The Missouri Senate Committee on Appropriations recently heard testimony about state Senator Denny Hoskins’ Senate Bill 566, designed to combat the proliferation of illegal video gambling machines around the state, and to plug falling casino revenue.
The bill would authorize video lottery game terminals in fraternal and veterans’ organizations, truck stops and retail locations with liquor licenses, and establish regulations for legalized video gambling. The terminals, connected to a centralized computer system run by the Missouri Lottery Commission, would be located in a separate, supervised area accessible only to people age 21 or older.
Hoskins said his bill would not automatically legalize existing machines, although some of those potentially could be brought into compliance with the law. Businesses that have the video gambling machines that violate the new regulations could be fined up to $10,000 and lose their license.
Existing video gambling machines currently operate in a gray area—neither legal nor illegal. Some senators at the hearing said they consider the machines illegal, while others simply expressed opposition. State Senator Sen. John Rizzo said he saw several machines at a gas station and was concerned they were located in the open. “I don’t want a kid to walk in a gas station to get a Gatorade and have to walk past three or four of these machines,” he said.
A business owner testified he was at a competitive disadvantage because he wasn’t sure if the terminals were legal but decided not to offer them. One restaurant owner said delivery services and home-based entertainment were causing his business to suffer and video lottery terminals could bring in additional revenue and attract customers. Other Missouri business owners emphasized revenue from video lottery terminals could compensate for the decline in casino revenue over the past few years.
But Missouri Gaming Association Director Mike Winter argued projections for video gambling revenue do not consider the revenue loss from casinos that the gaming machines could cause.
The committee also heard two sports betting bills–SB 754, sponsored by state Senator Tony Luetkemeyer and SB 567, sponsored by Hoskins—that would legalize sports online or on-site sports wagering.
Hoskins’ bill would legalize parlay bets which allow one bet on multiple outcomes. His bill also would tax sports gambling at a rate of 9 percent compared to Luetkemeyer’s 6.25 percent. Hoskins said his bill could produce $115 million in revenue, while Luetkemeyer’s is estimated to generate $13 million.
Winter criticized a provision in both bills mandating sports leagues to provide data used to determine results. Winter said he’s concerned the leagues could charge unreasonable prices for that data.
