RIVERBOAT GAMBLING MEASURE ADVANCES

CAPE GIRARDEAU - Missouri moved a step closer to joining neighboring states in allowing riverboat gambling last week when the House of Representatives approved a bill that would let voters decide the issue.

Rep. Herb Fallert, D-Ste. Genevieve, chairman of the committee on tourism in the House, sponsored the bill, which was approved by an 86-68 margin.

"We came out with about the number of votes that we had planned," said Fallert, who contends riverboat gambling will be a major boost to the state's tourism industry.

"I think it's a good bill and I think we're in pretty good shape right now for getting it passed."

Rep. Mary Kasten, R-Cape Girardeau, expressed her support for the measure during debate on the House floor and stressed it could help communities located along the river.

"It's important to give the people a choice. It's important for those of us living along the river," declared Kasten.

She agreed with Fallert and other supporters of the bill that allowing gambling on riverboats would develop tourism along the river and would also provide recreation for families that might enjoy a river cruise.

Under the law, only people 21 or over could be in the gambling area, and it specifies an amount of space be set aside for children and those not wanting to participate in the gaming.

If the legislation passes, voters would have to approve it in November and then cities or counties where the boats would be docked would also need voter approval to receive a license.

Sen. John Scott, D-St. Louis, is handling a similar bill in the Senate. After Fallert's bill passed Thursday, he asked that his be temporarily set aside. Fallert said he has talked with Scott and believes the senator will handle his bill in that chamber.

"It's going to be tough getting through the Senate. It will be close," predicted Fallert. "There are some conservative new members over there this year, but from what I hear we might be able to pull it through."

Sen. John Dennis, D-Benton, said Friday, "I think it will pass if there are not a lot of amendments on it."

Dennis said he is concerned about the costs of enforcing the bill and some of the provisions that might be added in the Senate. Dennis said his chances of supporting the bill right now are 50-50.

"If it's a clean bill, I might go for it. I think most of us are waiting to be convinced," declared the senator.

Rep. Dennis Ziegenhorn, D-Sikeston, said he voted for the bill because of its economic development potential for the state and said he hopes a boat could be docked in Cape Girardeau.

He pointed out that states like Iowa and Illinois have already approved riverboat gambling and other states are considering it.

"There are going to be gamblers, there's going to be somewhere they can go, so let's take advantage of it," said Ziegenhorn. "It's voluntary taxation. You can take dirty money and launder it into clean money."

Ziegenhorn pointed out that gambling is already going on in the state and it's not hard for someone to find a place to make a bet. "A guy who is gambling away milk money for his kids is doing it now anyway; he doesn't need a boat to help him gamble.

"We're not trying to encourage gambling. We're just saying we know it's going to go on, so why not have a way to get tax revenue from it and help increase tourism," observed Ziegenhorn.

Rep. David Schwab, R-Jackson, said he gave the bill serious consideration before deciding to vote no. He pointed out that many of his constituents had expressed opposition to the legislation.

"It has some positive aspects as far as tourism goes," Schwab said, adding that he doubted the benefits to Cape Girardeau would be very great. "I fail to see all the benefits that supporters said this would bring.

"It concerns me that in state government we like to promote gambling or something that is illegal and then tax it to raise funds for the state. I'm kind of concerned about that kind of policy," observed Schwab.

Fallert admitted that changes put on his bill in the House were not all to his liking, but does not feel the intent of the measure has been altered.

One part of the bill he does not like is that it provides that a proven, compulsive gambler can have lost money refunded. Fallert is unsure how to prove someone is a compulsive gambler.

Other features of the bill: it limits loses to no more than $500 per excursion, it earmarks 5 percent of the taxes collected from riverboat gambling to rural tourism development, and would also provide additional revenues to cities and counties where boats dock.

Fallert stressed the bill would generate about $25 million a year for the state in new taxes.

Last Monday, a recently passed law in Iowa allowing riverboat gambling took effect and Fallert feels positive publicity about it helped his bill pass the House.

"All the press was pretty positive and everything went pretty smooth. There was a good class act for launching the operation," said Fallert.

"I think people had a little better feeling about it from the publicity in Iowa. We had some representatives who were marginal about this bill; this was a tough vote for them."

Schwab agrees that Iowa publicity helped get House passage. He pointed out that several tour groups have been advertising in the state for people to go to Iowa, and the discussion about the start of riverboat gambling in Iowa may have made some legislators feel better about voting for the bill.