Judge's slot machine ruling upends talk of gambling expansion in Missouri

Kurt Erickson, St. Louis Post-Dispatch on Feb 17, 2026

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JEFFERSON CITY, Mo. — A federal judge’s decision to declare one company’s gas station slot machines illegal muddied debate of a massive gambling expansion proposal in the Missouri House Monday.

Although lawmakers narrowly gave preliminary approval to a plan to begin taxing and regulating video lottery games in gas stations, bars and restaurants after years of failed efforts, the proposal faces an uncertain future in the House and Senate following an order issued Friday by U.S. District Court Judge John Ross.

In a 25-page ruling, Ross found Wildwood-based Torch Electronics has been raking in millions of dollars from thousands of illegal gambling machines in truck stops, gas stations and bars for years.

Although the proposed change being considered by lawmakers would give companies like Torch a one-year window to exit the business and reapply as a licensed operator, Ross’ decision could hasten the pullout of the machines by granting county prosecutors the ammunition they need to enforce anti-gambling laws.

The grace period had been set at two years, but was amended to one year during Monday's floor debate.

Rep. Bill Hardwick, a Dixon Republican who is sponsoring the bill, said the overall proposal will give business owners certainty over whether the games are legal.

Hardwick said the effort would not necessarily be an expansion of gambling because the regulated games will replace the existing illegal games.

Several lawmakers said they would have preferred to get rid of the machines altogether, but agreed that regulating them would at least result in revenue for the state and a ban on kids playing the games.

“Right now, they are currently everywhere and they are causing problems left and right,” said Rep. LaKeySha Bosley, D-St. Louis.

Rep. Dean Von Schoiack, an Andrew County Republican, cited Ross' ruling as a reason to oppose the legalization effort.

"We have the case. We have the ruling. These are illegal machines," Von Schoiack said. "It's a scourge on society."

Added Rep. Brad Banderman, R-St. Clair, “I think the court decision makes it less likely that these machines will remain. I really don't want to see this in every gas station."

The measure was preliminarily approved on a 68-60 vote, foreshadowing a tough fight to get it to the Senate. Legislation needs 82 votes to win final approval in the House.

Lawmakers have grappled with illegal gambling for years as the machines have spread across the state with little pushback from police or prosecutors.

Some cities have taken steps to ban the terminals, including Springfield, Kansas City and Kirkwood. After her predecessors took a hands-off approach to the spread of gambling, Attorney General Catherine Hanaway is taking a more aggressive stance, moving last week to shut down a handful of operators in the state’s southeastern Bootheel region.

House Bill 2989, which still needs a final vote before it can advance to the Senate, would establish a regulatory framework to issue licenses and monitor betting through a centralized system overseen by the Missouri Lottery.

Locations would be limited to eight machines placed within a separate area of their businesses and players would have to be 21 or older.

The legislation would allow any municipality or county to adopt an ordinance prohibiting video lottery game terminals within 120 days after the effective date of the bill.

The proposal also includes a doubling of the admission fee to the state’s casinos to $4 per person, up from the current $2 charge that typically is paid by the casino operator. The additional revenue would go to the Missouri Veterans Commission, which operates nursing homes and cemeteries for military veterans.

The proposed taxing scheme would require the companies to pay the state 31% of their adjusted gross gaming revenue.

A nonpartisan fiscal analysis projected legalization of the games would generate $348.7 million in revenue by 2028.

The proposal would allow a one-year delay before the law is enforced to give businesses that have the unregulated machines an opportunity to transition to a regulated market.

That provision is seen by opponents as a reward for the gambling companies and businesses for bad behavior, but Hardwick said the state should not punish small businesses that offered the machines because state laws on gambling have been unclear until Ross’ order.

The state’s 13 legal casinos oppose the legalization of the games because it could reduce their profits. Torch and other slot machine companies support the bill.

Even before the court ruling, the fate of the legislation was unclear in the Senate, where top leaders have expressed skepticism the plan could win approval in that chamber.

Senate President Cindy O’Laughlin, R-Shelbina, said she is not in favor of gambling expansion because it can be addicting for some players.