Missouri Gaming Commission Archives

Missouri voters could decide if they want riverboat gambling along Osage River

January 9, 2020 By Alisa Nelson

Missouri voters could weigh in at the ballot box about whether to have a riverboat casino along the Osage River. State Representative Rocky Miller, R- Lake Ozark, is proposing a change to the Constitution that would allow people to place their bets along the Osage River. Current law allows riverboat gambling along the Mississippi and Missouri Rivers.

Rep. Rocky Miller (R-Lake Ozark)

Miller says he’s had this idea on his mind for quite some time.

“When the first riverboat gambling came out in the 90s, I thought ‘Well gosh, why isn’t the Osage River part of the Missouri and Mississippi riverboat gaming license?’ I have no idea why it wasn’t, but I thought we really should be,” he says.

Miller has his eye on the Lake of the Ozarks in mid Missouri.

“I’ve never thought that Lake of the Ozarks is really really a family-friendly destination. There are things that families can do and I love having them there,” he says. “There are great things you can do there – there’s water parks, there’s skee ball. But honestly, compared to Branson, we’ve always been an adult entertainment area.”

Miller says the Netflix show Ozark did not inspire his decision to file the bill, but he says the measure has been referred to as “The Ozark bill”. During the latest season of the hit show, a riverboat casino set sail along the Lake of the Ozarks in central Missouri.

Miller tells Missourinet he does not want to expand gambling.

“I think that right now, we just need to right the wrong. I truly would like to see a casino in Lake of the Ozarks, but I think the problems that we have, if we open those flood gates up, we’d have every casino fighting and I think we would end up getting nothing done. This is just a pragmatic, sort of level-headed way of doing it. Let’s add the Osage River. In the future, if a license becomes available, then we’re there to make a pitch for it,” says Miller.

The State Gaming Commission has already licensed 13 casinos – the maximum allowed in Missouri. If passed by the Legislature and people, the measure would let a potential riverboat casino pursue a license along the Osage, if one becomes available.

Miller says he’s “doing battle” against initiative petitions he’s heard might come along to expand gambling.

“This is so that we could kind of head that off at the pass and actually have input,” he says. “Only some rich guy that does the initiative petition and gets the signatures has input into how that’s read. I don’t. You don’t,” he says. “Through the process that we’re going through with my bill, you’re going to have public hearings. You’re going to have input. There’s probably going to be some changes to it.”

As for the economic impact of gambling on the Lake of the Ozarks?

“Cape Girardeau had a benefit of $55 million additional taxes and 726 new jobs,” Miller says. “I don’t know what the magnitude greater Lake of the Ozarks would be but you’ve got to think it would be a much greater magnitude.”

Century Casino operates boats in Cape Girardeau and nearby Caruthersville.

The legislation is HJR 87.

Missouri Senate President Pro Tem to file slot machine legislation for 2020

November 14, 2019 By Brian Hauswirth

The Missouri Senate leader will file legislation in December in Jefferson City to increase penalties for alleged illegal slot machines, setting the slot machine issue up as a major one for the 2020 legislative session.

Missouri Senate President Pro Tem Dave Schatz (R-Sullivan) visits the House chamber on May 17, 2019 (file photo courtesy of Tim Bommel at House Communications)

Senate President Pro Tem Dave Schatz, R-Sullivan, told Missourinet on Wednesday that his legislation will enhance the penalties for the alleged illegal slot machines, which are also known as video lottery terminals (VLTs).

They can be found in bars, restaurants, gas stations and convenience stores.

Missouri’s first criminal case involving the alleged illegal slots will go to trial in December in western Missouri’s Platte County.

Pro Tem Schatz says the Missouri Gaming Commission has received multiple reports of sites that have these machines. The Missouri State Highway Patrol testified in October that the number of complaints it’s received about illegal gambling has increased from 39 in 2018 to at least 145 this year.

Most of those complaints are about alleged illegal slots.

A Missouri House gaming committee has held five hearings since August, and the slot machine issue has dominated discussion at three of them. House Special Interim Committee on Gaming Chairman Dan Shaul, R-Imperial, predicts the slot machine issue will end up at the Missouri Supreme Court. He told the audience during an October hearing that whichever side loses the Platte County case will appeal.

Schatz’s proposal will likely face some opposition. During a committee hearing last week in Jefferson City, representatives from convenience stories and restaurants testified they support legislation to allow the machines in their establishments.

