Missouri Senate Committee Kills Video Lottery Proposal For Another Year

JEFFERSON CITY — A Missouri proposal that would have legalized video lottery machines in gas stations and retail businesses across the state appears dead for the year after a Missouri Senate committee voted unanimously Wednesday to reject the measure.

The legislation would have authorized regulated video lottery terminals in convenience stores and other retail locations statewide while attempting to replace the thousands of currently unregulated slot-style machines operating throughout Missouri. The bill had already narrowly passed the Missouri House earlier this year before advancing to the Senate Select Committee on Gaming.

The committee, chaired by Republican Senator Cindy O’Laughlin of Shelbina, voted against the proposal without discussion. O’Laughlin, a longtime opponent of expanding video gambling, later said she remains strongly opposed to allowing the machines outside licensed casinos.

Supporters of the bill argued the proposal could have generated significant new state revenue at a time Missouri lawmakers continue debating potential tax cuts and long-term funding concerns. Estimates tied to the legislation projected roughly $300 million annually for education programs along with another $56 million for veterans services.

Under the proposal, the Missouri Lottery would have overseen licensing and regulation of the machines. The games would have been required to return at least 80 percent of wagers as prizes while also directing portions of revenue toward education, local governments, and disability services programs.

Despite the projected revenue, some lawmakers expressed growing concerns about the social impacts of expanded gambling. Democratic Senator Stephen Webber of Columbia said gambling addiction concerns and local discussions about restricting unregulated machines influenced his vote against the bill.

Missouri’s licensed casino industry strongly opposed the legislation. Casino operators argue illegal or unregulated slot-style machines have diverted millions of dollars away from casinos and state tax collections since appearing across Missouri beginning around 2019.

The debate comes as Missouri Attorney General Catherine Hanaway and federal authorities continue efforts to crack down on unregulated gaming devices. Earlier this year, Torch Electronics — one of the state’s largest operators of gray-market gambling machines — agreed to shut down its Missouri machines while attempting to resolve potential legal action.

Federal court rulings earlier this year also determined many of the machines qualify as illegal gambling devices when operated outside licensed casinos under Missouri law.

Casino industry representatives say they expect casino revenue to improve if additional unregulated gaming devices are removed from operation statewide.