Missouri Illegal Slot Machines

In light of a recent ruling that categorized the unregulated slot machine-style games of a Kansas-based company as illegal, Missouri officials are still unable to decide how to move forward with policing approximately 14,000 devices situated at bars and gas stations across the state.

A draft letter issued from state liquor regulator to local license holders informed the latter of the ruling announced by a Platte County Circuit Court judge on September 22nd. The letter, however, highlighted the fact that the judgment was not final at the time, as the affected company – Integrity Vending LLC – appealed the court’s ruling.

The Missouri Gaming Association (MGA) supports the Missouri Highway Patrol’s investigation into illegal slot machines in gas stations, truck stops and restaurants across the state. In addition, we Read more Source: MGA.

According to Senate President Pro Tem Dave Schatz, the letter probably was not strong enough. Mr. Schatz explained that he wanted the state of Missouri to provide unlicensed businesses with time to switch off the slot machine-style games before facing more serious measures, such as suspension or even revocation of their liquor licenses. He still explained that the caution of local officials was understandable, considering the possible appeals.

The recent ruling has given the start of a new part of an old debate that has been going on in Jefferson City – whether the companies deploying and operating unlicensed and unregulated gambling devices should be prosecuted for that.

Illegal Slot Machine-Like Games Are Being Offered in Bars and Gas Stations

Shawnee, Kansas-based Integrity Vending LLC is now facing a $10,000 fine after being convicted of promoting illegal gambling services in the first degree, which under the provisions of the existing legislation is categorized as a Class E felony. According to the draft letter, the company could appeal the ruling after it hears the official sentence on November 23rd.

Missouri Illegal Slot Machines

The controversial games, which are mostly established in bars and gas stations across the state, offer games that are similar to casino slot machines in which players deposit money with the chance of winning (or, respectively, losing) a prize. However, the games are currently unregulated in the state, which basically means that customers are not protected against possible harm. Apart from that, the state does not receive any tax revenue that is otherwise directed to public education process.

Mr. Schatz has previously revealed he was willing to see the state Department of Public Safety start ceasing the liquor licenses of businesses that are not compliant with the regulatory rules, but if this happens, it is likely to lead to an escalation in the efforts of Missouri’s officials to prosecute the games.

This year’s budget included $150,000 for the investigation of the unlawful devices, with the money being earmarked for the Attorney General’s office that is the one responsible for the enforcement of customer protection laws. The money was withheld in the summer by Missouri’s Governor Mike Parson, with the move temporarily stopping any action. The Governor’s administration has released the funds only recently, but Eric Schmitt, the local Attorney General, still seems to be reluctant to spend it.

A gaming lounge in Berks County was actually an illegal casino with video slot machines and has been shut down following a raid, prosecutors announced Friday.

Windfall Amusements’ 777 lounge in the Kenhorst Plaza shopping center and a home in Exeter Township were raided Thursday morning as part of the investigation into unlawful operation of illegal video gambling devices that began in February, Berks County District Attorney John Adams said.

State police seized $67,760 in cash and 57 machines at the 777 casino. The business did not allow patrons under the age of 21, and cash payouts were made by the operators, Adams said.

“They were not a skill game. They were a gambling device,” Adams said, adding investigators believe most, it not all, of the machines have characteristics unique to gambling devices and are illegal.

Efforts to reach officials with Windfall Amusements were unsuccessful.

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WFMZ reported that following Thursday’s raid, people could still be seen trying to go inside the business.

Two people were at the Exeter home, Adams said. They have not been charged. Adams said he expected charges will be filed in the future based on Thursday’s raid, but did not elaborate.

“They are definitely involved in some fashion with Windfall Amusements. We do not know their particular role with the company,” Adams said, adding prosecutors are still investigating.

Machines

State police said they believe the casino was operating since December. The business received approval from Kenhorst council in July 2019 to operate 60 machines, according to the Reading Eagle.

Adams noted a Reading Eagle article from February that Windfall Amusements was seeking approval to add 30 more single-chair video skill machines. That same month, state police began their investigation based on anonymous complaint, he said.

“It was advertised on Facebook as a casino” and was identified in a news report as a casino, Adams said.

The investigation was suspended for a period of time due to the COVID-19 pandemic. Investigators found

Windfall Amusements had no gaming license and paid nothing to operate what investigators determined was an illicit casino, Adams said. Penn National Gaming paid more than $7.5 million for its gaming license for a casino in nearby Morgantown, he added.

The state receives a percentage of slot machine revenue from licensed casinos, but it was not receiving any revenue from Windfall Amusements, prosecutors said.

Missouri Illegal Slot Machines Jackpots

“These type of operations around the state have to be closed, as the state receives no benefit whatsoever,” Adams said. “At the time that we need monies to operate governmental functions, it is very important that, if we’re involved in gambling, that they be through the licensed casino which creates revenue for the state of Pennsylvania. No monies were received by the state for these machines.”

Missouri Illegal Slot Machines Machine

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Sarah Cassi may be reached atscassi@lehighvalleylive.com.