Armed with campaign cash, video gambling companies again pushing for legal slots in Missouri

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JEFFERSON CITY — Two video gambling companies from Illinois are backing proposed legislation that would bring slot machines to Missouri gas stations, truck stops and bars.

J&J Ventures and Accel Entertainment have formed a political action committee designed to funnel campaign contributions to lawmakers who have been unable to agree on a way to legalize Missouri’s current unregulated marketplace.

The Mo Coalition for Video Lottery PAC, which is connected to lobbyist Charles “Andy” Arnold, has not yet reported how much money it has raised.

But, the formation of the PAC marks a new turn in what has become a winding road for efforts to expand gambling in Missouri.

Over the past five years, the Effingham, Illinois-based J&J has contributed more than $100,000 to Missouri politicians, including Gov. Mike Parson.

J&J also has a website urging businesses to contact the company if they are interested in earning “an additional $80,000 per year through video gaming.”

“Once permitted, J&J Gaming will install state-of-the-art video slot machines in your establishment. Not only will we act as your premium service provider, but we’ll remain dedicated to your long-term success,” the website notes. “Once Gaming is legalized in Missouri, we look forward to partnering with establishments like truck stops, restaurants, bars, fraternal organizations, veteran organizations, and more.”

Accel Entertainment Gaming, which is based in the Chicago suburb of Bolingbrook, has pumped $130,000 into the campaign accounts of Missouri lawmakers since 2019 in an effort to expand into the state.

Under legislation they are supporting, establishments in Missouri that have liquor licenses would be able to have a limited number of machines in their stores.

The proceeds from taxes on the games would be used to fund state programs, such as education.

Efforts to regulate and tax slot machines have bogged down over concerns by the state’s 13 casinos, who fear it will cut into their business.

The casinos want Missouri to legalize sports betting, which could provide a revenue stream that would offset losses they could see if slots are legalized.

The standoff has been complicated by an effort by two other companies that have been pushing unregulated slot machines into businesses across the state in recent years.

Like Accel and J&J, Torch Electronics and Warrenton Oil are spending big on campaign contributions. Earlier, the two funneled $350,000 into six political action committees tied to lobbyist Steve Tilley, a former speaker of the Missouri House.

Torch and Warrenton Oil are accused in court of operating thousands of illegal slot machines. The companies are also suing the state, saying they are being unfairly harassed by the Missouri State Highway Patrol, which has taken steps to remove the machines from various locations.

Torch contends its devices are not illegal, even though people insert money to play them in hopes of winning a large jackpot.

Under legislation filed by Sen. Denny Hoskins, R-Warrensburg, businesses that are caught with gambling devices that are not licensed by the state lottery or the Missouri Gaming Commission would be guilty of a felony and fined up to $10,000 per occurrence.

“Currently, Missouri is the Wild West of illegal gaming devices. Nobody knows if taxes are being paid, nobody knows what the payouts are and nobody knows if the consumer is protected,” Hoskins said. “If this legislation passes, all of those problems with the current state of affairs will be addressed and solved.”

In addition, the legislation, which could be debated when the Legislature returns in January, would allow the lottery to revoke the business’s ability to sell future lottery tickets if it is caught with one of the illegal machines.

“Missourians have a right, if they chose, to be entertained by playing legal devices,” Hoskins said. “As lawmakers, we have a responsibility to ensure they are not taken advantage of and that our schools are receiving the funding they are entitled to receive.”

Hoskins’ proposal, known as Senate Bill 906, also allows cities and counties to vote to prohibit the legal games within their jurisdictions.

Accel Entertainment contributed $15,000 to the House Republican Campaign Committee on Aug. 24 and has doled out tens of thousands more to other Republican and Democratic officeholders.