Mo. Senators roll out idea for video lottery terminals; some fear they would hurt casino revenue

Some Missouri lawmakers are gambling on legislation to allow video lottery terminals to be placed in convenience stores, restaurants, bars and other establishments that have liquor licenses.

Supporters argue a Senate bill, which was recently heard in committee, will generate additional revenue for the state and create jobs.

The state’s lottery commission would license the operations.

Opponents contend the legislation will hurt casinos, force them to reduce employees and harm cities such as Cape Girardeau that receive casino revenue.

Cape Girardeau city manager Scott Meyer voiced concerns Tuesday about opening the doors to more gambling activities, and said it also could lead to less casino revenue for the city.

Cape Girardeau receives about $3 million annually in casino revenue, which has been used to fund downtown improvements and such projects as a new police station and a dog park.

City policy prohibits use of casino money for general operations and recurring expenses such as salaries.

Meyer said officials at Isle Casino Cape Girardeau, which opened in Cape Girardeau in 2012, have suggested the measure could reduce its revenue and force it to lay off employees.

The Southeast Missourian reached out to the Isle Casino for comment Tuesday, but officials from the casino did not respond to the requests.

Meyer said the legislation goes against Missouri’s long-standing policy limiting casino gambling. Thirteen casinos operate in the state, most of them in the St. Louis and Kansas City areas.

“I think it really gets away from that approach,” he said.

The measure would allow establishments to have a maximum of five lottery terminals, except for fraternal and veterans’ organizations, which could have 10 terminals.

Meyer said that would greatly expand gambling in Cape Girardeau, allowing “slot machines everywhere.”

But unlike slot machines, video lottery terminals are connected in a network and games are programmed to pay winners at specific times and have a fixed number of wins and losses.

The city manager questioned whether the Cape Girardeau police would have to handle enforcement efforts as they do with liquor-law violations.

Missouri law prohibits individuals younger than 21 from gambling. Meyer suggested it could be difficult for liquor-license establishments to police underage gambling.

But David Cantrell with VFW Post 3838 in Cape Girardeau likes the idea.

“I could see definite (financial) benefits,” he said.

Under the Senate bill, 36 percent of the video lottery game adjusted gross receipts would go to the state lottery fund, a move designed to provide more funding for education.

The remainder of the revenue would go to the operators of the video terminals and the businesses and organizations that house them.

“It would be a home run for a post like 3838,” Cantrell said.

Cantrell said when Isle Casino opened more than six years ago, the VFW Post took a hit financially with fewer people buying VFW pull-tabs, tickets similar to scratch-off lottery tickets.

Instead, those gamblers spent their money at the casino, he said.

mbliss@semissourian.com

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