Missouri is one of a handful of US states that are yet to legalize sports betting. Legislators in the state have previously shown support for the legalization of the activity, but efforts haven’t gained much traction. While previously, the House showed support for the legalization of wagering on sports, efforts halted in the Senate over arguments about the growing illegal retail sector across the state.

While efforts of lawmakers have previously stalled, professional sports teams in the state joined forces in support of the legalization of sports betting. A coalition, supported by professional sports teams in Missouri leads the efforts in legalizing sports wagering. This coalition includes St. Louis City, a soccer club, St. Louis Blues, a hockey team, as well as St. Louis Cardinals, a baseball team, who are leading the charge for the legalization.

Currently, the coalition has proposed eight ballot questions that will seek a response from voters in the state. Ultimately, the proposal calls for the legalization of retail and mobile sports wagering and the implementation of a 10% betting tax. If the activity is legalized, some $29 million is expected to be raised for education. The proposed legalization calls for the development of a $5 million problem gambling fund.

Despite the coalition’s plan, a report released by the St. Louis Post-Dispatch suggests that not everyone agrees with the legalization of sports wagering. Citing research, the report outlined data from a Remington Research Group survey that uncovered some 54% of 711 likely voters would oppose the legalization of sports betting. With only 26% voting in favor, 20% admitted they were not sure whether to support it or not.

Betting Legalization Is Still Far from Becoming a Reality

Supporters of the legalization of sports betting in Missouri would now need to select one out of the eight questions to be placed on the ballot. Yet, to include the question, supporters need to collect signatures of at least 170,000 residents across the state.

“I would be thrilled if we could get legislative action because then we wouldn’t have to do it. I’m hopeful, but I’m also being realistic.“

Bill DeWitt III, president of The Cardinals

The Cardinals’ president, Bill DeWitt III, said that the coalition’s next step is to discuss the proposed legalization with members of the gambling sector. After that, he said, they would consult on how to collect the necessary signatures. While DeWitt said that he hopes to see lawmakers act on the legalization of sports betting, he explained that he looks at the matter realistically.

The efforts toward legalization of sports betting come at a time when most US states have already legalized some form of the activity. According to data from the American Gaming Association, 37 US states and Washington DC offer sports betting, while less than a dozen states are yet to legalize the activity.

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A Cole County judge, Judge Daniel Green, dismissed a lawsuit filed by Torch Electronics, a major distributor of unregulated slot machines, just one day before it was set to go to trial. 

Mixed Reactions to Torch Electronics’ Lawsuit Dismissal

The case, filed in 2021 by Torch Electronics and Warrenton Oil Company, aimed to establish the legality of their machines, which they claimed were designed for amusement purposes despite offering cash prizes. Torch argued that its machines were being unfairly targeted by the state. However, the state contended that the company was attempting to shield itself from prosecution.

Judge Green’s decision to dismiss the lawsuit has sparked mixed reactions. Torch attorney Charles Hatfield expressed disappointment, announcing the company’s intention to appeal the ruling, reported The Missouri Independent. On the other side, Mike Winter, executive director of the Missouri Gaming Association, which represents the state’s regulated riverboat casinos, voiced concerns about the proliferation of unregulated machines. Winter argued that the decision allows these machines to continue operating, impacting individuals who may struggle with gambling problems.

The lawsuit had broader political implications, with attorneys for Missouri Attorney General Andrew Bailey withdrawing from the case earlier due to alleged conflicts of interest related to campaign contributions from political action committees linked to Torch’s lobbyist, former Missouri House Speaker Steve Tilley.

Judge’s Ruling Leaves Missouri’s Unregulated Gambling Industry Hanging

Bailey’s ambiguous stance on unregulated gambling in the state sparked controversy, with rising complaints about illegal gambling machines. Bailey cited the complexity of the problem, while lobbying efforts from pro-gambling groups continued to hinder progress. The lack of political will and vague legislation have allowed illegal slot machines to proliferate, leading to over 170 complaints to the state regulator in 2023. 

Attorney Scott Pool, representing the state, welcomed the judge’s decision, asserting that such matters should be resolved through criminal cases rather than civil lawsuits. Pool emphasized that the state’s law enforcement agencies, including the Highway Patrol, would continue to investigate complaints and seize machines suspected of illegal gambling activities. Whether local prosecutors choose to file criminal charges remains at their discretion.

