Missouri moves to regulate video slot machines amid legislative challenges
Although casinos were legalized in Missouri back in 1992, the state is home to only 13 casinos. These are all tribal casinos and feature games like slots, roulette, and poker. However, gamblers can also find slot machine games, aka video lottery terminals, at places like gas stations, bars, and convenience stores.
The problem is that they operate without explicit official regulations. As you can imagine, this has led to confusion and concerns. Because of that, Missouri is considering new legislation to regulate VLTs. The lack of oversight has not only raised legal questions but has also created inconsistencies in player protections and machine fairness across the state.
A new era for Missouri’s gaming landscape
Image source: Pixabay
In early February, a Missouri House committee approved House Bill 970. It aims to regulate and tax video lottery terminals. In other words, machines are now under the control of the Missouri Lottery Commission.
It’s estimated that there are between 10,000 and 14,000 VLTs across the state. However, most video lottery terminals currently operating in Missouri are classified as ‘no chance’ games, meaning their outcomes are predetermined rather than randomly generated.
The idea behind the law is to add more clarity and increase user safety. VLTs aren’t designed like other casino games, and because of that, they aren’t viewed as games of chance. Due to this technicality, they don’t fall under the same regulatory category and are technically allowed in non-casino establishments. The new law seeks to rectify that and clearly define how these machines have to operate.
In Missouri, gambling is legal only in licensed casinos. However, because gambling refers to playing games of chance, ‘no chance’ machines don’t violate this law. The bill’s proponents believe that House Bill 970 will provide regulatory clarity. By bringing these machines under state control, lawmakers hope to eliminate the legal gray area that has allowed unregulated operators to thrive.
The regulator’s responsibility is to make sure they all operate fairly and legally. Businesses offering unregulated VLTs that pay out cash prizes are given up to 18 months to have their machines regulated. The bill will protect consumers and also provide businesses with clear guidelines.
Legislative hurdles and community concernsEven though the committee passed the bill, there are some issues with it. For starters, some lawmakers worry that gambling will expand in Missouri. This concern is legitimate, given a recent vote on sports betting. Others are concerned that the bill would temporarily prevent local governments from banning VLTs during its first year of implementation.
Image source: Pixabay
Not to mention that most Missourians are against legalizing video machine games. Locals believe that these machines can be harmful to both individuals and businesses. As a result of the public disapproval, lawmakers are pressured to reconsider the bill. The debate over VLT regulation highlights a broader tension – balancing economic opportunity with public concern over gambling expansion.
Video slots’ potential revenue for Missouri’s education systemThose who support the bill highlight the potential financial benefits. According to the Missouri Constitution, proceeds from the state lottery fund must go to education. Therefore, schools and education programs could benefit from taxation. According to one report, the state would obtain $1.1B from video lottery in the first five years.
For comparison, sports betting accounts for only $10-15M per year, so this is a significant profit boost by all accounts. If passed, the bill could significantly boost Missouri’s education funding, but the question remains – will the benefits outweigh the risks in the eyes of lawmakers and the public?
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