Weekly Column for March 7, 2019
Have you noticed new “gaming” machines in gas stations and convenience stores around the area recently? I have noticed them, and I want to write this week about how these machines are subverting legal gaming in our state and undercutting legal Missouri Lottery products.
These new machines are called Video Lottery Terminals, often referred to as VLTs. Recently, these machines were legalized in Illinois, and now they are spreading to our state despite the fact that Missouri law has not been changed to allow VLTs. These are games of chance with cash payouts that clearly seem illegal to me, but the companies pushing VLTs call them “gray machines” instead of what they really are and that is “black market.”
I want to be clear: these are not “gray machines.” These are illegal machines and should be treated that way. A recent investigation shows that 665 retail locations operate illegal gaming machines. Over the last six months, these machines have cost the Missouri Lottery Commission $3.2 million in sales. That’s an average monthly sales loss of $90,000 per illegal machine in our state. That means less lottery money for public education.
Not only are these machines illegal, but they weaken the Missouri Lottery which helps fund public education in our state. That’s why I’ve filed Senate Bill 431. This is one of only a handful of bills that I’ve sponsored as president pro tem of the Missouri Senate. I’ve done this because we can’t allow those who operate illegal gambling machines to benefit if the Legislature decides to legalize VLTs in truck stops and other locations.
My legislation would empower the Missouri Gaming Commission to enter into agreements with various federal, state and local agencies to carry out investigations relating to the enforcement of illegal gambling machines. It would also require the commission to establish and display a phone number that citizens could call to report these illegal machines. In addition, this legislation allows the attorney general to prosecute these cases when probable cause is determined.
Finally, and most importantly, any establishment that is convicted of participating in illegal gambling will have their liquor license revoked, and they will lose their ability to sell Missouri Lottery products. This penalty will ensure that illegal gaming is taken seriously.
Missouri has an established system of regulating games of chance. These games exist in our licensed casinos and through products from the Missouri Lottery, like scratcher tickets and other lottery products. VLTs undercut legal gaming and negatively affect education funding in our state, and I think it is time our state takes action and enforces the law.
Please do not hesitate to contact my office at (573) 751-3678 or by email at dave.schatz@senate.mo.gov if you have any questions.