Missouri’s Illegal Gambling Machines are Hurting Public Education Funding

Casino Watch Focus has reported on the on going issue of illegal gambling machines cropping up all over Missouri. These machines are essentially unregulated slot machines in areas outside of Missouri’s regulated casinos. Enforcement issues have been cited, as no one seems to be responsible for shutting them down. This has lead to their proliferation and only now are lawmakers starting to notice.

One of the bigger issues being reported is how money is being syphoned away from public educating funding. Gambling money being used to fund public education is already a troubling proposition, as it general boils down to a shell game of transferred money. Essentially the state has a budget for education. Then a tax on gambling is proposed, normally in exchange for expanded gambling, and a specified amount is then transferred to education. The problem is the original budget is almost always reduced or set in anticipation of the gambling money. It’s rarely ever an actual increase in funding for public education. So it/s even more critical that the expected revenues are collected as the state has made itself reliant on such gambling funds. Now that these gambling machines are spreading and pulling people away from legal, regulated and taxed gambling facilities, and state lottery sales, its public education that’s taking a hit. An online source explains: 

The Missouri Lottery’s executive director testified Thursday in Jefferson City that illegal slot machines are hurting public education in the Show-Me State. Illegal slot machines can be found in bars, restaurants, gas stations and convenience stores.

Scheve Reardon testified during a 90-minute hearing before the House Special Interim Committee on Gaming, which is chaired by State Rep. Dan Shaul, R-Imperial. Shaul tells the audience that illegal slot machines cost Missouri education at least $50 million last year. He says the alleged illegal slot machines are hurting the Lottery, thereby impacting classrooms.

“The (Missouri) Lottery is losing revenue here, because of these alleged illegal machines. So are the (Missouri’s 13) casinos, so is everybody across that’s funding the state. The state is losing money because of these,” says Shaul. Thursday’s hearing was the committee’s second in two weeks. The Missouri Gaming Commission testified before the committee on August 22, saying the state needs a coordinated effort to stop the illegal machines.

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