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Sports wagering bill is now heading to Missouri House floor

January 29, 2020 By Brian Hauswirth

Legislation that would legalize sports wagering and slot machines was approved by a Missouri House committee in Jefferson City on Tuesday.

State Rep. Dan Shaul, R-Imperial, speaks at the Missouri Capitol in Jefferson City on August 22, 2019 (file photo courtesy of Tim Bommel at House Communications)

The comprehensive 31-page gaming bill, which is sponsored by State Rep. Dan Shaul, R-Imperial, will now head to the House floor.

The bill is House Bill 2088.

The House Special Committee on Government Oversight also voted to approve an amendment from Shaul, to allow sports wagering and slot machines in “entertainment districts.”

“What this does is basically allows (the) Power and Light District (in Kansas City) and also Ballpark Village areas to become an entertainment district so that they could also do sports betting and VLT’s,” Shaul testifies.

VLT’s, known as video lottery terminals, are slot machines. State Rep. Peter Meredith, D-St. Louis, asked about the amendment’s language.

“Are we sure that it’s limited to those two (Power and Light and Ballpark Village), with these definitions,” Meredith asks Shaul.

“I believe before this bill is done, they’ll be some expansion of that to some other players that will want to be involved,” Shaul responds.

Missourinet checked with Shaul’s office after the hearing, to confirm specifics about the language. Shaul’s office says Ballpark Village and Power and Light are examples of entertainment districts and possible locations for the sports betting and VLT’s.

The slot machine issue has been a high-profile issue at the Missouri Capitol, dominating discussion at several House interim gaming hearings in the fall. 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 in 2019. Most of those complaints were about slot machines.

Shaul’s legislation would allow the Missouri Lottery Commission to implement a system of video lottery game terminals and to issue licenses to video lottery game manufacturers, distributors, operators and handlers.

Under the Shaul bill, the video lottery terminals would be connected to a centralized computer system developed by the Lottery Commission. No terminal could be placed in operation without connecting to that system, under the bill.

The Shaul bill says that truck stops and fraternal organizations could operate up to ten video lottery terminals at one location. Bars could operate up to five slot machines, at one location.

It also prohibits those under 21 from playing the slot machines.

As for the overall bill, Shaul says 18 states will have implemented sports wagering, by the end of 2020. It will be heading to the House floor.

Representative Meredith says the legislation should go to a statewide vote, noting the Missouri Lottery’s creation and other major gaming issues went to voters.

“This would be the first major expansion of gambling in our state ever to not go to a vote of the people,” Meredith says. “The vote of the people who even have to vote to change the rules on bingo.”

Meredith is referring to a statewide vote in November 2018, involving bingo. His amendment was defeated in committee.

A Major League Baseball (MLB) representative testified before Shaul’s House committee in Jefferson City in November, predicting that Missourians will wager $5.5 billion annually on sports, if it’s legalized.

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.