St. Louis Battles Video Gambling Machines

Illegal video gambling machines are spreading in the St. Louis metro area, without regulation of tax distribution or payouts. Missouri state Rep. Bart Korman introduced legislation to allow the machines, which he said could generate $80 million - $90 million a year for education. He pointed out neighboring Illinois has had significant success with the games.

Missouri state Rep. Bart Korman introduced a bill to legalize video gambling machines. Korman said the games could generate $80-$90 million annually for education. He noted Illinois’ success with the games, pointing out the city of Belleville alone took in $1.79 million in video gaming tax revenue, and the machines at a single bowling alley raised $154,081 for taxpayers.

“I think it’s time for our lottery system to advance as well. You know our businesses here in the state of Missouri are not using carbon paper anymore. They’re using copy machines and digital signatures and electronic PDF now, so I think our lottery system needs to have that ability to step up and advance,” Korman stated.

Meanwhile illegal video gambling machines are appearing in St. Louis-area bars, restaurants and gas stations. In the suburb of Florissant, Police Chief Timothy Lowery said five businesses have the machines. One was a BP gas station that set up two machines in the back room. The company that placed the machines showed two letters from law firms claiming the machines operate a legal raffle. “They had these letters. This company’s coming in, they’re saying these things are legal and believed they were doing what was proper and obviously it is not. They’re illegal,” Lowery said.

Lowery said the Missouri Gaming Commission told him the games were illegal so he assigned an officer to remove the machines from the businesses. “I personally have nothing against these machines. It’s just, you know, let’s do it legal. If the state legislators in Jefferson City want to make them legal then let’s make them legal. Let’s have a commission that regulates them. Let’s make sure the state’s getting their fair share.”

Lowery said another gas station owner who offered video gambling machines told him he pays regular taxes on profits, but no gaming regulator checks on tax distribution or the machine’s payout.

Korman said, “You want it to be a legal machine because then it’s regulated to make sure the payout is a fair payout. If it’s an illegal machine that has a payout, you don’t know if it’s a 10 percent payout or an 85 percent payout.”

Lowery said he hopes other municipalities also will enforce the law so there will be an even playing field for all businesses in the St. Louis area.

“We’ve got all these machines out of the city of Florissant but it has been time-consuming. My officer has taken a lot of his time to go around and make sure the right thing is being done and I think a lot of the other departments haven’t taken the time at this point.”