After last week’s legal challenge by a Missouri bar owner, Attorney General Catherine Hanaway must now defend herself against another lawsuit. The Missouri Licensing Advocacy Group (MOLAG) has rallied against threats to revoke the alcohol licenses of venues that feature unregulated slot-style gambling machines, arguing that the AG is overstepping her authority.
The Lawsuit Focuses on the AG’s Legal Limits
MOLAG represents a group of establishments, operators, and liquor license holders that aim to challenge the state’s increasingly hostile stance toward video lottery games (VGTs). Individual members have chosen to remain anonymous, fearing reprisal from local authorities. They argue that any debates must be settled by the state legislature rather than by the attorney general or other commissions.
Missouri needs lawful clarity, not fear-driven shutdown by letter or license pressure.
MOLAG statement
These demands closely mirror a similar legal challenge by James Schappe, owner of Tuners Bar & Grill. Schappe is adamant that current Missouri law does not include specific regulations or bans on VGTs, meaning the attorney general lacks the power to take enforcement action against these devices. Meanwhile, Hanaway has justified her actions with a federal court ruling against a different operator.
The Missouri AG has taken a hardline stance against VGTs, arguing that they sidestep the state’s gambling regulations. She has consistently pressured operators and businesses that still offer the machines, using existing precedent and legal tools. Meanwhile, lawmakers press on with their efforts to incorporate the devices into the state’s existing gambling regulations.
VGT Regulation Faces Continued Delays
Despite the controversy surrounding VGTs, they have gradually spread across Missouri as many businesses rely on the machines to secure extra revenue. Supporters argue that removing the devices could threaten the survival of smaller businesses, especially when combined with the warnings to revoke the liquor licenses of offending venues.
The State should not treat every machine, every operator, and every retail location as automatically criminal.
MOLAG statement
VGTs continue to occupy a legal gray area, often operating similarly to slot machines. However, operators insist that these devices instead fall under the category of skill games and are not subject to traditional regulations. With mounting lawsuits and state legislators struggling to make meaningful progress, it may be up to the courts to determine the future of VGTs.
Schappe’s and MOLAG’s lawsuits will now likely head to the state court, which will determine whether the attorney general overstepped her legal authority. The verdict could be pivotal in determining the future of VGTs across Missouri, at least until state lawmakers gather the necessary momentum to press on with the much-needed reforms.