Missouri Takes Aim at Regulating Skill Gaming Under New Legislation

Found in a myriad of establishments from convenience stores to bars, these grey-market apparatuses have sparked a significant debate about their regulation and taxation. Spearheading the move towards legislating these machines is House Minority Leader Crystal Quade (D-Greene), who is eyeing the governor’s seat and sees this as a crucial issue to address before her potential departure.

The Drive for Regulation and Taxation

Quade’s initiative, House Bill 2835, aims to bring skill gaming under a regulatory umbrella, ensuring fair play and financial benefits for the state. Quade emphasized the omnipresence of these machines and the necessity of legislative action, stating, “It’s quite a problem. Unfortunately, nobody is doing anything about them. Unregulated slot machines are not going away, and it’s past time for the legislature to act.”

Proposed Measures in HB 2835

The bill proposes several key measures to ensure the responsible operation of skill gaming machines:

• Establishing a minimum payout rate of 85% to guarantee fair play for consumers.
• Capping the number of terminals at five per establishment.
• Positioning the machines in areas off-limits to individuals under 21.
• Implementing a 33% tax on each machine’s gross revenue, contributing to the Missouri Lottery Fund for public education and safety initiatives.
• Introducing a $25K annual fee for device manufacturers and a $1,000 yearly fee for host businesses.
• Empowering local governments to prohibit the games within their jurisdictions.

Quade’s Gubernatorial Ambitions and the Political Landscape

As Quade sets her sights on the gubernatorial race, she faces a competitive Democratic primary and a challenging general election against GOP frontrunner Jay Ashcroft. Missouri, having not seen a Democratic governor since Jay Nixon’s tenure, presents a formidable political battlefield for Quade.

Missouri’s skill games, often dubbed “no-chance” machines, present the outcome of the next play before the spin, allowing players to bet until a winning preview appears. Torch Electronics, a prominent manufacturer of these machines, has been at the center of legal debates, notably suing Springfield for attempting to ban the games locally, arguing for a state-level resolution.

Our Comment on the Article

The push for regulating skill gaming in Missouri under House Bill 2835 marks a pivotal moment for the state’s gambling landscape. By introducing measures to ensure fair play and secure tax benefits, the bill aims to formalize a sector that has thrived in a legal gray area.

Minority Leader Crystal Quade’s initiative reflects a broader trend towards recognizing and harnessing the economic potential of skill gaming, while also addressing concerns about consumer protection and local autonomy. As the legislative process unfolds, the outcome of this bill could set a precedent for other states grappling with similar issues, highlighting the evolving dynamics of the gambling industry in the digital age.