cracking down on operators of the illegal games. “I’m pleased with the court’s ruling. The next step in my mind would be DPS, the Highway Patrol and Liquor Patrol enforcing the law and removing these illegal machines,” he said.
As of October 6, the Missouri Highway Patrol forwarded 72 probable cause affidavits to local prosecutors for illegal gambling charges. However, most prosecutors have been reluctant to file charges–at least before the Platte County ruling.
One company that’s not worried about being convicted of felony gambling is Torch Electronics, based in Wildwood. Gregg Keller, a Missouri Republican operative and Torch spokesman said the company’s machines are not the same as Integrity Vending’s. He explained, “Torch games are proprietary and modulated differently such that they’re critically different from those in the Platte County case.” He noted a charge of illegal gambling brought by the Linn County Prosecutor was dismissed this summer due to lack of probable cause.
State Auditor Nicole Galloway, who lost her bid to unseat Governor Mike Parson, has criticized his administration for withholding the gambling funds over the summer. She also noted Torch contributed $20,000 to Parson’s re-election campaign.
Galloway also responded to state Rep. Justin Hill’s photo of slot-style games at a St. Peters gas station and his comment, “A new casino just opened up in St. Peters. What are you all doing?” She said, “The Missouri Gaming Commission would love to do something about it. But lobbyists killed the bill to outlaw the machines and Mike Parson cut the investigative unit to look into the games after those same lobbyists donated to his campaign.”
Earlier this year Senate President Pro Tem Dave Schatz, Senate Budget Chairman Dan Hegeman and state Senator Mike Cunningham unsuccessfully sponsored a bill outlawing the games. “Our legislation took the ambiguity out of whether or not these things are legal or not. It enhanced the penalties by potentially removing their liquor licenses, losing their lottery license or the ability to participate in a future expansion if they are found to be breaking the law,” Schatz said. He wants the state Department of Public Safety to start pulling liquor licenses from noncompliant gas stations and bars, signaling an escalation in the state’s efforts to regulate the games.
