SPONSOR: GAMBLING BILL HAS SAFEGUARDS

JEFFERSON CITY - The original sponsor of riverboat gambling legislation in the Missouri House of Representatives says he believes a new bill signed by Gov. Mel Carnahan last week preserves the intent of his bill.

In 1991, legislators approved sending a referendum to voters to allow riverboat gambling on the Missouri and Mississippi rivers in the state. Rep. Herb Fallert, D-Ste. Genevieve, sponsored it. In November of last year, voters approved the initiative, which requires local approval before boats can be licensed in a city or county.

Fallert, who chairs the committee that deals with tourism, originally pushed the riverboat gambling legislation as a tool for tourism. Under his bill, the gambling would have been regulated by the Division of Tourism.

But Carnahan expressed concern about the tourism commission's ability to properly regulate riverboat gambling and, immediately after his election, began pushing for a stricter law that would create a gaming commission to oversee gambling.

"I'm pleased that we got something going," said Fallert. "The people wanted it and we can live with what was passed. I think the governor is happy with it and he is committed to getting riverboat gambling under way as quickly as possible."

Fallert said the legislation may contain too many statutory regulations that could better have been dealt with through rules and regulations imposed by the gaming commission.

"Many things are in the statutes now, but we are in a trial and error process and will have to go through the legislative process to make any changes," said Fallert.

Voters in Cape Girardeau and Caruthersville will decide June 8 whether to allow riverboat gambling. Fallert's hometown is one of several cities that approved the local option in November in conjunction with the statewide vote.

Most Southeast Missouri legislators voted in favor of final passage of the bill last week, including Sen. Peter Kinder, R-Cape Girardeau, and Rep. Mary Kasten, R-Cape Girardeau.

Kasten said she is pleased with the safeguards contained in the bill.

"If Cape Girardeau citizens approve it, I feel it will have adequate safeguards," said Kasten, who voted for the original bill in 1991. "When it first came out, I thought it should be a kind of family thing with a focus on tourism and that the tourism commission would be the best place to regulate it.

"But the more I looked at it, the more I determined it needs to be where it can be strictly looked at. There is an awful lot of power in the commission, but we have some definite guidelines and directions here. It's up to the people to decide whether they want it or not.

Among the 28 House members voting against the bill were Rep. Mark Richardson, R-Poplar Bluff, and Rep. David Schwab, R-Jackson, who are opposed to the concept of state-sponsored gambling.

Said Schwab: "I still have trouble with the philosophy in the state of creating things that are illegal, making them legal, and trying to raise revenue from them. There is something wrong with that philosophy. I have not been convinced it will be that much of a revenue attraction for us in the state."

Schwab pointed out that the range of projected revenue is quite broad, and that with other states getting involved there may not be much revenue left for Missouri in riverboat gambling.

Fallert said even though the five-member commission has already been appointed by the governor, it may be next year before boats can be licensed in Missouri. "I think there is a possibility to get some licenses out this year, but it's hard to say at this point," observed Fallert.

Fallert explained that the bill still limits losses per excursion to $500 per person, and during the first three years of operation, only one license will be given in a particular area except for St. Louis and Kansas City.

Another provision of the new law is that limited licenses can be issued for boats to operate part time in an area that has approved the local option.

Boats are also required to have space set aside for people under the age of 21 separate from gambling areas, and boats are required to cruise during warm weather times of the year, except when the commission determines that safety reasons justifies continuous docking.

The state tax on boats is 18 percent of the adjusted gross receipts, which is what is taken in on gaming minus what is paid out in winnings. The entity where the home dock is located will receive 10 percent of that tax, which is to be used public safety needs related to the gambling boat.

In addition, a $2 head tax is charged, with $1 going to the state and $1 going to the governmental entity. The law also allows for local entities to levy additional assessments on boat operators.

Proponents of riverboat gambling also point out that cities and counties will receive a significant economic impact from tourism dollars and jobs created because of the boat and related services.