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Three bills introduced in the Missouri Senate prior to the launch of the legislative session aim to accomplish what previous measures were unable to by legalizing video lottery terminals (VLTs) in a state that has seen a massive expansion of grey-market machines.
Over the past six years, efforts to regulate and tax VLTs have been overshadowed by the legislative struggle to pass a sports-betting bill. However, voters in November narrowly approved a ballot initiative legalizing retail and online sports betting, taking that issue off the 2025 legislative agenda.
Previous efforts to legalize VLTs were led by Republican state Senator Denny Hoskins, who was termed out after 2024 legislative session and went on to be elected Secretary of State on November 5.
Hoskins estimated that 15,000 VLTs would generate $250m in state tax revenues, or significantly more than sports betting.
Senator Karla May, a Democrat, has prefiled two bills that would establish the Missouri Video Lottery Control Act to allow the state lottery commission to implement a systems of VLTs and to license manufacturers, distributors, operators and retailers.
May's bill would restrict VLTs to truck stops and other locations that sell liquor and only allow patrons over the age of 21 to enter. Both of her bills would set the maximum wager at $5 with a maximum payout not to exceed $1,000.
Under Senate Bill 16, operators would be taxed at 36 percent on adjusted gross revenue, with retail establishments limited to five terminals, except fraternal organizations, veterans organizations and truck stops limited to ten machines.
This act also would allow a municipality or county to adopt an ordinance within 120 days of the August 28, 2025 effective date to prohibit machines in their jurisdiction.
Senate Bill 112 is almost an exact duplicate for SB 16, except that it authorizes the Missouri Lottery Commission to incur fees when accepting debit cards or other electronic payment methods, except credit cards, for the sale of lottery games.
Both bills would require VLTs to be connected to a centralized computer system to monitor game play before any terminal could be placed in operation.
The ongoing debate over whether to legalize VLTs in Missouri comes as state lottery officials, regulators and gaming industry executives have expressed frustration with the proliferation of unregulated machines in bars and truck stops.
In Missouri, unregulated machines often operate under the guise of so-called “no chance” machines because the result of the next play is already known before the spin. State law is clear it is illegal to have VLTs, slot machines or games outside a casino.
Missouri Lottery officials have estimated there are more than 20,000 machines in the state. The machines began to appear in Missouri in 2020 and are located in convenience stores, restaurants and bars, and in gas stations.
Senate Bill 73, authored by Republican state Senator Brad Hudson, would provide the state attorney general with the authority and jurisdiction to investigate and prosecute violations of Missouri law relating to illegal gambling.
Hudson’s bill also would establish the Child Protection and Gaming Regulation Act to enable the Missouri Lottery Commission to oversee the licensing and regulation of VLTs in the state.
Hudson’s bill does not include a proposed tax rate or application fee. But the first-term senator’s proposal does allow the commission to impose a non-refundable application fee with the initial license good for one year, with a license renewal period of four years.
Operators would be limited to 12 VLTs at any one location and required to pay an annual administrative fee of $1,000 for each VLT in operation. There would be a $4 maximum bet, with a maximum payout of $1,199 or one dollar less than the amount at which federal tax withholding is required.
Hudson also proposes to allow the continuation of “no chance” machines currently in operation across the state, provided the owner or operator registers the machines with the lottery commission and pays a $25 registration fee within 30 days of the act going into effect.
The Missouri legislature will change dramatically when the session begins on January 8 with new leadership in both legislative chambers after both the Speaker of the House and President of the Senate were termed out of office.
Republican Representative Jon Patterson will take over as Speaker, with Republican Senator Cindy O’Laughlin due to become Senate President Pro-Tem.
The House and Senate will also see new faces in the roles of majority and minority leaders as these positions were also vacated due to term limits. Both chambers are controlled by Republicans, with a majority in the House of 111-52 and 24-10 in the Senate.
With the new leadership at the state capitol in Jefferson City, it is unclear if the Republican majorities in both chambers will pass any gaming bill before lawmakers adjourn on May 16.
