The Missouri Licencing Advocacy Group (MOLAG) has filed a lawsuit against the Missouri Attorney General and the state, challenging restrictions on businesses that own and operate electronic gambling machines. MOLAG said the case is an association suit representing several operators, retailers, and liquor licence holders. These parties remain anonymous, citing fears of reprisal from state authorities.
Missouri tightly regulates gambling through the state lottery, riverboat casinos, and charity gaming. Yet video lottery terminals (VLTs) in convenience stores remain unregulated, fuelling tension between enforcement agencies and business owners. Courts have repeatedly signalled that only the legislature can establish a clear framework for electronic gambling machines.
Allegations against state officials
MOLAG accuses Attorney General Catherine Hanaway and state agencies of overstepping their authority by allegedly threatening businesses with liquor licence non-renewal or other penalties tied to gaming machines. Missouri’s gambling laws have evolved steadily from charitable bingo in 1980, full-scale casinos in the 1990s, daily fantasy sports in 2016, to legalised sports betting in 2025. Each expansion has been linked to voter initiatives and constitutional amendments.
Under the Department of Public Safety, the Missouri Gaming Commission (MGC) governs casinos, charitable bingo, fantasy sports, and sports wagering. It also regulates licencing, compliance, and responsible gambling standards. But the “grey market” machines remain a trouble spot. The MGC and Attorney General argue that these devices are illegal, yet businesses insist they are merely “amusement devices.”
The lawsuit follows a case in which a St. Charles bar owner contested state enforcement actions targeting electronic gaming machines. MOLAG’s suit continues a long tradition of disputes over gambling regulation, with courts often deferring to lawmakers for clarity.
Call for legislative action
MOLAG argues that regulation of electronic gambling should be determined by the legislature, not through discretionary enforcement by the Attorney General, the Division of Alcohol and Tobacco Control, or the Department of Public Safety.
The state’s regulatory fabric has created both opportunities and challenges. Casinos and licenced operators benefit from clear rules, while bars, convenience stores, and retailers that rely on “grey market” machines face enforcement risks, uncertain revenue, and potential penalties.
Across the state, thousands of unregulated VLTs are placed in convenience stores and bars. While these machines generate income, they expose owners to fines, threats to their liquor licences, and the risk of confiscation. Unlike casinos, small businesses cannot deduct promotional costs or rely on steady tax structures, leaving many operators with inconsistent profits.
Courts have also dismissed civil suits, leaving businesses vulnerable to criminal enforcement without legislative protection. Yet machines remain popular, attracting patrons and boosting sales of food, drinks, and other products. For small retailers, especially in rural areas, gambling machines provide steady side revenue.
Bills such as HB 970 propose regulating VLTs, which could generate an estimated $600 million annually in tax revenue and provide legal certainty for small businesses.
Additionally, Missouri lawmakers are currently considering bills like SB 850 and SB 851, both of which would establish a formal “Video Lottery Act” to regulate VLTs. These proposals would authorise the State Lottery Commission to licence operators, manufacturers, and retailers, require machines to connect to a centralised system, and impose strict limits on vendor control.
For the state, legalisation could stabilise revenues, reduce enforcement costs, and align Missouri with neighbouring states that already regulate VLTs. For casinos, licenced operators may resist expanding, fearing competition from convenience stores and bars.
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