Cape casino would generate most new revenue, state study finds

Cape Girardeau would be the best spot for a new Missouri casino, according to an economic impact study released Friday by the Missouri Gaming Commission. The independent study says an Isle of Capri casino here would outperform its big-city competitors for the state's 13th gambling license in every financial category.

The 42-page study by the Missouri Department of Economic Development was commissioned by the Missouri Gaming Commission, which is scheduled to make a decision at about 9 a.m. Wednesday in Jefferson City, Mo.

"We are the choice in every category," Cape Girardeau Mayor Harry Rediger said. "To me, this study confirms that we are the favorite. This is major input for the commission, and I'm sure they are taking this study's findings very seriously."

The study, months in the making, looks at all three proposals for the state's lone gambling license: Isle of Capri, Casino Celebration in north St. Louis and Paragon Casino in Sugar Creek near Kansas City. The study found that Isle of Capri would generate the most new tax revenue, create more jobs and contribute more to the overall gross domestic product. Casino Celebration was second in all three categories.

The main reason the findings favor Cape Girardeau, the study says, is that Isle of Capri would take the least amount of revenue from existing casinos because only Isle of Capri is far enough from existing Missouri casinos to minimize cannibalization. Missouri has four casinos each in the Kansas City and St. Louis metropolitan areas, while the casino nearest Cape Girardeau is about 85 miles away.

The commission will likely weigh all these factors before it makes its decision.

But commission chairman Jim Mathewson said the report is just one piece of information.

"We have a major decision to make," said Mathewson, a former state senator from Sedalia, Mo. "The report is one of a whole list of things we've received. We have gone through those, step by step."

Mathewson reiterated that not granting a license is still an option. There are four resolutions to choose from Wednesday, he said, one for each company and one that would be to grant no license.

"That's still a possibility," he said. "I still have some concerns, and that, like I've said all along, is on the table."

Mathewson would not comment on what decision he was leaning toward, except to say his mind is not made up yet.

Isle of Capri's first full year of operation would be 2013, the report says, with annual gross receipts estimated at $71.4 million with an increase to $86.7 million in 2017. Payroll for 516 Isle employees -- more than the 450 the company had reported previously -- would range from $14.5 million in the first year to $17.7 million in 2017.

Total receipts for Casino Celebrations is expected to start at $121.2 million and have a total employment of 565, with a payroll of $22.6 million. Paragon's receipts are expected to be at $97.4 million with a payroll of $20.2 million. More jobs would be created by Isle after construction jobs are factored in, the report says.

While Isle of Capri's projections aren't the largest, the study finds that much of what the two competitors would bring in would be taken from other nearby casinos. The study finds that more of Isle's revenue would be "new," and would generate $20.7 million in new taxes, compared to $15.7 million for St. Louis and $5.8 million in Sugar Creek.

Isle of Capri spokesman Jill Haynes said the report mirrors a report Isle has done.

"The study corroborates what we already believed is true," she said. "Cape Girardeau is the ideal location for the 13th license."

Haynes and Rediger both said they are hard-pressed to believe the commission would opt to not grant a license to anyone.

"I don't see how they could do that in this economy," Haynes said. "That's $20 million in tax money and hundreds of jobs.

Rediger agreed.

"They would have to present some major new facts," Rediger said. "I don't see how they could do that."

smoyers@semissourian.com

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