GAMBLING PROFITS AFLOAT; DESPITE COMPETITION, ILLINOIS GAMBLING INDUSTRY DOING WELL

Millions have flocked into the small Southern Illinois community of Metropolis during the past five years for a two-hour visit or more.

Many people have returned, time and time again.

The main attraction for the more than 8.8 million visitors into Metropolis since 1993 has been Southern Illinois Riverboat Casino Cruises Inc., which operates Players Riverboat Casino on the Ohio River at 203 Ferry.

The Illinois riverboat gambling industry remains healthy and stable, even as competition with riverboat casinos in border states intensifies. Revenues for the states' gambling companies was more than $1 billion (adjusted gross receipts, or AGR) in 1997 with almost 25 million admissions to the nine operating casinos.

Gambling revenues were down, however, from 1996 as additional competition in Missouri and Indiana entered the marketplace.

The Illinois Gaming Board's annual report reveals that only two of the state's licensees -- Elgin's Grand Victoria and Casino Rock Island -- reflected notable 1997 revenue gains over 1996. But, Metropolis' Players Casino recorded a small gain, with 2,032,272 visitors, up from 1.9 million in 1996, and AGR of $76,740,757, just slightly more than the $76.6 million of 1996.

The most recent and significant competition, according to the report, comes from Indiana, where six riverboat casinos now operate near the Illinois border. The Hoosier state now has eight riverboat casinos, with AGR of $962.5 million last year.

In Missouri, such operations as Riverport -- a four casino-operation in a moat at Maryland Heights in the St. Louis area; two non-cruising casinos at St. Charles and the permanently docked Admiral in downtown St. Louis provide stiff competition for Illinois casinos at E. St. Louis and Alton.

With the addition of the Riverport complex in March of last year, Missouri now has 11 sites with more than 16 separate casinos, and in 1997 recorded AGR of $651,928,000.

Missouri casinos, however, attracted more than 32 million visitors in 1997, about 20 percent more than the 24.9 million visitors to Illinois casinos.

Missouri has 16 casinos operating at its 11 sites, while Illinois has 13 casinos at nine sites -- The operation at E. Dubuque closed in July of last year.

"As gaming has expanded throughout the Midwest, the competition for the gambling dollar has increased," said J. Thomas Johnson, chairman of the Illinois Gaming Board.

Johnson wrote in the annual report that although full scale competition from neighboring states has brought about a slight decline in revenues for the year, "the industry in Illinois remains a healthy one, far exceeding the General Assembly's original expectations of tax revenues for the state."

During 1997, Illinois' AGR take was down about 6.8 percent. But, the gambling industry generated more than $260 million in wagering and admissions taxes. The state received about $210.9 million in taxes and various communities where casinos are located received $77.7 million.

In Missouri, state and local governments received more than $225 million in taxes.

Many town leaders say gambling has dealt their communities a winning hand.

City officials from Metropolis and Caruthersville, Mo. recently discussed their windfalls from gambling during a Quinstate Community Development Forum held at Metropolis.

After five years as host city to Players Riverboat Casino, Metropolis has taken more than $27 million to the bank.

The funds have been put to good use, said Mayor Beth Clanahan.

"All of our streets, and some alleys, have been paved, we've purchased land for an industrial park and signed an agreement with Illinois Department of Transportation to help finance a four-lane road from Interstate 24 into the downtown area."

That's only a start.

Metropolis residents are paying about 60 percent less for property taxes these days. The city has constructed a new electrical substation and electrical lines at a cost of about $1.9 million. The city also has bought new police cars and a `Jaws of Life' rescue unit, and added some personnel, including police officers and firefighters.

In the planning stage is a new multi-million-dollar water filtration plant, said the mayor.

The city also recently approved funds for a parks and recreation director and provides some funds to the chamber of commerce.

"It's amazing what we have going on," said Clanahan. "One of the things I am proud of is the lining of sewers in some parts of town, preventing sewer backup. Hopefully, we're doing some things that will make a difference in the future."

Players Riverboat Casino has been in the fast lane since it was launched by entertainer Merv Griffin on March 13, 1993. Since then, the operation has produced millions of dollars in revenue for Metropolis city government and merchants.

Included in the multi-million dollar riverboat complex along the banks of the Ohio River in downtown Metropolis are a 1,650-passenger riverboat; a riverboat landing, which includes restaurants and gift shops; a land-based, 120-room hotel adjacent to the riverboat landing area; and the 350-seat Players Theater, which plays host to a number of entertainment productions each year.

Players employs more than 800 workers. The Massac County unemployment rate ranks among the lowest in Southern Illinois. The majority of workers at Players are from Southern Illinois -- Massac, Johnson, Alexander and Pulaski counties. Others are from nearby Western Kentucky.

Tourism and business also benefit from the riverboat casino, bringing more than 150,000 visitors a month.

Like Metropolis, Caruthersville, Mo. has been the recipient of some big bucks since Casino Aztar came to town in April of 1995.

The Mississippi River town of 7,200 residents, located in Pemiscot County, has 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.

Caruthersville's annual windfall is more than $2 million.

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

Aztar came along shortly after a shoe factory had closed in town. The casino helped pick up the slack of 400 to 450 jobs.

Bound by state law to spend casino money only on the public good, Caruthersville has invested in its streets, sewer facilities, business-gap financing, and for morale-building salary increases to city employees. Funds have been set in a revolving loan fund from which people can borrow money for homes and businesses, said Davis.

"We've been using some of the funds to beef up city services -- security, police, fire department -- and street improvements and wastewater needs," said Mayor Rick Davis.