State Rep. Dan Shaul Archives

Sports betting and alleged illegal slots addressed in Missouri House committee report

December 3, 2019 By Brian Hauswirth

Legislation legalizing sports wagering has the backing of a bipartisan Missouri House gaming committee.

State Rep. Dan Shaul, R-Imperial, speaks on the Missouri House floor in Jefferson City on May 17, 2019 (file photo courtesy of Tim Bommel at House Communications)

The Missouri House Special Interim Committee on Gaming held five hearings between late August and November, and completed its 15-page report on Monday. Committee Chairman State Rep. Dan Shaul, R-Imperial, tells Missourinet it’s now being circulated for signatures.

The committee report views the legalization of sports betting as a “legitimate opportunity to increase state revenues” for education and other programs. By 2020, 18 states will have implemented sports wagering. The report concludes that Missouri would likely lose revenue if it doesn’t remain competitive with other states.

The report also says the state should focus on preserving and growing both the Missouri Lottery and casino gaming, in order to increase revenue for education.

The state has 13 licensed riverboat casinos.

Chairman Shaul describes the report as a status report, to the full House.

“We want to give the General Assembly a set of facts, a set of baseline of where we’re at, and what some problems are out there,” Shaul says.

The report says age restrictions are important and should be used to prevent minors from gambling. The report also says the bulk of sports wagering revenues should be directed to fund education.

Major League Baseball (MLB) representative Jeremy Kudon traveled to Jefferson City in November to testify before the committee. He testifies that Missourians are expected to wager $5.5 billion annually on sports, if it’s legalized. Kudon predicts that casino operators would make about $376 million a year from that, and that Missouri would receive $37 million annually in taxes.

The report also addresses alleged illegal slot machines, which dominated discussion for hours at most of the five hearings.

The report presents facts and recaps testimony about the slot machines, and does not make a formal recommendation. Chairman Shaul told Missourinet after the final hearing in November that the issue is a concern, adding that people want to play these machines.

“So what do we do going forward, how do we thread the needle of good legislation that, one, protects Missouri businesses, protects Missouri consumers and allows people to do what they want at the same time,” Shaul said in November.

The report describes the alleged illegal slot machines as “grey machines”, noting Missouri likely has more than 14,000 of them.

Alleged illegal slots can be found in locations like bars, restaurants, gas stations and convenience stores. There is one pending criminal case in western Missouri’s Platte County, in the Kansas City area. The report says any judicial resolution “is unlikely prior to late 2021.”

Shaul has predicted at several hearings that the Platte County case will likely end up at the Missouri Supreme Court.

While there is no formal recommendation, the committee’s final report says “it may be desirable to act to regulate such machines immediately to resolve uncertainty and prevent further loss of revenue that could be used for educational purposes.” The report also says the problem of illegal gambling is not likely to resolve itself.

The report says the Missouri Lottery and the Missouri Gaming Commission have offered to provide assistance with regulation, enforcement and drafting of legislation to address the issue.

The report will go to House Speaker Elijah Haahr, R-Springfield, and the full House. Missouri lawmakers return to Jefferson City for the 2020 session on January 8.

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.

Major League Baseball to testify Thursday at Missouri Capitol (AUDIO)

November 6, 2019 By Brian Hauswirth

A representative from Major League Baseball will testify Thursday before a Missouri House gaming committee in Jefferson City about sports wagering legislation.

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

Jeremy Kudon of Major League Baseball is traveling from New York to Jefferson City to testify before the House Special Interim Committee on Gaming. Committee Chairman Dan Shaul, R-Imperial, tells Missourinet that he expects an informative presentation.

“MLB will be here (the Missouri Capitol) on November 7th and they’ll talk about their role in sports betting, and what they’d like to see and what they’ve done in other states,” Shaul says.

Gaming executive Chris Krafcik of San Francisco-based Eilers and Krejcik Gaming testified before the committee in October that legalizing sports betting at Missouri casinos and via mobile devices would generate about $289 million annually in revenue.

Multiple gaming executives testified in October that they want to make sure that legalized sports betting in Missouri is easy to use, secure and is fair for the consumer.

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. Representative Ross, who serves on the interim committee, tells Missourinet he plans to file a similar but improved bill for 2020.

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.

Las Vegas-based Boyd Gaming, which operates the Ameristar Kansas City and St. Charles casinos, testified last month for legislation to legalize sports betting in Missouri. Boyd Gaming’s Ryan Soultz tells lawmakers Missouri is losing tax revenue to other states, citing customers in the Kansas City area.

“We’ve heard from some customers that are making the drive up to Iowa for football Saturdays and football Sundays because we don’t have a sports book here,” Soultz testifies.

The House Special Interim Committee on Gaming meets Thursday at noon. This is the committee’s final hearing. They plan to submit a report to the full House by December 1.

Click here to listen to the full interview between Missourinet’s Brian Hauswirth and House Special Interim Committee on Gaming Chairman Dan Shaul, R-Imperial, which was recorded on October 24, 2019 at the Statehouse in Jefferson City:

Gaming industry predicts sports betting will generate millions of dollars in Missouri

October 24, 2019 By Brian Hauswirth

Gaming executives from across the nation traveled to Jefferson City to testify Thursday afternoon before a Missouri House committee about sports wagering.

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

Executive Chris Krafcik of San Francisco-based Eilers and Krejcik Gaming tells the House Special Interim Committee on Gaming that if Missouri allows sports betting only at land-based facilities like casinos, it would generate about $95 million annually in revenue.

“The second assumes that Missouri allows sports betting at both land-based facilities and via mobile devices from anywhere within the state’s borders,” Krafcik testifies. “And in this scenario, Missouri’s legal sports betting industry would generate approximately $289 million in revenue.”

Executives from Las Vegas-based Boyd Gaming also testified on Thursday, for legislation to legalize sports betting in Missouri. Boyd employs about 2,500 Missourians at its Ameristar Kansas City and St. Charles casinos, combined.

Boyd Gaming’s Ryan Soultz tells lawmakers that legalizing sports betting in other states has boosted foot traffic in casinos and has produced additional jobs.

“Now you have a new crowd coming in that wants to watch football, and they want to bet on football and hang out in the sports book all day,” says Soultz. “And while they’re there, they are buying food and beverage.”

Fantasy sports provider “Fan Duel” also testified, saying they’re excited about the possibility of legalized sports betting in Missouri. An executive from Boston-based fantasy sports provider DraftKings also testified.

The House Special Interim Committee on Gaming heard about three hours of testimony, primarily from gaming executives. Committee Chairman Dan Shaul, R-Imperial, tells Missourinet the executives were “in lockstep” in what they want in legalized sports betting here.

“They want to make sure that it’s easy to use, secure, fair for the consumer,” Shaul says.

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.

Major League Baseball executives will travel to Jefferson City to testify before the committee on November 7, about sports wagering. The committee will submit its report to the full House by December, ahead of the 2020 session.

Thursday was the committee’s fourth hearing.

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

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.

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 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: