A Missouri House committee has advanced legislation that would legalize video lottery terminals (VLTs) statewide, marking a significant step toward reshaping the state’s approach to gambling regulation while seeking to eliminate thousands of unregulated machines currently operating in retail locations.

The House Special Committee on Public Policy voted 8–5 to send House Bill 2989 to the full House for debate. Sponsored by Republican Rep. Bill Hardwick, the measure would authorize the Missouri Lottery Commission to operate a state-run network of VLTs in venues such as bars, fraternal organizations, veterans’ halls and truck stops.

Under the proposal, each approved location could host up to eight terminals, and play would be limited to individuals aged 21 and older. All machines would be required to connect to a central control system overseen by the Lottery Commission, allowing the state to monitor activity, track revenue and enforce compliance.

A central aim of HB 2989 is the removal of so-called “no-chance” or gray market machines, which currently operate outside Missouri’s regulated gambling framework. The bill would give vendors two years to remove these unregulated devices, which supporters say often lack transparency, consumer protections and reliable payout standards.

Renue projections and policy trade-offs

Supporters of the legislation argue that a regulated VLT market would convert widespread but untaxed gambling into a controlled system that generates substantial public revenue. Estimates cited by backers suggest VLTs could produce approximately $600 million for education. The bill also proposes increasing Missouri’s casino admission fee from $2 to $4, a change projected to raise an additional $55 million annually for veterans’ programs.

Beyond revenue, proponents say state operation of VLTs would improve oversight and consumer confidence by replacing unregulated machines with monitored terminals that offer predictable odds and enforce age restrictions.

Opponents, however, warn that the bill could expand gambling access without sufficient safeguards. The Missouri Chamber of Commerce criticized the measure, arguing that it “retroactively legitimizes unlawful operators” and spreads high-risk gambling into vulnerable communities. Critics also contend that the bill lacks detailed responsible gambling requirements and could lead to a concentration of machines in lower-income areas where bars and convenience-style venues are more common.

HB 2989 includes a provision allowing counties and municipalities to opt out of hosting VLTs, preserving local control over gambling expansion. That flexibility, while politically significant, could result in a fragmented market, with permissive jurisdictions benefiting from new revenue while neighboring areas prohibit the machines altogether. The combination of local opt-outs and projected tax benefits creates incentives for some communities to allow VLTs, even as others may reject them on social or public health grounds. How widely jurisdictions would opt in remains an open question and could shape the long-term footprint of legalized VLTs across the state.

A regulated VLT market could generate hundreds of millions for education and veterans’ programs, turning an existing gray market into state revenue.

Next steps

With committee approval secured, HB 2989 now heads to the full Missouri House for debate and a potential floor vote. If passed, the bill would move to the Senate and, ultimately, to the governor’s desk. The outcome will determine whether Missouri opts to formally regulate a form of gambling that already exists in practice, or whether concerns about social impact and market expansion outweigh the promise of new revenue and tighter oversight.