US State Gaming Laws 2026: Missouri, Indiana, and Mississippi Propose New VGT Legislation
#GambleLike_USA #BettingLegislation
In early 2026, lawmakers in Missouri, Indiana, and Mississippi introduced major legislative proposals aimed at legalizing and regulating Video Gaming Terminals (VGTs) and Video Lottery Terminals (VLTs). These moves come as states seek new, stable revenue streams to address budget pressures without the political and constitutional hurdles of full-scale casino expansion. While the bills share the goal of state-regulated machine gaming, their approaches to payouts, taxation, and location limits reveal distinct regulatory philosophies.
Missouri: The Missouri Video Lottery Control Act
Missouri’s Senate Bill 850 (SB 850) focuses on eliminating the "grey market" of unregulated machines currently found in bars and convenience stores. The bill would place VLTs under the oversight of the Missouri Lottery Commission, requiring all terminals to connect to a centralized monitoring system.
Operational Limits: Establishments with liquor licenses may host up to 5 terminals, while veterans’ organizations are permitted up to 10.
Prizes & Wagers: The bill mandates a minimum 85% payout. Wagers range from $0.01 to $0.25 per credit, with a maximum bet of $5 per game and a top prize of $1,000.
Taxation: The state would claim 36% of gross revenue for education, with an additional 4% directed to local governments. Non-compliant machines would face aggressive seizure and penalties after a 120-day grace period.
Indiana: A Ticket-Only Approach
Indiana’s House Bill 1235 (HB 1235) introduces a unique "no-cash" framework. Unlike traditional payout rules for players in the United States, the state of Indiana plans to prohibit direct cash issuance; winnings would be provided as tickets redeemable at specific terminals. This approach is intended to mitigate gambling risks while creating a distinct regulatory environment.
Strict Zoning: Terminals are barred from locations within 100 feet of schools or places of worship and must be at least 1,000 feet from existing casinos.
Payouts: Maximum wagers are limited to $2, with a maximum win of $599.
Fiscal Outlook: While a 30% tax would be applied to receipts, fiscal analysts warn that VGTs could cannibalize up to $80 million from existing riverboat casinos by 2030.
Mississippi: The Small-Stakes Model
Mississippi’s House Bill 76 (HB 76) introduces a highly conservative VLT framework overseen by the Mississippi Lottery Corporation.
Limited Stakes: To reduce social risk, betting is capped at just $0.01 per play, with a maximum payout of $750.
Strict Access: Machine placement is restricted exclusively to truck stops, with only five authorized locations per congressional district.
Casino Protections: The bill explicitly separates VLTs from the Mississippi Gaming Commission’s authority to ensure the state’s massive casino industry remains protected.
If passed, these laws are slated to take effect by July 1, 2026.
