Legal?  Illegal?

The legality of VLTs, Video Lottery Terminals, remains up in the air with a recent court ruling and because of the uncertainty of their legality and a powerful influence group at the Capitol that opposes them in their present state, we can already see the 2024 session of the General Assembly degenerating into another mud fight in the closing day that winds up killing many bills on which legislators have worked hard to put into position for final passage.

The casinos say VLTs are slot machines and casinos are the only places in Missouri that can operate slot machines.  VLT supporters say they’re some kind of different animal and, as such, are not covered by state law or regulation.

Neither side wants to talk to the other. Forget about compromise. As the clock winds down on the legislative session, both sides get more angry and more desperate and a filibuster in each of the last two years on this and some other tender issues has set lawmakers home frustrated and disappointed.

Whether VLTs are illegal is disputed not only in legislative halls, but in county prosecutors’ offices throughout the state. Only Platte County has declared them illegal and has fined a VLT operator $7,500 for promoting gambling.

The machines are not regulated by either the State Gaming Commission that regulates casinos or the State Lottery Commission that regulates lotteries. The machines generate no income for state programs and services that draw financing from gambling.

Last week, a federal judge decided seven plaintiffs who claimed they are problem gamblers (some of whom have put themselves on the state casino exclusion list) had no standing to file a lawsuit accusing Torch Electronics, a VLT operator, of violating the federal Racketeer influence and Corrupt Organizations Act with its machines. The judge held they had not shown a “tangible injury to business or property.”  He also said losing money in the machines was a voluntary act by the player—who could avoid losing money in VLTs by not playing them. He says he dismissed the part of the case dealing with the RICO act and that any further challenges belong in state court.

Torch has a lawsuit in state court. It’s scheduled to be argued next month.  It, and Warrenton Oil, want an order banning the Highway Patrol from investigating Torch’s operations. Warrenton Oil operates 54 Fast Lane convenience stores with VLTs in them.

Some people have urged Attorney General Andrew Bailey to take action against the machines. He says the issue is “too complicated” for his office to get into.

The legislature seems unwilling to be the adult in the room, telling two feuding children to shut up and telling them, “This is how it’s going to be done.” Of course, it’s hard to take that initiative. when there are thousands of dollars in campaign donations from both sides floating around.

In an election year.

Somebody has to write a rule and the legislature needs to adopt it to keep the 2024 session from turning into the sessions of 2022 and 2023.  But it is our observation that our legislature has become passive, perhaps because of term limits—that legislators don’t propose alternatives to bills like these that put lawmakers, not casinos or VLT operators in a position of authority.

After watching this show for a couple of years and growing tired of it, this helpful citizen suggested a compromise late last year.  It was given to only a couple of people but is offered here for mass consideration.

First: On the effective date of this act, all VLTs will be illegal. The Missouri Lottery Commission is authorized to establish regulations that protect the interests of the state.  Upon approval of those regulations, VLTs can operate within the parameters of this act.

Second: The Missouri Gaming Commission is authorized to  VLT districts which shall consist of the home county of any casino and all surrounding counties. Revenue derived from VTLs in that district shall be distributed to the casinos on the basis of admission numbers. The casinos  (shall be responsible for paying all taxes and fees on VLT revenue established by state law.

In districts in which there are multiple casinos whose territories would overlap, a large district will be established that incudes home counties and surrounding counties (St. Louis, St. Louis County, and St. Charles County would comprise one such district.  Kansas City and St. Joseph casinos will be in a district together (they share Platte County) and their revenues also will be determined on an admission fee basis).

Third: The Lottery Commission will be free to establish additional districts as the constitution is amended to create new casinos.

Fourth: This policy will not be applied to any tribal casino unless it is included in a compact between the tribe and the state that is approved by both chamber of the Missouri General Assembly.

The plan protects the interests of casinos while leaving much of the state (the part not served by the present river-based casinos) open to independent VLT companies.

There’s no pride of authorship here. This is a result of being tired of the annual mud fight.

Of course, this stands no chance.  He who offers it has no Political Action Committees with fat checkbooks that are essential to establishing public policy that protects the interests of the constituents of those who set that policy.

But somebody has to start a conversation if the protagonists of our ongoing drama refuse to be part of it. It might be time to an otherwise passive legislature to become active before more lawmakers see their four months of work fall into the annual mid-May mud hole.

 

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

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