Missouri Ramps Up Enforcement Amid Slot-like Machine Debate

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Missouri’s attorney general has escalated enforcement activity against a widespread network of unregulated slot-style terminals even as lawmakers weigh whether to bring the devices into the state’s taxed gaming framework.

Missouri unregulated slot -like machines

Key Takeaways:

  • Missouri attorney general investigates widespread unregulated slot-style terminals
  • Federal authorities question whether devices meet gambling laws
  • State lawmakers debate legalizing and taxing these gaming devices for revenue

The probe, opened at the request of federal authorities and involving the FBI and IRS, is examining operators’ finances, venue locations and ownership arrangements to assess potential legal action. 

“We are investigating what the operators of the games are doing, how their money is flowing, where they have locations, how many machines, so then we can go in with some enforcement action,” Attorney General Catherine Hanaway told a legislative panel, per Missouri Independent.

Lawmakers Weigh Regulation of Unregulated Slot-like Machines

According to Yogonet, the enforcement review follows a federal civil finding that certain so-called skill machines meet the legal definition of gambling devices and is unfolding against a near-simultaneous push in the House to legalize video lottery terminals. 

Supporters argue licensing would impose minimum payout standards and transfer revenue from an opaque market into state coffers; House fiscal notes and industry analyses project roughly $350 million a year to public programs if terminals are regulated and taxed. 

Senate leaders, however, have signaled reluctance to advance the measure.

The debate is also unfolding as Missouri edges closer to a structural shift in its regulated gaming market with its opening of what would be the state’s first tribally operated casino, following federal land-into-trust progress.

Opaque Market Size Fuels Enforcement Concerns

Estimates of machines in operation vary widely and formal counts are absent, leaving a revenue and compliance gap that officials warn could attract organised crime and tax evasion. 

Past court filings cited millions in receipts at limited sites, and company spokespeople have said they would cooperate if contacted by investigators.

The outcome will hinge on whether Missouri chooses stricter enforcement or statutory regulation to integrate the devices into the legal gaming sector.