While the case was seen as an opportunity to shed light on the unregulated gaming industry’s spread throughout Missouri, Judge Green’s ruling has left the legal status of these machines in limbo. The dismissal allows Torch Electronics and similar companies more time to install additional machines in various establishments while the legal battle continues in the appellate courts.

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PlayAGS, a leading supplier of casino products and services, announced that it has secured approval to launch its portfolio of high-performing electronic gaming machines (EGMs) and table games in two new US jurisdictions. According to the announcement, the provider will now be able to supply products to casino operators in the states of Colorado and Missouri.

The launch in these two jurisdictions will help PlayAGS expand its presence in the United States, in line with the company’s ambition to become the go-to gaming supplier in North America.

The entrance into these two new jurisdictions follows the launch of the provider’s cutting-edge portrait cabinet Spectra UR43.  PlayAGS’ latest state-of-the-art machine features the beloved Triple Coin Treasures games, a series of titles proven to resonate with American consumers.

Triple Coin Treasures will be some of the first products PlayAGS will launch in Colorado and Missouri, allowing local fans to see what the fuss is all about. According to PlayAGS, fans will be able to find Triple Coin Treasures in a selection of Colorado casinos, including Century Casino & Hotel Central City, Golden Nugget Cripple Creek and Monarch Casino Resort Spa Black Hawk. Missouri fans, on the other hand, should seek PlayAGS’ titles at Horseshoe St. Louis, River City Casino Hotel, Hollywood Casino St. Louis, Argosy Casino Hotel & Spa, Harrah’s Kansas City, Bally’s Kansas City Casino and Ameristar Casino Hotel Kansas City.

PlayAGS Is Excited to Offer Premium Products to More US Players

AGS’ senior vice president and general manager of slots, Mark DeDeaux, commented on the launches in Colorado and Missouri, saying that the new licenses form a “meaningful piece of AGS’ overall growth strategy.” They follow a recent expansion of PlayAGS’ team and an expansion of the company’s overall global presence.

DeDeaux concluded that his team is looking forward to engaging players in the new states with exciting gaming products:

We are pleased to be able to offer our high-performing, chart-topping new products to customers in both the Colorado and Missouri markets.

Mark DeDeaux, SVP & general manager of slots, AGS

In the meantime, PlayAGS continues to grow, as demonstrated by the company’s recent financial results. In early August, the supplier published its Q2 2023 results, reporting record-breaking revenue of $89.8 million. The company continues to see its metrics increase across the board, attesting to the efficiency of its business strategy.

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Now, St. Louis County is the first in the Show Me State to send an unequivocal message on the matter and try to prohibit smoking on casino floors located in its bounds. This way, the county bucks the state-wide trend which still exempts casinos from the ban on smoking in public smoking.

Fighting Smoking On-Site Casinos in Missouri

The measure is still up for debate, however, and it will have to go through County Council first, but if it succeeds, it would be a seminal accomplishment. Effectively, St. Louis has not enforced the 2011 smoking ban on casinos, which has had an economic justification. Properties have long feared that restricting and putting a ban on indoor smoking would have an adverse effect on their bottom lines.

However, this claim has been challenged repeatedly over the past decade, with New Jersey and Nevada casino workers, as well as many other workers across the country, raising their voices and calling for a timely prohibition on smoking. One of the opponents of indoor smoking in casinos is county health department director Dr Kanika Cunningham who has argued that no modern ventilation system can minimize the risks bore by casino workers from inhaling second-hand smoke.

However, going on a per-county basis has some risks for St. Louis as well. The main qualm is that should the county become the only one to outlaw indoor smoking on casino floors, consumers may flock to neighboring counties instead. This makes some sense, although a similar argument has been made by people fearing state-wide bans.

Research Shows Business Intact in Wake of Smoke Bans

However, Cunningham cited a report by C3 Gaming, a Las Vegas company, which argued in a recent report that banning smoking is not tantamount to a loss of business for the casinos and companies that enforced such measures. There has been no drop in revenues for the companies covered by C3 Gaming’s case study.

However, C3 Gaming’s report has focused on tribal casino properties, which have been some of the most proactive properties when it comes to smoking as many have been reopening as smoke-free spaces in the wake of the pandemic, citing health fears for their communities.

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A new lawsuit, filed by attorneys in Missouri on behalf of seven plaintiffs, seeks to address the gray market for such machines. The plaintiffs argue that they have been hurt by the illegal operations of the thousands of machines that are currently available in the state, and seek damages from the owners of the venues that host them – usually convenience stores that use the machines as a lifeline to plunge gaps and keep going. Some big names have been named in the latest filing.

