The Missouri House narrowly voted to legalize and regulate video gambling machines, a move that could have ripple effects across the state’s commercial real estate landscape.

Supporters of the bill said they were not eager to expand gambling, but argued that leaving the machines unregulated would be more harmful. Many of these devices currently operate in a legal gray area, often appearing in convenience stores, truck stops and other retail locations.

For property owners and landlords, the proposed regulation presents both opportunities and challenges. Legalization could increase tenant demand and drive foot traffic in retail and hospitality corridors. At the same time, it would impose a formal licensing structure through the Missouri Lottery Commission and require compliance within 18 months.

Revenue from the machines would be directed toward education, aligning with constitutional mandates. Businesses that fail to meet the new standards would be required to remove unlicensed machines.

As lawmakers debate the future of video gambling in Missouri, real estate professionals should prepare for potential shifts in tenant strategy and leasing dynamics. Regulated gaming may offer upside, but with it comes oversight—and a new layer of due diligence for CRE stakeholders.