JEFFERSON CITY — Nearly 300 people have asked Missouri gambling regulators to investigate potentially illegal slot machines that have flooded the state.
In a report to the Missouri Lottery Commission, the general counsel of the Missouri Gaming Commission said a hotline established by the agency has received 280 citizen reports about the machines, which may be siphoning money away from the state’s regulated gambling industry, including the state lottery and the 13 licensed casinos.
“A lot of them are from citizens concerned about illegal gaming,” Ed Grewach told lottery officials.
The games, set up in gas stations and bars, operate similarly to casino slot machines in that a player deposits money with the chance of winning or losing money by placing a bet.
Because the games are unregulated, there are no consumer protections to prevent low payouts, no money directed to public education and no resources available for addicted gamblers.
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In some cases, the gaming commission launched its own investigation of the allegedly illegal machines, while other complaints were referred to the Missouri State Highway Patrol.
“The ones we examined were illegal gambling machines,” Grewach said.
The report highlighted the ongoing frustration over the spread of the machines within the state by politically connected companies like Torch Electronics at a time when the Legislature has been unable to agree on a way to rid them from gas stations, truck stops, liquor stores and other businesses.
Legislation has again been introduced in the House and Senate to make the games legal and tax them. Under the proposals, any businesses that are caught with the illegal machines would be prohibited from participating in the regulated program. The businesses also would lose their ability to sell lottery licenses.
For now, efforts to remove the games have been piecemeal, with local county prosecutors taking some cases to court.
In Linn County, Prosecuting Attorney Shiante McMahon is pursuing a case against Tritium International Consultants of Blue Springs over slot machines in the north-central Missouri county.
Court records show the judge in the case could rule as early as January, potentially providing clarity for lawmakers, who begin their annual session that month.
By contrast, Torch Electronics is suing the state for harassment over the highway patrol’s effort to crack down on the thousands of machines that have been placed in gas stations owned by Warrenton Oil.
Torch, which is represented by lobbyist and former House Speaker Steve Tilley, however, won’t be back in court until March.
The American Gaming Association also is pushing the U.S. Department of Justice to enter the fray.
In November, the lobbying organization representing casinos filed a comment with the Justice Department, calling for the prosecution of illegal machine manufacturers.
In the comment, the AGA said unregulated machines need to be reined in.
“While regulated gaming machines undergo rigorous testing to ensure game integrity and fairness, there is no such oversight for these illegal or unregulated games. Nor do the machines comply with anti-money laundering or cybersecurity standards established by relevant governing bodies,” the comment said.
“Unfortunately, illegal and unregulated machines continue to skirt the law and put consumers at risk,” added AGA vice president Jessica Feil.
Legalizing video gambling could provide an additional revenue stream to fund schools and universities in Missouri.