From: Casino Watch
Date: April 5, 2003

Subject: SB 475 (Creates the “Video Gaming Machine Network” )

Voted Do Pass by the Republican controlled Senate Ways & Means Committee - Introduced by Jacobs, identical to the Video Gambling Bill that he sponsored in 2002

Members: Carl Vogel (R), 6th, Chair - Dan Clemens (R), 20th, Vice-Chair
John Cauthorn (R), 18th - John Griesheimer (R), 26th - Joan Bray (D), 24th
Harold Caskey (D), 31st - Ken Jacob (D), 19th

Action: Time to closely monitor the MO House and Senate for gambling activity. Place a friendly call to your Senator and Representative supporting them in defeating all gambling expansion, especially SB 475 which license Video Slots and asking their commitment to protect the $500 Loss Limit for the safety, health and welfare of all Missourians. Please contact family and friends and ask them to call.

SB 475 MUST DIE in the Senate because:

     • Video machines are SLOT machines
     • SB 475 licenses mini casinos across the state at businesses that sell alcohol
     • Threatens the safety of innocent people in our communities
     • MO suffers a shortage of State Highway Patrol Officers to monitor locations
     • Extremely vulnerable to mob takeover
     • Extremely vulnerable to underage gambling
     • Extremely difficult to police due to the numerous locations
     • Gambling dollars are Budget Busters...NOT...Budget Boosters
     • Extremely addictive - the “Crack Cocaine of Gambling”
     • Convenience gambling will addict a whole new segment of Missourians
     • YOU will pay $13,586 in costs for each new addicted gambler *

.....Apprehension & Increased Police Costs
     Adjudication/Criminal and Civil Justice Costs
     Incarceration and Supervision Costs
     Lost productivity on job
     Lost Time and Unemployment
     Therapy/Treatment Costs
     Unemployment, Welfare and Food Stamps
     Divorce, Separation

BUSINESS PROFITABILITY vs. SOCIAL PROFITABILITY: By Earl L. Grinols and David B. Mustard, Dec. 2000

Current Bill Summary

SB 475 - This act authorizes the Missouri Lottery Commission to create a statewide "Video Gaming Machine Network". Certain types of video gambling machines are authorized in licensed locations. The machines will be electronically linked to a main computer which will audit the functioning of the devices and provide transfers of funds to the machines.

The payback value of one credit wagered, determined over time, shall be a minimum of sixty percent but shall not exceed a maximum of eighty percent.

Revenues generated by the "Video Gaming Machine Network" will be placed in the "Higher Education Trust Fund", also created by this act, for the purpose of creating reserves for capital improvements to higher education facilities and providing grants for student education. A portion of this fund shall offset any decline in lottery sales.

A license is required for manufacturers, distributors and operators of such video games as well as for each machine and each premises containing the machines. Licensed distributors must have at least two years experience with distribution of video gaming machines. Licensed operators, who place machines in licensed premises, must have at least two years experience with operating video gaming machines.

Licensed premises include those where the sale and consumption of alcohol is permitted and truck stops that meet a threshold of 250,000 gallons of petroleum sold in each of the prior two years, as well as other locations approved by the commission. No license issued to a licensee shall be transferable without the consent of the commission. A licensed premise shall provide the operator a surety bond of a certain amount not less than five thousand dollars.

A licensed premise may receive a maximum of two machines for the first year. After one year the commission may authorize up to two additional machines per year, not to exceed fifteen total machines.

The Director of the Lottery Commission shall set administrative rules for licensing of machine locations, distributors, manufacturers, and parts suppliers. The Commission will contract with these licensed entities on an annual basis.

Tampering with games or machines is a Class D felony. After the effective date of this act, it shall be illegal to operate any video device that can simulate a game played on a licensed video gaming machine.

This act is identical to SCS/SB 1222 (2002).