The Missouri Attorney General Catherine Hanaway has charged a general manager of a store in the state with two felonies relating to the promotion of gambling on the premises.
A civil lawsuit action has also been brought forward by the state, which accuses the store of housing and operating 12 illegal slot machines.
Business in violation of Missouri’s Merchandising Practices Act, says AG
The charges have been leveled against the managing officer of the Briarwood One Stop in Brookline, Himanshu Patel, following an investigation by the Missouri State Highway Patrol Division of Drug and Crime Control (DDCC).
Announcing the sanctions, Hanaway said: “Businesses that allow illegal gambling to operate under their roofs are making a deliberate choice to put profit over public safety. My office is committed to dismantling illegal gaming operations, ensuring they have no place in our communities. We will enforce the law and protect our neighborhoods in every county.”
Greene County Prosecuting Attorney Dan Patterson added: “Attorney General Hanaway’s statewide initiative is exactly the kind of coordinated effort needed to tackle illegal gambling devices at scale. My office is proud to support that effort here in Greene County.”
Missouri’s Merchandising Practices Act prohibits deceptive or unfair business practices, including offering illegal gambling devices such as unlicensed slot machines to consumers. In cases like convenience stores, authorities argue that operating or allowing such machines misleads customers and violates state consumer protection laws.
State crackdown on illegal gambling continues
The news comes as Missouri engages in a wider state prosecution on illegal gambling. Last month, a U.S. district judge ruled that slot machines housed in bars, restaurants and convenience stores across Missouri are illegal gambling devices under state law.
In February 2026, the state attorney general filed lawsuits against five retail businesses in Dunklin County, alleging they operated unregulated slot-style machines in violation of state law. Prosecutors also pursued felony charges against multiple business owners tied to the operations.
In the same region, investigators seized more than 70 illegal gambling devices during coordinated raids, with officials saying the machines allowed customers to insert cash, play games and redeem winnings through store-issued tickets. Authorities described the activity as a felony offense that exploits consumers and circumvents Missouri’s regulated casino system.
At the federal level, a broader crackdown has underscored the scale of illegal gambling in the state. In 2025, nine individuals were indicted in connection with a multi-million-dollar gambling conspiracy operating across several southwest Missouri locations, with charges including fraud, illegal gambling and money laundering.
Legal sports betting in Missouri reports mixed opening months
While pressure intensifies on illegal gambling outlets around the Show-Me State, the legal sports betting industry has enjoyed a strong start since it launched back on December 1st, 2025. It became the 39th state to accept sports wagering after it won narrow approval from voters in November 2024, passing by just 2,691 votes out of nearly 3 million ballots cast.
It means residents can place bets through licensed apps and at casinos, ending a period when many crossed state lines to gamble. Early returns show strong consumer demand but mixed financial results for the state. Missourians wagered more than $543 million in the first month alone, though heavy promotional spending by sportsbooks meant tax revenues were relatively modest.
Indeed, only $521,200, or less than one-one-hundredth of 1% of the total wagered amount, was paid to the state in taxes. Speaking to the release of the numbers at the time, Mike Leara, executive director of the gaming commission, said: “These figures reflect a market in its early stages, including the impact of significant promotional deductions that are customary during initial rollout.
“When we finally get through some of these early start up costs, we’ll see money,” he added.
However, some lawmakers were furious with the takings. State Rep. Dirk Deaton, a Republican who chairs the House Budget Committee, labeled the report “sad”. He added: “In the General Assembly, we ought to look ourselves in the mirror. It’s probably another example of something which we should have figured out and put a better framework in place. We might as well have made it tax free at this point.”
In Missouri, sports betting operators are taxed at 10% of adjusted gross revenue, meaning the total amount wagered minus payouts and certain deductions like promotional credits.
Missouri adopting patient approach to prediction markets
While several states engage in a legal showdown with prediction market companies like Kalshi and Polymarket, Missouri is taking a more wait-and-see approach according to the commission’s executive director.
Leara told ABC 17 News: “At this point, the Missouri Gaming Commission (MGC) considers prediction markets sports betting. The MGC will await the outcome of several court cases at the federal and state levels to help determine action or nonaction by the agency in the future.”
As Missouri continues to expand and modernize its legal gambling framework, officials say enforcement against illegal operations remains a priority. Authorities have warned that unlicensed machines undermine regulated markets and expose consumers to unfair practices.
The case against the Brookline store is ongoing.