The company that operates 74 Break Time convenience stores in Missouri says video lottery terminals have saved convenience stores in other states.

MFA Oil Company vice president James Greer of Columbia tells state lawmakers that Break Time would probably use the terminals in 25 of their 74 stores, if Missouri lawmakers approve legislation to do so.

“We are open to a separate room. We are open to a cordoned-off area, we will live with whatever rule comes out of that,” Greer testifies.

The co-owner of six St. Louis-area restaurants also wants Missouri lawmakers to allow the VLTs in establishments like his, saying it will help restaurants attract new customers and keep up with minimum wage increases. Webster Groves resident Chris Marshall, who co-owns Llywelyn’s Pub, testified last week before the House gaming committee, saying the machines can also help managers invest money in restaurant renovations.

“In documents I have seen, the average restaurant in Illinois that has five video game machines can average additional revenue of approximately $5,000 per month,” Marshall testifies.

He tells lawmakers he’s had to close a restaurant and diversify. Llywelyn’s Pub has six St. Louis locations: Soulard, Webster Groves, St. Peters, St. Charles, O’Fallon and Wildwood.

But opponents say the machines are illegal and are hurting public education.

The Missouri Gaming Association, which represents the state’s 13 casinos, opposes legalizing the VLTs, saying they are illegal and bypass Missouri voters.

And the Missouri Lottery has testified that alleged illegal slot machines are hurting public education in the Show-Me State. Lottery executive director May Scheve Reardon testified in September, telling lawmakers there’s a major issue with the alleged illegal slots along the I-44 corridor, from St. James to Lebanon.

MLB: Missourians expected to wager $5.5 billion on sports, if it’s legalized

November 7, 2019 By Brian Hauswirth

A representative from Major League Baseball (MLB) predicts Missourians will spend billions of dollars annually to bet on sports, if it’s legalized.

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

Jeremy Kudon traveled to Jefferson City to testify Thursday before the Missouri House Special Interim Committee on Gaming.

“According to the AGA’s Oxford report, Missouri bettors are expected to wager over $5.5 billion on sports, that’s about where New Jersey is right now,” Kudon testifies.

The AGA is the American Gaming Association. Kudon predicts casino operators would make about $376 million a year from that, and that Missouri would receive approximately $37 million annually in taxes.

Kudon also expresses some concerns, noting that MLB opposes allowing betting on spring training games.

“Where the Cardinals may have a plan for (pitcher) Adam Wainwright to throw curve balls the entire first inning, that’s a real-life thing,” Kudon tells lawmakers.

Kudon says he wants to see a bill that creates the best possible legal sports betting framework for Missouri. Kudon also represents the National Basketball Association (NBA) and the PGA Golf Tour.

The “St. Louis Post-Dispatch” has reported that at least 18 other states and the District of Columbia allow residents 21 and older to bet on collegiate and professional sports.

State Reps. Robert Ross, R-Yukon, and Cody Smith, R-Carthage, filed sports wagering bills in 2019, but the bills died because of a lack of consensus in the Legislature. Ross, who serves on the interim committee, tells Missourinet he plans to file a similar but improved bill for 2020.

The National Football League (NFL) Players Association and the National Hockey League (NHL) Players Association also testified before the committee on Thursday.

The NFL Players Association is calling on Missouri to establish a hotline for players to call, if the state legalizes sports wagering. Players Association counsel Joe Briggs expressed some security concerns for players, during his testimony.

“So if I’m sitting at home and someone tries to drop a bag of cash on my doorstep to try to make sure that I play a certain way or not next week, who do I pick up the phone and call.” Briggs testified.

Briggs tells state lawmakers the hotline could be run by Attorney General Eric Schmitt’s office, the Missouri State Highway Patrol or the Gaming Commission.

While the bulk of Thursday’s hearing involved sports wagering, the committee also heard some testimony about alleged illegal slot machines. That’s been a major issue at previous hearings.

Committee Chairman Dan Shaul, R-Imperial, tells Missourinet the committee plans to submit a report to House Speaker Elijah Haahr, R-Springfield, by December 1.

Shaul: will alleged illegal slots become Missouri’s next feral hog issue?

October 22, 2019 By Brian Hauswirth

A Missouri House committee will hold its fourth hearing about alleged illegal slot machines on Thursday at the Statehouse in Jefferson City.

