AFLOAT: RIVERBOAT GAMBLING PROMOTED

Proponents of a proposed constitutional amendment legalizing limited riverboat gambling in Missouri contend it will stimulate the economy and provide a major boost to state tourism efforts.

The measure is on the November ballot.

"This concept has so many benefits there is not a lot of opposition," said Mary Jo Graettinger of St. Louis, who is public information coordinator for the organization formed to secure voter approval.

She noted that most of the opposition is coming from people in Illinois who do not want competition from another state allowing riverboat gambling.

Graettinger stressed that Missouri has far more tourism attractions than most of Illinois, which will cater to the many recreational gamblers who are attracted by the low stakes gambling opportunity but also want to do more while in the state.

Jack McNamara, communications coordinator for the group, pointed out that last year the state of Iowa saw a tremendous increase in tourism after it approved riverboat gambling.

"It made the state a tourism destination," said McNamara. "Riverboat gambling has become the most powerful tourism component in America today."

Graettinger noted that other tourist attractions throughout Iowa have had increased attendance of 30 percent since gambling started, and attendance at festivals around the state is also up 30 percent.

"A lot of communities are planning more events to take advantage of tourists," she added. "It ended the seasonality of tourism in Iowa."

Graettinger and McNamara work for a group called MO-TARGET: Missourians to Authorize Riverboat Gambling Excursions and Tourism. They were in Cape Girardeau last week to promote the ballot issue, known as Proposition A.

Gambling would be limited to riverboats traveling only on the Missouri and Mississippi rivers and, if the amendment passes, a boat could not dock in a city without first having a local vote of approval.

They stressed that Missouri's riverboat gambling proposal is patterned like Iowa's law, which caters to the recreational gambler and is family-oriented.

Graettinger said that Missouri, in drafting its proposed law, "waited, watched, looked and listened" before taking action. She said the state's law captures the spirit of Iowa's recreational gambling law, while giving Missouri boat operators the opportunity to compete with Illinois' casino boats.

"Missouri boats offer a total entertainment package," she said.

Iowa's law limits bets to $5 and a wagering limit of $200 per person per cruise. Missouri's model limits the wagering limit per excursion to $500.

Missouri's law requires that no more than half of the boat's square footage, excluding the wheelhouse, engine room, and crew quarters, can be used for gambling activities. The law also requires an area to be set aside for people who do not want to gamble and for people under 21 who want to ride the boat.

Boats will also be required to have a separate dining area and space set aside to sell Missouri produced arts and crafts.

McNamara said the kind of limits on boats in Missouri cater to the recreational gambler, while the boats in Illinois are more geared for high rollers.

"There are many more recreational gamblers that are comfortable with limits than the high stakes gamblers Illinois is catering to," noted McNamara.

Another fact that makes Missouri's law distinctly different from those in other states is that riverboat gambling will be regulated by the Missouri Tourism Commission. "It will be regulated with tourism in mind," said Graettinger.

Other states have their lottery and racing commissions oversee the gambling.

Boats are taxed on a sliding scale based on gross receipts. Using conservative estimates, Graettinger believes Missouri will take in $27 million the first year, based on having 10 boats operating. Iowa, in its first year with five boats, generated $16 million in tax revenue.

Cities or counties where the boat docks will receive one half of a percent of the total gross gaming revenue.

Amendment 11, which was approved by voters in this month, earmarked lottery proceeds for education and will also apply to state revenue generated by riverboat gambling, noted McNamara.

Graettinger points out that there are far more benefits from riverboat gambling than tax revenue. Spin~offs of the industry will lead to more jobs both on the boats and in dealing with visitors attracted to the state.

Recently, riverboat gambling has been a "tiebreaker" factor by groups wanting to schedule conventions in certain areas, she added.

"If we turned it down, this would be the equivalent of losing the Kansas City Royals or St. Louis Cardinals," said McNamara. "Missourians don't have to spend anything to get this."

He noted that developers would compete for licenses to operate boats in communities along the river.

The two Proposition A proponents dismiss arguments that riverboat gambling will lead to increased crime or be susceptible to infiltration from organized crime.

They point out that the stakes are too low to attract a criminal element and that everyone who owns or works on a boat will be subjected to a detailed background check and licensing process.

"To be associated with any part of a boat you must first be licensed," said Graettinger.

If Proposition A passes in November, boats could be operating by next spring in some parts of the state. Several cities, such as St. Louis, St. Charles, Hannibal and Ste. Genevieve, are attempting to run local option issues on the ballot in November so they can get started right away if the proposition wins statewide support.