Gambling bill stalls in overnight Mo. Senate session

JEFFERSON CITY, Mo. (AP) -- An odd combination of gambling opponents and supporters stalled legislation early Wednesday that would repeal Missouri's unique gamblers' loss limit in an attempt to generate tax revenues for college scholarships.

Missouri law currently prohibits casino patrons from buying more than $500 in slot-machine tokens or table-game chips every two hours -- the nation's only such betting cap.

Senate legislation would remove the loss limit -- resulting in a projected 17 percent revenue increase for casinos -- while imposing an additional 1 percent state tax on the top tier of casino revenues. The bill also would cap the number of casinos in Missouri.

A legislative financial analysis predicts the bill could generate as much as $113 million annually in additional state casino taxes, which would fund new college scholarships for Missouri high school graduates.

Senators remained in session until almost 4 a.m. Wednesday, finally setting the bill aside after attacks both from gambling foes opposed to the loss limit repeal and from casino supporters objecting to a limit on the number of casinos. Disagreement also emerged over the size of the proposed tax increase on casino income.

Senate Majority Leader Charlie Shields, the bill's sponsor, said he wouldn't bring the bill back for debate until at least some of the differences could be resolved through private negotiations.

Missourians approved casino gambling in 1992 for boats along the Mississippi and Missouri rivers. That ballot measure included the $500 loss limit.

But casinos -- and the Missouri Gaming Commission that oversees them -- have lobbied for years to repeal the loss limit on grounds it puts Missouri at a competitive disadvantage, especially with neighboring casino states such as Illinois. Supporters of the repeal also argue the loss limits have done little to deter problem gamblers.

Adding to the pressure to repeal Missouri's loss limits is a potential increase in competition from Kansas, where the House recently passed legislation to expand casino gambling -- most notably, in the Kansas City area. That bill still must make it through the Kansas Senate.

Shields, R-St. Joseph, is touting the Missouri bill more for its educational opportunities than its economic competition with out-of-state casinos.

The new Smart Start Scholarships could be used at both public or private colleges. Their amount would be set by the Department of Higher Education based on the number of applicants and the total amount of money available. Shields estimates that each high school graduate could get $2,000 spread over two years of college.

But others argue that it's not worth reversing the will of voters.

Sen. Chuck Purgason, of Caulfield, said fellow Republicans -- many of whom fought the repeal of loss limits in the past -- were following a "path of stupidity" in now supporting the limits' repeal. He claimed colleagues were bowing to potential campaign contributions from the casino industry.

"What we're doing here is just reneging on the deal," Purgason said. "What this is about is raising money for the next election by listening to the outside interests rather than the people who voted on this at home."

Senators defeated, 23-10, Purgason's amendment that would have referred the legislation to statewide voters. They also voted down, 21-12, an amendment that would have raised the 1 percent casino tax increase to 2 percent -- on top of current 20 percent tax on casinos' adjusted gross receipts.

The bill would limit Missouri to 13 casinos, essentially preventing a further expansion of gambling boats beyond those already in place or being developed. It also stipulates that any future casino licenses could only be awarded in the same city or county as where an existing casino closes.

Senators defeated by a 17-11 vote an amendment by Sen. Tim Green, D-St. Louis, that would have set the casino cap at 18 facilities.

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Gambling bill is SB430.

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Legislature: http://www.moga.mo.gov