STRICTLY BUSINESS: SECOND GAMBLING COMPANY EXPRESSES INTEREST

A second gaming corporation has expressed an interest in locating at Cape Girardeau.

City Manager Michael Miller confirmed late last week that the city had received a letter from a law firm stating a casino client would be interested if negotiations with Boyd Gaming Corp. didn't work out.

"The name of the casino company was not mentioned," said Miller.

Meanwhile, negotiations between the city and Boyd Gaming are continuing.

"We're in contact with Boyd Gaming, and hope to have everything ready in the near future," added Miller.

Maunty C. Collins, senior vice president and director of operations of the central region for Boyd Gaming, said recently that his company was still interested in the $52 million project for downtown Cape Girardeau.

Boyd Gaming's hands "are tied" as far as visible activity in downtown Cape Girardeau is concerned.

The Missouri Gaming Commission announced in mid-1995 that it would not select any new gambling companies for consideration and investigation within the next year to 18 months.

That still stands, said Harold Bailey of the gaming commission. "It could be any time between May and December of this year," said Bailey. "And, we may not make a selection at all this year."

As many as 20 applications are on file with the commission.

Bailey explained that the gaming commission wanted to give Aztar Casino an opportunity to "get started" before permitting any more operations on the river between St. Louis and Caruthersville.

The $52 million Boyd proposal for Cape Girardeau includes a three-deck, 254-foot riverboat; a five-level parking garage; a terminal building that will provide the main entrance to the casino complex plus a 250-seat buffet restaurant, a 225-seat entertainment lounge with a bandstand, dance floor and bar, a pedestrian bridge crossing the river wall, and the docking barge.

Scott City, Wyatt proposals

Other nearby casino proposals include those by Lady Luck for the Scott City area and Royal Casino Group of California at Wyatt. Both of these companies have already signed development agreements with the respective communities.

Other proposals have been suggested at Ste. Genevieve and New Madrid, but to date no contracts have been signed.

Included in the proposed development contract at Cape Girardeau are a number of improvements Boyd will make to city streets, water mains and sewer lines, along with the company's planned buildings and parking lots.

Boyd's first proposal for a gaming project here came in January 1993, with a projected opening late in 1995. But the plans had to await the results of two state and two city elections.

The latest projection from Boyd officials is a late 1997 opening.

Boyd opened a casino in September in downtown Kansas City. The numbers from that operation have been less than impressive. Boyd spent more than $140 million on its Kansas City development. The Sam's Town gambling revenue has averaged $5 million per month so far, with a $4.9 million figure in December. By comparison, Harrah's gross revenue was $10.6 million and Argosy reported revenues of $6.9 million.

Analysts say that, ideally, a casino's annual gambling revenue should equal the capital expense to develop it. Unless the numbers improve, Missouri's Sam's Town could fall far short of those totals.

However, Sam's Town started offering free admission more than a week ago and the crowds have improved.

For a few hours, Sam's Town claimed to the only local riverboat offering free admission, but that claim didn't hold up long. A few hours after Sam's Town's announcement, Harrah's Casino in North Kansas City and Argosy in Riverside, followed suit.

Admission had previously ranged from $3 to $9 for each two-hour time frame, depending on time and day of excursion.

The admission fee was not a popular one with gamblers, but it did help the casinos cover the $2-a-head tax.

Experimenting with `freebies'

Missouri casinos in the St. Louis area experimented with "freebies," but eventually wound up reinstating the charges.

Kansas City gamblers are apparently taking advantage of the free admission. Attendance has been up all week.

Meanwhile, Sam's Town Hotel and Gambling Hall is growing in Tunica County, Miss.

The Boyd Gaming Corporation gambling complex, already the largest gambling casino complex in Mississippi, recently announced a new expansion which calls for a 350-room hotel tower and a 1,000-space parking garage. The new, nine-story hotel, connected to the casinos, will bring the total room count at Sam's Town to 858. Sam's is already the largest hotel in Mississippi.

The current demand for rooms is strong, said William S. Boyd, chairman and chief executive officer of Boyd Gaming, headquartered in Las Vegas.

Boyd was in Tunica recently to announced the new expansion.

The hotel has been an important part for Sam's Town success in Tunica, noted Boyd. Sam's Town has posted a 95 percent occupancy rate over the past six months.

Boyd Gaming operates casino properties in four states, include six properties in Las Vegas. Other operations are in Mississippi, Kansas City, Mo., and Kenner, La.

Hollywood is also growing.

Hollywood's riverboat gambling casino, one of eight casinos in the Tunica County, Miss., gambling complex, is planning a $25 million addition which will add 355 more hotel rooms, an indoor swimming pool, video arcade and 12,000 square feet of meeting space with eight "breakout" rooms.

The expansion will give Hollywood a total of 505 hotel rooms.

Largest Missouri casino project

Construction is continuing on the largest casino project in the state of Missouri.

Despite the cold weather, iron piling is already being driven in the ground for the foundation of the land-based portion of a gambling complex at Maryland Heights, which is looking to a January 1997 opening.

The $270 million project is a joint venture between Harrah's Entertainment Inc. and Players International Inc., and will include four casinos, each with 22,500 square feet.

The complex is designed to have separate boarding times, thus virtually eliminating any delays in entering the casinos.

All the non-gaming facilities will be jointly owned, but each company will own and manage its own casino.

Total employment at the project will be 3,200. Harrah's, which will manage the hotel, will employ 2,000 and Players will employ 1,200.