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Sports betting in Missouri has been live since December. It got off to a slow start due to missing most of the NFL betting season and the Chiefs’ flaming out before the playoffs, but things are starting to look up for the legal betting industry in the Show Me State.
This summer will be boosted by World Cup betting. Extra so in Missouri since Kansas City is one of the 11 American hosts and Argentina will play multiple games at Arrowhead Stadium.
But not all is well with the betting industry the state, and we’re not talking about sports betting. There’s a new fight brewing in the industry, and it has to do with gaming machines. Yes, really, and things are heating up. Keep on reading, and we’ll explain all about it.
Missouri Gaming Machines Are Up In The Air
Here’s the issue at hand: Missouri has thousands of gaming machines sitting in places like bars, gas stations, convenience stores and fraternal clubs. They look like slot machines. They sound like slot machines. They pay out like slot machines. But… the businesses behind them have long argued they are not actually slot machines, which are illegal in the state.
Their argument centers on the “pre-reveal” feature. Before a player puts money down for the next play, the machine can show what the next result will be. Supporters say that removes “chance” from the equation because the player technically knows the outcome before wagering. Therefore, they’re not slot machines the argument goes.
Of course, critics, which include some local politicians, disagree. In their view, these machines are close enough to casino games that the tiny difference is just mumbo jumbo to skirt the law. Sounds a lot like the debate over prediction markets, eh?
Anyway, the disagreement has been brewing for years, but it finally reached a boiling point after Torch Electronics — who make most these machines — got into a court spat with TNT Amusements. They back bask and forth before U.S. District Judge John Ross ruled in February that Torch’s machines did in fact meet the legal definition of gambling devices when played outside licensed casinos.
That ruling gave Missouri Attorney General Catherine Hanaway the legal backing she needed to ramp up a crackdown on the machines. Her office began targeting businesses connected to the machines, and Torch eventually suspended operations in April because the legal risk became too serious.
The machine industry is now trying to survive on two fronts at once. In court, businesses are arguing that not all devices are the same as Torch’s machines and that Hanaway is overreaching by treating them all as illegal gambling devices. In the Legislature, companies are pushing lawmakers to simply legalize and regulate the machines outright.
2027 Could Decide Everything
For now, the machine industry is mostly playing defense. But come January 2027, it plans to go on offense.
That’s when supporters believe the political environment is about to become much friendlier. Earlier this year, House Bill 2989 passed the Missouri House before dying in the Senate. This bill would’ve legalized video lottery machines in Missouri stores.
The biggest roadblock to the bill was Senate President Pro Tem Cindy O’Laughlin, who refused to bring the proposal up for a vote. O’Laughlin is on her way out, however, so that roadblock will be gone.
State Sen. Jason Bean is expected to replace her in leadership, and unlike O’Laughlin, he fully supports legalizing and regulating video lottery machines. Bean has even said publicly that he believes the votes already exist to pass legislation next session.
Thats got to be music to ears of machine companies like J&J Ventures, which have been spending heavily in Missouri politics. They’re not donating out of the kindness of their hearts, obviously. They’re betting (pun intended!) that a different Senate leadership structure could finally get a bill across the finish line and save their business in the process.
Some In The Industry Aren’t Waiting Until 2027
Here’s a really fun story that came out this month. There’s a bar that ain’t waiting til 2027 and taking matters in their own hands.
Get this, a St. Charles bar filed a lawsuit against Attorney General Hanaway’s enforcement campaign. The lawsuit claims Hanaway is treating every pre-reveal machine as if it’s identical to Torch’s banned machines when that may not actually be true. In other words, the businesses are trying to keep their machines operational during this weird grey period.
The lawsuit also raises a bigger issue. The bar argues that Hanaway doesn’t have the authority to effectively redefine gambling through enforcement actions alone. If Missouri wants to ban certain machines, the lawsuit says, lawmakers should be the ones making that decision.
That’s a clever argument because it shifts the debate away from whether the machines are gambling devices and toward who gets to decide that question in the first place. Got to love the creativity, right? We sure do, so credit to that bar, which apparently gets a good amount of foot traffic from its machines if they’re going this far.
This is the most interesting betting story in the state, from now until 2027. We’ll be following it closely so make sure to check back with us for updates as we get them!
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