Missouri House Committee Discusses Adding VLTs

The Missouri House Special Interim Committee on Gaming held the first of several planned meetings to review gaming in the state. The topic was illegal slot machines, which Missouri Gaming Commission Executive Director David Grothaus (l.) said were affecting casino revenue and as a result lowering state tax revenue used education and veterans services.

Missouri House Committee Discusses Adding VLTs

In Missouri, lawmakers attended the first of several planned meetings of the House Special Interim Committee on Gaming, designed to offer an in-depth overview of gaming in the state. Lawmakers heard a presentation on illegal slot machines from Missouri Gaming Commission Executive Director David Grothaus. He said thousands of the machines are appearing in “gray areas” like gas stations, convenience stores and other non-casino establishments; under state law, slots only are allowed at Missouri’s 13 casinos, even though earlier the commission voted to classify them as “gambling devices.”

Commissioners said they can only enforce the law in establishments with bingo licenses. The Missouri Department of Public Safety, which oversees liquor licenses, has no authority to seize gambling devices, according to a 2000 court ruling. As a result, county prosecutors are left to regulate the illegal slots.

Committee Chairman state Rep. Dan Shaul noted, “These illegal machines are everywhere. I have several of them in my district. We’ve been letting this happen. We have allowed this industry to grow.” Grothaus said the state needs “a very focused effort on these illegal machines” but he pointed out diverse stakeholders have various points of view on the issue.

He said the illegal slots are affecting casino revenue and that, in turn, lowers taxes collected by the state for education and veterans services. “We are going to try and learn as much as we can, here in this room, over the next few months about gaming and figure out what we can do to help,” Shaul said.

Committee member Wes Rogers, whose district includes four casinos, said he’s opposed to them in or near his district, Rogers opposes video gambling machines. “I think they’re bad for the state. VLTs would be catastrophic to many people in my district and I’m going to do what I can to protect our jobs. Whatever we do, let’s regulate it, let’s tax it and let’s make sure the players get a fair chance,” Rogers said.

Officials from the Missouri Lottery will speak at the next committee meeting on September 5. On October 10, the topic will be enforcement and prosecution; sports betting on October 24; and Major League Baseball representatives will make a presentation on November 7.

Meanwhile, Governor Mike Parson appointed former Republican state Rep. Mike Leara of St. Louis County and former Democratic state Rep. Pat Conway of St. Joseph to the Missouri Gaming Commission.

Leara, who served in the state House 2009-2017, also was named commission chairman through April 2021. Conway served in the state House 2011-2019; his term also will expire next April. Both appointees must be confirmed by the state Senate, although they can begin serving immediately. They are replacing former commissioners Thomas Neer and Rick Lombardo.