GAMING FAILS IN SCOTT

BENTON - Riverboat gambling, promoted as just the economic development catalyst the Southeast Missouri Regional Port Authority needed, was rejected by voters in Scott County Tuesday.

"I don't think they really understood what a good company Casino Magic is and what this economic development would do for our county," said Shirley Young, former mayor of Scott City and treasurer of Scott County Citizens for Economic Development. "I am really disappointed for all those people needing jobs."

Morty Potashnick of Sikeston, a port authority commissioner, said the loss was a blow to the port's ability to generate funds to invest in infrastructure that would attract more industries to the port.

Said Potashnick: "We are very disappointed it did not pass. It is a blow against economic development at the port and stymies the port's ability to continue with any major developments that we need. In order to truly enhance port development, passing of a gaming issue is extremely important."

Potashnick and Doug Whitehead, senior Missouri project coordinator for Casino Magic, agreed it is possible the issue will be back on the ballot next April. The lease agreement Casino Magic has with the port authority expires in April.

Whitehead said it is too early to know whether Casino Magic will ask the Scott County Commission and port authority for another election, but he kept the door open for such a request.

"We recognize the potential of this site," said Whitehead. "We will go back to the drawing board and consider our development plans and make a decision relatively quickly."

The riverboat gaming issue was defeated by 745 votes as 42 percent of Scott County's 21,085 registered voters turned out. The measure lost 4,784 to 4,039, and passed in one-third of the county's 30 voting precincts.

All nine of the Sikeston precincts voted against the issue, several by wide margins.

The largest margin in favor of the issue came in New Hamburg, where citizens voted 133 to 74 for gaming. The issue was also approved in Chaffee Ward 1, both Scott City wards, Oran Ward 1, Perkins, Benton, Diehlstadt, Haywood City, and Kelso. Most of the precincts approving riverboat gaming did so by narrow margins.

Proponents of the issue were shocked by the outcome; there was no organized opposition, though many churches and pastors expressed opposition, and telephone surveys were showing overwhelming support in many parts of the county.

"I am somewhat surprised; the polls reflected much different numbers," said Young. "Apparently people who said they were `yes' did not go vote."

Potashnick compared the issue to the quarter-cent sales tax approved by voters in Cape and Scott counties in 1986 that provided more than $7 million in capital improvement money for the port. He said gaming could have the same impact.

"I'm looking forward to coming back again and hoping it will pass so the port can develop," said Potashnick.

Whitehead said he will now focus his efforts for Casino Magic on St. Louis, where the company is competing for a license at Laclede's Landing.

Casino Magic had proposed a $30-million first-year development on approximately 25 acres at the port authority, which eventually would be expanded into a complete resort and entertainment center. The company projected 800 jobs and a $20 million payroll from its development, which it said would attract more than one million visitors annually.

"Scott County and the SEMO Regional Port Authority have been very gracious and receptive to the ideas we brought to the table," said Whitehead. "The problem was in this short period of time our development concept was not reached by the masses. The people seemed to have a roadblock at gambling and did not see the golf, RV park, entertainment complex and all the components that go into bringing tourism to the area."

Whitehead said even though voters in Cape Girardeau approved gaming his company is not interested in seeking a license there. He also said Cape Girardeau's favorable vote would not necessarily make the Scott County site less attractive to them because his company was prepared for competition.

"We were prepared to see boats at both locations," said Whitehead.

"We looked at the Cape market; however, we were stressing through the campaign the benefits of the SEMO Regional Port Authority site and we are only interested in that site."

Another factor, Whitehead said, is that casinos are a relatively new concept in the Midwest and it takes time for voters to understand their economic development potential. He said that Cape Girardeau's vote was likely helped because gaming had been discussed for nearly a year.

Dan Overbey, executive director of the port, said work will continue at the port, trying to get $2 million worth of projects under way that will be partially funded by an EDA grant.

"We still have a lot of work and will continue to be busy," said Overbey. "Some of our board members have been involved in the campaign, but the staff has been busy with other things."