GAMBLING PANEL TO ANALYZE INDUSTRY

JEFFERSON CITY -- The chairman of the Missouri Gaming Commission said Wednesday that the Missouri gambling market is saturated and instructed the commission to analyze the industry.

The ultimate outcome of a statewide survey would determine whether to allow any more riverboat gambling licenses.

At least two companies interested in the Mississippi River between St. Louis and Caruthersville will be awaiting the commission's finding.

"We were hoping that the commission would rule on a site along the Mississippi in Southeast Missouri next month," said Bob Walsh of Lady Luck's public relations department in Las Vegas. "We feel we have a great case for Scott City, and we're anxious for the decision."

Lady Luck Gaming Corp. has signed a local development agreement with Scott City officials and has filed with the commission for a permit.

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

"All the indications we get are that the commission is not sure when or if it will award another site on the Mississippi south of St. Louis," said Collins.

Collins said Boyd Gaming, which has an operation at Kansas City and maintains an office in Cape Girardeau, will wait until the commission is ready to make an announcement before filing for a second permit. Boyd has signed a development agreement with the city of Cape Girardeau.

In a statement before the monthly commission meeting at Jefferson City, Robert L. Wolfson Sr. told the group that he had toured Kansas City gambling scene and determined that the market was saturated.

"We have the responsibility of determining how much is too much," Wolfson said at a Wednesday commission meeting. The state, he said, must decide whether to allow any more.

He told the commission to analyze gambling in the state and its effects on the economy, offering recommendations on "where we go from here."

The Kansas City area has three operating casinos -- Boyd Gaming, Harrah's and Argosy. Two more -- Hilton and Station -- are under construction and expected to open within six to nine months.

"If we were to assume that those (casinos) now under investigation (and construction) in the Kansas City area were to be licensed, it seems to me we are well advised to re-examine that market before considering any other expansion," Wolfson said.

The St. Louis market includes two operating casinos -- The Admiral in downtown St. Louis and St. Charles Riverfront Station -- but faces stiff competition from nearby Illinois casinos -- Alton Bell and E. St. Louis Casino Queen.

The Associated Press contributed to this report.