Indiana, Missouri and Mississippi Push For VLT Legalization in Early 2026

Three states are kicking off 2026 by legalizing and regulating video lottery terminals. These gaming machines are becoming an increasingly attractive middle ground for lawmakers and players alike, as they provide casino style games but without the legal headaches. Indiana, Missouri and Mississippi are set to revise their existing laws on these machines, creating new gaming opportunities for players while also opening a new stream of income for the state.

If successful, the bills in the three states can revive interest in a niche gaming genre that is still banned in most of the states. That is to say, VLTs themselves are not completely banned, but they are a rarity at commercial casinos. And while they can be found in select tribal casinos and racinos across the country, these bills intend to spread them out further.

What Are VLTs and VGTs

First of all, let’s define VLTs and VGTs. These are digital gaming machines that can feature games like bingo, draw poker (video poker), keno, or video slots. The games look and feel like the types of games you would get in a casino. With spinning slots reels, quick fire video poker card draws and the chance to pick all your lucky numbers in keno. However, they are not run the same way as their casino floor equivalents.

VLTs (and VGTs) do not use independent random number generators, like your typical slot machines or video poker terminals. In casinos, each game has its own independent RNG, associated RTP rate, and payout hierarchy. The VLTs don’t have individual RNGs for each physical gaming machine.

Instead, the outcomes are drawn from a finite pool or a layered lottery process, which is managed centrally. Basically, it is similar to scratch cards or lottery draws. The outcomes are controlled by the operator centrally, but they are still fair to play and random. The control just makes it easier for authorities and auditors to check the results independently.

This slight difference makes it possible for VLTs and VGTs to bypass the casino legislation, and so they are not regulated in the same way. It’s also why you don’t get many of them at landbased US casinos, instead, they are only offered at a few racinos and tribal casinos.

Bills to Legalize and Regulate VLTs

On the other side of the discussion, it makes VLTs easier to legalize. Lawmakers don’t have to go through the more difficult and layered process of legalizing casinos outright. They can legalize VLTs, which can be easily controlled and managed by the state lottery or the authority which is given the rights to run these games. Now, the three states that want to regulate VLTs have come up with models to bring these machines into a regulated, taxed framework.

Mississippi’s VLT Framework

Mississippi currently allows Lottery VLTs at racetracks and racinos, but nowhere else. House Bill 76 would permit the Mississippi Lottery Corporation Board to expand on this. It also redefines what constitutes a video lottery terminal, rebranding these games as electronic interactive gaming machines that run on chance. The state wants to crack down on unauthorized video lottery machines, stating that these would be confiscated and destroyed. The new legislation will not impact existing licensed casino venues in Mississippi, but instead broaden the options for VLTs.

• Maximum wagers of $0.01 per game
• Max payouts of $750

Only truck stops will be able to obtain licenses to run these games, and they can own 5 per location.

Missouri’s VLT Framework

Missouri only just launched legal sports betting back in December, and already the state is looking to expand its iGaming scene. Senate Bill 850 would create the Missouri Video Lottery Control Act, legalizing VLTs outside of casinos. It was brought ot the Senate hearing on January 7, and would essentially allow these gaming machines to be spread out all across the state. The VLTs would have to be connected to a centralized computer system, monitored by the Missouri Lottery Commission, and they would have the following constraints:

• Stake sizes of $0.01 up to $0.25 per credit
• Maximum wagers of $5 per game
• Max payouts of $1,000
• Minimum RTP of 85% for each game

Any establishment with a liquor license can apply and supply up to 5 terminals per location, while veterans organizations can have up to 10. To avoid VLTs becoming the monopoly of big conglomerates, the law proposes to allow a single company to own up to 25% of the terminals but no more. The gross revenue would be taxed at 40%, of which 36% would go to the state and 4% would go to local governments to pay for administrative costs.

Indiana’s VLT Framework

Indiana is exploring legalizing VLTs with House Bill 1235 but under stricter terms than Missouri. The House Bill was brought up on January 5 to the Committee on Public Policy, and would allow more establishments to obtain VLT licenses, but with some conditions. They would be regulated by the Indiana Gaming Commission centrally, and the games would have to comply with the following:

• They cannot offer cash payouts, just tickets
• Maximum wagers of $2 per game
• Max payouts of $599

Bars, restaurants, veterans organizations and even truck stops can apply for licenses, and own up to 5 terminals per location. However, the VLTs cannot be offered if the location is within 100 feet of a school or place of worship, and it cannot be within 1,000 feet of a slot gaming venue or landbased casino. Operators will need to pay a 30% levy on their gross gaming revenue, of which 70% will go to the local municipalities and 30% will go to the state general fund.

Legality of VLTs Across the US

Tribal casinos are autonomous from state laws, the Indian Regulatory Gaming Act protects them. Therefore, many of them offer Class II bingo based machines, VLTs and VGTs. They can provide these games on tribal lands without the necessary state permissions, though the states may have some say on the types of games, paytables and RTP rates through compact agreements. VLTs are quite common in tribal casinos in Michigan, Washington, Oklahoma and Minnesota.

But outside the autonomous tribal casinos, VLTs are pretty scarce across the US. Only a handful of states actually recognize these games, and even among those that do, they may be confined to racinos.

In Illinois, Iowa, Louisiana, Maine, Montana, Nevada, New Mexico, Oregon, Pennsylvania, South Dakota and West Virginia, VLTs are allowed outside casinos. In Mississippi, they are only allowed at authorized racetracks. Other states don’t permit VLTs. They are either offered at tribal casinos, or not at all.

For comparison, VLT and VGTs are pretty much legal throughout Canada, as well as major European gambling markets like the UK, Italy, Spain and the Netherlands. The potential is massive, and the outcome of the proposals in Missouri, Mississippi and Indiana may well cast the spotlight on a gaming experience that not all Americans may be familiar with.

VLT Competition in the US

Having slot type games at your local bar, or even a truck stop on a route you take regularly, could be quite an interesting proposition for gamers. They are low stakes games, so you aren’t bound to hit millionaire jackpots or pump in hundreds of dollars at these VLTs, but they can still offer the same thrills and excitement as what you would get at a casino. Only you don’t have to drive out to the nearest tribal casino.

The tribal casinos will see these new gaming machines as something of a threat. They, alongside landbased casinos, racinos, and riverboat casinos are worried that the introduction of state regulated VLTs, which can be obtained virtually anywhere within state borders, will damage their revenues.

New Experiences for US Gamers

Again, high stakes gaming and the variety of gaming machines here is not the threat. You will have a maximum of 5 machines at one destination, and generally cannot play with much more than a dollar. But accessibility is the key difference. The low stakes and ready access makes these games a top option for casual gamers who want to get their thrills, but without the crowded atmosphere of a downtown casino or looking for a close-by regional tribal casino.

In Canada, these VLTs are allowed in virtually every province and have generated billions in revenue. They are also considered among the safest and most regulated gaming machines. There are plenty of precedents for how these gaming machines can thrive outside traditional casinos, and as the US explores new angles for gamers, these proposals may just become the stepping stone needed for other states to follow suite.