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Missouri Attorney General Catherine Hanaway told the state’s House Budget Committee last week that federal investigators are working with state authorities in a probe of illegal slot machines, or video lottery terminals (VLTs).
While authorities put together cases to take action against operators hosting VLTs, which can be found in gas stations, bars, and convenience stores across the state, lawmakers are considering legalizing and regulating them.
Hanaway testified that the FBI, IRS, and the Secret Service have all joined her office in the investigation, according to the St. Louis Post-Dispatch.
AG says organized crime could move in
The investigation stemmed from a federal civil case in which a jury found the games offered by Torch Electronics are illegal gambling devices, according to the Missouri Independent.
Hanaway told the panel her ultimate concern is the machines could lead to worse crimes.
“We are investigating what the operators of (of the games) are doing, how their money is flowing, where they have locations, how many machines, so then we can go in with some enforcement action.
“My concern is that they are all going on in the state, unregulated, bringing in billions of dollars, and that we are going to, if we continue to allow them to just openly ignore the law and just sort of flagrantly believe that they can operate in these illegal circumstances, that we’re going to get real organized crime in the state.
Committee narrowly passes VLT legislation
In that hearing, Hanaway acknowledged that Missouri could legalize VLTs.
“Whatever you all do as a Legislature to regulate them, then we’ll enforce that law. But right now, it’s illegal, so I’m going to be going after them.”
The bill she referred to, House Bill 2989, was authored by Missouri state Rep. Bill Hardwick (R-Dixon), who proposed similar legislation last year that passed the House but died in the Senate.
The bill aims to initiate a two-year transition period to create the necessary regulatory framework for VLTs. It would allow the machines to operate under oversight from the Missouri Lottery.
The bill cleared a legislative hurdle on Wednesday, winning a 6-5 vote in the House Rules-Legislative Committee.