Missouri Gambling Machines Targeted in New Lawsuit

Legal action against the machines though is something that casino operators would happily back, as they have been trying to shutter the gray market for these machines for many years now. Missouri though has always come short of discussing the issue more broadly in legislation. This is mostly to do because a lot of constituents run businesses that need video lottery terminals or VLTs in order to stay in business. The lawsuit alleges there is a political backchannel between companies and corrupt politicians, too, although not in as many words.

When the pandemic hit, these machines often proved the only way to stay open, many owners argue. And yet, casinos riposte that because of the sector, their own bottom lines had suffered and they had not been able to contribute nearly as much as they could have if the machines had not been allowed to operate in the first place.

The lawsuit names Warrenton Oil Co, an operator of convenience and gas stores, and Torch Electronics, as the defendants. Torch Electronics is an operator of such machines, and it has been assailed by disgruntled parties repeatedly over the past several years. Mally Inc. is another company which runs supermarkets, and a number of other parties that the attorneys argue are responsible for the proliferation of what they insist is an illegal gambling market.

Unfair Practices and Vulnerable Consumers

Torch, however, is not the manufacturer of these machines. That is a company based in North Carolina, called Banilla Games. But the plaintiffs are not just fighting the legality of the sector per se – in fact, they are more interested in what they see as unfair practices by the machines. Wins are usually rounded down to the nearest whole increment, the lawsuit alleges. So, if you were to win $5.99, players would only be paid back $5 instead.

The lawsuit further takes a hit against the entire institution of these machines, arguing that the games are created in a flashy manner that wrongfully suggests that players may in fact win money. Another issue the lawsuit alleges is that there are hardly sufficient consumer protection measures to keep vulnerable people safe.

The lawsuit goes on to allege that “even toddlers” have been seen gambling at machines run by Torch. The suit also goes on to name various political donations the company, and other defendants, made in order to “guarantee” that no legislation moves against them.

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On Wednesday, a Missouri House committee reviewed a proposal to allow residents to vote for the expansion of casino gambling in the state

The House Joint Resolution 23 was sponsored by Rep. Jeff Knight, R-Lebanon, and if approved, will authorize the Missouri Gaming Commission to issue a permit to a gaming venue on the Osage River. According to Rep. Knight, a new casino in the Ozarks area would generate approximately $100 million yearly.

Casinos in the state are expected to pay 25% of their revenue in tax, meaning that the new casino could give the state around $25 million annually. Missouri currently has 13 gaming venues in the Missouri and Mississippi rivers.

The proposed casino will likely be constructed on Lake Ozark, which boasts a population of 2,000. According to Mayor Dennis Newberry, Lake Ozark needed approximately $25 million generated by capital improvement projects the city was ill-equipped to afford. He also noted that Lake Ozark would greatly benefit from the annual $2.5 million received in gaming revenue.

Other HJR 23 supporters, including Rep. David Tyson Smith, D-Columbia, asserted that the new casino would aid local businesses by attracting more tourists to the city.

The Osage Nation has expressed interest in building a casino in the city; however, the tribe’s immunity to the state law means that the HJR 23 had no direct effect on its development. The tribe has already bought some property in Lake Ozark in preparation for the casino and commenced clearing it for possible construction.

Miller County commissioner Don Abbett revealed that he was in support of the House Joint Resolution 23 mainly because a state-approved casino in the area was better than the alternative. He, however, did not extend his support for a casino owned by the Osage Nation in Lake Ozark.

According to the commissioner, an Osage casino in the city would not be subject to paying taxes and, as a result, acquire an advantage over future state casinos. The gaming venue would also not provide any tangible support to the community.

The CEO of the Osage Nation Gaming Enterprise Board, Kimberly Pearson, countered Abbett’s comments by claiming that the Osage Casino would make charitable donations to the community in place of the taxes. The tribe reportedly already made several in the past.

Referencing a 2013 study of tribal gaming venues in Oklahoma, Bryce Crowley, the board’s legal counsel, revealed tribal casinos have contributed significantly to the state’s economy.

“‘The number of gaming tables in an Oklahoma county is significantly related to large increases in median household income and large decreases in the unemployment rate, level of violent crime and level of property crime,’” stated Crowley.

A number of Lake Ozark residents have already expressed some trepidation over the bill, claiming that it could increase the crime rate in the city. Some also questioned why a statewide ballot measure should be able to decide if the city needed a casino.

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