LADY LUCK PITCHES PROPOSAL TO GAMING BOARD

Lady Luck Gaming Corp. has asked the Missouri Gaming Commission to proceed with its investigation of its company. The investigation is a required step to obtain a license to operate a riverboat casino in the state.

Officials for Lady Luck, which hopes to start gambling operations at Scott City and Kimswick, appeared before the Missouri Gaming Commission Thursday. The officials updated the commission on Lady Luck's applications, and requested that the commission start its investigation right away.

"Even though no new gambling sites will be approved for a while, we'd like to get the investigations under way," said Michael A. Hlavasa, vice president of the Lady Luck Midwest Region, which includes Iowa and Missouri. "Once the commission starts issuing new permits, we'd like to be ready."

The commission won't be starting any new investigations at this time, said Harold Bailey of the commission's St. Louis office.

"We don't have the manpower to do it," said Bailey. Four investigations are currently under way, including Harrah's and Players International, which have teamed for a four-riverboat operation at Maryland Heights in St. Louis County.

Bailey added, however, that once all applications had been updated, the commission would look into adding new sites, possibly as early as July.

As many as 35 applications for gambling licenses are on file with the commission.

"That includes the seven companies which are already operating in Missouri waters," said Bailey.

The Missouri Gaming Commission announced in May of 1995 that it would not select any new gambling companies for consideration and investigation within a year to 18 months.

That still stands, said Bailey. A new-site decision could come anytime between May and December of this year.

In December of 1995, the commission requested that all gambling companies that have applied for gaming licenses appear before the commission to update their applications with oral presentations before the commission.

"We told the commission Thursday that we felt the Scott City, Scott County, Cape Girardeau area was ready for a gaming operation," said Hlavsa. On hand at the Thursday meeting were representatives of Scott City and the Little River Drainage District.

Another company, Boyd Gaming Corp., headquartered in Las Vegas, has proposed a gambling operation in downtown Cape Girardeau. Boyd, which operates Sam's Town Casino at Kansas City, has signed a development agreement with the city of Cape Girardeau, but has not filed for a state permit.

Lady Luck, a Las Vegas-based gambling corporation, has already cleared two of the big hurdles which could lead to development of a gambling operation -- an agreement with Scott City and a site agreement with the Little River Drainage District for a site in the Diversion Channel. But, the big loop remaining is operating permit from the gaming commission.

Lady Luck has filed an application to locate a $65.3 million family-oriented development in the Diversion Channel, which empties into the Mississippi River near Scott City.

The company proposes a three-phase development contract which includes a gambling boat, hotel, entertainment center, an outlet mall, an 18-hole golf course, athletic complex with tennis courts, community center and library. An on-site parking facility would handle more than 2,700 vehicles.

The company projects it can have the gambling boat and parking areas off Nash Road near Interstate 55 completed within six months of the gaming commission's awarding a license, with the entire three-phase project to be completed within 2 1/2 to three years.

Lady Luck projections for the first year of operations are for about $3 million for Scott City.

During the first year, $1.6 million is expected from admissions to the boat, based on $1 a visitor. Another $1.1 million revenue is expected from the 2 percent of gambling revenues. With $301,000 in property tax increases, about $128,000 in additional sales taxes based on new business and $69,000 in additional local taxes, it all adds up to the $3 million first-year figure.

Lady Luck has promised more than 1,100 jobs with its casino complex.

Lady Luck and Little River Drainage District agreed to its contract in May 1995, almost a year after Scott City and the gambling company signed an agreement.