Companies profiting from unregulated convenience store slot machines would have two years to pull their games off the market under a bill advanced Monday in a Missouri House committee, the latest attempt by lawmakers to address the state’s long-running “gray market” gambling problem.
The bill would replace the widely used but largely unregulated machines — often found in convenience stores and bars — with a state-run video lottery system overseen by the Missouri Lottery. The two-year transition period is double the time originally proposed by Rep. Bill Hardwick, a Republican from Dixon.
Hardwick said the original timeline proved too aggressive.
“The original bill may have been too aggressive in terms of getting purchase contracts and to propagate rules,” Hardwick said. “So it seems like for now, we’re going to try a two-year transition period.”
The bill is part of a years-long effort by legislators and law enforcement officials to rein in the machines, which operate outside Missouri’s gambling laws and generate no direct revenue for the state. Despite repeated attempts, lawmakers have struggled to find consensus on whether to regulate, replace, or eliminate the games altogether.
Hardwick said he remains confident the bill can pass the House, but the committee’s 8–5 vote — with three Republicans joining two Democrats in opposition — underscores how fragile support remains. A similar bill last year passed the House by a single vote more than the 82 needed but ultimately died in the Senate.
Opposition to the proposal comes from both sides of the gambling industry. Companies that profit from the unregulated machines have lobbied heavily against any new controls, while casinos argue the games should be removed entirely rather than regulated under a new system.
Under Hardwick’s revised bill, the Missouri Lottery would have authority to license video lottery machines for installation in retail locations across the state. Licensed machines would be required to pay out at least 80% of wagered money as prizes, with roughly one-third of profits dedicated to state education programs.
The bill would also impose a 3% tax on video lottery profits to aid local governments and would increase the fee casinos pay for each patron entering the gaming floor from $2 to $4.
During a public hearing Jan. 27, Hardwick and other supporters said the video lottery system could generate up to $600 million annually for education. The increased casino boarding fee and additional licensing fees could generate up to $55 million for state veterans programs.
If those estimates hold, video lottery would become one of the most lucrative gambling operations for both vendors and the state treasury.
The most recent expansion of gambling in Missouri, sports wagering, was approved by voters in November 2024. In its first month of operation, gamblers wagered $543 million, won $437.7 million back, and generated $521,000 in state tax revenue.
For the fiscal year that ended June 30, gambling generated about $700 million for education programs, including $364 million from casino taxes and $337 million from the Missouri Lottery.