Missouri Gaming Commission Archives

Missouri Lottery: I-44 corridor highlights problem with illegal slot machines

September 6, 2019 By Brian Hauswirth

The Missouri Lottery’s executive director testified Thursday in Jefferson City that illegal slot machines are hurting public education in the Show-Me State.

The Missouri Lottery logo (courtesy of Missouri Lottery)

Former State Rep. May Scheve Reardon testified before a House interim committee, telling lawmakers there’s a major issue with illegal slot machines along the I-44 corridor. She talks about one Lottery sales representative whose territory goes from St. James to Lebanon.

“Down that I-44 corridor alone in six months, her route alone was down $800,000,” Scheve Reardon testifies. “That’s an estimated $3.2 million sales lost for six months.”

She says the average monthly Lottery sales lost, per retailer with the alleged illegal machines, is $90,000.

Illegal slot machines can be found in bars, restaurants, gas stations and convenience stores.

Scheve Reardon testified during a 90-minute hearing before the House Special Interim Committee on Gaming, which is chaired by State Rep. Dan Shaul, R-Imperial.

Shaul tells the audience that illegal slot machines cost Missouri education at least $50 million last year. He says the alleged illegal slot machines are hurting the Lottery, thereby impacting classrooms.

“The (Missouri) Lottery is losing revenue here, because of these alleged illegal machines. So are the (Missouri’s 13) casinos, so is everybody across that’s funding the state. The state is losing money because of these,” says Shaul.

Missouri House Special Interim Committee on Gaming Chairman Dan Shaul, R-Imperial, speaks on August 22, 2019 (file photo courtesy of Tim Bommel at House Communications)

Chairman Shaul tells Missourinet the public will have the opportunity to testify at the next hearing, which is October 10 in Jefferson City.

Thursday’s hearing was the committee’s second in two weeks. The Missouri Gaming Commission testified before the committee on August 22, saying the state needs a coordinated effort to stop the illegal machines.

“We’re trying to coordinate efforts among law enforcement and prosecutors, trying to educate prosecutors on how to prosecute those cases,” Gaming Commission Executive Director David Grothaus testified in August.

Grothaus notes there’s one pending criminal case in western Missouri’s Platte County, in the Kansas City area.

Scheve Reardon says the Missouri Lottery generated more than $306 million for education in fiscal year 2018.

Missouri Gaming Commission: illegal slot machines are impacting funding for education (AUDIO)

August 23, 2019 By Brian Hauswirth

The Missouri Gaming Commission testified Thursday in Jefferson City that the state needs a coordinated effort to stop illegal slot machines.

Missouri House Special Interim Committee on Gaming Chairman Rep. Dan Shaul, R-Imperial, speaks on August 22, 2019 in Jefferson City (photo courtesy of Tim Bommel at House Communications)

Gaming Commission Executive Director David Grothaus testified before the House Special Interim Committee on Gaming. The issue of illegal slot machines dominated most of the two-hour hearing.

“We’re trying to coordinate efforts among law enforcement and prosecutors, trying to educate prosecutors on how to prosecute those cases,” Grothaus says.

Illegal slot machines are found in places like bars, restaurants, gas stations and convenience stores. Grothaus tells lawmakers that there’s one pending criminal case in western Missouri’s Platte County, in the Kansas City area.

Grothaus tells lawmakers that the Gaming Commission is providing assistance to law enforcement. He says what the state needs “is a very focused effort” on the illegal slot machines.

Mr. Grothaus testifies that any illegal gaming machines used in Missouri negatively impact casinos and the state Lottery, reducing taxes and funding for education and veterans. That grabbed the attention of committee chairman State Rep. Dan Shaul, R-Imperial.

“These illegal (slot) machines, they’re everywhere,” Shaul tells Grothaus. “And I think it is probably hard to put a number on it, because they continue to grow everyday. I have several of them in my district.”

Shaul says the illegal machines “are everywhere” in the state and in his district in eastern Missouri’s Jefferson County. Chairman Shaul tells Grothaus it’s a problem.

“Because the people are very clear that they want regulated gaming,” says Shaul. “And they want to make sure when they go to take part in these games that they’re fair.”

Shaul tells Missourinet that he doesn’t want to hurt fraternal organizations, emphasizing that he’s a veteran.

Chairman Shaul emphasizes that no decisions have been made by the committee, and he describes the hearing as an “educational process.”

Meantime, a representative from Missouri’s 13 riverboat casinos also testified, urging the Gaming Commission to shut down all of the illegal slot machines in Missouri. That representative is also calling for criminal prosecutions.

The state’s 13 licensed riverboat casinos have a combined total of about 16,000 slot machines, Grothaus testifies.

Grothaus also testifies that the Gaming Commission has a memorandum of understanding with the Missouri State Highway Patrol. He says state troopers are stationed on the 13 casinos, and perform duties such as regulatory investigations.

Click here to listen to Brian Hauswirth’s full interview with House Special Interim Committee on Gaming Chairman Rep. Dan Shaul, R-Imperial, which was recorded on August 22, 2019 at the Statehouse in Jefferson City: