Will Missouri finally allow sports gambling and rein in video terminals in 2020?
The roadmap that could lead to more gambling in Missouri is now on the table.
On Monday, a special interim House committee issued a report tackling two big issues related to wagering: sports betting, which is spreading across the country, and so-called “gray machine” video gambling terminals popping up across Missouri.
Sorting out the changing gambling industry should be a first priority for lawmakers next year. It won’t be easy. Addressing both will be “a very thin needle to thread,” said committee chairman Dan Shaul, a Republican House member.
The committee says sports betting is “a legitimate opportunity to increase state revenues” but makes no specific recommendations on how precisely it would work.
That’s disappointing. We support sports gambling in Missouri, and the structure seems obvious: oversight from the Missouri Gaming Commission, a limited number of in-person betting locations, online and mobile device wagering and a cut of the take for education, as the Missouri Constitution requires.
The state may want to limit in-person sports wagering to existing casinos, which will undoubtedly see less revenue if sports betting is allowed. Less casino revenue could hurt local communities involved in traditional gaming.
The second issue involves “gray machines,” or no-chance video display terminals. Their use grows more troubling by the day.
It’s estimated that more than 14,000 such machines are now scattered across Missouri. Supporters claim the machines are not really gambling because players are given the opportunity to know the outcome before plopping down their cash.
Opponents rightly argue that they’re no different than slot machines and should be regulated and taxed accordingly.
Yet restricting the machines now will be hard. If the gaming commission or lottery commission decides to limit the machines or license them, some mom-and-pop stores could lose their terminals, at a significant cost to their businesses.
If the machines aren’t restricted, state licensed gaming boats will lose significant business, and the state will get less money for schools.
The committee did not recommend a way out of the thicket, or endorse our call to stop the use of these machines temporarily until these problems can be addressed.
Missouri voters who approved gaming did not want slot machines on every corner. Reasonable regulation and taxation must be a first priority for lawmakers next year, along with a phase-in period for businesses to adjust.
Some Missourians will resist this push into new gambling territory. But sports gambling is here to stay, and video terminal gambling is everywhere. The state must take appropriate steps to oversee these industries as quickly as possible.
This story was originally published December 3, 2019 at 1:06 PM.