Senate leader vows to push for vote on expanded gambling

JEFFERSON CITY, Mo. -- Vowing to overcome filibustering foes, a Senate leader pressed forward with legislation Tuesday to repeal Missouri's unique gambling loss limits in response to new casino competition from Kansas.

When Senate Majority Leader Charlie Shields laid aside his bill late Monday night, six hours after the chamber began debating it, he had said his effort likely was over for the year. But after getting some sleep, he came back renewed and determined to reach a vote on the measure.

"I'm patient. I don't need to sleep. I came here to do a job. I believe this is right," Shields, R-St. Joseph, told the Senate on Tuesday afternoon.

"I thought about the thousands of jobs at stake in the Kansas City area, I thought about the millions of dollars in state revenue that's at stake, I thought about the missed opportunity that this body had several years ago when we sent the NASCAR track to the Kansas side," he said, "and I thought about the opportunity for thousands of kids to go to college."

Shields' bill would repeal a state law that limits casino patrons to losing $500 in a two-hour period. It also would levy a new 2 percent tax on most casinos. The expanded state revenue would be used to fund a new scholarship available to most Missouri students attending public or private colleges.

The bill also would limit casino licenses to 16, allowing for three new boats beyond those already in place or being developed. It would stipulate that any future license can be given only for an area where another boat closes.

But it's unclear how the measure will fare even if it eventually wins approval in the Senate.

In 2005, the House passed a bill capping casino licenses at 13, but it never became law. At the time, House Speaker Rod Jetton, R-Marble Hill, said he supported the cap but opposed removing the $500 loss limit and raising taxes on casinos.

Jetton, through a spokesman, declined to comment Tuesday.

The new element in the debate -- and the reason Shields argued that critics of his proposal should give it a chance -- is a new Kansas law allowing state-owned "destination" casinos, which some fear will drain customers and the tax revenue they generate from Missouri casinos in the Kansas City and St. Joseph areas.

The gambling industry and the Missouri Gaming Commission, which regulates the casinos, have for years argued that the loss limits put Missouri casinos at a competitive disadvantage with those in surrounding states. Supporters of the repeal also say the limits do little to curb problem gamblers.

"We're pretty determined to get the loss limits repealed in order that we can compete fairly," said Mike Winter, a lobbyist for the Missouri Gaming Association, which supports Shields' bill. "Our patrons see a lot of requirements currently in place in Missouri as an inconvenience."

However, Winter also said Tuesday that the industry opposes any additional tax higher than the 2 percent proposed by Shields. Sen. Tim Green, D-St. Louis, has proposed that the tax be 3 percent.

Gambling opponents don't want to undo loss limits -- which they note were part of the ballot measure voters approved to allow casino gambling in 1992 -- and raise fears of social costs from expanded gambling.

Sen. John Loudon proposed an amendment to keep loss limits in place and impose a $5,000 fee per slot machine, rather than a new tax, an idea he said would generate at least $88 million a year.

"Eliminating the loss limit means your people and mine are going to increase their sucker factor by a certain percent," said Loudon, R-Chesterfield. "The money they lose is not going to be spent at other businesses."

Sen. Matt Bartle, R-Lee's Summit, a gambling opponent, was at the forefront of delaying a vote on Loudon's amendment and the underlying bill. Monday night he discussed quirky local sayings, marathon training and the state's quail population, among other things. Tuesday afternoon, he focused more on debating the gambling issue with both Republicans and Democrats, even though some expressed support for the legislation.

Supporters say Kansas could eventually reap $200 million a year in revenue from the casino legislation. Shields estimated Missouri could lose up to $38 million in state tax revenue from customers flocking to Kansas casinos.

Legislative staff estimated that state revenue could increase by $49 million to $100 million a year from the repeal of loss limits, and Shields said the additional 2 percent tax could mean $24 million more.

Tuesday marked the fourth time the measure, in some form, has been debated in the Senate this year.