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State of Play
- Federal agencies, working with Missouri investigators, are probing the spread of video slot machines at gas stations. This could lead to enforcement actions that affect access to these machines and the businesses that host them.
Missouri Attorney General Catherine Hanaway told a House Budget Committee that federal law enforcement is coordinating with state investigators on a probe into video gambling machines operating across the state, particularly those found in gas stations.
Hanaway said the Federal Bureau of Investigation, the Internal Revenue Service, and the Secret Service have engaged with her office to review the situation and share information.
“The feds reached out to me and said that they were working on it and wanted to know what we’re doing about it.
“They came in and said ‘Here’s what we’re doing, are you doing anything?’ We said, ‘Yes, we are.’ And now we’re working together.”
The disclosure came during a legislative budget hearing and follows growing concern about the rapid spread of these machines outside regulated casino environments.
IRS involvement signals tax scrutiny
The federal-state probe increases the likelihood that unregulated video gambling terminals could be removed or disabled, reducing easy local access to such machines.
Operators who install or host these machines face heightened legal and financial exposure now that federal agencies are involved. The presence of the IRS in the probe signals potential scrutiny of revenues and tax reporting, while FBI and Secret Service participation can indicate investigations into broader criminal activity associated with illegal gambling networks.
Licensed casinos and regulated operators may see short-term demand shifts if street-level machines are taken offline, and gas station owners could face fines, seizure of equipment, or criminal charges depending on the investigation’s findings.
Based on reporting by Kurt Erickson for the St. Louis Post-Dispatch.
