Full Breakdown
Missouri House Advances Bill to Regulate Gray Market Slot Machines
2/19/2026, 12:21:36 PM
Legislative Overview
The Missouri House of Representatives has narrowly passed legislation aimed at regulating "gray market" slot machines, which have proliferated in gas stations, bars, and fraternal halls across the state. The bill, which passed by a single vote, will now move to the Missouri Senate for further consideration. This legislation seeks to establish a state-run video lottery system that would replace the unregulated machines currently in operation.
Under the proposed law, the Missouri Lottery would gain authority to license video gaming machines for retail locations statewide. The licensed machines would be required to pay out a minimum of 80% of the money wagered as prizes. Additionally, approximately one-third of the profits generated would be allocated to state education programs. The bill also introduces a 3% tax on video lottery profits to support local governments and increases the fee casinos pay for each patron from $2 to $4. Furthermore, an annual fee of $250 per machine would be imposed to fund disability services. Companies currently profiting from unregulated machines would have one year to remove their games from the market.
Support and Opposition
Proponents of the bill, including its sponsor, state Rep. Bill Hardwick, a Republican from Dixon, argue that the legislation is a necessary step for the state. Hardwick stated, “I think this is the right thing to do for our state,” emphasizing the need for centralized oversight and tax revenue in exchange for the phased removal of unregulated machines. Local governments would also be empowered to ban these games from their communities.
Conversely, critics warn that the legislation could legitimize companies that have operated outside the law and expand gambling into everyday retail environments. State Rep. Dean Van Schoiack, a Republican from Savannah, questioned the rationale behind changing laws to benefit an industry that has previously disregarded state regulations. State Rep. Darin Chappell, also a Republican, expressed his disdain for the machines but acknowledged the necessity of regulation, stating, “I hate these machines with a passion... But I don’t want them to continue to be gray, which is a misnomer. They’re illegal.”
Legal Context
The bill comes in the wake of a federal judge's ruling that declared slot machines operated by Wildwood-based Torch Electronics as illegal gambling devices under state law. Additionally, Missouri Attorney General Catherine Hanaway has initiated lawsuits against retail establishments in Dunklin County for allegedly operating illegal gambling machines. Hardwick noted that the legislation would bolster the attorney general's efforts to combat illegal gambling by clarifying state law and granting criminal jurisdiction to pursue violators.
Future Considerations
The bill's prospects in the Missouri Senate remain uncertain. Senate President Pro Tem Cindy O’Laughlin, a Republican from Shelbina, has raised questions about the necessity of the legislation, pointing out that federal courts have already deemed the machines illegal. She questioned, “Why are we not just clearing them out?” The outcome of the Senate's deliberations will be pivotal in determining the future of gray market slot machines in Missouri.
