Platte County Archives

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.

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.