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Hours after sitting through two hours of grilling from a House budget oversight committee, Treasurer Vivek Malek, a Republican, said he would walk back his decision.

“I decided to revoke the permission, which I also gave in good faith, for Torch Electronics to place Unclaimed Property promotional decals on their devices,� Malek said in a statement issued by his office. “I have taken full responsibility from the start.�

The abrupt decision came after members of the panel put Malek on the ethical hot seat Tuesday amid revelations he teamed up with the politically connected slot machine company to promote the state’s unclaimed property program.

While gambling corruption has not been a typical subject for members of the committee, the focus by a bipartisan cadre of lawmakers was on Malek, a political newcomer and the first person of color to hold statewide office in Missouri.

Malek, enmeshed in a GOP primary where he is seeking to raise his profile with voters, defended his decision to partner with Wildwood-based Torch Electronics to place stickers and video ads on Torch’s sprawling empire of unregulated gas station gambling machines and payout kiosks as a way to highlight the state’s unclaimed property website, which the treasurer’s office oversees.

He said he is merely promoting the program in an untapped market.

“I am not here to judge Missourians who gamble. I am not the state pastor,� Malek said.

And, Malek added during a tense, two-hour hearing of the House Subcommittee on Appropriations-General Administration, “The legality of these machines is still under purview of the state judicial branch.�

The 3½-by-2-inch stickers, which include the official seal of the treasurer’s office and prominently feature Malek’s name, have been placed on Torch machines, potentially signaling to players that the games are sanctioned by the state.

Conversely, the partnership with a statewide elected official could help Torch gain legitimacy and quiet efforts to regulate an industry that may be siphoning off money for education and veterans.

The relationship drew heated criticism from lawmakers on both sides of the aisle.

“This just might be the most egregious thing I’ve seen done by an elected official during my time in office,� said Rep. Maggie Nurrenbern, D-Kansas City, the ranking member of the panel.

“I appreciate your bogus rhetoric,� Rep. Scott Cupps, a Shell Knob Republican who chairs the committee, said to Malek. “But I do not appreciate the mockery you have made of the state treasurer’s office. Let that sink it. I almost feel sorry for you. I feel sorry for your staff. It’s cringeworthy because they know the truth.�

The machines, which are prevalent in gas stations across the state, are not regulated or taxed by the state. Parson and the Republican-led Legislature have taken no significant action to rein in the games, which the Missouri Gaming Commission previously deemed illegal.

Torch has unsuccessfully sued the state in an attempt to block the Missouri Highway Patrol from investigating whether the company’s slot machines are illegal.

The legal uncertainty stemming from that 2021 lawsuit has allowed the industry to flourish.

Malek, an immigration lawyer who came to Missouri from India to attend college at Southeast Missouri State University, told the committee Tuesday that he merely wants to promote the unclaimed property program.

“This is my decision, and I stand behind it,� Malek said.

Malek was a surprise pick by Parson last year to replace former Treasurer Scott Fitzpatrick after Fitzpatrick became state auditor.

He is running in the August GOP primary for a full term against Springfield attorney Lori Rook, Rep. Cody Smith of Carthage and Sen. Andrew Koenig of Manchester.

Meeting sought by Tilley

Malek said the decision to promote the unclaimed property program began last August when he received a request from powerful Statehouse lobbyist Steve Tilley to meet with Torch President Steve Miltenberger. The meeting was at an airport hangar in Chesterfield owned by Tilley, who is a former speaker of the Missouri House.

Malek said he told Torch and Tilley allies that his top interest was to promote the unclaimed property program, which helps people find money that may have been forgotten, such as an abandoned safety deposit box.

He later told reporters the subject of boosting his name recognition in the run-up to the August Republican primary was not discussed.

Texts and emails obtained through a public records request show Torch and treasurer’s office staff began working on the design of the stickers in October. Approval was given to affix them to the machines in January, according to an email from the treasurer’s chief of staff.

Malek said he doesn’t know how many stickers have been placed on the machines. He said Torch printed the decals.

Texts from Tilley’s lobbying partner, Tom Robbins, said the stickers would appear on an estimated 5,000 machines.

“They are on some machines. They are not on all machines,� Malek said. “There was zero cost to taxpayers.�

Cupps, who first noticed the stickers on scores of machines in southwest Missouri earlier this month, was exasperated by Malek’s refusal to acknowledge the pitfalls of advertising state programs on the slot machines.

“Do you not understand the gravity of this situation?� Cupps asked, adding later that he wants Malek to remove the stickers by the end of the week.

After the hearing, Malek said he would consider the request. His decision to cut ties with Torch came less than four hours later.

In a letter to Cupps, Malek said, “I have today revoked permission for Torch Electronics to display Unclaimed Property messages on their devices, and I have asked Torch Electronics to immediately begin the process of removing any reference to the Unclaimed Property Program from Torch’s devices.�

‘Really disappointing’

Rep. Stephanie Hein, D-Springfield, asked if Malek understood that the stickers may fool people into believing the machines are regulated by the state.

“Why would you put the state in a compromising position?� Hein said. “I would say when I saw the images, my jaw dropped.�

“I was hoping you would come here today and apologize,� Nurrenbern said. “What your office has done is wrong.�

“To see you doubling down here today is really disappointing,� added Rep. Chantelle Nickson-Clark, D-Florissant.

Rep. Kemp Strickler, D-Lee’s Summit, suggested state resources should not be marketed on legally dubious gambling machines.

“We try to protect the brand of the state of Missouri,� Strickler said.

The practice of politicians seeking to monetize taxpayer programs to promote themselves in an upcoming election is not a new campaign tactic.

After five years of federal investigations into corruption by former Gov. George Ryan, Illinois lawmakers in 2003 toughened prohibitions against the use of public service announcements, such as organ donor ads by the secretary of state or ads promoting college savings programs by the state treasurer, if the officeholder is named, shown or heard.

The idea was designed to bar elected officials from gaining an unfair advantage over their rivals, who don’t have access to official means to spread their names to voters.

Rep. Mark Sharp, D-Kansas City, said Malek’s decision to use gambling machines to promote a state program was puzzling.

“It’s the optics of it. This was just a bad idea,� Sharp said.

Updated at 2 p.m. Tuesday to reflect Vivek Malek’s decision to end the slot machine sticker program.