Missouri Gambling Bill Narrowly Survives House Vote

With the launch of legalized sports betting just around the corner, lawmakers in Missouri have continued to discuss other forms of gambling, most notably, whether video gambling devices should be regulated in gas stations.  

The Missouri House gave preliminary approval of a bill to tax and license video gambling machines that operate statewide in a narrow House vote. However, there's vast skepticism regarding the bill's fate in the Senate.

House Bill 970 (HB 970), sponsored by Rep. Bill Hardwick, would create a regulatory framework under the Missouri Lottery. It would entail imposing a 34% tax on revenue generated by the machines, similar to what is currently imposed on the state's 13 licensed casinos, raising $350 million in tax revenue. 

The legislation would limit the number of eight machines per site under the law, and cities and counties would continue to be able to ban the machines in their jurisdiction. Furthermore, HB 970 also includes safeguards against minors’ gaming, a lingering issue due to the lack of protection resulting from the unregulated machines currently available.

Next steps

Even after passing the House on a narrow 74-70 vote, the bill faces challenges. It still requires a final House vote of 82. If passed, the bill will be sent to the Senate, where its future is uncertain.

Senate President Cindy O'Laughlin has expressed concerns about any gambling expansion in Missouri. She has raised questions about the social effects of gambling, labeling it a potentially "destructive behavior."

Although she later agreed that taxing and regulating the unregulated machines might be beneficial, Sen. O'Laughlin emphasized that the Senate had a complete legislative docket and made it clear there wasn't much interest in tackling the issue. The state is already working out the details to launch a legal Missouri sports betting market.

Sen. Lincoln Hough, the chairman of the Senate Appropriations Committee, shares her opinion. In March, Hough bluntly declared that the bill had no chance of passing his committee.

Lawmakers curb public input

One attempt at tempering the impact of the bill by sending the matter to voters failed. Rep. Brenda Shields introduced an amendment that would have placed the question on a public ballot.

Opposition in the Senate is not the only opposition to the bill. The state's casinos firmly oppose the measure, concerned that legalizing the games will divert customers from traditional casinos. Casinos already contribute the same 34% tax rate and argue that legitimizing unregulated competitors may take away their market share.

Meanwhile, law enforcement and regulatory agencies have been generally ineffectual in stifling the spread of the machines. The Missouri Gaming Commission has declared the devices illegal, and the State Highway Patrol has sent hundreds of cases to county prosecutors.

But enforcement has been spotty. Most notably, Wildwood-based Torch Electronics, one of the largest distributors of the machines, has had few legal consequences despite installing thousands of devices in convenience stores, bars, and other establishments statewide.

Torch insists that its machines are merely amusement devices, which has permitted them to sidestep wholesale shutdowns. However, critics decry that the machines act as de facto slot machines, where players invest money to win cash awards. 

With the legislative session scheduled to close in May, advocates must convince senators to make the bill a priority before the deadline.