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

House Special Interim Committee on Gaming Chairman Dan Shaul, R-Imperial, tells Missourinet he believes this issue will end up at the Missouri Supreme Court, because of powerful interests on both sides.

“There’s going to be people that make a lot of money one way or the other, and it’s a lot of protection and the cost of going to the (Missouri) Supreme Court would be certainly less than what they would perceive would be won or lost through this process,” Shaul says.

He also believes the issue will be litigated in court for three or four years.

Alleged illegal slot machines can be found in bars, restaurants, gas stations and convenience stores. The number of complaints the Missouri State Highway Patrol has received about illegal gambling has almost quadrupled, from 39 in 2018 to 145 this year.

Chairman Shaul compares the growing problem of alleged illegal slots to a different issue the Missouri Department of Conservation has dealt with.

“Feral hogs weren’t a problem (in Missouri) ten years ago, we just had a little problem. Well, is this going to become the next feral hog issue in the state,” says Shaul.

The Highway Patrol has testified it only has two full-time investigators to handle illegal gambling complaints and that it’s had to pull investigators from other areas to assist.

The House Special Interim Committee on Gaming plans its fourth hearing Thursday at noon about slot machines, which are officially called “video lottery terminals.” The committee will also hear testimony about sports betting and fantasy sports.

The Missouri Prosecutors Association says the first criminal case in the state involving alleged illegal slots will go to trial in December in western Missouri’s Platte County.

The Missouri Gaming Commission has testified that any illegal gaming machines used in Missouri negatively impact casinos and the state Lottery, reducing taxes and funding for education and veterans.

Illegal gambling complaints in Missouri have almost quadrupled in one year

October 11, 2019 By Brian Hauswirth

The Missouri State Highway Patrol testified Thursday in Jefferson City that the number of complaints it’s received about illegal gambling has increased from 39 in 2018 to 145 so far this year.

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

Most of those complaints are about alleged illegal slot machines. Highway Patrol Lieutenant Roger Phillips tells state lawmakers the Patrol’s Division of Drug and Crime Control (DDCC) only has two full-time investigators to handle these complaints.

“In recent months, we’ve had such a volume of complaints that we’ve had to pull investigators from other assigned duties to come and help investigate these complaints,” Phillips testifies.

The Patrol’s DDCC is the Patrol’s criminal investigation bureau’s investigative branch. Phillips testified Thursday before the House Special Interim Committee on Gaming.

Alleged illegal slots can be found in bars, restaurants, gas stations and convenience stores.

The Missouri Prosecutors Association also testified at Thursday’s hearing. Prosecutors Association legal counsel Steve Sokoloff says the first criminal case in the state involving alleged illegal slots will go to trial in December in western Missouri’s Platte County.

“I think everybody is waiting to see once there’s a definitive statement I think you’ll find that there will be a lot more willingness to prosecute those cases,” says Sokoloff.

House Special Interim Committee on Gaming Chairman Dan Shaul, R-Imperial, predicts the alleged illegal slot machine issue will end up at the Missouri Supreme Court. Representative Shaul tells Mr. Sokoloff that whichever side loses the Platte County case will appeal.

“It’s a good chance it’s going to end up over here (across the street at the Missouri Supreme Court in Jefferson City). There’s enough money on each side of this argument,” Shaul tells Sokoloff.

“They’re going to try anyway, let’s put it that way,” Sokoloff responds.

“Either side, win or lose, they’re both,” Shaul says. “Right,” Sokoloff responds.

Sokoloff tells lawmakers that all gambling is illegal in Missouri by the Constitution, unless specifically provided for.

State Rep. Jeff Shawan, R-Poplar Bluff, says prosecutors in his southeast Missouri district are dealing with more important violent crime issues than slot machines.

The Missouri Gaming Association describes the slot machines in gas stations and truck stops as illegal, adding that they bypass Missouri voters. The Gaming Association opposes legalizing the video lottery terminals, saying Missouri casinos generated $370 million in state tax revenue in 2018.

The Missouri Gaming Commission has testified that any illegal gaming machines used in Missouri negatively impact casinos and the state Lottery, reducing taxes and funding for education and veterans.

The House committee’s next hearing will be its fourth, and is scheduled for October 24 at the Statehouse. It will be on sports betting.

