A Missouri bar owner has launched a legal challenge against Attorney General Catherine Hanaway, arguing she lacks the statutory authority to ban unregulated video lottery terminals through enforcement actions. The dispute raises fundamental questions about who actually gets to decide the fate of gaming devices that have operated in a legal gray area for years.

The Core Legal Question

Last week, Tuners Bar & Grill owner James Schappe filed suit in Cole County Circuit Court. His claim is pretty simple: Missouri law doesn’t give the attorney general power to prohibit machines that lawmakers haven’t explicitly addressed. If the legislature hasn’t banned the devices, licensed them, or created a regulatory framework, then the AG can’t unilaterally remove them from businesses.

Hanaway has made illegal gambling devices a priority since taking office, leaning partly on a federal court ruling against another operator to pressure businesses into compliance. But Schappe contends she’s overstepping by using that ruling as a basis for statewide enforcement.

Years of Legislative Limbo

Video lottery terminals have become ubiquitous in Missouri bars, restaurants, truck stops, and convenience stores. Yet lawmakers have never clearly resolved their legal status. Supporters argue certain machines qualify as games of skill rather than chance, putting them outside traditional gambling restrictions. Critics say they function like slot machines and should be regulated accordingly.

The result? Years of legislative gridlock while machines proliferate and regulators, law enforcement, and business owners remain fundamentally at odds.

The Business Angle

For establishments like Tuners, these machines represent meaningful revenue. Removing them without clear legal direction could genuinely harm small operators who’ve factored that income into their business models. Schappe’s lawsuit essentially asks the court to tell Hanaway to back off until the General Assembly takes action.

The case will force a state court to decide whether existing law actually supports the AG’s crackdown or whether this is fundamentally a legislative matter. Either way, it’s a reminder that regulatory clarity beats enforcement theater.