Missouri House Approves Bill to Regulate Gray-Market Slot Machines by a Slim Margin
Missouri House Approves Bill by a Single Vote
On a close vote, the Missouri House approved legislation that will introduce a state-controlled video lottery system while phasing out unlicensed “gray market” slot machines currently operating across the state. The bill passed by just one vote, reflecting the contentious nature of this issue.
Key Provisions of the Bill
The legislation empowers the Missouri Lottery to license and oversee video lottery terminals (VLTs) installed in various retail locations statewide. These approved machines are required to return at least 80% of wagers as prizes, with approximately one-third of the remaining revenue directed to public education funding. Additionally, the bill imposes a 3% tax on VLT profits to support local governments and proposes doubling the entry fee casinos charge per visitor, increasing it from $2 to $4.
Following its passage in the House, the bill now heads to the Missouri Senate for further scrutiny. This marks one of the concluding efforts in a series of attempts to regulate VLTs that have so far remained in a legal grey area within Missouri.
Supporters’ Perspective
Proponents of the bill consider it a balanced approach to address the unregulated slot machine market. They emphasize stronger oversight, centralized regulation, and new revenue streams in exchange for slowly phasing out illegal machines. Representative Bill Hardwick, a Republican from Dixon and a leading advocate for the bill, stated that the legislation is a necessary step forward for the state. The bill would also grant local governments the authority to ban such games within their areas if they choose.
Opposition and Concerns
Opponents warn that the bill essentially legitimizes operators who have been functioning in a legal grey market, potentially expanding gambling into everyday retail environments. State Representative Dean Van Schoiack, a Republican from Savannah, questioned the rationale behind changing state law to support an industry that has previously defied Missouri’s regulations.
Some lawmakers who are generally against expanding gambling admitted that regulation might be the lesser of two evils. Representative Darin Chappell, a Republican from Rogersville, expressed his strong opposition to the machines and their negative community impacts. However, he argued that since these machines continue to operate unchecked, it is better they be regulated and taxed rather than exist without oversight.
Judicial Context
The bill’s approval coincides with a ruling by U.S. District Judge John A. Ross, who determined that similar machines qualify as gambling devices rather than skill-based games. This decision affirms the state’s authority to regulate these machines under Missouri law.
