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Missouri wants the state lottery to run video lottery machines

Lawmakers now want the lottery to step in, regulate machines, and redirect profits to public programs.

The Missouri State Capitol building.
Todd Betzold

Lawmakers in Missouri are once again taking aim at video lottery machines. However, this time their approach isn't about trying to shut them down. Instead, they want the state to absorb them by placing the Missouri Lottery in charge of them.

A Missouri House committee approved a bill this week that would create a statewide video lottery system operated by the Missouri Lottery. This would bring years of loosely regulated gambling activity under state control. Supporters of the bill say this is a way to reclaim gambling dollars that have quietly flowed through convenience stores for years without oversight, taxes, or a clear public benefit.

Plan moves forward

House Bill 2989, which is sponsored by Republican Rep. Bill Hardwick, cleared the House Emerging Issues Committee on Monday, February 2. The committee approved the bill in an 8-5 vote.

The margin may have been slim, but it was still approved, and now the proposal goes to the next stage. This will be a full House debate, but it hasn’t been placed on the legislative calendar yet.

If the bill is passed, it would establish a video lottery system that would be overseen by the Missouri Lottery. The machines would be considered lottery products rather than private slot games. This would place them under centralized rules governing payouts, monitoring, and revenue distribution.

Turning gray-market machines into lottery games

Video slot-style machines have been operating in Missouri convenience stores and similar locations for years. While they have been widely played, they have no formal regulation. These machines exist in a legal gray area, with no consistent oversight of software, payouts, or profits.

HB 2989 would not eliminate these machines. Instead, it would convert them into official lottery-run video lottery terminals (VLTs). This would shift the control from private operators to the state.

Under this proposal, one-third of video lottery proceeds would be directed to education funding. An additional 3% tax would support local governments. Hardwick has estimated the system could generate as much as $600 million annually for education. However, that figure will likely be scrutinized as the bill advances.

Bigger push to centralize gambling oversight

When lottery expansion is talked about, they usually use education funding as the justification for it. However, supporters of this bill say it's also about governance. By putting video lottery under the Missouri Lottery, the state would gain oversight of machines that have operated with minimal transparency.

Missouri has tried to address this issue in the past. Similar efforts stalled in the Senate last year, which underscores how politically sensitive this topic remains. Critics of this bill often argue that formalizing the machines amounts to gambling expansion, but supporters frame it as long-overdue regulation.

Why the timing matters now

HB 2989 comes at a pivotal moment for gambling in Missouri. The state recently launched regulated sports betting, becoming the 40th state to establish a legal sports wagering market.

This expansion has renewed talks about how gambling is regulated and who is in control of it. If HB 2989 becomes law, it could also create new opportunities for lottery technology partners, like Missouri Lottery supplier Brightstar, to help support a statewide VLT rollout.

For now, the future of this bill is uncertain. However, a message from lawmakers is clear: video lottery machines aren't going away, and they want them firmly under the lottery's umbrella.

Enjoy playing the Missouri Lottery, and please remember to play responsibly.

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