Missouri Lottery Archives

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.

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.