In Missouri, state Senator Mike Cunningham recently shelved his bill, SB 530, which would require the supervisor of liquor control to take away a store’s liquor license if law enforcement found an unregulated slot machine. The operator would have 10 days to remove the machine before the state would act. The legislation also would permanently prohibit any person or business convicted of illegal gambling activity from participating in any legalized video gambling, should lawmakers approve that in the future.
“This is just blatant, right in front of us, just poking us in the eye. We personally think it’s illegal,” Cunningham said.
But some lawmakers said Cunningham’s proposed penalties were too harsh. “Before a determination is made by a court about a game’s legality, the supervisor of liquor control is directed to revoke their liquor license,” said State Senator Bill Eigel. “Should the operator not have the opportunity to defend themselves?”
State Senator Denny Hoskins added, “According to this, it looks like there’s no due process.” And state Senator Jamilah Nasheed also agreed the proposed penalties were too harsh.
An estimated 14,000 gambling machines are operating outside casinos in gas stations, bars and clubs throughout Missouri, officials said. Unlike licensed casino slot machines, no rules regulate payouts and no revenue is directed to public education. But ambiguity in current state law prevents prosecutors from charging operators with illegal gambling.
Senate President Pro Tem Dave Schatz said the state must address illegal gambling before it considers any new forms of legalized betting. “Until we can fix illegal gaming in this state, I don’t see how we can advance legal gaming,” Schatz said. He stated he believes the machines are illegal under current law and supports a measure that would clarify the definition of a “gambling device” to remove any uncertainty.
Schatz said companies that have placed illegal gambling machines in stores would have an unfair advantage if Missouri does eventually legalize video gambling. He said, “They’ve already created relationships with places. That doesn’t create a fair playing field if we do expand gaming, and I’m not going to reward that kind of behavior. At all.”
The Missouri Highway Patrol has launched its own effort to remove illegal gambling machines, referring dozens of cases to county prosecutors. Many of those games are marketed as “no-chance” amusement devices since they give players the option to view the outcome of a wager before moving forward with a bet. If the prize viewer shows a player will win no money, the person still must move forward with the losing bet in order to bet again. Gaming companies have said the chance to view the prize makes the games legal, but Schatz said that’s simply a way to bypass Missouri gaming laws.
Observers are awaiting the outcome of two court cases expected to determine if the “no-chance” games are illegal under current Missouri law. Prosecutors have charged Kansas-based Integrity Gaming with illegal gambling in Platte County, and politically connected Torch Electronics with illegal gambling in Linn County.
