Missouri is now at the center of the biggest crackdown ever on unregulated gambling machines, with state and federal investigators tracing billions of dollars pouring from gas stations and bars into the pockets of out-of-state companies.
Attorney General Catherine Hanaway dropped the bombshell Wednesday while testifying before a House committee. She revealed that Missouri has launched a full-scale investigation, at the direct request of federal authorities, into the companies behind the thousands of gray slot machines that have flooded the state over the past six years.
“We are following the money,” Hanaway told lawmakers. “We want to know exactly where every dollar goes, who owns these companies, where the machines are, and how many there are. Once we have that map, we will move in with enforcement.”
The probe is already active and spans multiple states, she confirmed.
Billions Have Left Missouri Since 2018
Industry insiders and law enforcement sources estimate that Missouri players have fed more than $10 billion into these unregulated machines since Torch Electronics and similar firms began placing them in 2018.
Not a single penny of that money has been taxed by the state.
None of it has gone to education, veterans, or any other program that legal casinos and the Missouri Lottery support.
Most of the profits, investigators believe, flow straight to company headquarters in Georgia, Texas, and other states.
Federal Judge Already Ruled the Games Illegal
The turning point came last year when a federal judge in Jefferson City ruled that Torch Electronics machines are illegal slot machines under Missouri law because the outcome is predominantly determined by chance, not skill, despite the companies’ claims.
That ruling gave law enforcement the green light they had been waiting for.
Hanaway said the new investigation builds directly on that decision and is now mapping every machine, every location, and every dollar trail.
Lawmakers Face Huge Decision at the Same Time
While investigators build their case, Missouri lawmakers are openly debating whether to simply legalize and tax the machines instead of fighting them.
Several bills moving through the Capitol would regulate the gray machines, set a tax rate, and direct revenue to early childhood education and other programs.
Supporters say regulation could bring in $300 million to $500 million a year for the state.
Opponents, including the Missouri Gaming Association that represents legal casinos, argue that legalizing them would gut the regulated casino industry and open the door to even more uncontrolled gambling.
What Happens Next
Hanaway made clear that the investigation will continue regardless of what lawmakers decide.
If the General Assembly does not act before the session ends in May, authorities could begin seizing machines and filing charges against operators across Missouri as early as this summer.
Gas station and bar owners who host the machines could also face penalties.
The attorney general’s office has already won several local court cases declaring the machines illegal, and more lawsuits are in the pipeline.
Missourians are now watching to see whether their state will finally shut down the biggest unregulated gambling operation in America or decide to cash in on it instead.
