GAMING FIRM HAS OPTION WITH RIVER PORT

SCOTT CITY - If voters in Scott County approve a local option for riverboat gambling Nov. 2, Casino Magic Corp. will operate a boat at the Southeast Missouri Regional Port Authority.

Casino Magic is a Minnesota company with its principal offices in Bay St. Louis, Miss. The company has gambling casinos in Bay St. Louis, Biloxi, Miss., and Deadwood, S.D.

Mysie Keene, chairman of the port authority Board of Commissioners, announced that Casino Magic had signed an option to lease 20-25 acres at the port, pending passage of the local option. The agreement could be extended through April.

Keene made the announcement at the monthly meeting of the port commissioners Monday.

Last August Promus, a Memphis-based company with casinos in Las Vegas and along the Mississippi River, contacted the port authority and expressed an interest in having a development there. Representatives of Promus approached the Scott County Commission about putting the issue before voters, and it was placed on the ballot. Promus had promised to pay the approximate $16,000 cost of the election.

Keene said Monday that Casino Magic had agreed to pay for the election and would also be paying much of the campaign advertising costs to win approval of the measure. Keene also said that the port authority would not be involved in the campaign and port commissioners from Scott County could do so on an individual basis.

"We are very pleased to have this news today," said Keene. "We are a long way from the option to the vote and a gambling license, but this is a start."

Keene also announced that the port authority had received a check for $10,000 from the company to pay for the option vote.

Casino Magic officials have not publicly outlined plans for a development at the port other than to extend the 1,800-foot slackwater harbor another 600 feet. The company would create between 500 and 600 jobs with the development.

At its two riverboat operations in Mississippi, investments at each site have been in excess of $55 million. At all three of its casinos, the company employees more than 3,800 people.

At the suggestion of Keene, the board unanimously approved a resolution to earmark all revenues from the gambling development to capital improvements at the port authority.

Several port commissioners acknowledged that there have been some concerns raised about whether a gambling boat would conflict with the industrial development goals of the port authority. But Port Executive Director Dan Overbey said a number of riverboat gambling operations are in industrial areas. The key, Overbey said, is good planning to avoid traffic jams.

Port Commissioner Morty Potashnick of Sikeston said the potential revenue and number of jobs made the board consider riverboat gambling. "The opportunity for all those jobs really was what made the difference," said Potashnick.

He said the gambling boat would provide jobs and income that would stimulate other development at the port.

Said Keene: "We see this as strictly an industrial development thing. It will be a big economic boost for our entire area as well as the port authority."

After Promus decided not to locate at the port, citing "market saturation" as its main reason, Keene said Casino Magic contacted them and quickly began negotiations. She explained that Casino Magic was treated just like any other industrial prospect.

In a letter to the port board, Worth H. Thomas, director of government affairs and community relations for the company, pledged to work with the port and area officials to make the operation successful.

"The fact that local residents make up 85 percent of Casino Magic's workforce emphasizes our commitment to the local community," the letter said. "Each of our casinos are located in small and rural communities," said Thomas. "Historically, we have been a good neighbor in our communities. Casino Magic not only makes significant civic contributions and works with the local communities to plan for future growth, it is part of civic progress. We are excited about being part of your community and its future."

Worth said his company has a history of "fast-tracking" projects, opening Bay St. Louis in 85 days and the Biloxi operation in 84 days.

"We take pride in ourselves in delivering what we promise," said Thomas.

In 1992, Casino Magic had net revenues of $27.138 million, with total assets of $61.293 million.

If voters approve riverboat gambling, Keene said the company would begin preliminary site planning and engineering right away. Before a boat could be docked at the port, a gaming license would have to be granted by the Missouri Gaming Commission.