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Monday’s Springfield City Council meeting could be the decisive one regarding video lottery terminals (VLTs), commonly found at gas stations, convenience stores and bars, with councilors saying they are not the only electronic devices offering prizes of all kinds. We are considering banning it. But business owners are concerned that the ordinance could negatively impact practices beyond VLT.
The ordinance would amend city ordinances to include a section on bounties. This would ban the operation of “entertainment devices that offer prizes to any person, regardless of the frequency with which the prizes are awarded or the probability that an individual user will win the prize.”
The ordinance also includes minimum penalties for violating these regulations. Each device constitutes a separate crime, and the punishment becomes more severe for each violation. The first offense carries a minimum fine of $500, the second offense carries a minimum fine of $1,000, and the third offense carries a $1,000 fine and 30 days in jail.
Loopholes in state regulations
Known as a “no chance” game, the entertainment device attempts to circumvent state laws that define illegal gambling as a game of chance by allowing players to preview the outcome of a particular play. State legislatures are debating regulations regarding VLT, but the issue has stalled because these regulations are closely tied to the legalization of sports betting.
The council’s legislative priorities include support for classifying VLT as illegal statewide, but the council took matters into its own hands regarding the ordinance. Talk of regulating devices has been going on for years. Because this ordinance focuses on the compensation aspect, rather than the gameplay or form of gaming, it does not conflict with state authority or statewide gaming laws on this issue.
Critics of the devices claim that even though these devices are not called a form of gambling, they still allow gambling to take place. Players understand the outcome of the first play, but do not see how subsequent plays will result, creating a chain reaction of continued plays and bets.
Chris Homan, the city’s chief litigation officer, drafted the ordinance and noted that the city currently requires licenses for coin-operated machines. According to city ordinances, recreational equipment such as pinball machines and record players can be licensed for $5 per unit, while non-recreational equipment such as vending machines can be licensed for a lower fee. will be done.
“It’s based on the functionality of the machine, and the ordinance that Congress is considering is related to the format of the prize,” he said. “So while there may be some overlap when it comes to coin-operated machines that award prizes, they are distinct in terms of what this ordinance covers and what has been approved in the past.”
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The breadth of the ordinance is a concern for esports and arcades
Brett Payne, owner of the Contender eSports franchise and local store in Springfield, said he heard about the ordinance less than two weeks ago. Although he would like to see VLT regulated, he is concerned about the broad language currently included in the ordinance.
His business is a place where people gather to play video games. Arcade style tokens that can be redeemed for prizes He was introduced to Contender eSports less than two years ago, but prize money has always played a big role in the industry. For example, every Monday night, video game enthusiasts play Smash Bros., where they win cash and divide the money into piles depending on who wins at the end. Similarly, last year, Contender eSports hosted the largest amateur Call of Duty tournament in the country, with thousands of dollars in prize money awarded to the winners.
“That was the only reward system that was accepted by the esports customer base,” Payne said of the prize money. “Nobody is going to go to events or tournaments that aren’t for cash.”
He said it was unfortunate that businesses like his were not included in the drafting process and discussions before the ordinance was introduced. To learn more about the ordinance, he invited City Council members to visit him and his business on Saturday. City Councilman Brandon Jenson was the only person in attendance for the visit.
more:‘We need your help’: Community reacts to city’s proposal to ban ‘no chance’ matches
Mr. Payne said that although the current council does not want to influence operations like his, the generality of the current draft makes it difficult for future leaders to apply it to legitimate businesses. He points out that it is possible to use it.
“I understand what they’re trying to do. I mean, I live in this city and I see it and I think what they’re doing is great. I’m all for it. ” Payne said. “Even though it’s not the city’s intention to put us in that situation, it could have unintended consequences…If passed, we would essentially be in a very gray area.” You end up operating a business in … No business owner wants that to operate that way.”
But Homan said he doubts Payne’s concerns are well-founded.
“Their tournaments are kind of disconnected from the device itself. In an esports context, you can’t just come in and play the machine and win prize money from the machine,” he said. “They may organize competitive tournaments with prizes, but that’s a different story than the machines themselves…What the text of the ordinance prohibits is any device that awards monetary prizes to players.”
On Friday, Missouri Restaurant Association CEO Buddy Rahl, on behalf of Springfield’s restaurants, bars and taverns, sent a letter to the City Council opposing the bill and calling out the broadness of its language. Also mentioned. He said restaurants have the thinnest profit margins and that broader application of the ordinance could impact the revenue generated by “innovative games played by children and other guests in family establishments.” Pointed out.
Additionally, Payne said local arcade owners have similar concerns. This ordinance focuses on prohibiting prizes in the form of cash or items that are easily redeemable for cash, such as gift cards. Because of this, game centers are not affected as they offer items and goods as rewards. Homan said the only area where arcades could be affected is if they offer gift cards as prizes.
Differences in location and operation
Employers who fall into the category of VLT operators that this bill seeks to regulate also want Congress to consider a more restrictive approach.
The average person in Springfield is most likely to see a VLT at a convenience store or gas station. Those who stop by for a snack or drink may notice that the walls are lined with large machines with bright screens offering a variety of games.
But gaming consoles are also the backbone of several businesses around Springfield: adult game rooms, often referred to as “Internet cafes.” When the ordinance was first read, Plaza Shopping Center managers specifically pointed to the problems and increased crime that stores, often open 24 hours a day, brought to the area.
Rapid Robert CEO Todd Wilson said his company’s convenience stores average about three machines per store and has been operating the machines in Springfield for about five years. He said conflating a business like his with a game room business is like comparing apples to oranges.
“It’s really frustrating to see parts of our business banned for illegal activity that shouldn’t exist in the first place,” he said.
Wilson said the machines are an additional source of income that will help his business reinvest in the community. He said the ban would not close the door, but it would have a negative impact on business. The additional income contributed to companies’ ability to provide raises and bonuses to their employees.
During the public hearing on the ordinance, councilors heard comments from several residents who expressed concerns about operations like Wilson’s. Neighborhood representatives have pointed to the negative impact the machines have on the community, and those who work with addicts say the machines could be vulnerable to damage if placed in areas where they may be frequented. He warned them about how they prey on people in their positions.
“There’s a lot of stuff that I sell socially that some people probably don’t agree with and that are addictive,” Wilson said. These include tobacco, alcohol, and lottery tickets. “I can’t tell people what to spend their money on. I can offer a product or service, but people can choose whether to buy it or not. Where is the moral line drawn? I don’t know. … Shall we start? Ban everything that’s addictive or that people don’t agree with?”
Wilson said he took his concerns to City Council members and supports other narrower regulations. In an email to the City Council, he proposed a 21-year age requirement, a cap on the number of VLTs per business, limits on gaming hours, and increasing the city license fee for coin-operated machines from $5 to $100. . But overall, Wilson said he would like to leave issues related to VLT and legality regulations to the states.
During the last City Council meeting, councilors remained skeptical about the potential benefits of machines inside convenience stores and gas stations. The City Council meeting to vote on the bill will be held Monday at 6:30 p.m. at the Springfield Regional Police and Fire Training Center, 2620 W. Battlefield. The meeting will also be livestreamed on the city’s Facebook page and at www.cityview.springfieldmo.gov/livestream/.
Marta Miese covers local government for the newsreader. Contact him with tips at mmieze@news-leader.com.
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