A special Missouri House committee looking into unregulated gambling machines proliferating in small-town gas stations, restaurants and interstate truck stops across the state recently held a hearing.
Conspicuous by his absence was Steven Miltenberger, owner of Torch Electronics, a distributor of the machines, who earlier said, “We’d look forward to the opportunity” to explain to legislators why the machines aren’t illegal. The politically connected Miltenberger has contributed thousands of dollars to Governor Mike Parson’s campaign fund and also hired a longtime consultant to the governor.
Committee Chairman state Rep. Dan Shaul said, “I think what we’re trying to do here is really find out what’s going on in the industry. The absence of one player or the other doesn’t really surprise me at all.”
Instead of Miltenberger, panel members heard from law enforcement officials who said the machines are illegal. According to Steve Sokoloff, general counsel for the Missouri Association of Prosecuting Attorneys General, “I have not seen nor am I aware of any machines that would be legal.” He noted the gambling machine distributors and manufacturers find loopholes in state anti-gambling laws to help them avoid prosecution. An estimated 14,000 unregulated machines operate in the state.
Lieutenant Roger Phillips of the Missouri Highway Patrol also said investigators consider the games to be slot machines, which are illegal if not state-regulated. He said the MHP has identified 34 cases that could be prosecuted this year. But Phillips said prosecutors have been reluctant to take on those cases.
Sokoloff said that’s because prosecutors are waiting to see the results of an ongoing case against terminal distributors in Platte County. However, he said appeals and Supreme Court action could delay the definitive legal answer on the issue until 2021. He added local prosecutors and police have limited resources to fight illegal gambling. “There are lots of other crimes that are out there,” Sokoloff said.
Former Missouri Elks Association President James Hahn said his group wants the rules to be clarified. He said it’s not fair for businesses to offer the games without penalty while his chapters are trying to obey the rules. “It’s time to chase that bear down out of the tree,” Hahn said.
One solution would be to legalize the machines, but casino operators oppose that idea. Missouri Gaming Association Director Mike Winter said,
“Such bills would expand gambling far beyond what Missouri voters approved when they authorized casinos, which restricted gambling to very specific locations and limited the number of casino licenses in Missouri to thirteen.”
Winter said because of the explosion of video gambling in Illinois, casino revenue there has dropped 18 percent, which results in less revenue for state and local governments. “If Missouri experiences a similar decline in revenue as Illinois, Missouri schools, veterans and others stand to lose millions in funding,” Winter noted.
Missouri Lottery Director May Scheve noted illegal gambling already has diverted at least $50 million from lottery profits, which means less money for public schools. She recently sent a letter to the lottery’s 5,000 retailers informing them if they have an illegal gambling machine on their premises, they could face prosecution.
Shaul concluded illegal gambling seems to be a low priority for local officials but a high priority in the Capitol. “This is a House-wide concern. I’m sure it will be forefront this year,” he said.
