JEFFERSON CITY — The chairman of a House budget panel said the state treasurer is refusing to appear before his committee to answer questions about links he may have to one of the top gas station gambling companies in Missouri.
Rep. Scott Cupps, R-Shell Knob, had requested that Treasurer Vivek Malek appear before his House Budget subcommittee Wednesday, but was told the Republican appointee wouldn’t be available.
“Fundamentally, I have some pretty extreme concerns about that,†Cupps said. “I am very, very frustrated.â€
At issue are gambling machines operated by Torch Electronics in southwest Missouri gas stations. Photos and videos taken by Cupps last week show payout kiosks for the slot machines now include advertisements for the state’s unclaimed property program, which is operated by Malek’s office.
And on at least several of the machines owned by Wildwood-based Torch Electronics, a sticker of the state seal and Malek’s name have been applied to the slot machines themselves.
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“It’s no secret that this is designed to make these machines appear as if they are operated by the state of Missouri,†Cupps told members of the House subcommittee on Appropriations-General Administration, which provides legislative oversight of the treasurer’s office budget.
“We need the treasurer here. I need to know who was involved in that,†Cupps said. “Man, this is bad. This is bad government. We have the state seal and the state treasurer’s name on illicit gambling machines.â€
Malek, a Republican from Wildwood who was appointed to his position last year by Gov. Mike Parson, was in the Capitol when the budget panel was meeting, but told Cupps that he had a conflict and couldn’t attend the session.
His chief of staff, Ray Bozarth, told the Post-Dispatch he is working on a response to questions submitted to the office Monday, but has not offered any explanation for the ads and stickers with his name on them.
A Torch spokesman said Malek approached the company in an effort to help raise the profile of the office’s unclaimed property program.
“This is a new effort, initiated at the request of Treasurer Vivek Malek’s office and is an awareness-raising practice in which Torch has no financial stake,†Gregg Keller said Wednesday.
Malek, a political newcomer, is seeking a full, four-year term. Republican opponents include Springfield attorney Lori Rook, Sen. Andrew Koenig of Manchester and Rep. Cody Smith of Carthage, who is the chairman of the powerful House Budget Committee.
One panel member told Cupps that she’s concerned the use of state resources on unregulated gambling machines could lead to litigation.
“Are we going to be in a lawsuit now for deceiving customers?†said Rep. Mazzie Christensen, R-Bethany.
“Given the facts that I know, it could be warranted,†Cupps said.
During the hearing, a registered lobbyist from the firm representing Torch Electronics listened to the discussion for several minutes before departing.
Torch has been at the center of the spread of unregulated gambling machines in Missouri gas stations, convenience stores and taverns.
The company unsuccessfully sued the state in an attempt to block the Missouri Highway Patrol from investigating whether the company’s slot machines are illegal.
Efforts to regulate and tax the machines have fallen short in the Legislature. Springfield officials recently approved ordinances banning the machines in the city.
Cupps said it is unprecedented for a statewide official to reject an invitation to appear before his committee.
“For good government to take place, it has to be transparent government,†Cupps said. “To me that’s a red flag that something nefarious is taking place.â€