BY: RUDI KELLER
Missouri Independent
After a heavy lobbying effort, backers of video lottery games squeezed a slim majority out of the Missouri House on Wednesday, sending a bill promising $350 million a year for schools to the state Senate.
By an 83-73 vote — just one more than the minimum needed to pass — the House approved the bill that also promises to remove “gray market machines” from retail locations.
“This is not a solution in search of a problem,” said the sponsor, Republican Rep. Bill Hardwick of Dixon. “We have a genuine problem, a money problem, a regulatory problem, a commerce problem, and this is a solution for all of that.”
House leadership held the tally board open for more than 15 minutes as they searched for the votes needed to pass. The bill was given first-round approval on Monday but with only 74 votes.
After that backers and opponents scrambled to find votes, with both sides claiming Tuesday that they would prevail.
The bill faces an uncertain future in the state Senate. Three video lottery bills have been proposed in the upper chamber but none have been given a hearing.
In the final vote, 54 Republicans were joined by 29 Democrats to pass the bill, while 18 Democrats and 55 Republicans opposed it.
The bill received support from nine of 10 Republicans who were absent on Monday and present on Wednesday. Five GOP members on each side of the question switched from yes to no or vice-versa.
Among Democrats, four members absent on Monday voted yes on Wednesday, while two Monday absentees voted no. Only one Democrat switched sides, voting no on Wednesday after voting yes on Monday.
Under the bill, the Missouri Lottery would be given the job of licensing video lottery terminal vendors and regulating their use in retail locations. While there would be a cap of eight machines in any location, the total number of machines that would be in use statewide is not capped.
The House added an amendment so counties and cities will be able to authorize — or ban — video lottery games in their home communities. It also added an amendment that declares any unlicensed games that offer cash prizes to winners to be illegal slot machines.
The games resembling casino slot machines that can be seen at retail locations throughout the state are unregulated. Called gray market or “no chance” games, operators claim they are not illegal under current law because a player can learn the outcome of the next play before committing their money.
The options for a player with a pending losing bet are to change games in search of a winner, ending their playing session or deliberately losing the bet to get to the next outcome.
The Missouri State Highway Patrol has tried to initiate prosecutions under anti-gambling laws, but most prosecutors have been reluctant to file charges.
And after years of operation, convenience store owners, fraternal lodges and other establishments have become dependent on the revenue.
The video lottery machines will be more trustworthy, supporters say, because the machines will be required to pay out at least 80% of the money wagered in prizes.
The remainder will be split three ways — the lottery will receive 34% of the net to support state education programs, with retailers and operators splitting the other 66%. The fiscal note for the bill estimates that within three years, there will be $1.1 billion annually for the three-way split generating approximately $350 million in state revenue.
Some opponents of the measure argue it is not strong enough to force gray market machine operators to shut down. Others said they do not support any expansion of gambling.
“I fully support my American Legion and VFW,” said state Rep. Dean Van Schoiack, a Republican from Savannah, “but they better be able to find a better way to raise funds than stealing from their members and their patrons.”