Thursday’s Missouri House hearing on alleged illegal slots expected to draw crowd

October 9, 2019 By Brian Hauswirth

The Missouri State Highway Patrol and the Missouri Prosecutors Association will testify Thursday in Jefferson City before a House gaming committee investigating the issue of alleged illegal slot machines.

State Rep. Dirk Deaton, R-Noel, speaks at the August 22, 2019 Missouri House Special Interim Committee on Gaming hearing. State Rep. Robert Ross, R-Yukon, is behind him. (file photo courtesy of Tim Bommel at House Communications)

A large crowd is expected to attend the House Special Interim Committee on Gaming hearing, which begins at noon at the Statehouse.

The committee will hear testimony from Missouri State Highway Patrol Lieutenant Justin McCullough and from Missouri Prosecutors Association legal counsel Steve Sokoloff.

During the committee’s last hearing in September, Missouri Lottery Executive Director May Scheve Reardon testified that illegal slot machines are hurting public education in the Show-Me State. She says the I-44 corridor has many of them, and told lawmakers about one Lottery sales representative whose territory goes from St. James to Lebanon.

“Down that I-44 corridor in six months, her route alone was down $800,000. That’s an estimated $3.2 million sales lost for six months,” Scheve Reardon testified on September 5.

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

Committee Chairman Dan Shaul, R-Imperial, tells Missourinet that illegal slot machines cost Missouri education at least $50 million last year. He says the illegal machines “are everywhere” in the state and in his district in eastern Missouri’s Jefferson County.

“But I think what we have to worry about is not what happened last year, it’s what’s going to happen next year because this is not a plateau. We are going to continue to see the loss,” Chairman Shaul told Missourinet after the September hearing.

Missouri Gaming Commission Executive Director David Grothaus testified in August that any illegal gaming machines used in Missouri negatively impact casinos and the state Lottery, reducing taxes and funding for education and veterans. Grothaus has called for the state to develop a coordinated effort to stop illegal slot machines.

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

Thursday is also your first opportunity to testify before the committee, and House officials have encouraged those who want to testify to call ahead. The hearing is expected to last for two to three hours.

Anyone who wants to testify Thursday should call E.J. Fleischmann in Chairman Shaul’s office. That number is (573) 751-2504.

Hearing on illegal slot machines expected to draw crowd to Missouri Capitol (AUDIO)

September 22, 2019 By Brian Hauswirth

Missouri House officials are expecting a crowd to attend an October public hearing at the Statehouse in Jefferson City about alleged illegal slot machines, and are urging those who want to testify to call ahead.

Missouri House Special Interim Committee on Gaming Chairman Dan Shaul, R-Imperial, and State Rep. LaKeySha Bosley, D-St. Louis, speak on August 22, 2019 in Jefferson City (file photo courtesy of Tim Bommel at House Communications)

House Special Interim Committee on Gaming Chairman Dan Shaul, R-Imperial, tells Missourinet the committee will take public testimony on October 10 at noon.

“And I think we’re going to hear some of the stories on how we can fix it, what we can do and what we can and what we shouldn’t do,” Chairman Shaul says.

Shaul says the illegal machines “are everywhere” in the state and in his district in eastern Missouri’s Jefferson County.

They can be found in bars, restaurants, gas stations and convenience stores. Chairman Shaul tells Missourinet illegal slot machines cost Missouri education at least $50 million in 2018.

“But I think what we have to worry about is not what happened last year, it’s what’s going to happen next year because this is not a plateau. We are going to continue to see the loss,” says Shaul.

Missouri Lottery Executive Director May Scheve Reardon testifies the alleged illegal machines can be found across the state, adding that the I-44 corridor between St. James and Lebanon has many of them. She testified this month before the House committee, saying the illegal machines are hurting public education in the Show-Me State.

Missouri Gaming Commission Executive Director David Grothaus has also testified before the committee, saying that any illegal gaming machines used in Missouri negatively impact casinos and the state Lottery, reducing taxes and funding for education and veterans.

The October 10th hearing at the Statehouse is expected to last for two to three hours. Shaul’s office tells Missourinet those who call ahead will have the opportunity to speak first at the hearing. Anyone wanting to testify on the issue should call E.J. Fleischmann in Chairman Shaul’s office. That number is (573) 751-2504.

Click here to listen to Brian Hauswirth’s full interview with Missouri House Special Interim Committee on Gaming Chairman Dan Shaul, R-Imperial, which was recorded on September 5, 2019 at the Statehouse in Jefferson City:

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: