The VLT Problem

One of the biggest hurdles that casino gambling has not been able to clear in Missouri as it tries to legitimize sports wagering is the VLT.

That’s not a sandwich. It’s one of those gambling machines that are proliferating throughout the convenience stores of Missouri.  Video Lottery Terminals. Are they slot machines or something else. Are they legal or illegal? Is there an age limit for using them?  Should they be hidden from general public view or should they be right next to the door, on the aisles next to the snacks.

Is Missouri starting to look like Las Vegas, at least in our convenience stores?

Your correspondent likes to say that he has been to Las Vegas about twenty times, which is about 19½ times more than he ever wanted to go.  If the gambling industry could figure out how to put slot machines on those accordion-like jetways between the terminal and the front hatch of the plane, they would.  But you can hear the slot machines in the gate areas almost as soon as ou get off the plane.

Several people have opined they will not buy gas at a convenience store that has these infernal machines.

The casino industry trying to get sports wagering approved by the legislature has found itself in the clutches of the video lottery terminal people. And vice-versa. A sports wagering bill hits the floor for debate and somebody tries to amend a VLT-licensing bill onto it.  It’s especially frustrating to the sports wagering folks in the Senate where an attempt to attach a VLT bill to a sports wagering bill can generate a filibuster at the drop of a chip—by a VLT Senator who wants it to be added or a sports wagering Senator who doesn’t want it be adopted.

Now there’s another question fogging the discussion.  Should the legislature be discussing legalizing VLTs while a class action lawsuit accuses the company that supplies many of those machines with violations of state consumer protection and federal racketeering laws (the federal Racketeer Influenced and Corrupt Organizations, or RICO, Act).

Our former colleague in the press corps, Rudi Keller of Missouri Independent, reports the federal court lawsuit accuses Torch Electronics of putting hundreds of machines—the lawsuit says they’re illegal gambling devices—in locations all over the state. Critics of VLTs also say there are no protections that will keep children from using the machines, and to rid Missouri of machines that the suit says entice people who already have gambling problems to play them.

Torch, in previous criminal and civil cases has claimed the machines don’t violate state gambling laws.  And it claims they’re not gambling machines because players are offered a chance to know the outcome before they put in their money.

If you want to know the difference between slot machines and VLTs (the casino people say they’re the same animal but dressed differently. The VLT people say they’re  more like lottery machines), you might to go to VLTs vs Slots (The Different between VLT and Slot Machine 2023) (slotsguy.com)

The casino industry sees them as competition for their slot machines, particularly because these machines are anywhere in the state and the casinos are restricted to just 13 locations on our two great rivers.

The casinos are under the Missouri Gaming Commission. The VLTs would be regulated by these state lottery.

We’ve already seen an early dustup on this issue in the Senate where Senator Denny Hoskins of Warrensburg, a longtime supporter of VLTs, saw his bill combining both issues killed in committee while a stand-alone sports wagering bill was voted out for debate. He locked down the senate for a couple of hours a week before spring break and he had friends helping him.

While that fight will continue at the capitol, another fight is shaping up in the courts.

Rudi recalls that Torch put its first machines in Missouri five years ago. Complaints led the Highway Patrol to investigate them and recommend to prosecutors about 200 cases complaining the VLTs violate state gaming laws.

But only one prosecutor has gone after VLTs.  Machines in a convenience store in Platte County were destroyed after a judge found they violated the law. Other prosecutors seem to think they have bigger fish to fry than prosecuting people who run convenience stores with these machines in them.

One interesting issue in the class action lawsuit claims that Torch and a co-defendant, Warrenton Oil have combined to make more than $955 thousand in political donations in the last five years.  We haven’t checked to see how much the casinos have made in political donations but they do stand to make hundreds of millions of dollars in sports wagering and they have invested a lot of time and manpower in the effort for about six years.

But so far all of the various pressure campaigns and campaign finance issues, neither sports wagering nor legal VLTs has passed the legislature.

The legislature returns from its spring break in a few days. The sports wagering legislation is waiting for debate in both the House and the Senate.  The discussions are likely to be lengthy, even in the House where there are rules against interminable talking by members.  But in the Senate there are no debate limits.

Another factor enters in.  Last year, the six major sports teams in Missouri started making noises about a petition campaign to put sports wagering on a 2024 ballot if the legislature did not enact it.  That has raised the stakes on the issue in the legislature this year.

Officials with the sports teams have testified this year that they are “agnostic” about VLTs, an indication the devices won’t be part of a ballot issue as far as they’re concerned.

The last time we ran some traps at the capitol, the sentiment was that sports wagering might not make it to the governor for his signature this year, again. But nothing is dead until the gavel drops at 6 p.m. May 12.

Wanna bet how this mess turns out?

 

Let me know what you think......

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