Casino companies say getting rid of the loss limit could generate more money for schools, while critics say it would make problem gamblers more vulnerable.
BY ROBERT COLE
Kansas City Star
KANSAS CITY, Mo. - Missouri voters might get to decide whether to lift the state's casino loss limit under an initiative filed by a coalition of gambling companies.
The proposal, filed with the secretary of state's office in Jefferson City late last week, also calls for freezing the number of casino licenses issued by the state at 13 and bumping the gaming tax on gross casino revenue to 21 percent from its current 20 percent.
The coalition, which calls itself "Yes for Schools" and includes Ameristar Casinos Inc. and Pinnacle Entertainment Inc., will push its plan by arguing that it could boost casinos' annual tax contributions to Missouri education funds by $100 million.
If the Missouri General Assembly does not pass such a proposal in its 2008 session, the coalition members said, they will try to gather the thousands of signatures needed to put the plan before the state's voters.
Similar packages have failed to get legislative approval several times, including in the 2007 session, making the ballot petition drive likely.
Casino interests long have argued that the state loses high rollers' business -- and thus revenue -- to other states by limiting each gambler's purchase of credits to $500 every two hours. The competition is expected to increase when Kansas develops a destination resort casino near the Village West entertainment district in western Wyandotte County.
Troy Stremming, the chief governmental affairs officer for Ameristar in Kansas City, said that passage of the initiative would help Missouri casinos compete on a level playing field with operations where gaming is not restricted by a loss limit.
Besides the buy-in limit, Missouri gamblers are required to use player tracking cards, which monitor losses during play.
On the other side, gambling opponents argue that removing the limit would leave problem gamblers vulnerable to even bigger losses.
The coalition plan also would limit the number of casinos to the 12 already built in Missouri, and another under construction near St. Louis. That's something gambling opponents have sought and existing operators probably would not protest because it could limit further competition.
The filing gives backers the option of taking the proposal to voters if the legislature fails to pass an initiative in the session that begins next month, Stremming said. The prospects of adding more than $1 billion in new revenue to schools during the next 10 years could gain support from voters.
"When you look at the potential outcome, there's no doubt that education in Missouri could use more money," he said. "At the same time, it allows casinos to compete more fairly with casinos in other states." |
