A St. Louis casino's closing leaves its gaming license up for grabs and reopens the possibility of riverboat gambling in Cape Girardeau.
Previous plans for a Cape Girardeau casino were foiled after Proposition A passed in 2008 and set the limit on the number of gaming licenses available in Missouri at 13.
"This changes the landscape quite a bit," said Dave Knight, owner of Ole Hickory Pits who along with partner Jim Riley has been acquiring property along the riverfront for a casino project. "We'll be taking this under advisement."
The President Casino on the St. Louis riverfront will close July 1. Its parent company, Pinnacle Entertainment of Las Vegas, will surrender its gaming license after a long battle with the Missouri Gaming Commission. The two organizations have been at odds over the future of the President since last year, when the commission ruled that Pinnacle could neither repair nor replace the casino. Commissioners had also complained that Pinnacle was allowing the President to decline so that its sister property, Lumiere Place, could prosper.
Last week, Pinnacle won a court battle over the President. The Missouri Court of Appeals ruled the commission acted improperly in deciding that Pinnacle could neither repair nor replace the President. The issue was sent back to the Gaming Commission.
Jim Mathewson, chairman of the gaming commission, said it was better for Pinnacle to give up the license rather than have it revoked.
"It's cleaner for everybody," Mathewson said. "They're a good corporate citizen for the state of Missouri."
Mathewson said it wasn't clear when the new license, which could be used anywhere along the Mississippi or Missouri rivers, would be awarded.
"The fact that a license has become available means we should now be able to plead our case as to why Cape should be selected," Knight said.
According to a study conducted by the Missouri Gaming Commission in 2008, Cape Girardeau had the highest revenue potential, Knight said.
"A casino here would bring in more state and local revenue than the ones in Caruthersville, LaGrange and Boonville combined," he said.
Missouri's metropolitan areas are not good locations for new casino developments because the markets there are already saturated, Knight said.
Knight and Riley were planning to apply for a gaming license in 2008 just before Proposition A passed. Their 20-acre development idea included a casino, hotel and entertainment complex.
The Associated Press contributed to this report.
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