In Missouri, legislators are increasingly alarmed at the spread of thousands unregulated, untaxed slot machines throughout the state. Senate President Pro Tem Dave Schatz recently held a legislative committee hearing to consider his Senate Bills 530 and 557, which would ban the machines.
Under Schatz’s measures, a business found guilty of illegal gambling would lose its liquor license, would not be able to sell lottery tickets and would be barred from having a video gambling license if that’s legalized.
Schatz said the machines are cannibalizing revenue from the state’s legal gambling options. He said, “These games, these machines are being touted as legal. Obviously, we think they are wrong.” He said when he sees the games as he enters a gas station, “I feel like I’m walking into a casino. This needs to stop. There needs to be teeth that basically brings this into check.”
Politically connected companies have placed the machines in gas stations, restaurants, truck stops and bars, including more than 50 locations in St. Louis. Among the largest companies is Wildwood-based Torch Electronics. Owned by Steve Miltenberger, Torch has contributed $20,000 to Governor Mike Parson’s election campaign. Former House Speaker Steve Tilley, a friend of Parson, is a lobbyist for Torch.
Torch and other gaming machine companies contend the games are legal, because players can view the outcome of a wager before continuing the game, removing the element of chance which would make the game illegal. However, players do not have to click on the icon to view a wager’s outcome before placing the bet.
Last year, the Missouri Highway Patrol presented dozens of criminal referrals to local prosecutors. Also, the Missouri Gaming Commission claimed the machines are gambling devices, which are prohibited outside the state’s 13 licensed casinos. And the Missouri Lottery has warned its vendors that the machines may be gambling devices, which could spell legal trouble for those businesses.
House Speaker Elijah Haahr formed a special committee to meet over the summer and fall to look into the issue of unregulated gambling. But Parson recently said the machines may be legal. He said he’s waiting for the outcome of a Platte County court case against a video gaming operator. “We first need to clarify what machines constitute gambling and what machines are video games,” Parson said.
Mike Winter, executive director of the Missouri Gaming Association, which represents state’s casinos, said, “We do think it’s an issue that continues to be a problem. The machines just continue to proliferate across the state.”
Missouri Amusement Machine Operators spokesperson Kathy Harness added that small businesses that provide jukeboxes and other coin-operated games are being affected. “We feel like these illegal games have really cut into our ability to get our games into these locations,” Harness said.
