Dec 28, 2007 (St. Joseph News-Press - McClatchy-Tribune Information Services via COMTEX) -- ASCA | charts | news | PowerRating -- A Kansas City casino is looking to deal voters a ballot that could nix a competitive disadvantage just before another casino opens up across the river.
After several bad hands with the Missouri Legislature, Ameristar Casinos is attempting to put a loss limits repeal before voters in November. The company's proposal is similar to a bill from Sen. Charlie Shields, R-St. Joseph, which failed in 2007.
Ameristar on Dec. 21 filed a letter of intent with the secretary of state to start a statutory initiative petition. Ameristar has until May 4 to collect between 86,000 and 95,000 signatures after the state approves ballot language, a roughly monthlong process.
An Ameristar official contended the drastic measure came in response to the Kansas Legislature's spring approval of gambling expansion, which fueled plans for a casino near the Kansas-Missouri border at the Wyandotte County Legends shopping area.
With $500 casino loss limits every two hours, Missouri casinos don't have a fighting chance, said Troy Stremming, chief governmental affairs officer. Kansas casinos don't have loss limits.
"We're in a position where Kansas is coming online with gaming, and we're going to have a drastic negative impact if we can't all play by the same rules," Mr. Stremming said.
Gaming Commission Executive Director Gene McNary said that at least 30 percent of people who gamble in Missouri casinos come from Kansas. Mr. Stremming said Kansas City casinos stand to lose $180 million to $200 million in gross revenues when the Kansas casino opens for business.
"There's no doubt any additional gaming anywhere near a day's drive from St. Joseph will have a significant effect on our market as well," Terrible's St. Jo Frontier Casino General Manager Craig Travers said of loss limits.
Mr. Shields' bill would've repealed loss limits, but also would've capped gaming operation licenses to 13 gambling boats in the state, the current number. It also would've imposed a 2 percent education fee on casinos with gross receipts of more than $30 million.
An anti-gaming opponent stalled debate this spring on the issue over two days in the Senate, but Sen. Matt Bartle, R-Lee's Summit, backed off after an agreement to increase taxes on gaming boats by 4.25 percent. Revenue from the taxes would've gone to fund higher education scholarships. The changes never went into effect though, as the proposal didn't make it out of the House of Representatives.
"It's an issue that when you look at the Legislature, I believe it has limited ability for success," Mr. Shields said in response to the petition drive.
Mr. Shields said he intends on taking his version of the bill back to legislators in 2008, a move Ameristar supports. The casino just wants something in its back pocket -- in case the bill fails again.
"If the Legislature is not able to get something done, then we have another avenue," Mr. Stremming said.
Ameristar's proposal keeps the additional gross revenue tax at 1 percent, with proceeds estimated at going to elementary and secondary education. Mr. Stremming, who said the tax could generate an additional $80 million to $100 million a year for schools, said casino taxes already fund K-12 education and the company wanted to keep the ballot language simple instead of pitching it for higher education. |
