Mo. House endorses 2-year moratorium on new casino licenses

JEFFERSON CITY, Mo. (AP) -- House members voted Wednesday to ban new casinos licenses for two years, a move that could block proposed casinos from opening in the Kansas City and St. Louis areas.

The bill, which needs another vote before moving to the Senate, comes as the Missouri Gaming Commission considers whether to approve a license for a fifth casino in the Kansas City area.

The House legislation would bar new licenses until 2010, including a license for a casino under consideration for Sugar Creek. But it would also block a casino already being built in St. Louis, because licenses aren't issued until after construction.

Rep. Shannon Cooper said he wants to block only new construction because Gaming Commission members are irresponsibly regulating the industry. He said he would work to change his legislation so it doesn't affect the new St. Louis casino.

Cooper, R-Clinton, said he's particularly worried about a Kansas City market that's about to get even more competition from Kansas.

"We need to step back for a couple of years and need to analyze what's going on everywhere before we start throwing licenses out," he said.

But many Democrats said the commission has turned gambling into a profitable state industry and should be trusted. They said if competition from Kansas is the concern, the Legislature should remove the limit on how much someone can lose while gambling because only Missouri has loss limits.

"If we were in the gaming industry first, why wouldn't we proceed with gusto and create the best gaming industry we can and let Kansas adjust to us," said Rep. Tom Villa, D-St. Louis.

Last month, the Gaming Commission voted to accept proposals for a new casino in Sugar Creek. Only Des Moines, Iowa-based Wild Rose Entertainment has submitted a proposal to build a casino there.

Gene McNary, the executive director for the state Gaming Commission, has said that he doesn't think it's regulators' job to stop issuing licenses to protect businesses from competition. If lawmakers want to restrict new casinos, McNary said, they should pass a law capping them.

The Senate is also considering separate legislation that wouldn't allow any more casinos than those already operating or under construction. That Senate bill also would repeal a law limiting gamblers' losses to $500 every two hours, and it would increase the taxes on casinos to expand a state scholarship program and other state services.

The House's measure just blocks any new licenses for the next two years.

Rep. Ray Salva, who is related to Sugar Creek's mayor, said barring new licenses manipulates the gambling market and favors existing casinos over upstarts.

"We're restraining free trade and limiting competition," said Salva, D-Sugar Creek.

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On the Net:

Casino licenses is HB1929

Legislature: http://www.moga.mo.gov

Missouri Gaming Commission: http://www.mgc.dps.mo.gov