A bill calling for the legalization of video lottery terminals (VLTs) while banning gray market machines narrowly passed through the Missouri House this week and was moved onto the Senate. However, expectations for the bill to progress further appears to be slim.
HB970 was approved in the House 83-73, one vote over the minimum needed to pass. Senators tell the St. Louis Dispatch that the bill is a nonstarter as the legislative session enters its final weeks.
The bill has generated plenty of detractors for a variety of reasons. Missouri casino executives, retailers, game manufacturers and lawmakers all seem to be at odds over the issue.
Lots of opposition to HB970’s progress
HB970 calls for regulated and taxed VLTs to become legal in the state while also making gray market machines illegal.
This bill comes in effort to help generate more funding for the state with a 34% tax rate on the legalized VLTs.
Gray market machines would get phased out as the VLTs become legalized. However, convenience stores, bars and truck stops where the machines exist are concerned over losing revenue with the change, thus leading to opposition.
Producers of the machines also have significant influence in the government and are making a push to kill the bill as well.
Missouri casinos have come out against both forms of gambling. They see the gray market machines as illegal gambling, but also feel HB970 is an unconstitutional piece of legislation. The Missouri Constitution requires an amendment, and therefore a referendum, to add any new forms of gambling to the state. However, the bill attempts to circumvent that by asserting that operating a video lottery terminal under its provisions doesn’t constitute a gambling activity.
Attempting to piece together a bill that would appease all interested parties seems unlikely before May 16 when the legislative session ends.
VLTs would be limited per location, up to local vote
The current bill would legalize VLTs and include the following:
- Each location to house VLTs would be limited to a maximum of eight machines.
- There would be no limit on where the VLTs would be prohibited, or total machines across the state.
- Gray market machines would become illegal.
- Local governments would be able to vote on whether they want to allow VLTs in their communities.
- VLTs would be required to pay out at least 80% of wagers.
The tax rate of 34% is projected by lawmakers to generate $350 million in state funding by fiscal year 2028.
Along with the VLT legalization, this bill would also see casino boarding fees double from $2 to $4 per person. Extra funds would go to the Missouri Veterans Commission.
