Video gambling plan could raise $90 million for Missouri coffers – STLtoday.com

JEFFERSON CITY Missouri could reap a $90 million per year jackpot if it allows slot machines in bars, truck stops and fraternal organizations, according to a new analysis of a gambling expansion proposal.

In addition to funneling more money to the state, members of a Senate panel Tuesday heard advocates say video gambling could generate an extra $20 million a year for local governments when as many as 15,000 machines are fully up and running by 2020.

The measure is being pushed by coin-operated vending machine companies, whove long wanted a chance to put terminals into local establishments over the objection of the states casino industry.

All this does is give small business a leg up. It gives them a chance to get in the game, said Tom Cobb, Acme Music & Vending Co. of St. Joseph.

The legislation sponsored by Sen. Denny Hoskins, R-Warrensburg, would allow as many as five video gambling machines in taverns, restaurants and truck stops and as many as 10 machines for benevolent organizations such as the Veterans of Foreign Wars or the Elks Club.

The plan would allow a maximum bet of $2 for each play and a maximum winning amount of $500.

A similar measure is pending in the House, where its sponsor said the states tight budget situation could make it an attractive time to generate cash without raising taxes.

Missouris 13 casinos are poised to fight the proposals, pointing to Illinois as an example of how video gambling in bars and truck stops has eroded the market share of casinos in the Land of Lincoln.

Mike Winter, executive director of the Missouri Casino Gaming Association, said Illinois casinos have seen a 13 percent reduction in revenue since terminals first began appearing in Illinois taverns in 2012.

We see this as significant, Winter told the Senate panel. Obviously people are taking advantage of playing at local facilities.

The plan would nearly double the number of slot machines in the state, from the current level of 17,650 to 32,650.

Supporters acknowledged slots in bars could hurt casinos.

They very well may lose a small amount of adjusted gross revenues, said Charles Andy Arnold, a lobbyist for J & J Ventures of Missouri, which also has operations in Illinois.

But, Arnold said, the plan also will create thousands of new jobs.

Sen. Jay Wasson, R-Nixa, expressed skepticism over the plan, suggesting video gambling could cannibalize the states gambling revenue.

Do you really think thats new money wed be getting? Wasson asked, adding hes never been a big fan of trying to generate money for schools via gambling.

Gov. Eric Greitens, a Republican who has not previously served in elected office, has not publicly expressed a position on the measure.

The legislation is Senate Bill 452.

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Video gambling plan could raise $90 million for Missouri coffers - STLtoday.com