A recent court case in Missouri brought gambling machines under scrutiny and I thought it was a good chance to look at this issue from a Libertarian perspective.
The gambling machines, often called video lottery terminals, operate in gas stations, bars, and stores throughout the state. I’ve written on several occasions about the Libertarian perspective on legalized gambling and the harm it causes so I don’t want to rehash those arguments. What I’d like to examine today is the government’s interest in supposedly banning these devices.
The Gambling Machines
These gambling machines are essentially slot machines. Put in some money, spin the wheel, hope for a good outcome. They try to skirt the law against such devices located outside casinos by adding a small element of skill. This, they argue, makes them a skill game rather than a gambling game of pure chance. The courts have ruled and they disagree with this argument.
There are a pair of these gambling machines in the local market where I purchase delicious, house-made sandwiches every Saturday on my way back from the gym. They don’t always have somebody standing in front of them, feeding them money, but I’d say they are in use the majority of the time I’m there.
People like these gambling machines and the places that have them like them because they get a cut of the revenue generated.
What the State says about Gambling Machines
I’m going to give you a couple of quotes from those who argue these devices must be removed following the court decision.
County Executive Sam Page
When these unregulated machines bypass taxing and licensing, they divert revenue from infrastructure from public education and important government services like public safety and public health.
Governor Mike Kehoe
Certainly, as we’re trying to figure out problems with our budget where we’re … trying to not cut programs that are essential, we have to make some very hard decisions. We want to look at things that are out there right now that aren’t operating legally, that could provide a revenue stream through some sort of regulation.
Why the State is Involved
If you read those quotes I doubt I have to tell you why the state is involved in removing these gambling machines. It’s not for the well-being of those who are adversely affected by such devices. It’s not about helping those with gambling addictions. It’s not about human decency.
It’s about revenue, plain and simple. You know it, I know it, the politicians know it. Money is the deciding factor in almost everything these days. What will help us make more money? What will help rich people get richer? How can we squeeze more money from tax-payers?
Conclusion
It’s interesting how in Missouri the argument has shifted away from the moral objections associated with gambling. Anyway, I find it interesting. Do you?
Tom Liberman