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Limitations on Fraternal Slot Machines
Yes, it is highly likely that Missouri will approve slot machines for
the untaxed use of fraternal organizations. However, that does not mean
people should expect striking enormous wealth at a church fundraiser.
The reason this measure is being proposed is to help not for profit
organizations. That is why revenue from slot machines is going untaxed,
just like earlier bingo legislation. The state will be responsible for
auditing all gambling revenues from these groups to ensure that the
money is being used for charitable programs.
Limitations are being put on payouts and jackpots from these slot
machines. The measure has placed a $3,600 daily prize cap on each
gaming location. The highest daily prize slot machines are able to pay
out is $500.
There is some grey area over the prize regulations that are not
clearly expressed in the measure. It is understood that $3,600 is the
prize cap, however most slot machines pay out small jackpots, smaller
than the wager amount, every few spins. It is not clear if these tiny
payouts are supposed to be a part of daily prize cap. If they are, then
the daily limit could be reached very, very quickly.
The Missouri Oversight Division, estimate that no less than 16 new
gaming commission employees will need to be hired if the measure
passes. New hires and regulatory changes may cost the state $1.3
million each year.
There is also a concern that slot machines will reduce how much the
state makes off of bingo.
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