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NewsMay 30, 1999

For gambling enthusiasts it's "Seven-come-eleven." A major change could be in store for Missouri and Illinois gamblers before year's end if visitors to riverboat casinos in the states could come and go as they please. This weekend marks the fifth anniversary of riverboat gambling in Missouri. The President Casino aboard the Admiral on the St. Louis riverfront and Station Casino at St. Charles opened May 27, 1994...

For gambling enthusiasts it's "Seven-come-eleven."

A major change could be in store for Missouri and Illinois gamblers before year's end if visitors to riverboat casinos in the states could come and go as they please.

This weekend marks the fifth anniversary of riverboat gambling in Missouri. The President Casino aboard the Admiral on the St. Louis riverfront and Station Casino at St. Charles opened May 27, 1994.

The first Illinois riverboat casino was the Alton Belle at Alton, which opened September 1991.

During the gambling history, visitors to casinos in both states have had to work around boarding times before entering casinos. Current rules allow gamblers to board for the first 45 minutes of each two-hour "cruise" in Missouri, and for the first half-hour of each cruise in Illinois. Once visitors leave the casino, they cannot re-enter during the session.

Illinois gambling riverboats continue to cruise, but, Missouri boats -- many of them "boats in moats" -- never leave the dock.

Illinois riverboats could stay docked and let customers come and go if Gov. George Ryan signs a bill making that change. Ryan is expected to sign the bill.

In addition, the bill would open Cook County to lucrative casino gambling. The gambling package would give tax breaks and a share of casino revenues to the state's horse-racing business, which has lost customers to riverboat casinos.

In the case of the Cook County casino, a previous license would be moved to that area. Illinois has issued 10 licenses, but the Silver Eagle in Jo Davies County has since closed.

The governor could sign the bill within the next three months. Open boarding would start immediately after signing.

In Missouri, the Gaming Commission has taken the first step toward open boarding.

Specifically, the commission wants to know how casinos can guarantee gamblers won't exceed the state-mandated $500-per-cruise loss limit and how they can keep track of admissions. The $2 admission fee a gambler pays for every two-hour "cruise" goes to state and local governments.

Once a study is completed and plans are submitted, the commission will decide how to implement open boarding. Spokesman Harold Bailey said it isn't clear whether the commission would adopt one plan, or allow different plans on different boats.

Officials say it could be up to six months before any plan is adopted.

How much has industry given back?

Missouri's gambling industry -- 15 riverboat casinos at 10 sites -- has helped finance public schools and new veterans homes, upgrade parks, help fund fire and police departments and provide home loans to some residents.

During the past five years riverboat gambling has been lucrative to gambling operators and has provided $936 million to the state and local communities, said statistics released by Mike Ryan, executive director of the Missouri Riverboat Gaming Association.

Of that amount, casinos paid $576 million in taxes to help finance the state's public schools. The $148 million in admission fees received by the state are used to fund the governor's new early childhood education program, veterans programs and scholarships.

Cities with casinos have received $148 million from admission fees (the state and the community split the $2 admission fee), plus $64 million from a 2 percent tax on casino receipts. These funds have been used to improve streets and bridges, to build parks and recreational centers, to replace fire and police departments and to improve wastewater systems.

"Casino development has had a significant impact on both the economy of the state and individual communities," said Ryan.

The industry has created more than 12,000 new jobs.

Vern Jennings, senior vice president and general manager of Harrah's St. Louis Riverport Casino and Hotel, and president of the Missouri Riverboat Gaming Association, said the gaming industry had helped raise salaries for teachers and helped pay for improvements to school districts. The industry has helped many communities improve their services, all without increases in taxes or government tax incentives or giveaways, he said.

Maryland Heights has been the major recipient of local funds. Maryland Heights is home to Riverport Casino, a gambling complex that includes four casinos -- two each by Harrah's and Players. The complex also includes numerous restaurants and a hotel.

Caruthersville, which has one of the smallest casino operations, Aztar Casino, has received almost $1 million a year since Aztar opened in April 1995.

This Mississippi River town of 7,200 residents in Pemiscot County has purchased several new city vehicles, including police cars. New streets and a new lighting system have been installed in the downtown area, and City Hall has a new computer system.

Casino Aztar is a $50 million casino complex along the Mississippi River in downtown Caruthersville that includes a riverboat and land-based pavilion with restaurant, snack bar, sports bar and gift shop.

Aztar came along at a good time for Caruthersville. A shoe factory had just closed in the town. The casino helped pick up the slack of 400 to 450 jobs.

Caruthersville is also using some of the funds for a revolving loan fund from which people can borrow money for homes and businesses.

More casinos planned

Missouri could have more casinos within another year. The gaming commission has already approved plans for the $72 million Victorian Star, a 35,000-square-foot casino at Booneville. Construction is under way by Davis Gaming for the new casino, which will provide 900 new jobs.

Royal Casino is interested in a site near Wyatt. The company has obtained approval from the U.S. Army Corps of Engineers for a riverboat casino on a 35-acre site along the Mississippi River.

"We are in the process of preparing a plan for the gaming commission now," said Royal Casino Group president and chief executive officer Jon F. Elliott.

Plans call for a riverboat able to carry 1,000 people, with more than 500 slot machines and 20 table games.

Initial plans in 1995 were to locate on the river, but since voter approval of "Boat in the Moat" last year, the company is looking at the land side.

Under the Wyatt-Royal agreement, the city would receive a $100,000 bonus "when the first passenger goes aboard." The city also would receive $1 for each boarding and 2 percent of profits as mandated.

Royal Casino would start out small, Elliott said. "We're looking at an $18 million project -- a 1,000-customer capacity riverboat, a visitor's center with restaurant and lounge and a parking area."

COMMUNITY IMPROVEMENTS FROM GAMING FUNDS

Following is name of community, casion, total funds provided to community from gaming and partial use of funds:

N. Kansas City

$43 million

Harrah's

*New community center

*Library expansion

*Fire trucks

*Modernization of fire and police communications systems

*New street lights

*New ambulance

*Sewer and storm water improvements

Kansas City

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$46.7 million

Station Casino & Flamingo

*Construction of riverfront park

*Zoo improvements

*Bridge and road improvements

*Replacement of fire department equipment

*City hall and other improvements

Riverside

$23.5 million

Argosy Casion

*Flood-protection levee

*New community center, park and city hall facility

*Replace fire engines

St. Joseph

$6 million

St. Joe Casino

*New police cars

*Improved streets and sidewalks

*Recreational complex

*Parking lot repairs

Maryland Heights

$287 million

Harrah's Players

*11 new police officers

*New traffic unit

*Land for new sports complex

*Repair levee

*Road and bridge improvements

St. Charles

$37 million

Station Casino

*57 acres of riverfront for civbic arena

*Improved roadways

*Salary increased for city employees

*Additional police officers

St. Louis

$22.2 million

President's Casino

*Home loans for persons living in city

*Funding of bonds of new city jail

*Street repairs

*Lighting and public safety improvements on riverfront

Caruthersville

$4.8 million

Casino Aztar

*Improved streets, water and wastewater system

*Updated park and recreation equipment

*New sports complex

*New fire truck, police car and sanitation equipment

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