Missouri Attorney General Faces Another Legal Challenge Over Video Lottery Terminals

June 30, 2026
News
...

New Legal Challenge Targets Missouri Attorney General

Following a recent lawsuit by a Missouri bar owner, Attorney General Catherine Hanaway now confronts yet another legal dispute. The Missouri Licensing Advocacy Group (MOLAG) has initiated action against threats to revoke alcohol licenses from establishments featuring unregulated video lottery terminals (VLTs). They claim the attorney general is exceeding her legal boundaries in this crackdown.

Scope of the Lawsuit and Legal Arguments

MOLAG represents a coalition of venue owners, operators, and liquor license holders opposing the state’s increasingly aggressive enforcement against video lottery games (VGTs). Many members prefer to stay anonymous, concerned about potential retaliation from local officials. Their position emphasizes that any decisions regarding VGT regulation should be made by the Missouri state legislature, not the attorney general or regulatory commissions.

The group insists on clear legal guidelines, stating that Missouri requires lawful clarity instead of enforcement driven by intimidation or license threats. This stance is closely aligned with a similar case brought by James Schappe, owner of Tuners Bar & Grill. Schappe argues that Missouri laws currently do not explicitly regulate or ban VGTs, thus the attorney general lacks the authority to target these devices. Conversely, Hanaway bases her enforcement on federal court rulings involving other operators.

The attorney general has adopted a strict approach, claiming that VGTs circumvent existing state gambling regulations. She has persistently pressured businesses offering these machines, leveraging precedent and available legal mechanisms. Meanwhile, legislators continue working on incorporating VGTs into Missouri’s broader gambling laws.

Delays and Controversies in VGT Regulation

Despite ongoing disputes, VGTs have steadily become more common throughout Missouri, with many establishments relying on them for supplemental income. Advocates warn that removing or banning these machines could jeopardize the viability of smaller businesses, especially when alcohol licenses are threatened as part of enforcement measures.

MOLAG emphasizes that not every machine or operator should be deemed illicit by default. The current legal status of VGTs remains ambiguous, as they resemble slot machines but are often classified by operators as skill-based games, which they argue fall outside of traditional gambling regulations. As lawsuits multiply and legislative efforts encounter setbacks, the courts may ultimately decide the fate of video lottery terminals in the state.

Schappe’s and MOLAG’s cases are expected to advance in state court, where judges will evaluate whether Attorney General Hanaway has exceeded her lawful authority. The court’s decision could have a significant impact on the future of VGTs in Missouri until lawmakers gain the traction needed to enact comprehensive regulatory reforms.